Abstract:

The case describes some of the organisational and administrative challenges of Matsushita - one of Japan's most successful multinationals - as it tries to respond to some emerging changes in the strategic requirements of its different businesses. The case illustrates some of the problems being faced by classic 'global' companies who maximise efficiency through a highly centralised mode of operations, and the difficulties that are experienced by these companies in developing a more 'transnational' approach of optimising efficiency, flexibility, and innovation at one and the same time. Teaching objectives include (1) providing a relatively rich understanding of the internal working of a Japanese multinational, and of the strengths and vulnerabilities of this mode of operations; (2) illustrating, in the context of a specific international industry, the limitations of an undimensional strategy based purely on achieving the highest possible efficiency and the need for multinational companies to pursue global efficiency, national responsiveness, and worldwide learning and innovations simultaneously, and (3) discussing some of the challenges of managing strategic and organisational change in large and diversified multinationals as they try to become more 'transnational' in their approach.

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