Case analysis problem. Managing in a Global Economy.

Case Analysis Problem
Student’s Name
Institutional Affiliation
Case Analysis Problem
Question 1
The option of extending into foreign markets resulted from the small domestic market. Therefore, Philips explored international business earlier compared to other firms. As the Second World War started, the company had already expanded into foreign markets. The local firm learned how to evaluate clients and draw lessons that allowed them to adapt to the specific needs of the market within a certain nation. After the war, the company had already gained much success and was able to adapt to the specific needs of the country. There were also specific national organizations in different nations, which assisted in penetrating the markets easily. These organizations assisted in the distribution of products to clients, taking of particular needs of the customer, and addressing the challenges of these markets.
When the firm became a multinational in the 1930s, it became a leading supplier of electronics as it focused on one product instead of diversifying. There was also leadership in sectorial research, with independent national entities to manage the specific needs of clients. The company was, therefore, competent in research and development, and had strong abilities to adapt to local markets, with values that focused on workers, specific product divisions, and empowering national entities to enhance their technical abilities. The incompetency resulted from a lack of actual power in the product divisions. The national entities focused solely on maximizing local revenues instead of addressing issues that warranted the company's sustainability.
Question 2
Matsushita aimed at producing high-quality standardized products at very low costs in the 1970s and 1980s. Besides, the production process of the company was very fast, with critical innovation happening within short periods. There was a strong focus on exports, and there was a market share of about 40% in Japan as the firm capitalized on the broad product variety and opened many outlets across Japan. There was direct access to market trends, positive client response, and an increase in the volume of sales. The company adopted a divisional structure, allocating revenue responsibility to each division. In this regard, the structure created a very small business environment that enhanced growth and flexibility.
There was also increased competition among the divisions. The global strategy of the firm focused on product and process innovation, and the development and manufacturing were the responsibility of the product division. Each division of the firm had independent m...