Matsushita Electric Industrial Co., known for its Panasonic brand, embarked this month on a drastic reform of its groupwide business by gradually dismantling its "business unit" system, established by founder Konosuke Matsushita.
Traditionally, each of its business units were self-contained, handling product design and development to manufacturing, marketing and sales.
However, realizing that operational efficiency needed to be improved, President Kunio Nakamura is taking bold measures -- spinning off some factories from business units, regrouping distribution and marketing of home appliances, and downsizing its head office.