Panasonic Needed to Change Its Strategy in the 1980s in Order

question 138

True/False

Panasonic needed to change its strategy in the 1980s in order to respond to demographic and economic changes in China. As the Chinese middle class began to emerge, local companies responded with competitive products. Panasonic then changed its strategy from a transnational strategy to a global strategy.

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Definitions:

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout, representing a reinvestment of a company’s earnings.

Market Value

The current price at which an asset or service can be bought or sold in a marketplace.

Treasury Stock

Stocks that the company originally sold and then bought back, decreasing the number of shares available for trade in the public market.

Cash Dividend

A distribution of earnings made by a company to its shareholders, typically in the form of profits.