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Case Study Example

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It has a Dutch origin. Philips NV set its foot in the dynamic market in 1891. (investing.businessweek.com, 2010). The enterprise has established a business that is principally based on four areas of production, namely the…
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ters, telecommunication products and a large variety of medical tools and equipment, and lastly, small “components” ranging from chips to batteries. If the Philips NV is considered with respect to its performance in these four potential domains, it can be stated that the enterprise has done good enough to be ranked among the big names such as the General Electric, Sony, Matsushita and Siemens which are well-known as the global competitors. This is partly evident from the fact that according to results of a survey conducted in the second half of the 1980s, which was about 100 years since the birth of Philips NV, the enterprise had spread so much that its subsidiaries were noticed to be functional in 60 countries worldwide which had offered job opportunities to nearly 300,000 employees from all over the world. (Hill, n.d. cited in Jones and Mathew, 2009, p. 523). However, in spite of the fact that the enterprise had multiplied its business and revenues manifolds since its start up to 1990, Philips NV found itself in big trouble in terms of financial losses that amounted to about $ 2.2 billion on a profit of $ 28 billion and declining revenues because of some hardships encountered in the 1980s. It might have happened so because of the dynamic and increasingly competitive nature of the global electronics industry that almost experienced a technological revolution in the period between 1970s and 1980s.
World War II spanning from 1939 to 1945 had created many challenges and issues for Philips NV in a number of ways. Philips’ head office was located in Eindhoven in Netherlands. Because of the war, the enterprise had to organize its foreign activities outside its head office in Eindhoven since Netherlands was occupied by Germany during the war. Under such circumstances, the national organizations owned by Philips had no choice but to function on their own. This paved way for these organizations to develop themselves as independent companies each of them having its ... Read More
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