Philips NV Essay

Submitted By Blair_LBL
Words: 554
Pages: 3
Open Document
A Brief history
1892
1899
1900
1912
1919

Founded in Holland
Products exported to Japan, Canada, Brazil, Russia, Australia
The 3rd largest light-bulb producer in Europe
Built sales organizations in US, Canada, France
An agreement with GE
-- from highly "centralized" to "decentralized"
-- autonomous marketing companies

A Brief history
1930's The Great Depression, trade barriers & high tariffs
-- built local production facilities
World War 2
-- top management to US, research labs to England (R&D)
-- 14 product divisions in Eindhoven, Holland (PDs)
-- built national organizations (NOs)

Reorganisation of Philips

1970s

Competitors’ centralised production facilities
Avoid duplication and increase efficiency

Decentralised
PHILIPS Destruct structure •

Decisions made by subsidiaries

•

Different individual product line

•

Autonomy in national organisation

High cost

Reorganisation of Philips

1990s
Boonstra

A plate of spaghetti

A neat row of asparagus

7 Global Business
Divisions
21
Divisions

=

Responsible for
- Global product development - Production
- Marketing

+

Digital Revolution
＆
Low­cost areas

Reorganisation of Philips

2008

2015

3 Global Divisions
1.
2.
3.

2 Global Divisions

Health Care
Lighting
Consumer Lifestyle

1.
2.

Healthcare &
Consumer Electronics
Lighting

CEO
Heads of Divisions

National Organisations

Local sales + Market efforts

Philips
Organisation structure

Current organisation structure (2014)
CEO of Royal Philips
• chief strategy innovation manager
• Legal officer
• Human Resource officer
• CEO of consumer lifestyle
• CEO of lighting
• Chief Financial officer
• CEO of china
• Chief market leader

Philips structure of lighting product division in Australia & New
Zealand

Stages model
This model focuses on
Foreign Product Diversity
Foreign sales as a percentage of total sales

Philips company with regards to the stages model
Philips is currently using worldwide product division structure
High foreign product diversity
High percentage of foreign sales
Aims to move to global matrix structure

Stage model analysis
High
Philips
Strategy

Foreign
Product
Diversity

Low
Low

Foreign sales as a percentage of Total Sales

High

Integration-Responsiveness-learning
Framework
• 1980's Philips used to be a multidomestic decentralized federation.
• Responded quickly to local needs and over dependent on the local supply.
• Presently, Philips moved towards transnational completeness by gaining greater control over manufacturing and R&D with central product divisions.

Further Integration by Subsidiaries learning from each other.
• High inter unit learning by encouraging the senior managers to work at different locations and in different product divisions

IRL Framework

Pressures of
Show More

Related Documents: Philips NV Essay

Energy Efficiency Essay example

The demand for energy in form of electricity is increasing across the world. The estimated consumption of electricity which was 13250 Twh (Terawatt Hours) in 2007 is expected to rise to 40000 Twh in 2040. With increasing focus on generating electricity from green sources, the gap between electricity supply and demand will grow even larger. If the gap between demand and supply is not closed in a cost effective manner, either the price of electricity to the end consumers will go up or the governments…

Words 2198 - Pages 9

Essay on Albuquerque: Impact of an Extinguished Fire

desert city of Albuquerque, New Mexico. When lightning lit up the desert sky, one bolt struck an industrial building that housed a distant outpost of Philips NV, the Dutch electronics conglomerate. The furnace in Fabricator No. 22 caught fire. Immediately, alarms sounded inside the Philips plant and at the local fire station. Sprinklers went off and Philips-trained staffers rushed into action. In less than 10 minutes, the fire was out. By the time the firefighters from Albuquerque Fire Station 15 arrived…

Words 4463 - Pages 18

multinational business reading respond Essay

WRITTEN RESPONSE #4 MGNT 4670 1) What are the two types of pressures that firms competing in the global marketplace typically face? Pressures for cost reductions and Pressures to be locally responsive Under what types of conditions do these pressures arise? Pressures for cost reduction: Intense in industries of standardized, commodity type product that serve universal needs Meaningful differentiation on non-price factors is difficult Major competitors are based in low-cost locations…

Words 1033 - Pages 5

Essay on History: Cold War and ho Chi Minh

Kennedy claims victory Civil Rights Movement 1900-1950 1. Age of segregation a. Exclusion of voters b. Job discrimination c. Customer discrimination d. Schools e. Racist violence 2. Great migration of southern blacks out of the south 3. A. Philip Randolph a. Black union leader, successful, famous b. Group gets good wages 4. NAACP- largest civil rights organization, still small a. Court cases-challenges white primary law b. Thurgood Marshall-attorney for NAACP, takes cases for civil rights…

Words 2267 - Pages 10

Hoover Ap Report Essay

Baker 14 Leandro Balbinot 15 Ingrid Bett 15 Johnathan Bourgeois 15 William Campbell 15 Ching Chern 15 Corey Christanell 15 Kem Conrad 15 Dave Costello 15 Maria Cova 15 Nathaniel Davis 16 Philip Davis 16 John Depasquale 16 Greg Drewing 16 Robert Eckard 16 Carlos Fernandez 16 Doug Fichter 16 Margarita Flores 16 Historical Events 16 Competition 17 Competitors List 866-541-3770 • HOOVERS…

Words 3740 - Pages 15

Pfizer company Essay

Company Overview: Pfizer is an international pharmaceutical company and is considered one of the leading companies in this industry with Lipitor and Viagra as its most known manufactured drugs. The company grew from a one building medicine manufacturer to a multinational company running its operations all over the world. In addition, the mergers and acquisitions that the business went through ensured that Pfizer name is associated with any global resource specialized in health and well-being industry…

Words 3337 - Pages 14

Essay about A Global Alcohol Industry

global alcohol companies by net revenue/ turnover rather than by volume shows the value of distilled spirits relative to beer on the global market. The leading company in terms of net revenue/turnover in 2005 was Diageo plc, followed by Heineken NV, InBev, SABMiller and Anheuser-Busch, Inc. [6]. Globalization in the alcoholic beverage industry tends to lead to greater concentration of ownership and greater dependence on marketing. As a recent study of multinational survival in the global alcohol…

Words 5093 - Pages 21

Managing Information Technology (7th Edition) Essay

CONTENTS: CASE STUDIES CASE STUDY 1 Midsouth Chamber of Commerce (A): The Role of the Operating Manager in Information Systems CASE STUDY I-1 IMT Custom Machine Company, Inc.: Selection of an Information Technology Platform CASE STUDY I-2 VoIP2.biz, Inc.: Deciding on the Next Steps for a VoIP Supplier CASE STUDY I-3 The VoIP Adoption at Butler University CASE STUDY I-4 Supporting Mobile Health Clinics: The Children’s Health Fund of New York City CASE STUDY I-5…

Words 239873 - Pages 960