Philips versus Matsushita
Case summary of Philips: The company has built its success on worldwide portfolio of responsive national organizations (NO). The company was established by Gerard Philips and his father opened a small light bulb factory in Eindhoven, Holland in 1892.The company faced a tough fall. Gerald then recruited his brother Anton, a salesman and manager. In 1900 it became the 3rd largest producer of light-bulb in Europe and in 1912 Philips was incorporated. The company didn’t opt for diversification and was the leader in industrial research; it had physics and chemistry labs which were basically meant for the company’s production process. The Lab developed a tungsten filament bulb …show more content…

| Efficiency in using the local resources. |

Attempts at Reorganization of Philips: a) REASONS FOR CHANGE: i) Creation of common European market eroded rationale for country level subsidiaries. ii) New transistor based technologies demanded larger production runs at fewer larger facilities iii) Ability to bring innovations to market began to falter (e.g. microwave oven) b) RATIO ANALYSIS * Operating ratio = ( operating profit/sales)*100 In the year, 2000 = 11.31% 1995 = 6.3% 1990 = 3.77% 1985 = 4.5% 1980 = 4.31% 1975 = 4.6% 1970 = NA * Return on total assets = net income available to common stock holders/stock holders equity 2000=56% 1995=23% 1990=22% 1985=31%