Philips: Background
& grunter; Gerard Philips and his father opened a light-bulb factor in Eindhoven, Holland
• By 1900 3rd largest light bulb describer in Europe
Technological competence and geographical expansion
• intimately companies raced to diversify but Philips made only light bulbs, enabled them to make more innovations and research
• Became the world leader in industrial research, creating physics and chemistry labs to address production problems as intumesce as more abstract scientific ones
• 1919 entered into the adept agreement with GE, giving from each one company the use of the some other’s patents and divided the world into 3 spheres ;
1. North the States – GE controlled
2. Holland – Philips controlled
3.
The rest of the world - both competed freely a come acrossst each other
Philips: Organizational Development
• 1930s Philips transferred its assets to North America to defend assets during WWII
• Many of Philips plants were destroyed during WWII
• WWII taught Philips to deal with unpolished specific market conditions and they became more independent from relying on the market
Philips: Attempts at Re ecesis
• 1960s the creation of the common market dilapidate trade barriers within Europe
Van Reimsdijk and Rodenburg reorganizations, 1970s
• CEO Riemsdijk created an organization committee to prepare a policy paper on the division of responsibilities between the PDs (product divisions) and the NOs (national organizations)
• He hoped that PD managers would gain control over manufacturing operations but progress was slow
• Power struggles were present
Wisse Dekker Reorganization, 1982
• Dekker was unsatisfied with the slow progress and describe a new initiative
• He gave PD’s formal product mgmt responsibility and left NOs with local cabbage responsibility
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