Westinghouse has strong strength in all aspects and possesses advanced technology. However, while its sales reached US$12.794 billion in 1991, it suffered a loss of US$1.086 billion. The company's performance was mixed.
In the development of Westinghouse for more than 100 years, the company's strength has been continuously expanded through several successful mergers. At the end of the last century and the beginning of this century, during the climax of three major mergers in the United States in the 1920s and 1960s, Westinghouse merged with a number of companies. After World War II, because Westinghouse had a monopoly on the patent rights to build nuclear power plant reactors, business was booming and profits increased sharply. During this period, Westinghouse ranked around the fifteenth largest industrial company in the United States. Since the 1970s, the nuclear power industry has developed slowly and the demand for nuclear power equipment has been limited, which has restricted the company's further development and weakened its ranking among American industrial companies. In the early 1980s, the company's sales were less than 10 billion US dollars. It was not until the early 1990s that the company's status recovered.
Westinghouse Electric Company is mainly composed of seven major systems: broadcasting systems, electronic systems, environmental protection systems, financial services systems, industrial systems, office supplies systems, and power systems. Due to the influence of the objective environment, the results of various departments are also uneven. Currently, Westinghouse's broadcast system owns 17 radio stations and 5 television stations, and is engaged in radio and television program production and co-production, cable television program production, and the development of satellite and commercial communications. In 1991, although Westinghouse had strong competitiveness in the field of American broadcasting, the reduction in advertising revenue caused by the economic recession and the Gulf War made it particularly difficult for Westinghouse to distribute television programs.
Westinghouse's electronic industrial systems play an important role in the U.S. military industry and civilian industry. It has more than 22,000 highly skilled employees, including 5,000 engineers and scientists. These researchers are equipped with advanced research equipment to ensure that their research results are world-class. For 50 years, Westinghouse's Electronic Systems Group has continuously provided the most advanced electronic technology to the U.S. military industry. In 1991, from the "Desert Shield" phase of the Gulf War to the "Desert Storm" phase, Westinghouse's electronic technology played an extremely important role. Therefore, in 1991, despite reductions in the U.S. Department of Defense's military budget, Westinghouse was still awarded bids for several major engineering and technology projects. In non-DoD business, the system has developed aircraft equipped with multifunctional sensor monitors for law enforcement, indoor monitors for security systems, commercial applications, and its products have entered the market for use in automobiles. in the electronic control equipment market. All of this implements the company's strategy of "commoditizing electronic technology in various forms."
Westinghouse’s environmental protection system equipment accounts for 15% of the U.S. collective waste treatment market, most of which is the incineration treatment of hazardous solid waste. However, because various companies have been reluctant to spend money on the construction of purification devices, Westinghouse's profits in this area have continued to decline. In terms of nuclear waste disposal, Westinghouse is investigating the feasibility of placing nuclear waste in Bulgaria and can provide nuclear waste boxes and storage systems. Outside the United States, Westinghouse has made significant business progress. During this year, Westinghouse's environmental protection services revenue accounted for 30% of total global environmental protection services revenue. Westinghouse is determined to become the world's number one environmental services giant. Westinghouse's industrial system faced economic difficulties in 1991, with only four major companies doing well.
Westinghouse's office supplies system is mainly the Knoll Group, which consists of four companies specializing in the production and sales of office furniture and appliances. Due to poor economic conditions, the group's profits dropped significantly in 1991.
Westinghouse's power production systems have been its most important enterprise in its more than 100-year history, and the company's electricity sales worldwide account for 20% of the company's total sales. Power Systems also provides power plant design services and power production equipment to power plants around the world. However, due to the impact of the overall economic environment, Power Systems' profits in 1990 showed a downward trend.
The system's Power Generation Division also manufactures and sells steam and internal combustion turbine generators and is responsible for providing even-factor magnets for the Super Superconducting Collider planned to be built by the U.S. Department of Energy.
The Department of Energy under this system mainly deals in nuclear power products and services, providing nuclear fuel and other fuels as well as power generation control systems, and can help manufacturers develop "new generation" nuclear reactors that can achieve "passive safety". That is, safety measures that are not affected by operator error, and use fewer parts and lower costs than conventional nuclear power plants.
All of these leading positions of Westinghouse are mainly due to Westinghouse’s high emphasis on research and development. Westinghouse’s “Science and Technology Center” continues to introduce various new technologies, making the company a leader in the number of new technology patents. ; And the research results of Westinghouse's "Productivity and Quality Center" have enabled the company's business management department to improve work efficiency and product quality.
[Edit this paragraph] Organizational Management of Multinational Corporations
The Victory of Organizational Management of Multinational Corporations - Competition between General Electric and Westinghouse Electric
Founded in 1886 In 1892, the American Westinghouse Electric Company and the American General Electric Company were both world-renowned electrical and military electronic product manufacturing companies. However, while General Electric is still rivaling emerging companies such as Wal-Mart, Intel and Microsoft, and has been among the top ten in the world for many years, it was still standing shoulder to shoulder with them in the early 1970s. After the 1980s, Westinghouse Electric, which was indistinguishable, lost its competitiveness, fell into an insurmountable dilemma, and lost its status as a global top 100 company.
Westinghouse and General Motors, like the U.S. economy, amassed huge wealth through two world wars. However, why did the development of two companies with such similar histories, products, and regions show such a huge contrast? Looking back at the history of the two companies since the 1960s, it can be argued that organizational management is one of the main reasons for the different developments.
Since the 1960s, in order to adapt to the needs of technological progress, economic development and market competition, the corporate management system of large American companies has begun to adopt a system that emphasizes the combination of systematicity and flexibility, and the combination of centralization and decentralization. system. In the late 1960s, Westinghouse decided to use its internationalization strategy to compete with General Motors. They soon discovered that the original organizational structure of an international company and four product companies running in parallel hindered the company's international growth, and they decisively eliminated the international company and formed a product-based company. Based on the "decentralized divisional system" from 1971 to 1976, this adjustment was a great success and overseas business increased significantly. In fact, as early as the early 1950s, General Motors adopted a similar organizational structure, with the entire company divided into 20 divisions. Each business unit operates independently and is accounted for separately, achieving performance that leads Westinghouse. It can be considered that this organizational structure is very effective for large companies with diversified operations and complex varieties and specifications to cope with fierce market competition.
Faced with Westinghouse's market challenges, General Electric was in crisis in the early 1970s. In 1971, General Electric's top leadership reformed the corporate management system, establishing "strategic business units" within business divisions. This kind of "strategic business unit" is an independent organizational department that can selectively manage certain products individually within the business unit, so that the business unit can efficiently and effectively allocate manpower and material resources to various products, sales, and equipment. and organize a rigorous and foreseeable strategic plan. This kind of "strategic business unit" can be at the same level as a group group or at the level of a division. That year, GM set records in terms of sales and profits. Judging from the rapid development of General Electric from the 1960s to the mid-1970s, this measure played a lot of roles. In a decade, GE's sales doubled and profits nearly tripled.
In the mid-1970s, the U.S. economy stagnated again, and General Electric was worried that there might be a relatively long-term economic downturn in the 1980s. By the end of 1977. General Electric further restructured the company's management system and implemented an "executive department system", also known as a "super divisional system." This system is to establish some "super divisions" on top of each division to govern and coordinate the activities of each division, which means there is an additional level of management above the divisions. In this way, on the one hand, the top leadership can reduce the daily work and concentrate on mastering the decision-making strategic plans related to the development of the enterprise. On the other hand, it also enhances the flexibility of the enterprise, lays an organizational guarantee for GM's sustainable development, and significantly improves operating performance. .
At the same time, Westinghouse was still operating within a well-managed, bottom-line hierarchical structure, making only piecemeal incremental improvements to the organization. Westinghouse implemented a matrix system in the 1980s. When it was discovered that the people responsible for products and the people responsible for the region were often inconsistent, which affected its successful implementation of matrix management, Westinghouse's measure was to implement internal assurance, that is, a department guaranteed to its internal customers. Provide quality services, be timely, accurate, provide constant feedback and be courteous. Internal customers can be employees in the next process or service recipients of auxiliary departments. At the same time, Westinghouse also established a business committee to adjudicate disputes between different departments and complete communication and connection between departments. During this period, Westinghouse's main focus was on industrial restructuring and international alliance cooperation. On the one hand, Westinghouse withdrew from the electrical consumer goods industry with meager profits and invested in the refrigerated insulation transportation industry, land development industry and other industries with relatively stable competition and high market potential; on the other hand, under the huge pressure of competition from imported products, Westinghouse adopted " If you can’t stop it, go with it” business strategy, aggressive joint ventures, mergers and acquisitions, and alliances with non-U.S. companies. The alliance has promoted Westinghouse's international operations and achieved industrial diversification, becoming an important aspect of Westinghouse's long-term strategy.
However, sticking to old rules and ignoring changes in management thinking still greatly hindered Westinghouse's development, causing it to eventually retreat in the competition with General Motors. Although in the early 1980s, the Reagan administration's national policy of increasing arms spending was undoubtedly a boost for Westinghouse. As a result, Westinghouse obtained a large number of military contracts for nuclear submarines, fighter jets, missiles, etc., and the value of electronic equipment produced for the military reached the company's total output value. 20% of the total, which enabled Westinghouse to make a comeback. Unfortunately, after the 1990s, because it was left behind in the race to reinvent itself and its business methods, Westinghouse currently only maintains a leading position in the global nuclear power field, occupying 50% of the world's and 60% of the U.S. market share, but it is no longer able to do so. Return to glory.
From the century-old struggle between Westinghouse and General Motors, we can see that the design and management of corporate organizations can provide the most critical competitive advantage. If an enterprise wants to operate in a way that its competitors cannot imitate, its management system, process and structure are key. With a suitable organizational structure, an enterprise can launch new products faster, improve product quality better, and develop products more quickly and comprehensively. Meet customer requirements. This is completely different from the traditional hierarchical structure, which believes that a company's competitive advantage comes from strong financial, human and natural resources, the ability to penetrate the market, and differentiated technology. Organizational management has become an important key link in management practice, and is particularly important for giant multinational companies in their efforts to improve their international competitiveness. In this sense, General Electric's success is a victory for organizational management.
The Westinghouse Electric Corporation, which has a century-old history, still has a great reputation. It was developed by the famous American inventor and industrialist——G. Westinghouse was founded in Pennsylvania in 1886. Perhaps even Westinghouse himself did not expect that after nearly a hundred years of growth, Westinghouse Electric has become a large electrical group with more than 4,000 products in its business fields, and has become an industrial giant in the United States and even the world in one fell swoop.
After a new round of corporate transformation, in addition to developing its original electrical business, Westinghouse has also expanded its industrial field to include household appliances. Westinghouse appliances with exquisite craftsmanship, first-class quality, and fashionable and innovative designs have been widely loved by American families as soon as they were launched on the market. What is visible is quality and fashion, but what truly brings unprecedented convenience to tens of thousands of families is the innovative concept advocated by Westinghouse - "Kitchen Management".
Westinghouse - Westinghouse in China: Problems faced: In every aspect of our lives, including our three meals a day and our lifestyle, Westinghouse was once a household name. In 1917, the Westinghouse Electrical and Manufacturing Company produced the first electric stove, followed closely by the electric iron and coffee filter. In 1934, they opened the first all-electric home showroom, the "All-Electrified Home of Tomorrow," in Mansfield, Ohio (OH). In the 1920s, Westinghouse Electric expanded its home appliance business to many overseas markets, with products exported to the United Kingdom and China.
In the first 50 years of the 20th century, Westinghouse kitchen appliances, radios and desktop fans were highly prized among wealthy Chinese families living in metropolitan cities like Shanghai, China. Unfortunately, due to the Japanese invasion of China in the 1930s, Westinghouse Electric terminated the sales of home appliances in China. Westinghouse returned to the United States and continued to produce home appliances until the major appliance division was sold in 1972. But since then, Westinghouse products have gradually faded out of the market. Despite this, the reputation of the Westinghouse Electric brand remains a treasure in the memory of consumers in the United States and around the world. How to awaken and reshape a dormant well-known brand through brand licensing and revive its heyday in the Far East—this was the challenge that Hengdian Brand faced when it first cooperated with Westinghouse Electric.
Solution: As a professional brand operation and brand licensing agency, Hengdian Brand Co., Ltd. (LMCA) began to conduct extensive research on the history of Westinghouse Electric and discovered the specific reasons for its past sales to China. historical development process. Research included a visit to the old Westinghouse Electric Museum (now the Hines Historical Center in Pittsburgh, Pennsylvania); and a visit to Shanghai’s antique market, where you can still find some Westinghouse appliances! At the same time, in order to ensure that the Westinghouse Electric brand still retains a good reputation in the memory of Chinese people, Hengdian Brand conducted a brand awareness survey covering 4 first-tier cities and 4 second-tier cities across China. Based on these findings, Wengdian Brands used all of its brand extension licensing methodologies to identify a diverse range of brand-licensed products for Westinghouse in China (both traditional and emerging), based on their brand characteristics, relevance, Credibility and leverage are ranked in order of priority. When determining future licensees, Hengdian Brand also uses the local positioning of brand licensing. Therefore, the brand licensing plan formulated by Hengdian Brand (LMCA) for Westinghouse Electric is completely tailored according to Westinghouse’s unique background in China. of.
Project results: Since September 2009, a wide range of consumer products authorized by Westinghouse Electric have been available to consumers in major shopping malls, electrical appliance chain stores and online stores in major cities across China. . This marks the first return of the Westinghouse Electric brand in China after a 60-year absence. The launch of these products comes from the brand licensing agreement that Hengdian Brand has recently constructed and signed with Westinghouse Electric in the Far East. The licensees are distributors and manufacturers of durable consumer products rooted in China, and they have extensive retail markets in China. The signed brand licensing agreement covers traditional product series, such as small kitchen appliances, desktop fans, room heaters, etc.; other products, such as Westinghouse brand air purifiers, humidifiers, personal care and baby products, etc., and in 2010 It was launched to the market before the World Expo that attracted worldwide attention from May to October in Shanghai.