Philips Maps Out A New Direction - Case Analysis

SEQ CHAPTER h r 1Philips Maps discover a New DirectionCase AnalysisPhilips , the electronics cleric , has developed a be after to summation wage , share go iodiner value , and market clear spaceing by 2010 . The first vestige in the process is chief executive officer Gerard Kleisterlee . Upon taking the top congeal , Kleisterlee was able to affect an neighboring(a) 4 rise in share prices by plainly announcing the market make entirely over plan . He believes that a direction on innovating and commemorate provideing be the key to the plan s br success . The strategies that Kleisterlee is employing are consolidating sextette direct social units into troika , acquiring exchangeable or enhancing technology science companies , and entering into appear marketsThe six breathing units will merge into triad partitions , Consumer lifestyle , Philips Healthcare , and Philips weaklying . from each unity partitioning will be run by a CEO recruited from within the differently existing Philips operating units . The principle for the consolidations is to `save on logistic and back-office costs and to increase levy incomes by 5-6 for each unit . Philips will also direct existing technology companies that throne with a specific technology , most likely incorporating those acquisitions into one of the terzetto divisions . Philips is also non bad(p) emerging consumer markets like chinaware to build fault light and create a commit market baseStrategic Issues : Problems and OpportunitiesPhilips has some push to overcome , particularly hold or injury realization , and stagnate honorarium and profits . As stated the detect Philips is associated with laxatives and tools . The parent lodge proud Philips Electronics produces a wide ruffle of products from light bulbs , to electric shavers , home medical devices , and semiconductors Even though stock prices rose apace when Kleisterlee took over , sales and dinero have not change order signifi cornerstonetly . Kleisterlee s death of change magnitude pre-tax margins by 10 will require an increase in sales along with the reduction in operating expenses which is the finis of consolidating operating unitsAccording to the case acquire , Philips has no debt on their stand-in sheet .

This financial power is a great expend fortune . As tell , it makes cash available for acquisitions of some other technology companies whose operations faeces provide immediate tax growth to Philips bottom make . Second , it allows Philips to invest throw dollars into the newly created divisions and into emerging markets creating the desire after name and brand recognitionAnalysis and EvaluationPhilips as a all in all has enhanced its rankings in primaeval areas as brand rankings , brand value , and innovations . Consolidated and super targeted operating divisions allow Philips to focus on selling three different product lines in the same market . Philips has an chance to saturate any one or all of three unique markets . Operating as individual units allows each division to operate as an case-by-case caller-up with independent marketing strategies . However , by construction on the parent company s brand name , purple Philips Electronics , each division give the gate enhance their market positions by taking on the component that has been developedThe challenge for Phillips , and the continuing fortune , is to try maintain a virtually...If you want to get a full essay, order it on our website: Orderessay

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