Key Resources & Capabilities
Philips
Philips has thrived on its technological prowess, which is a result of their strong focus on research and development. Specifically, Philips maintains a product-focused strategy and their highly decentralized National Organizations allow them to adapt to different market conditions globally. Human capital has historically been a key resource for the company, as they focused on caring for their workers and coordinating business efforts in a cross-functional environment (i.e. technical and marketing managers working on projects together), but frequent leadership turnover and seemingly endless turnaround efforts have weakened this valuable capability. It is arguable, however, that the cross-functional culture is still active at Philips and most of the top management team has completed foreign tours of duty.
Matsushita
In contrast to Philips, Matsushita’s success stems from highly efficient and centralized operations. Also unlike Philips, Matsushita’s numerous domestic retail outlets in Japan are ideal for the sale and distribution of their products and provide valuable market research opportunities and capabilities. Both the structure and culture at Matsushita encourage an entrepreneurial drive in their employees and divisions, as they compete for funds to develop new products, and extraordinary communication exists between the international operations and the home office in Japan.
Opportunities Present in the External Environment
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1. Describe the HP organizational Culture. What are some implications of this culture for developing new innovations? What is evidence of R&D’s dominance in HP?
The performance of each company is different from time to time based on their two different international strategies. Philips, for instance, showed poor struggles between national organizations and product divisions since there was no centralized decision –making terminal. In the end, the national organizations held the power because they were in control of the assets. Being in control of assets, the national organizations had more influence on the management team. Also the lack of clarity between the two’s responsibilities did not allow Philips to function effectively as a whole. They did have one thing going for them though. Philips was able adapt to changing markets based on their localization strategy. They
Philips and Matsushita have over one century long history. Philips is based in the Netherlands and Matsushita based in Japan. Both based in fairly small countries and it was not long before they went global. Both of them can say that they had the ups and downs. They went through World War II and survived it. During their century in business survived the economic down turns. In general, Philips built its tenured success on a portfolio of responsive national organizations. On the other hand, Matsushita based its global strategy on a centralized and efficient operation through Japan. As they developed and reorganized their international strategies, each company was forced to undertake its strategic posture and restructuring as its competition position fell. In the past few decades technology changed rapidly and at the same time strategies for both companies at the same time. To
Organizational cultures that can be a liability to an organization include those that create barriers to change, create barriers to diversity or barriers to mergers and acquisitions. (Robbins, S. P. 2011) Organizational cultures are also good for change and revitalization of a company. This paper will provide background information on Best Buy and the ROWE (Results-Only Work Environment) Program. This paper will describe the culture of Best Buy. This paper will also discuss the approach to organizational change that the ROWE program illustrates. This case has sources of stress and this paper will discuss the sources that are apparent in the case. Changes have occurred
With the broad range of expertise in engineering and technology the company has certainly become and innovative leader. “So the company also takes the advantages of the new technology innovation in order to improve the efficiency and quality of the products. By utilizing the efficiency of the workforce, the company can posses the highest quality products and control over the 45% industry all over the world” (Brainmass, 2008, pg. 1).
Philips and Matsushita add together more than two hundred years of history in the high technology consumer electronics industry. During this period both companies followed contrasting strategies and experienced disruptive changes in its environment forcing them to review, adapt and implement new corporate strategies. The following case synopsis focus on how these companies developed different organizational capabilities, and how the quality of implementation and control affected their performance in the long run.
From the start Ibuka and Morita were determined to develop a global market for their products (Global 50). During the early 1950’s Japanese products suffered from the public perception of their “poor quality” as compared to products made in the United States (IJ 106). Morita reasoned that if Sony was going to enter into the manufacturing and sales of electronic equipment, it was necessary to establish a market presence in the United States (IJ 107). Thus in 1952, Morita decided to traveled to the United States in order to examine how US companies manufactured and marketed tape recorders as well as to examine potential market opportunities for Totsuken exports (IJ 107)
The arrival of Gerald Kleisterlee in 2001 brought organizational changes to Philips that is evident in the marketplace today. The new CEO restructured the company by outsourcing mobile phone production to CEC of China and the production of VCRs to Funai in Japan. This was followed by the outsourcing of TVs, CD players and components with simultaneous movement of remaining in-house production to countries like China, Poland and Mexico, who had lower costs. He also sold off several businesses, including the core semi-conductor business. What evolved was Kleisterlee’s vision for a new Philips – a lifestyle company centered on health and well-being – which organized around healthcare, lighting and consumer lifestyle.
Royal Phillips Electronics drastically suffered from poor performance and as a result filed bankruptcy. Many couldn’t believe that they have filed bankruptcy based on great sales. They were very innovative with their products including the head shaver, compact cassette, and the CD. Despite, being Europe’s largest electronic company, Phillip’s profits were not up to par and sales were drastically declining. While the company was on a downward spiral, Gerald Kleisterlee took over as company President and made some adjustment and daring decisions that put the company on the forefront. The company went through a substantial restructuring that allowed for growth and an increase in profits within the company. The new President allowed for the company to revamp and allow for not only growth to occur but a shift in the mission and values of the organization. With the vast change in the company the business was simplified and made even smaller, which allowed for the top level executive to focus solely on the business and employees at hand. This in turn allowed for a substantial amount of strategic planning and implementation of new ideas that caused the company to reevaluate what caused sales to decrease in the first place, and allow for drastic change. Once Kleisterlee developed strong new innovative ideas, which would cause substantial change throughout the organization as a whole, the organization started to develop. The atmosphere and culture shifted, which in turn
If we can acknowledge that our current culture is ineffective we can modify the vision in which we as an organization can adequately relate to this particular market segment. Organizational or corporate culture covers many facets of organizational life, such as management styles, appraisals, rewards, and communication styles used by employees. If we can adjust too many varying styles of management, which includes myself, I believe that our control over this new market will be so strong that many competitors will attempt to become strategic partners. If this does evolve into new business partnerships then our leading edge towards new and improved innovation will be the benchmark for other corporations to follow. Not only will we be a leader in
Great business network and relationship with other companies and partners in both local and foreign markets
These minor details are what set Electrolux apart from the competition. The company’s ability to function as a team allowed them to gain different perspectives and create in a shorter time period than the rest. The case study proves that when it comes to the consumers, they do not care about price as much as they do effectiveness. If the product gives the consumer exactly what they need and want, they are more than willing to pay the price. A company’s success depends solely on each department’s ability to function as one and without teamwork this task is impossible.
“It’s a Sony!” Sony is one of today’s leading brand in electronics, from personal to home entertainment audio and video system, communications gadget, broadcasting and other professional electronic devices, personal computer, digital camera, to robots. Sony Corporation is a Japanese electronics giant, and has now evolved into a multinational company. This essay brings to light Sony Corporation’s organizational culture and structure. Also, it is going to analyze the extent in which organizational culture and structure impede or contribute to the effectiveness of the organization. The following paragraph shows a brief history of the work organization.
Bosch, the successful leading supplier, technology and service worldwide company, together with its 350 subsidiaries and affiliates, not only the fact that Bosch is a giant operation , but also, the largest supplier automotive components, operating over 260 manufacturing locations and located in more than 150 countries in Europe, Asia, North America, Africa and Middle East. The operations of Bosch can be divided into four business sectors: Mobility solution, Consumer goods, Industrial technology, and energy and building technology. The success of Bosch is undoubtedly attributable in great part to its global presence. The company mainly focuses on innovation, invention and development of the products and technologies, as its slogan “Invented for life”. My internship took place in Thailand, at Bosch Automotive. I was working in the Chassis Systems Control department for Sales Original Equipments (CC/SOE1) as a sales coordinator responsible for ASEAN and Australia market, my task and responsibility are quotation and agreement letter preparation, Price management (creation/change) in ACCPAC-system, Sales forecast planning support, General admin support, Presentation preparation for management/customers/etc and Powered Two Wheeler (PTW) and Chassis Systems Control marketing support.
Philips is a diversified technology company active in the markets of healthcare, lighting and consumer well-being. The headquarters are in Amsterdam (Netherlands). Royal Philips Electronics of the Netherlands is a diversified health and well-being company, focused on improving people’s lives through timely innovations. As a world leader in healthcare, lifestyle and lighting, Philips integrates technologies and design into people-centric solutions, based on fundamental customer insights and the brand promise of “Sense and simplicity.” (PHILIPS, 2014)