Letter of Submission

5
th
January 2012
Mohammod Takdir Hossain
Assistant Co-ordinator
Asa University Bangladesh

Course name !"#$11% "nsuran&e and 'isk Management
Permission for submitting the report.
(ear )ir*
+e are ,leased to su-mit the &ase study on% .anasoni& Creates a )ingle /ersion o0 the Truth
0rom "ts (ata % the study in 1hi&h 1e learn a-out the .anasoni&2s Business strategy using
&om,etitive 0or&es and value &hain models and its ,ro-lems and solutions3
+e 1ould thank you 0or giving us the o,,ortunity to ,re,are the study33
Thanking you%
4ours )in&erely%
The mem-ers o0 grou,
Ashra0ul "slam
.age 1 o0 15
Letter of Authorization
25
th
(e&em-er% 2011
'e 6etter o0 authori7ation
To Whom It May Concern
"t has -een authori7ed that
Ashra0ul "slam
Are the student o0 A)A University Bangladesh As ,er the &ourse re8uirements o0 M")-
$123+e are assigned to su-mit re,ort a0ter although analysis% 1hi&h in&ludes &olle&tion o0
data and in0ormation on Case study of Panasonic Creates a Single Version of the Truth
from Its ata
)o it is re8uested that the related authorities should &o-o,erate 1ith them sharing the
re8uirements needed -y them3
/hokto 9umar Bis1as
Assistant Co-&oordinator
A)A University Bangladesh

.age ! o0 15
Ac"no#ledgement$

+e 1ould like to thank our honora-le instru&tor o0 Management "n0ormation
)ystem &ourse /hokto 9umar Bis1as%0a&ulty o0 Business in A)A University
Bangladesh :A)AUB;% 1ho is our 0a&ulty su,ervisor 0or ,roviding us
suggestions and guidelines during the ,re,aration o0 the re,ort3 +e 1ould like
to thank him 0or giving me su,,ort% &ourage% and o,,ortunity to 1ork on This
assignment3
+e are also grate0ul to those ,eo,le 1ithout 1hom it 1as 8uite
im,ossi-le 0or me to &ontinue ,re,aring the entire re,ort3 (uring my
,re,aration% -esides some ,oint " did not 0a&e any ma<or di00i&ulty rather "
en<oyed our ea&h = every moment3
+e have done li-rary 1ork and 1e- sear&h and &ame to understand many
events a-out this assignment3
.age % o0 15
Panasonic
Company Profile
History:
Panasonc was founded n 1918 by Konosuke Matsushta frst seng
dupex amp sockets. In 1927, t produced a bcyce amp, the frst product
t marketed under the brand name Natona. It operated factores n |apan
and other parts of Asa through the end of Word War II, producng
eectrca components and appances such as ght fxtures, motors, and
eectrc rons.
After Word War II, Panasonc regrouped and began to suppy the post war
boom n |apan wth rados and appances, as we as bcyces.
Matsushta's brother-n-aw, Tosho Iue founded Sanyo as a subcontractor
for components after WWII. Sanyo grew to become a compettor to
Panasonc, but the rvary setted down and Sanyo were soon to be a
subsdary of Panasonc n December 2009.
National/Panasonic bicycles
The producton of hgh-quaty road and tourng bcyces and bcyce
components composed a tte-known but substanta porton of the
appance dvson of the Natona/Panasonc corporaton from 1945
through the end of the 1980s. As a chd, Konosuke Matsushta, founder of
Natona/Panasonc, had been adopted nto a famy who owned a sma
bcyce shop, and was passonate about bcyces and cycng.
Natona and Panasonc bcyces were sod both n |apan and overseas to
varous retaers, who sometmes rebadged the bkes wth prvate abes.
Despte competton from other |apanese manufacturers, Matsushta
enacted a corporate pocy forbddng ow quaty n Panasonc bcyces no
matter what the proft margns. When Schwnn was forced by economcs
to outsource bcyces but overseas, they chose the Panasonc Word
seres, a successfu mode n producton from 1972. As the ony vendor to
meet Schwnn's rgd manufacturng and producton standards, Panasonc
but severa modes for Schwnn, such as the Word Traveer and the
Word Voyager. Durng the 1970s and 1980s, Panasonc produced a fu
range of rugged stee frame bcyces, produced n modern factores
compete wth bkes made n Tawan under ther name.
By 1989, Panasonc dvson managers were reportng that bcyces
brought ess revenue (and ess proft) per square foot of warehouse than
any other product n the corporate dvson. Foowng the death of
Konosuke Matsushta, Panasonc abandoned the US bcyce market at the
.age & o0 15
end of September, 1989.|13| Panasonc currenty produces hand but
frames n |apan for kern track racng under Nhon |tensha Shnkoka
(N|S) approved standards.
In 2008, Panasonc Corporaton agreed to se ts remanng stake n
bcyce maker Myata, havng been Myata's argest sharehoder snce
1959.
Electronics
Panasonc DR48/RF-4800 desktop shortwave rado recever (1976)
In 1961, Konosuke Matsushta traveed to the Unted States and met wth
Amercan deaers. Panasonc began producng teevson sets for the U.S.
market under the Panasonc brand name, and expanded the use of the
brand to Europe n 1979.
The company used the Natona trademark outsde of North Amerca
durng the 1950s through the 1970s. (The trademark coud not be used n
the USA, probaby because t was aready n use by the Natona Rado
Company who were operatng n a cosey reated product area.) It sod
teevsons, h-fdety stereo recevers, mut-band shortwave rados, and
marne rado drecton fnders, often exported to North Amerca under
varous U.S. brand names. The company aso deveoped a ne of home
appances such as rce cookers for the |apanese and Asan markets. In
Inda, Panasonc s among the top 100 Most Trusted brands sted by The
Brand Trust Report . Rapd growth resuted n the company openng
manufacturng pants around the word. Natona/Panasonc qucky
deveoped a reputaton for we-made, reabe products.
The company debuted a h-fdety audo speaker n |apan n 1965 wth the
brand Techncs. Ths ne of hgh quaty stereo components became
wordwde favortes. The most famous products beng ts turntabes, such
as the SL-1200 record payer, known for ts hgh performance, precson,
and durabty. Throughout the 1970s and eary 1980s, Panasonc
contnued to produce hgh-quaty specazed eectroncs for nche
markets such as shortwave rados, as we as deveopng a successfu ne
of stereo recevers, CD payers, and other components.
In 1983 the Panasonc Senor Partner IBM PC compatbe computer
featured a but-n prnter and became the frst |apanese-made computer
to offer fu IBM compatbty Panasonc n Kadoma, Osaka, |apan.
Foreground eft: Panasonc Konosuke Matsushta Museum; behnd:
Corporate R&D aboratores
Snce 2004, Toyota has used Panasonc batteres for ts Toyota Prus, an
envronmentay frendy car made n |apan.
.age 5 o0 15
On |anuary 19, 2006 Panasonc announced that, startng n February, t
w stop producng anaog teevsons (then 30% of ts tota TV busness)
to concentrate on dgta TVs.
On November 3, 2008 Panasonc and Sanyo were n taks, resutng n the
eventua acquston of Sanyo. The merger was competed n December
2009, and resuted n a mega-corporaton wth revenues over 11.2
tron (around $110 bon). As part of what w be |apan's bggest
eectroncs company, the Sanyo brand and most of the empoyees w be
retaned as a subsdary.
In November 1999, the |apan Tmes reported that Panasonc panned to
deveop a "next generaton frst ad kt" caed the Eectronc Heath
Checker. At the tme, the target market was sad to be edery peope,
especay those vng n rura areas where medca hep mght not be
mmedatey avaabe, so t was panned that the kt woud ncude
support for teemedcne. The kts were then n the testng stage, wth
pans for eventua overseas dstrbuton, to ncude the Unted States.
Wth the announcement that Poneer woud ext the producton of ts Kuro
pasma HDTV dspays, Panasonc purchased many of the patents and has
ncorporated these technooges nto ts atest Vera pasma dspays.
Panasonc remans the ony HDTV manufacturer to concentrate soey on
pasmas for ts arge (40-nch or hgher) HDTVs, whe many rvas have
moved onto LCD and LED technooges.
In recent years the company has been nvoved wth the deveopment of
hgh-densty optca dsc standards ntended to eventuay repace the
DVD and the SD memory card.
On |uy 29, 2010 Panasonc reached an agreement to acqure the
remanng shares of Panasonc Eectrc Works and Sanyo shares for $9.4
bon.
Panasonic and Universal
Panasonc used to own Unversa Studos, then known as the Musc
Corporaton of Amerca, snce acqurng the company n 1990 but sod t to
Seagram n 1995. Unversa Studos s now a unt of NBC Unversa.
Acquiring Media Nusantara Citra
Panasonc acqured Meda Nusantara Ctra n 2003 that have RCTI, Goba
TV and MNCTV|ctaton needed|. Meda Nusantara Ctra aso acqured
Femna Group.
Curtailment
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Apr 2011: The company w cut ts work force by 40,000 many from
overseas dvson by the end of fsca 2012 n a bd to streamne
overappng operatons. The curtament s about 10 percent of ts group
work force.
October 2011: Panasonc announced t w trm ts money-osng TV
busness as t w cease producton of Pasma TVs at ts pant n
Amagasak, Hyogo Prefecture by March 2012, cuttng 1000 |obs n the
process.
rands and divisions
rand names
Panasonc produces eectronc products under the Panasonc and Sanyo
brands.
Panasonic Automotive !ystems
Panasonc ses rado (audo) products for automobes and ght trucks n
the US market under the Panasonc brand (aftermarket) and as OEM
equpment n |apanese automobe brands such as Toyota, Honda and
Subaru. Non-|apanese automakers such as GM and Vokswagen have aso
used OEM stereos made by Panasonc.
Panasonic Corporation of Nort" America
Panasonc Corporaton of North Amerca s the name of the company's
USA dvson, currenty headquartered n Secaucus, New |ersey. Founded
n New York Cty at the MetLfe Budng n September 1959, t was known
as Matsushta Eectrc Corporaton of Amerca (MECA) pror to 2005.
Panasonic Corporation in Europe
Shop@Panasonc s a chan of stores n the Unted Kngdom and Ireand
whch ses ony Panasonc eectroncs. The store s based on the same
structure as Sony Centre. The stores are usuay ocated n shoppng
centres such as Centrae, and brand tsef the offca Panasonc retaer.
Snce 2008 shop@Panasonc stores offcay rebranded to "Panasonc
Store".
Panasonic Corporation in !erbia
In November 2010, Panasonc Eectrc Works estabshed Panasonc
Eectrc Works Vossoh-Schwabe Serba d.o.o, a new company n Sva|nac,
.age ( o0 15
Serba, to manufacture energy-effcent eectronc devces (baasts) for
ghtng fxtures. Voume producton commenced n |anuary 2011.
Panasonic Mobile Communications
Panasonc Mobe Communcatons manufactures mobe handsets and
reated equpment for the |apanese market. It has the second argest
market share for mobe phones n |apan after Sharp. It used to market ts
GSM phones wordwde, but n December 2005 the company announced
ts wthdrawa from overseas markets. In summer 2008 rumors emerged
that the company was consderng to re-enter the Asan market wth ts
VS84 handset.
Panasonic Avionics Corporation
Panasonc Avoncs Corporaton (PAC), a subsdary of Panasonc
Corporaton of North Amerca, s the word's eadng supper of n-fght
entertanment (IFE) and communcaton systems. Headquartered n Lake
Forest, Caforna where engneerng, deveopment and testng s
performed whe system nstaaton, fed engneerng, ma|or quaty
functons, certfcaton and program management are performed at the
Bothe, Washngton facty - Panasonc Avoncs Corporaton empoys
approxmatey 2,800 empoyees based n over 70 ocatons wordwde,
wth ma|or factes n London, Tououse, Hamburg, Daas, Duba and
Sngapore. A ma|orty of the component manufacturng s carred out n
Osaka, |apan.
The company provdes arne passengers wth a wde array of nteractve
appcatons at ther seats, combnng entertanment (dgta musc and
moves on demand, games, nteractve movng maps, satete TV, and
onne shoppng) wth busness toos (E-ma, ve fght schedues, and n-
fght nternet access). PAC s aso one of the chef suppers to both
Boeng and Arbus and ther IFE systems w be featured on both the
Boeng 787 Dreamner and the Arbus A380 arcraft. Among the many
wordwde customers that use PAC systems are award-wnnng arnes
such as Oantas, Emrates, Sngapore Arnes and Vrgn Atantc.
Partners
In eary 2008, Panasonc partnered wth Shopatron to hande ts onne
order fufment, ncorporatng retaers nto the onne sae.
!ponsors"ip
Panasonc were the prncpa sponsors of the now defunct Toyota Racng
Formua One team.
Panasonc were a prmary sponsor of Toyota's Formua One program,
Panasonc Toyota Racng. Hro Matsushta, grandson of the company
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founder, s a former race car drver who ran a company overseeng
sponsorshp arrangements for the company.
Panasonc s an offca partner and sponsor of Ma|or League Soccer.
Panasonc has sponsored some professona fmmakers by aowng them
to borrow the Camera for ther pro|ects. One such Panasonc Lumx DMC-
GH1 mode camera was used to fm the pot of the Swedsh Horror Fm
Maranne .
Panasonc aso owns Gamba Osaka, a team from the |. League, the man
|apanese soccer eague.
Panasonc sponsored Sterng Marn n the Nexte Cup Seres. Panasonc
was to sponsor the 14 n 24 races but the team shut down n |uy
Panasonc s the prmary sponsor of the 2007 Word Soar Chaenge.
Panasonc has been a "top" sponsor of the Oympc Games snce Seou n
1988
Panasonc s the Offca Wordwde Oympc Partner for 2008 Summer
Oympcs.
They were orgnay the offca partner and sponsor of the Boston Cetcs
from 1975 to 1989, aong wth Techncs. Varous Panasonc ads appear at
the od Boston Garden durng the 1980s.
Between 1981-83 Panasonc were the shrt sponsors of Engsh footba
cub Nottngham Forest F.C.
Panasonc on |anuary 16, 2010, sgned a 3 year, Rs. 4.7 crores ($1 mon
USD) |ersey sposnorshp dea for the Inda natona footba team.
Environmental record
Panasonc s ranked 9th pace out of 15 n Greenpeaces Gude to Greener
Eectroncs (company shares 9th pace wth ts compettor Sony) whch
rates eectroncs companes on poces and practces to reduce ther
mpact on the cmate, produce greener products, and make ther
operatons more sustanabe.|33| The company s one of the top scorers
on the Products crtera, prased for ts good product fe cyces and the
number of products whch are free from poyvny chorde pastc (PVC). It
aso scores maxmum ponts for the energy effcency of ts products wth
100 percent of ts TVs meetng the atest Energy Star standards and
exceedng the standby power requrement
However, Panasonc's score s et down by ts ow score on the Energy
crtera wth the gude statng t must focus on panned reductons of
greenhouse gases (GHG), set targets to reduce GHG emssons by at east
30% by 2015 and ncrease renewabe energy use by 2020.
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CA!E !#U$%
&' Evaluate Panasonic(s business strategy using t"e
competitive forces and value c"ain models'
Panasonc s one of the words eadng eectroncs manufacturers. To be
effectve, ther goas, ob|ectves, cuture, and actvtes needed to be
consstent wth ther strategy. In order to ncrease ther proft margn,
they had to fnd ways to reduce costs and ncrease saes. For Panasonc,
ths meant that they needed to create a common set of data across a of
ther coectve busnesses and streamne ther operatons.
Competitive )orces:
Substtute products or servces - the threat of substtute products
s hgh when there are many aternatves to a product or servce and ow
when there are few aternatves from whch to choose. Ideay, Panasonc
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woud ke to be n a market n whch there are few substtutes. However,
n the eectroncs market, products can be easy dupcated by
compettors. For companes who are "frst to market", the compettve
ead s often short ved. Compettors dupcate products and many w be
offered wth more features and at a ower prce.
Customers barganng power - buyer power s hgh when buyers
have many choces of whom to buy from and ow when ther choces are
few. To reduce buyer power (and create a compettve advantage),
Panasonc must make t more attractve for customers to buy from them
than from ther competton. Consumers expect the prce of new
technoogy to decrease over tme, and they woud not accept prce
ncreases. In todays goba economy, customers qucky search the
Internet to ocate competng product offerngs and prcng structures.
Suppers barganng power - supper power s hgh when buyers
have few choces of whom to buy from and ow when ther choces are
many. Supper power s the converse of buyer power. Panasonc s a very
arge manufacturer of eectronc products and they compete on a goba
scae. By streamnng ther database they woud be n a better poston to
bargan wth ther suppers who woud aso beneft through quaty suppy
chan management technques.
Threat of new entrants - s hgh when t s easy for new compettors
to enter a market and ow when there are sgnfcant entry barrers to
enterng a market. Panasonc s a eadng eectroncs manufacturer
however; t must offer customers an array of eectronc products that are
qucker to the market than those of the competton. Ths strategy w
enabe them to create sgnfcant entry barrers to competton.
Postonng and rvary among exstng compettors - s hgh when
competton s ferce n a market and ow when competton s more
compacent. Panasonc must be abe to get ther products to market
qucker and cheaper than ther compettors n order to gan any measure
of frst-mover advantage. Margns tend to be ow n ths ndustry and the
consodaton of goba data s one way of makng that w aow them to
keep ther costs down and the effcences hgh. By foowng ths strategy
they w be abe to process faster, cheaper, and more accurate that ther
competton. Ths equates to ower prces for customers and ncreased
rvary among exstng compettors.
Vaue Chan Mode: In usng ths mode t s mportant to keep n mnd that
a customer s ony wng to spend a certan amount for a product. When
organzatons add vaue-created actvtes they must ensure that they w
not resut n ncreasng costs as customers w not be wng to absorb
them. The resut s a decne n saes and customers ookng to the
compettors for more favorabe resuts.
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The vaue chan of Panasonc s very hgh. Ths company s extremey
dependent upon technoogy to provde topnotch products to ther
customers. They are aso heavy dependent upon technoogy n order to
mantan ther compettve advantage. The eectroncs ndustry s such the
rasng of prces s not an opton. They must seek aternatve ways to keep
ther costs down and n ther prcng strategy n ne wth compettors.
They aso had to ntroduce products nto the market pace fastest than
ther compettors.
Prmary Busness Processes: Each state of ths generc chan accumuates
costs and adds vaue to the product. The net resut s the tota margn of
the chan, whch s the dfference between the tota vaue added and the
tota costs ncurred.
Inbound ogstcs - consodated data from a operatons aowed
for a more detaed pcture of the operatons. Coud be used n areas such
as automated |ust-n-tme warehousng.
Operatons - better abe to manufacture products to target the
eectronc consumer wth features and prces that they are wng to pay
for.
Outbound ogstcs - consodaton of data coud assst n more
effcent order processng.
Marketng and saes - Push mode of data dssemnaton where a
centrazed data bank sends the nformaton to a empoyees who need t
at the same tme, ensurng unformty. Empoyees receve data on a
targeted bass.
Customer servce - reta partners and e-commerce vendors
receve product nformaton at a stages of a product roout. More
consstent product roouts and product nformaton. Customers do not
become confused whe researchng ther purchases, and heps keep them
from move to a compettor.
!upport Processes:
Admnstratve coordnaton and support servces 3 streamng and
consodate poos of data ocated throughout the company. Dsparate and
soated databases contaned nconsstent, dupcate, or ncompete
nformaton. Streamng ths process woud ncrease operatona effcency
and reduce admnstratve costs.
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Human resource management - wth ess handng of data n a
varety of formats woud reduce neffcences and naccuraces. At the
same tme, empoyee productvty woud be ncreased. Empoyees woud
be better nformed wth accurate and consstent data thus be abe to
make better decsons.
Technoogy deveopment - deveop a common set of data for new
technques, methods, and procedures to aunch products gobay and
beat ther compettors to markets.
Procurement of resources - deveop processes of fndng ventors,
settng up contractua arrangements, and negotatng prces.
*' Ho+ did Panasonic(s information management
problems affect its business performance and ability to
e,ecute its strategy- ."at management/ organi0ation/
and tec"nology factors +ere responsible for t"ose
problems-
Panasonc s a goba operaton, manufacturng 15,000 products and
empoyng 330,000 peope. They needed a busness strategy to hep them
dea wth the many dfferent probems of deang wth ther massve
amounts of data. Ther dsparate systems resuted n affectng ther
operatona effcency and draned sgnfcant amounts of money from the
corporaton as a whoe.
Management:
Compexty of task.
Unsupportve cuture and atttudes
Increase Panasoncs speed of brng products to market.
Deveop an atmosphere that supported data-sharng.
Convnce manufacturng partners of the benefts assocated wth
MDM.
Convnce corporate offce n |apan that ther data management
strategy deserved
goba adopton.
1rgani0ation:
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Inadequate contro over ts nterna data
Impement a mut-step process that ncudes busness process
anayss, data assessment, data ceansng, data consodaton and
reconcaton, data mgraton, and deveopment of a master data servce
ayer.
Impement strct poces aganst computng actvtes that coud
compromse the authentcty of the data.
Deveop cear MDM rues to ensure master fe remaned prstne.
Consodate and systematze busess processes reated to the data.
#ec"nology:
Depoyment of master-data-management software from IBMs
WebSphere ne
Merge dsparate records nto one authentcated master fe.
Enforce standards for the formattng and storage of data
2' Ho+ did master data management address t"ese
problems- Ho+ effective +as t"is solution-
The depoyment of the master data management (MDM) software enabed
Panasonc Europe to consodate data, as we as systematze the busness
processes reated to the data. Overa, the company ganed better contro
over ts nterna data. MDM software heped them merge dsparate
records nto one authentcated master fe.
For Panasonc, the depoyment of the MDM pad quck dvdends. Wthn a
year and a haf, Panasonc Europe was gettng products to market faster
and spendng 50% ess tme creatng and mantanng product
nformaton. Tme-to-market for a product was reduced from fve-to-sx
months to one-to-two months. Accordng to nterna cacuatons,
Panasonc Europe mproved ts effcency by a factor of 5 and antcpates
a mon euros a year whe ncreasng saes by 3.5%.
Pansoncs souton appears to have been very effectve. They were abe
to use the data to reduce the amount of hgh-cost nventory such as arge-
mode TVs that vendors kept n stock from 35 to 7 days, thereby
ncreasng ther proft margns.
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3' ."at c"allenges did Panasonic face in
implementing t"is solution-
4lobally:
Create a common set of data for aunchng products.
Lack of a common database structure equpped to accompany a
number of countres. Each country had ts own unque anguage and
dfferent cuture. Dfferent
currences aso resuted n compcatng product aunches.
Nort" America:
Reorganzng workfow and consodatng product nformaton.
Provde consodated vews of product nformaton that adhered
cosey to ndustry standards.
Panasonc worked wth IBM to create an nterface apparatus to
coect the requred data for a repostory.
Informaton requred to meet new busnesses processes coud not
be gathered from ther egacy systems, whch forced Panasonc to add
new nterfaces.
Mutpe factes made ther own contrbutons to new products.
Factes had ther own cutures and nformaton nfrastructures.
They aso vaued ther autonomy and the fexbty t furnshed.
Dfferent enttes mght be unwng to gve up contro over
nformaton due to the perceved oss of power.
Requred cear MDM rues to prevent too many hands from
manpuatng the data so that the master fe woud reman prstne.
Work envronment dd not appear to support the dea of data-
sharng.
Manufacturing partners:
Most partners were based n Asa and were content wth ther
manua process for managng data.
Prove effectveness of MDM to manufacturng partners.
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