Summary , matsushita
Summary of Matsushita:
Matsushita was created by a 23 year old engineer in 1918 by producing double socket in his house. The company grew very fast to acquire 162 employees in 1932. Matsushita announced a plan of 250 years focusing on the seven spirits of Matsushita. Before the war, the company produced more than 5000 product and opened 25000 domestic retail stores. It was the first company to apply divisional structure. Competition between divisions was hard. After the innovating division earned high profits he took it off to a new division to decrease the tension of inter division competition. Funds were given to each division for development production and marketing. The treasury worked like a commercial bank: they reviewed the division loan request. Each division profits were calculated after deducting the central services. Each division paid 60% to headquarters and financed working capital and fixed assed in the next 40%. If the profit decreased fewer than 4% for 2 successive years in a division its manager was replaced. Matsushita was known as a copycat. Matsushita wasn’t able to find an American investor. He only invested in a licensing with Philips.
He started by producing black and white TVs and went overseas to open his first branch office in America. They sold TV to a retail shop under the Matsushita name. In 1960, branches opened in Asia, Central and South America. As manufacturing cost increased in Japan, Matsushita was forced to open factories in low-wages countries, however high value product were still produced in Japan. In the 1970’s political reasons forced Matsushita to open plants in the US, Canada and Europe.
Matsushita’s VCR allowed him to be first in the consumer market, he copied the design of Ampex a US company. Several formats were developed however Matsushita was forced to adopt VHS format. In 1977, he increased the volume of the VCR reaching 6.8 million units for the company itself and other companies such as GE and Philips. The
Matsushita was created by a 23 year old engineer in 1918 by producing double socket in his house. The company grew very fast to acquire 162 employees in 1932. Matsushita announced a plan of 250 years focusing on the seven spirits of Matsushita. Before the war, the company produced more than 5000 product and opened 25000 domestic retail stores. It was the first company to apply divisional structure. Competition between divisions was hard. After the innovating division earned high profits he took it off to a new division to decrease the tension of inter division competition. Funds were given to each division for development production and marketing. The treasury worked like a commercial bank: they reviewed the division loan request. Each division profits were calculated after deducting the central services. Each division paid 60% to headquarters and financed working capital and fixed assed in the next 40%. If the profit decreased fewer than 4% for 2 successive years in a division its manager was replaced. Matsushita was known as a copycat. Matsushita wasn’t able to find an American investor. He only invested in a licensing with Philips.
He started by producing black and white TVs and went overseas to open his first branch office in America. They sold TV to a retail shop under the Matsushita name. In 1960, branches opened in Asia, Central and South America. As manufacturing cost increased in Japan, Matsushita was forced to open factories in low-wages countries, however high value product were still produced in Japan. In the 1970’s political reasons forced Matsushita to open plants in the US, Canada and Europe.
Matsushita’s VCR allowed him to be first in the consumer market, he copied the design of Ampex a US company. Several formats were developed however Matsushita was forced to adopt VHS format. In 1977, he increased the volume of the VCR reaching 6.8 million units for the company itself and other companies such as GE and Philips. The