Toshiba Essay Research Paper Paula DeanApril 27 — страница 2

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be the way of the future. While many companies are just now beginning to expand into the global marketplace, Toshiba has already established itself worldwide. Toshiba has subsidiaries and joint ventures throughout the world. They have a strong presence in Europe, Asia and the Americas. For instance, in the United States alone, Toshiba America employs thousands of people and has eight separate divisions. When you consider that this is only one of the many countries that they are present in, this demonstrates their strong ability to compete and survive in the global marketplace. When you consider the rapidly changing market in which Toshiba participates, establishing itself as a multinational player is of the utmost importance. If they had little presence in the global marketplace,

their innovations would take longer to reach the consumers and the chance of someone else developing a similar product would be greater. By being established in various countries throughout the world, they are able to market their new products immediately and be the first. This is another key point. While others may follow suit and come up with substitute or look-alike products, people know that Toshiba was the original. The fact that they have a good quality reputation increases their chances of being the brand that people are willing to try with regard to a new product. Now that we know the history, mission and markets for Toshiba, what about the company structure itself? In April of 1999, Toshiba underwent a huge restructuring transforming from a traditional

hierarchical/functional structure to that of a divisional structure. They actually have used a combination of various divisional structures throughout the entire company. In Japan, the divisional structure is by product with a separate structure for corporate headquarters. In their overseas markets, they are structured first by geographic area and then by product line. This has proven to be very effective for them in many ways. Now the individual divisions have autonomy which allows for maximization of communication and the ability to respond even faster to the changes in their respective markets. For Toshiba as a whole, this has allowed them to identify exactly which products/divisions are performing the best with regard to their profit margins and overall growth. By identifying

these problem areas, Toshiba has been able to develop a Medium-term Business Plan for FY 2000 to 2002. This new plan involves “pulling back from slow-growth businesses and focus the electronics giant on faster-growing areas, including semiconductors, computer systems and Internet related services”(Guth, A12). While there are some repercussions to the plan such as the announcement of the 6% work force reduction in Japan, the overall benefit to the company will justify this downsizing. Toshiba is planning on spending more than $3.3 billion on this plan per year. While this amount seems rather large, when one takes into consideration the possible rewards for the company, it is merely a necessary expense. The continued survival of Toshiba is hinged upon its ability to compete in

the fast-paced technology market which means concentrating more on these markets than those with little change from day to day, such as their domestic appliance lines. These areas, while well established and profitable, do not require as much R&D as do the product lines of the digital and technological worlds. Upon evaluating Toshiba through a SWOT analysis, it is easy to understand why the 125-year-old company is still a major force in the business world. Strengths 1. Reputation 2. Innovative 3. Global market-share 4. Ability to keep pace with fast-changing technology market Weaknesses 1. Assets tied up in slow growth areas 2. Technology industry is so fast paced Opportunities 1. Increase percentage of global market share 2. Technology becoming more commonplace in the

home—more customers 3. Internet market Threats 1. Increased competition in technology industry 2. Fast-paced changes in technology 3. Slower growth areas utilizing valuable resources Toshiba is a strong company and finding many weaknesses proved to be a very difficult task. They know what needs to be done and they do it. With all of the preceding information in mind, I have formulated some ideas/recommendations that I feel would prove beneficial to the company. The first of these is to continue with their new business plan. By freeing up assets that can be used to increase sales in growing market places, the results could be astronomical profits for them. The second is to look for more joint ventures that can increase their market position in current markets. By joining with