r them in many ways. Now the individual divisions have autonomy which allows for maximization of communication and the ability to respond even faster to the changes in their respective markets. For Toshiba as a whole, this has allowed them to identify exactly which products/divisions are performing the best with regard to their profit margins and overall growth. By identifying these problem areas, Toshiba has been able to develop a Medium-term Business Plan for FY 2000 to 2002.This new plan involves “pulling back from slow-growth businesses and focus the electronics giant on faster-growing areas, including semiconductors, computer systems and Internet related services”(Guth, A12). While there are some repercussions to the plan such as the announcement of the 6% work force reduction in Japan, the overall benefit to the company will justify this downsizing. Toshiba is planning on spending more than $3.3 billion on this plan per year. While this amount seems rather large, when one takes into consideration the possible rewards for the company, it is merely a necessary expense. The continued survival of Toshiba is hinged upon its ability to compete in the fast-paced technology market which means concentrating more on these markets than those with little change from day to day, such as their domestic appliance lines. These areas, while well established and profitable, do not require as much R&D as do the product lines of the digital and technological worlds.Upon evaluating Toshiba through a SWOT analysis, it is easy to understand why the 125-year-old company is still a major force in the business world. Strengths1. Reputation2. Innovative3. Global market-share4. Ability to keep pace with fast-changing technology marketWeaknesses1. Assets tied up in slow growth areas2. Technology industry is so fast pacedOpportunities1. Increase percentage of global market share2. Technology becoming more commonplace in the home—more...
