Restructuring Philips

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:


Case Code : BSTR170 For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Rs. 25 for Shipping & Handling Charges


Case Length : 19 Pages
Period : 1990-2005
Organization : Philips
Pub Date : 2005
Teaching Note : Not Available
Countries : Netherlands
Industry : Consumer Electronics


Netherlands-based Royal Philips Electronics (Philips) is a leading global manufacturer and marketer of consumer electronic products. The company was adept at technological innovations but was largely unsuccessful in translating its technological prowess into marketing success.

The case details the reasons behind this shortcoming and gives an account of the various restructuring exercises undertaken by the successive Presidents of Philips to set things right at the company. The case discusses in length a major restructuring program called 'Towards One Philips'and describes how it aimed at finding a lasting solution to Philips'problems.

An account of the company's new approach to strategy setting, called 'Strategic Conversations,'is also presented along with the rationale for such approach. Finally, the case presents the benefits accrued to the company as a result of its restructuring exercises.


Strategy setting and decision making in globalized firms


  Page No.
Introduction 1
Background Note 2
The Operation Centurion Program 3
Restructuring under Boonstra 5
Towards One Philips 6
Promoting Collaboration 6
Focus on Customers 7
The Benefits 8
Exhibits 11


Royal Philips Electronics, Organizational Restructuring, Strategy Setting, Towards One Philips (TOP), Operation Centurion, Strategic Conversations, Product Development, Cross-boundary Cooperation and Sense and Simplicity Campaign

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