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These differences in strategies and structures are described in following sub-sections.
1.1 Strategies of the two firms and how they differ
For most managers the primary goal is maximising the value of a firm for shareholders. In order to accomplish this, managers must pursue strategies that increase the profitability of the business and its rate of profit growth over time. There are numerous profitability indexes, which are beyond the scope of this study, but because managers of Philips and Matsushita were generally measured by return on sales, this metric is provided as a comparative measure of company performance over time (Figure 1, Annexure A)...
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