Business Growth Of Philips: Internal And External Stakeholders

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There are two kinds of stakeholders in any organization i.e. internal and external. the internal stake holders are people within company that can be impacted by the actions of company and in turn influence the actions of company and the external ones have similar function but they reside outside the organizational boundaries (Needles, Powers, and Crosson, 2013). in case of Philips one of the major internal stake holders are its employees, such that the employees give innovative ideas and feedback to Philips and the company rewards them in return in form of acknowledgement, rewards and compensation as they believe that employees have paramount role in customer satisfaction. Employees have interest in the financial statements and the indices…show more content…
World Heart Federation (WHF) It is an external stakeholder as it has become partner of Philips in 2016 to enable people to have better health of heart. Overall terrorism, conflicts (I.e. Russia, Turkey, Ukraine etc) and change in US government policies has created uncertainty for the successful business growth of Philips. Philips performance is impacted by economic indicators and it aims to develop circular economy in which the economic resources are used in an effective manner. In addition the health section behaves in a seasonal manner when economy operates in normal conditions such that the sales are more in the end of year. The economy of China as slow growth in last year and it impacted the countries whose revenues are dependent on energy, oil and raw materials. The post Brexit economy is also in poor condition. Although, the economy of USA is performing in somewhat better way still the presidential elections have caused bad impact. The low level of public spending and less expenditure on capital goods due to low level of employment can impact the sales of Philips(,…show more content…
in terms of purchase, sales, payments etc. There are two main kinds of transactions deepening on the time on which they occur irrespective of the mode of payment. In case of transactions made in cash the payment is made on immediate basis and on the other hand the transactions in which the payment is to be made on some date in future is known as credit transaction. Both kind of transactions take place in organization. All kind of business organizations have both kind of transactions and they have a mix of it (Needles, Powers, and Crosson, 2013). The transactions made on credit basis can differ in terms of time and terms that will depend on the size and nature of business. The transitions that are made in cash are written without the name of parties involved in and in credit transactions mostly the name of parties is mentioned. in Philips there are certain transactions that are made on immediate basis such as sales of lighting and health care divisions, the purchase of supplies for both sections, payment of salary of staff, utility bills etc. there are certain transactions that are mentioned in the annual report of Philips in credit terms such that they are to be settled on some future date but still they are made a part of record. They include the tax to be paid, accounts payable, accounts receivables and the amount of sales that is to be made to third parties. As the basic aim in credit transactions is future on payment in
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