Royal Philips Electronics Case Study Solution

818 Words 4 Pages
The problem in this case was the Netherland-based Royal Philips Electronics Company in Europe was losing profits in the 1990’s, as well as ,the United States because of poor performance. By the end of the 1990’s decade, Philips was nearly bankrupt. The decision to restructure the Netherland-based Royal Philips Electronics Company in Europe and the United States to regain some of its losses because of poor performance, and the environmental challenges. Due to the environmental challenges, such as rapid change, the rise of the internet, workforce diversity, globalization, legislation, evolving work and family roles, skill shortages and the rise of the service sector, and natural disaster, Philips Electronics Company had to adapt to change quickly if it wanted the company to survive, forced the new President of the Philips Electronics Company to restructure the company. Also, using the strategic conversation model was a good professional assessment for the company to get the employees involved. …show more content…
Employees become stressed or distrustful of their employer, its management and their coworkers because the trust is lost. There are three crucial obstacles or challenges that management faces in any restructuring program. They include: 1) “Design – what type of restructuring is the best fit for an organization to resolve precise challenge, problem, or opportunity that the company faces? 2) Execution - how should the restructuring process be managed and the many obstructions to restructuring overcome so that as much value is created as possible? 3) Marketing - How will the restructuring be described and portrayed to investors so that the value created inside the company is fully credited to its stock price?” Failure to address any one of these challenges can cause the restructuring to

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