Restructuring / Turnaround Strategies Case Study

Case Title:

Philips' Strategy Shift: The Turnaround and After

Abstract:

Royal Philips Electronics of the Netherlands, one of the world's biggest electronics companies, and the largest in Europe, had over the years established itself as a leading player in the consumer electronics industry. The company witnessed a slump in the late 1990s. Gerard Kleisterlee (Kleisterlee) who was appointed the president and CEO, Royal Philips Electronics in 2002 was able to turnaround the company from its previous losses by introducing a number of strategic changes. Despite considerable success, Kleisterlee admitted that the company had not yet been fully transformed. Drafting plans for the future, Kleisterlee wondered if the changes he had introduced would continue to yield greater returns and what other strategic moves he should take, to make the company more profitable.

This case offers scope for discussion on management strategy and various innovative management initiatives that companies adopt to achieve growth.

Pedagogical Objectives:

• To discuss management strategies for growth
• To discuss turnaround strategies and measures to be taken to sustain the same.

Keywords : Philips; Strategy; ‘One Philips’; Design; Innovation; Turnaround strategies; Restructuring / Turnaround Strategies Case Study; Partnership with competitors; Consumer Electronics; Medical Equipment; Lighting; Joint Ventures; Corporate Culture; Competition; Chinese Medical Exports; Partnerships