I. Introduction

II. Discussion of transitions at Philips

A. Motivation for globalization

B.

III. Discussion of transitions at Matsushita

IV. Strengths at Philips

A. Nos were sensitive to local issues in products and marketing

B. Nos were complete business units with complete management teams: technical, admin, marketing.

IV. Reasons for failed change

A. Fifedoms

1. North America Philips used a different manufacture

A. Communications problems

1. People identify themselves with a job position, change disrupts their self-identity

2.

B. Country Laws

1. Couldn’t layoff workers econimically

C. Culture Clash

1. Having a mix on the same management team

D. Management resistant

1. Matsushita management didn’t want to make harsh changes (pg 363)

IV. Conclusion

Recommendations:

1. Mat’s internal entrapenurism was great - implementation of local diversity too late.

2. Philips - Nos independence should have been turned into strength. Company should have broken into separate companies. They the parent company could sell off divisions rather than attempting to lay off. After forming a decentralized federation, they could convert to an integrated network model.

I. Introduction

II. Discussion of transitions at Philips

A. Motivation for globalization

B.

III. Discussion of transitions at Matsushita

IV. Strengths at Philips

A. Nos were sensitive to local issues in products and marketing

B. Nos were complete business units with complete management teams: technical, admin, marketing.

IV. Reasons for failed change

A. Fifedoms

1. North America Philips used a different manufacture

A. Communications problems

1. People identify themselves with a job position, change disrupts their self-identity

2.

B. Country Laws

1. Couldn’t layoff workers econimically

C. Culture Clash

1. Having a mix on the same management team

D. Management resistant

1. Matsushita management didn’t want to make harsh changes (pg 363)

IV. Conclusion

Recommendations:

1. Mat’s internal entrapenurism was great - implementation of local diversity too late.

2. Philips - Nos independence should have been turned into strength. Company should have broken into separate companies. They the parent company could sell off divisions rather than attempting to lay off. After forming a decentralized federation, they could convert to an integrated network model.

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