Linköping University
Dep’t of Management and Engineering
Business admininstration
Per Åman
Dynamics of International Management 2012
Seminar 4
Philips and Matsushita case assignment
Group assignment, graded,
This classic case on the road towards a globally integrated strategy and organization will
serve as a starting point for discussing consequences for structuring the contemporary
international firm and to integrate and ’exploit global presence’.
A. What were the strengths and weaknesses of respective firm in 1970?
Philips: what is a National Organization (NO), och what role does it play?
Matsushita: how are the product divisions controlled and what role do they
play?
What was the extent of ’global presence’ in 1970? What was the difference
between the companies in acheiving ’global presence’?
Why did the companies need to change?
Philips: what was The Yellow Booklet? What did it say?
What was the direction of change/ what solution were they shooting for?
B. Make an Integration / Responsiveness grid graph. Locate each company in 1970, 1990
and 2001 in the graph.
What are the main reasons that you see a change from 1970 to 1990?
C. What is the structure for respective firm in 2001? Do you see the change as final and
successful? Have the firms managed to improve their firm specific advantage (FSA), and
if so in what way? If not, what is holding the firm back?
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D. Value chain activites. Choose three different activities of the value chain that you see
as key for either Philips or Matsushita, and, using the ’architecture – competence –
coordination of Gupta et al (ch 4, p102), and design an optimal solution for each
function.
E. Given the background of the case and the situation in 2001, what, in your opinion,
would be one or two key processes, or capabilities, in order for each firm to successfully
’integrate and exploit global presence’.
Your assignment:
is to prepare a 4-5 page report based on the issues above. Prepare a presentation to the
class, no longer than 8 minutes, focusing on C, D and E. Upload the report and PPTs by
Friday 10.00.
Readings:
Gupta et al ch 4, ch 5
Case text hand-out
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