Health Essay

287 WordsSep 7, 20152 Pages
Matsushita gained early success as an adopting a divisional style structure which leads to create a small business environment that generated internal competition which then spurred each business to drive for more growth and innovation of products. Matshushita had a broad line of products and dominated large portion of the domestic retail outlets in japan which not only assured them sales volume but also product line expansion and excellent distribution. Matsushita provided each division with funds which enabled them to be largely self-sufficient in both the development and production side, also in the marketing capabilities. Corporate treasury worked almost like a commercial bank as it reviewed division loans and requests for different markets and economies. While basic technologies were developed in a centralized research laboratory (CRL), product development and engineering took place in each of the product divisions. Distinctive strategic competencies and strengths- Matsushita had over 700 expatriate Japanese managers and technicians on foreign assignments primarily to play an important role in communication. These managers were mainly used to translate matsushita’s philosophy abroad. “Operation localization “ Subsidiary managers would have to visit Osaka at least 2-3 times each year, some as much as every month , this allowed for face to face meetings which were considered vital when discussing figures and development of organization. Subsidiaries had more choice over what products they sold, each year they would aloow for new product lines to be presented to managers and they would be able to negotiate changes of products, features, quantities and even prices that they felt could meet local needs better. Strategic incompetence’s- Organizational Disability - Local sourcing had weakened the divisions direct control, so instead of

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