Strategy setting and decision making in globalized firms
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.
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