Joe Mann Professor Brinberg Phillips and Matsushita Phillips has succeeded for many distinct reasons.

At first Phillips was a small firm, which was founded by two brothers. One was the head of research and development while the other headed the sales and marketing aspect. Even when the company began to grow it utilized the same strategy internationally. Phillips was unique since it had the capability to establish an international branch, which comprised of autonomy with the two heads leading their business model. Due to the rise of Nazism during that time, Phillips was impelled to engage in such a model. Phillips at the time was headquartered in the Netherlands, which convinced them to run a decentralized management system throughout the firm. By doing this, they assigned control to other branches internationally, mainly in the United States. They were forced to do so, because of the adverse surroundings they were located in. As a result of World War II, Phillips flourished due to their innovation and their reaction to the demand in their market. This gave Phillips the potential to grow and control many local regions. The alterations within the worldwide market exposed their defects in the decentralized system they created. For example the deterioration of international trade barriers revealed the communication problems between segments of the firms. This would lead to a limit of production and ultimately to unstable manufacturing. On the other hand, Matsushita developed a strategy that was also successful globally. They would also have a unique business model that had top-down management and a distinct business culture. This enabled Matsushita to determine what it wanted in produced in every branch. Matsushita sent managers to every branch to observe that each branch was following the companies standard and culture. They would also ensure that everything was produced how and when they wanted it, so they can comply of with target of sales. Matsushita developed a system where they would give loans to branches on the contingency of the financial success. This would make each branch eager to succeed, since it was competing with other branches for more growth. If a branch was unsuccessful, management would eventually be changed, and if they would continue to fail they would ultimately close down. Matsushita established a centralized business model that would have their manufacturing done in countries of Southeast Asia. They did so because of the affordable labor, which allowed Matsushita to grow and eventually increase production so they can compete in the worldwide market, and also meet the demand of the global market.