Abstract

Netherlands-based Royal Philips Electronics (Philips) is a leading global manufacturer and marketer of consumer electronic products. The company was adept at technological innovations but was largely unsuccessful in translating its technological prowess into marketing success. The case details the reasons behind this shortcoming and gives an account of the various restructuring exercises undertaken by the successive Presidents of Philips to set things right at the company. The case discusses in length a major restructuring program called 'Towards One Philips'and describes how it aimed at finding a lasting solution to Philips'problems. An account of the company's new approach to strategy setting, called 'Strategic Conversations,'is also presented along with the rationale for such approach. Finally, the case presents the benefits accrued to the company as a result of its restructuring exercises.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Strategy setting and decision making in globalized firms

Keywords

Royal Philips Electronics, Organizational Restructuring, Strategy Setting, Towards One Philips (TOP), Operation Centurion, Strategic Conversations, Product Development, Cross-boundary Cooperation and Sense and Simplicity Campaign