This paper focuses on two major electronic companies from twodifferent and the challenges that they face. It is clear thatcompanies that produce similar products are more likely to facesimilar problems although they might be of different scales. Thepaper will also focus on the social, political, ethical and legaldifferences that the two firms face and the effects such differenceshave on the decision making process by the management. Hitachielectronic company in Tokyo Japan and Philips Electronics Companywith its headquarters in Netherlands are firms that produceelectronics (Report, 2006). However, it is worth to note that Philipselectronics has so far diversified into the healthcare industry withservices such as Phillips Center for Health and Well-Being. It isevident from research that these two firms, despite having come fromdifferent countries, face similar problems.
One the challenges that Hitachi and Philips has been facing foryears is the need for innovation and the application of up to dateand cutting edge technology in their production process. It isevident that technology is changing at a high rate and the electronicfirms have no choice but to keep up the pace with the changes. Thereare numerous electronic companies such as LG, Samsung and Ramtons whorely on the cutting edge technology to produces electronics that arecompetitive in the market (McInerney & White, 2013). Philips andHitachi electronics companies have had the challenge of keeping upwith the technology in order to have a competitive edge in themarket. Both companies also have to motivate their employees toensure that they are extremely innovative and come up withtechnologies that are up to date and that will be on demand from theclients.
The management teams of both firms are normally faced by seriouschallenges of coming up with ways of motivating their employee tocreate electronics that can be competitive in the market. Hitachi,for instance, has come up with the slogan inspire the next Hitachi asa way of motivating its employees to produce the next big ideaproduct. This is a way of making the employees happy, motivated,healthy, as well as providing them with a safe work environment.Philips face similar hurdles in trying to make the employees happy,motivated and providing them with a safe work environment(Khosrow-Pour, 2012). Philips has adopted the slogan Improvingpeople`s lives through meaningful innovation, to ensure that theemployees are motivated to continue producing and coming up withtechnology that is up to date.
The international market that the companies have diversified intohas become extremely competitive. The challenge that both firms faceis the stiff competition in the electronics business. It I evidentthat there are other numerous electronics companies in theinternational market and all of them are competing for the samecustomers. Competitors include Samsung, Sony and Panasonic. Stiffcompetition is one of the major challenges that the two firms arefacing (Khosrow-Pour, 2012). Hitachi and Philips must come up withproducts that are satisfactory to the clients in order to win themarket. However, there is a small but significant difference betweenthe two firms with regard to the international market. WhereasPhilips has branches in over 60 countries across the world, Hitachihas largely relied upon the Japanese market. Nonetheless, Hitachi hasstarted to diversify into foreign markets including China, India andother African countries.
Counterfeit products menace is yet another significant problem thatboth Hitachi Philips electronics face. It is evident from researchthat counterfeit products are found in almost all industries and mostproducts have counterfeits (Pecht, 2011). Be it medicine, beverages,fast foods or electronics, counterfeit products are a real challengeto numerous firms across the world. Hitachi and Philips have beenhard hit by this challenge and the management if faced with a hugeproblem of dealing with the problem of counterfeit products. Last butnot least, volatility of major world currencies has been a primarychallenge to both of these firms. The firms are unable to maintainstable prices and therefore have unstable profit levels.
Stringent market regulations in Japan have largely affected theperformance of Hitachi electronics. Such regulations include dumpingrules and the standards of the industry. Management has had to comeup with measures that would ensure that the company follows thestandards strictly (Khosrow-Pour, 2012). Dumping has also been viewedas an ethical issue which has forced the management to developvarious strategies for disposing their electronic waste. Thegovernment regulations have a legal angle which affect the decisionmaking by the management in that all the regulations must be followedstrictly.
Philips has also had various political, social, ethical and legalissues that have had a tremendous effect on the management decisionmaking. There are very stringent environmental and state regulationswhich impact largely on the operational costs. The company managementdecision making process is largely affected by these regulationssince it must ensure that there are strategies to ensure theregulations are met (Khosrow-Pour, 2012). Legal suits againstconsumer products has been a major challenge to the company and itaffects the decision making process with regard to consumer products.The problem of counterfeit products is a social issue, as well as anethical issue, which calls for management decision making with regardto the various ways of ending the menace.
It is clear from the above discussion that Hitachi and Philips aretwo companies that have a number of common challenges. Whether itcounterfeit products, competition in the market or cutting edgetechnology, both companies must face these challenges head on.Competition in the international market has also been a primarychallenge. The various political, social, ethical and legal issuefacing the companies affect the decision making process by themanagement.
Khosrow-Pour, M. (2012). Cases on electronic commercetechnologies and applications. Norwood Mass: Books24x7.com.
McInerney, F., & White, S. (2013). The total qualitycorporation: How 10 major companies turned quality andenvironmental challenges to competitive advantage in the 1990s.New York: Truman Talley Books/Dutton.
Pecht, M. (2011). Parts Selection and Management.Hoboken: John Wiley & Sons.
Report. (2006). Intellectual property strategies in Asia: Protectingagainst Chinese, Taiwanese, and Korean intellectual property piracy.(2006). Redondo Beach, CA: InterLingua Legal Publishing.