Management practices are essential in a business since they provide the way forward for the company to grow from the local level and traverse international borders. A business must have different plans to attain a good reputation and improve product consumption by the international community. The management must bring together additional considerations in achieving efficiency and attract the external community to consume its products entirely. Therefore, businesses must understand their SWOT analysis as they prepare to penetrate new markets. Phillips is an international brand that has identified its SWOT analysis for a long time and has utilized it to build its brand image from scratch and extend its operations to global markets. Prosperous businesses have many things, from management to market extension plans, competition approaches, and customer maintenance policies. The report analyzes the relationship between Philips versus Matsushita: The Competitive Battle Continues with other techniques used by The Need for a Corporate Global Mindset, Jollibee Foods Corp. International Expansion, and Lincoln Electric: Venturing Abroad and Lincoln Electric’s Harsh Lessons from International Expansion.
Phillips and Matsushita’s SWOT Analysis
Philips used its strengths to intensify operations by identifying new product improvement policies that attracted and maintained customers, making it a more successful brand. Phillips made timely decisions regarding production and sales management when Wisse Dekker decided to shut operations from the inefficient firms and focus on the productive ones, thus leading to a closure of 40 of the 200 firms across Europe. The decision to close operations in these firms helped the company to eliminate the companies contributing to losses and focus on those with higher profits. The timely decision-making influenced Phillips’ performance since it enabled efficiency in targeting customers and developing products based on consumer demands. Moreover, Philips obtained a competitive advantage in the production line by developing products with a more innovative approach that attracted a customer base and upgraded product quality (Bartlett, Philips Versus Matsushita 6). However, Phillips encountered some weaknesses in its product delivery when it shifted its focus to cost-cutting, where the measures it used discouraged and demotivated the workforce.
On the other hand, Matsushita had a vast production capability that aided it in determining the production scale based on the market demand. The easy management of the production units helps eliminate extra costs that the company incurs in the production of excessive units hence eliminating losses and price drops. Furthermore, the company has substantial market ideas that motivate internal competition among the employees and the management, thus improving product quality and increasing revenue (Bartlett, Philips Versus Matsushita 13). However, the internal competition limits total effective performance since the managers may shift from the primary goal of organizational unity and success to personal achievements to attract recognition. Matsushita lacks enough resources to run its operations effectively, thus limiting its production capability. Understanding the SWOT analysis empowers businesses to obtain better strategies that improve their performance.
Philips versus Matsushita: The Competitive Battle Continues Vs Jollibee Foods Corp. International Expansion
Jollibee Food Corporation started operations as an ice cream parlor but later diversified its products to other foodstuffs to increase the revenue it obtained from its activities. The business’ had many employees whose vision relied on the five F’s that stand for; friendliness, favor, flexibility, families, and fun. These five ‘s motivated the employees to provide quality products and focus on consumer satisfaction. Many customers referred to the company to fight for a second position in the market behind McDonald’s despite its performance that focused on improving the employee experience (Bartlett, Jollibee Foods Corporation 5). Jollibee faced many financial challenges and a lack of resources when competing with McDonald’s, just like Matsushita. The lack of resources in both Matsushita and Jollibee prevented the expansion of the marketing workforce to advertise their products and significantly affected the invention of new ideas and innovations. From both cases, it is clear that the lack of resources affects the performance of firms and leads to limited execution of the business plans to counter competition, thus limiting the market control power.
Philips versus Matsushita: The Competitive Battle Continues Vs The Need for a Corporate Global Mindset
The management department of a business is very vital since it aids in determining many performance cases and encourages firms to make specific decisions. Prosperous companies must decide whether to expand into international markets or remain local. The expansion to global markets can have two impacts on a business. The outcome of the international markets may be either positive or negative where the former is profitability while the latter is losses. Philips acknowledged these impacts and initially decided to focus on the local market, where the production aimed at becoming the regional leader in the sales of electric bulbs and satisfying the different customer preferences locally before expanding to the international ones (Begley & Boyd 3). The global mindset is a critical component for solid businesses and requires managers with a global mentality, which stands for an understanding of both the global and local markets. Phillips understood this requirement of proper management and thus expanded its top leadership to 10 people who played the oversight role on the Nos. Expansion into the international market requires highly trained and sensitive people to identify market opportunities in the new market.
Philips Versus Matsushita: The Competitive Battle Continues Vs Lincoln Electric: Venturing Abroad
Organizational management is vital for businesses since it analyzes the key factors encouraging prosperity. Lincoln’s founding philosophy focused on employee satisfaction since the administration understood that employees were more efficient when they received higher incentives. The business progress motivated Michael Gillespie to rethink its operations and consider expanding them to international markets rather than focusing on the local United States market. James F. understood that human motivation was vital for the organization’s development. Lincoln company ensured its employees received the incentives of piecework, annual bonuses, guaranteed employment, and limited benefits (Hastings 7). The action motivated workers to generate new ideas for the innovation of the products hence encouraging diversification. Similarly, Philips identified with human motivation and mainly issued the management roles to family members, improving commitment to the development. The political outlook in the target market is a crucial contributor to the success of a business, as illustrated in the report for both Jollibee Food Corporation and Lincoln Electric. The companies must consider the political outlooks of both the local and international markets before joining them.
Philips versus Matsushita: The Competitive Battle Continues Vs Lincoln Electric’s Harsh Lessons From International Expansion
The international market expansion without proper planning and linkage with the organizational goals contributed to Lincoln’s failure in performance in the international market. Willis decided to expand the operations hastily without analyzing the outcomes. The company spent massive amounts of money to acquire other firms and operationalize globally (Harvard Business School 2). Lincoln’s failure to intercept the external market and languish in huge debts is a lesson that managers must learn that expanding companies should be an organizational and not a personal goal, ensuring commitment from all stakeholders.
Modern-day organizations learn from the three cases on the factors to consider while making a global expansion. IKEA a global furniture selling business has improvised its penetration into the international market by minimizing the expenses it incurs in promoting its operations. The business utilizes modern technology to ensure global penetration. IKEA uses modern marketing strategies like the use of online and social media promotion activities (Al-Zghool 22). The process reaches the majority of the target audience within a short time and at extremely lower costs. The company thus receives the customers’ demands and complaints directly. Companies must understand that globalizing activities require commitment and focus since it requires capital, which must be smaller than the profits. Therefore, unlike Lincoln Electric’s failure to understand the market it tried to intercept. Walmart another global company has improved its stature in the retail industry by creating a strong and determined workforce that aided in its expansion. The expansion plan was not based on individual effort but rather on a communal project. The company allowed its employees to purchase stocks within the company hence motivating them to ensure its operational success (Kulllberg et al. 2). The Lincoln Electrics plan has played a critical role in influencing other companies’ sustainability.
Works Cited
Al-Zghool M., (2020). “An evaluation of IKEA’s global position and marketing standing.” pp. 1-44. Web.
C. A., (2001). Jollibee Foods Corporation (A): International Expansion. Harvard Business School, pp. 1-23.
Bartlett C. A., (2009). Philips versus Matsushita: The Competitive Battle Continues. Harvard Business School. pp. 1-20.
Begley T. M. & Boyd D. P., (2003). The Need for a Corporate Global Mind-Set. MITSloan Management Review, vol. 44, no. 2, pp. 1-10.
Hastings, Donald F. “Lincoln Electric’S Harsh Lessons From International Expansion”. Harvard Business Review, 1999, pp. 1-12.
Harvard Business School (1998) Lincoln Electric: Venturing Abroad. Harvard Business School. pp. 1-22.
Kullberg, Lauren, and Kristian Braekkan. “The Ethical Dilemma of Globalization.” Journal of Economics 6.2 (2018): 1-4. pp.1-4. Web.