Revival of Matsushita

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Case Details:			Price:
Case Code	:	BSTR101	Electronic Format: Rs. 300; Courier (within India):Rs. 25 Extra Themes Corporate Restructuring
Case Length	:	11 Pages
Period	:	2000 - 2004
Organization	:	Matshushita Electronics
Pub Date	:	2004
Teaching Note	:	Available
Countries	:	Japan
Industry	:	Consumer Electronics

Abstract:

The case describes how Matsushita, the consumer electronics giant had evolved over the years.

It starts with a description of the growth of Matsushita over the years and goes on to explain the problems that the company faced in the 1990s. The case explains the reasons for Matsushita's declining performance.

It also discusses the restructuring initiatives taken up by the company which helped it improve its performance.

Issues:

» How changes in the external environment can affect the performance of an MNC, dramatically threatening its leadership and survival and rendering its strategy redundant

» How a company responds to changes in the external environment to restore profitability and market share through a turnaround strategy