2013/02/15

Case Study

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.

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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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