NV Philips Case Study.

1223 Words5 Pages
Case Study Philips NV.

1. Describe changes in Philips environment occurring during the 1960's and 1970's


Philips operates in a very competitive market domestic and internationally. There have been various changes over the last decade, with the emergence of the company from a position near economic failure to a well-known brand that is still lacking in performance. From the 1960's onward, a number of significant changes took place. Due to the efforts of the GATT General Agreement on Tariffs and Trade barriers fell worldwide. There have been many attempts at designing models which describe the competitive environment and the determinants of profitability from Western competitors.

The first element is that of the existing competition.
…show more content…
When there is a need for urgency to bring in as much business as possible to build up cash reserves that also includes multiple mergers. It is of strategic significance to log in as much business or contracts of longer term basis to cushion tough times ahead. One excellent way of getting the message down the line is for CEOs and top management themselves to play an active and direct role in assisting to bring in the business.

In preparing for the challenging times ahead, CEOs and top leaders in the organisation should change their mindsets and start to look at business development and revenue generation as their strategic role in strengthening the company.

4. Identify Philip's source of inertia, specific ways to overcome and suggestions

(a) (b)

The company need to adapt and change. There are three main strategies we can recommend. The first is a series of investments to concentrate on the core competences. This will allow the company to rebuild the development abilities and help create synergy. The funds raised may then be used for either more acquisition, but this time those that are able to add value to the core operations and may look to vertical rather than horizontal diversification. This builds on the existing practice of using internal suppliers and will also help to create value.

The second strategy is one of increased centralization and the transfer of staff between the different operations to increase communication and reduce the costs. The company

More about NV Philips Case Study.

Get Access