Philips Strategy and Structure
Emelie Gustafsson Jacek Nagórski Katherine Nunes Johan Sandström Michael Steiner
Internationalization Strategy and Organizational Structure
Corporate
Strategy Philips case 1
Questions!
• What were Philips Interna8onaliza8on strategies over the decades (especially pre-‐ and post-‐1960s)?
• Examine it's development over ,me • Examine the Interna,onaliza,on strategy and organiza,onal structure • Look for the reasoning and side-‐effects
• What organiza,onal structure do you think would fit best Philips' strategy and product por?olio today? Propose one.
Corporate Strategy Philips case
2
Today’s Agenda
1. BACKGROUND 2. INTERNATIONALIZATION STRATEGY 3. ORGANIZATIONAL STRUCTURE 4. REASONS AND SIDE EFFECTS 5. NEW ORGANIZATIONAL STRUCTURE
Corporate Strategy Philips case
3
1. BACKGROUND
Corporate
Strategy Philips case 4
Philips history in short
• Founded 1891 in Eindhoven, Netherlands • It all started with light bulbs • Today ac8ve within 3 areas; Healthcare, Ligh8ng and Consumer lifestyle • Moving from decentralized to centralized
Corporate Strategy Philips case
5
• More decentralizing, par8ally due to impending war • Build on strength of NO’s because of bombings in Holland • NO/PD-‐matrix structure
• Closed inefficient plants, around 38’ layoffs, high compensa8on by law • Focused more
Internationalization Strategy and Organizational Structure
Corporate
Strategy Philips case 1
Questions!
• What were Philips Interna8onaliza8on strategies over the decades (especially pre-‐ and post-‐1960s)?
• Examine it's development over ,me • Examine the Interna,onaliza,on strategy and organiza,onal structure • Look for the reasoning and side-‐effects
• What organiza,onal structure do you think would fit best Philips' strategy and product por?olio today? Propose one.
Corporate Strategy Philips case
2
Today’s Agenda
1. BACKGROUND 2. INTERNATIONALIZATION STRATEGY 3. ORGANIZATIONAL STRUCTURE 4. REASONS AND SIDE EFFECTS 5. NEW ORGANIZATIONAL STRUCTURE
Corporate Strategy Philips case
3
1. BACKGROUND
Corporate
Strategy Philips case 4
Philips history in short
• Founded 1891 in Eindhoven, Netherlands • It all started with light bulbs • Today ac8ve within 3 areas; Healthcare, Ligh8ng and Consumer lifestyle • Moving from decentralized to centralized
Corporate Strategy Philips case
5
• More decentralizing, par8ally due to impending war • Build on strength of NO’s because of bombings in Holland • NO/PD-‐matrix structure
• Closed inefficient plants, around 38’ layoffs, high compensa8on by law • Focused more