Analysis Of The Netherland Based Royal Philips Electronics Company

806 WordsJul 29, 20154 Pages
Problem(s)/Issue(s): The problem in this case was the Netherland-based Royal Philips Electronics Company in Europe was losing profit in the 1990’s, as well as ,the United States because of poor performance. By the end of 1990’s decade, Philips was nearly bankrupt. The decision to restructure the Netherland-based Royal Philips Electronics Company in Europe and the United States to regain some of its losses because of poor performance, and the environmental challenges. Due to the environmental challenges, such as rapid change, rise of the internet, workforce diversity, globalization, legislation, evolving work and family roles, skill shortages and the rise of the service sector, and natural disaster, Philips Electronics Company had to adapt to change quickly if it wanted the company to survive, forced the new president of Philips Electronics Company to restructure the company. Also, using the strategic conversation model was a good professional assessment for the company to get the employees involved. Restructuring an organization comes with many challenges and hardship for an individual, organization and the environment. Employees become stressed or distrustful of their employer, its management and their coworkers because the trust is lost. There are three crucial obstacles or challenges that management faces in any restructuring program. They include: 1) “Design – what type of restructuring is the best fit for an organization to resolve precise challenge,

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