1.Why did Philips’ organizational structure make sense in the 1950s and 1970s? Why did this structure start to create problems for the company in the 1980s?
ORGANIZATIONAL STRUCTURE SUCCESSFUL IN 1950S AND 1970S:-
Philips developed globally by the time of world war ll, as per the demand the company's national organizations in Britain, Australia, brazil, canada, and united states became autonomous. The strong national organizations with their own entity by their own manufacturing, marketing, and sales made their path smooth in their country. The head quarters of the company in Eindhoven managed R&D activities with them. In the 1950s and 1960s developed technologies and products which were sold by the different national organizations. In 1950s …show more content…
The National organizations remained responsible for local sales and local marketing efforts. Boonstra highlighted philips as a brand which is close to the customer needs instead of stressing its technological expertise . Philips was made very familiar for every customer by a series of advertisement with the theme 'lets make things better' In 1997 philips was with the profit of 2.60 billion euros on sales of 29.66 billion euros, in 1998 the company's profit raised to 6.05 billion euros on the sales of 30.46 billion …show more content…
Gerard Kleisterlee in 2001 took over the position of CEO after Boonstra, planned efficiently to improve the position of philips in the global market. Reorganized the structure into three global divisions health care, lighting, consumer lifestyle which were responsible for product strategy, global marketing, The cost of production was high before which is handled efficiently by outsourcing production for lowering costs and gaining scale economies. Marketing skills were improved by creating efficient links with global retail chains such as walmart, tesco, and carrefour. Philips to get unique recognition in the market developed good customer rapport by introducing technically improved products. Very good team work between local organizations and the head office worked with great cooperation for philips to keep its identity
ORGANIZATIONAL STRUCTURE SUCCESSFUL IN 1950S AND 1970S:-
Philips developed globally by the time of world war ll, as per the demand the company's national organizations in Britain, Australia, brazil, canada, and united states became autonomous. The strong national organizations with their own entity by their own manufacturing, marketing, and sales made their path smooth in their country. The head quarters of the company in Eindhoven managed R&D activities with them. In the 1950s and 1960s developed technologies and products which were sold by the different national organizations. In 1950s …show more content…
The National organizations remained responsible for local sales and local marketing efforts. Boonstra highlighted philips as a brand which is close to the customer needs instead of stressing its technological expertise . Philips was made very familiar for every customer by a series of advertisement with the theme 'lets make things better' In 1997 philips was with the profit of 2.60 billion euros on sales of 29.66 billion euros, in 1998 the company's profit raised to 6.05 billion euros on the sales of 30.46 billion …show more content…
Gerard Kleisterlee in 2001 took over the position of CEO after Boonstra, planned efficiently to improve the position of philips in the global market. Reorganized the structure into three global divisions health care, lighting, consumer lifestyle which were responsible for product strategy, global marketing, The cost of production was high before which is handled efficiently by outsourcing production for lowering costs and gaining scale economies. Marketing skills were improved by creating efficient links with global retail chains such as walmart, tesco, and carrefour. Philips to get unique recognition in the market developed good customer rapport by introducing technically improved products. Very good team work between local organizations and the head office worked with great cooperation for philips to keep its identity