At which moment(s) in time did the organizational structure of Philips did not fit their external environment? Explain why.
Starting in the 70s and becoming clearly visible in the 80s Philips did not fit its external environment very well. After having a very successful start into the 20th century it did not properly adapt to the globalization of multinationals. After the 2nd world war Philips had companies in over 14 countries worldwide. However being a producer of mostly electronics it did not adapt by working together but instead all the global companies became autonomous power houses. However the most expensive part of electronics and such is research and development. Now all these individual companies were doing their own R&D making it very expensive whereas they should’ve adopted to the international scene by centralizing the company. Also in the 80s it became noticeable Philips didn’t respond to emerging competitors such as Sony and other Asian manufactures. Whereas Philips invented most of the products at that time like the VHS, it was the Japanese companies that marketed these products more successfully and took a large market share from Philips whom at that time suddenly seemed outdated and expensive.
Look up on the internet some facts and figures of Philips:
Size: -most recent turnover, number of employees, and profits? Range:-in how many countries do they operate, where are they headquartered? What kind of problems of size did Philips in the past have? How come?
Anton and Gerard Philips founded Phillips & Co in 1891 Philips & Co. Philips is active in 60 countries, but it's headquarters is in Amsterdam. By the end of 2013 they employed 116.700 people around the world. Turnover Philips 2013: € 23,33 billion. Profit after taxes Philips 2013 € 1,17 billion. In the 1970's Phillips was so big that because of a loose organizational structure, it was almost impossible to centralize functions...
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