Abstract
Matsushita now ranks the 13th among major manufacturers worldwide according to Fortune Magazine (1998 edition). Why has Matsushita grown to become such a big business during the 50 year period since World War II?
Matsushita started its overseas operations before the war, and established 39 subsidiaries and offices overseas. And the company learned how to do business overseas through these operations.
After World War II, Konosuke Matsushita President visited USA in 1951 and was impressed with her prosperity. He was convinced that Japan would experience similar prosperity in coming years. After he returned to Japan, he started preparations for the future develop ments.
The steps taken for globalization were as follows:
(1) Overseas operations before World War II. (1932∼1945)
(2) The period in confusion after the war. (1945∼1960)
(3) Expansion of exports and establishment of Mini-Matsushita subsidiaries (having a certain number of product categories) in developing countries. (1960∼1970)
Observing the principle of trade with L/C at sight
One distributor in one country
Organization laid out for overseas operations
Establishment of overseas trainee system for developing human capacities useful for overseas operations
(4) Trade friction with USA and Europe, and development of export bases (manufacturing) in Southeast Asia. (1970∼1980)
Development of export bases (manufacturing)
Acquisition of TV manufacturer in USA
Overseas operations policies laid down
(5) Characteristics of overseas operations after Plaza Accord (1985∼)
Policy and vision for global operations
Merging the trading company with Matsushita
Establishment of information and communications equipment companies in USA and Europe
(6) Global management in 1990s.
Rapid business expansion in China
Response to global and regional trading blocks in parallel
Response to stronger yen due to surplus of trade and intensification of trade friction
Review of global operations policy
(7) Summary: Direction of global management in 21st century.
