Restructuring Philips

            
 
Strategic Management|Management Strategy |Business Strategy Case Study|Business Strategy|Case Study|Case Studies

ICMR HOME | Case Studies Collection

Case Details:

Case Code : BSTR170
Case Length : 19 Pages
Period : 1990-2005
Organization : Philips
Pub Date : 2005
Teaching Note :Not Available
Countries : Netherlands
Industry : Consumer Electronics

To download Restructuring Philips case study (Case Code: BSTR170) click on the button below, and select the case from the list of available cases:

Business Ethics Case Studies | Case Study in Management, Operations, Strategies, Business Ethics, Case Studies

OR


Buy With PayPal

Amount to be paid:



Prefer to pay in another currency ?
Select Currency for Payment



Exchange Rates: Click Here
Delivery Details: Click Here

Price:

For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Shipping & Handling Charges extra

» Business Strategy Case Studies
» Case Studies Collection
» Business Strategy Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Case Studies by Area
» Case Studies by Industry
» Case Studies by Company

Custom Search


Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



Chat with us

Strategic Management Formulation, Implementation, & Control, 12e

Please leave your feedback

Leave Your Feedback

ICMR India ICMR India ICMR India ICMR India RSS Feed

<< Previous

"Philips has always been great at innovation, but it has had big problems with marketing."1

- Paul O'Donovan, Analyst at Gartner Inc. in 2004.

"Throughout the 1990s and back even longer than that, Philips has been unable to grow. We have remained more or less a $30 billion company, which on the one hand has created excellent intellectual property and research and development but on the other hand failed to consistently translate that into winning market positions."2

- Gerard Kleisterlee, President and CEO of Philips in 2002.

Introduction

Netherlands-based Royal Philips Electronics (Philips) was on the verge of bankruptcy in May 1990 when the company posted losses of $2.6 billion. At this point, the top management of the company launched a set of initiatives aimed at turning the company around. One of the measures initiated was 'Operation Centurion'which aimed to bring about drastic changes in the work culture of the company and reduce costs.

The restructuring efforts continued throughout the 1990s when Philips initiated job cuts, sold unprofitable businesses and closed down many manufacturing facilities worldwide.

Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

These efforts helped in improving the financial health of the company but were not able to address concerns like the bureaucratic work culture and the company's poor marketing of its products.

Philips had a history of breakthrough inventions but the company failed to market them effectively. In late 1999, Philips embarked on a worldwide marketing campaign for the first time in its history. Thus, the company made a clean break from its past image as a technology-oriented company to one that was market-oriented.

Gerry Kaufhold, senior analyst at In-Stat, a technology research firm based in Massachusetts, US, commented, "Historically, they've been a great engineering company with less than fantastic marketing, so this signals sort of an awakening by Philips."3

Restructuring Philips - Next Page>>


Custom Search





Economics for Managers Textbook
Textbooks Collection

Economics for Managers Workbook
ICMR books Collection

Case Studies in Business Strategy Volume VI

Case Studies in Business Strategy
e-Book on Business Strategy

Case Study Volumes Collection

1] Andy Reinhardt, "Philips: Back on the Beam,"BusinessWeek, May 03, 2004.

2] Jennifer L. Schenker, "Fine-Tuning a Fuzzy Image,"www.time.com, Spring 2002.

3] Lee Hall, "Philips Puts On $100 Million Digital Push,"Electronic Media, September 21, 1998.

 

Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Textbooks, Work Books, Case Study Volumes.