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Especially, we would like to analyse how a large and global organization innovates and reaches the maximum efficiency of its own adaptive cycle. We decided to focus our attention on the case of Royal Philips Electronics to help us answer these questions. Simply because we thought that if we asked one of the Philips case analysis companies in the Netherlands which has long history and international standing, we would be able to get accurate answers to our questions, especially in terms of change management over time.
Organization During the 20th century, Philips has developed a very strong brand image and a broad physical presence around the world through the sales of its electrical appliances. The Philips brand has always been a reference in the industry, both for the quality of the products and for their innovative aspect.
Indeed, early on, Philips started to care for the social rights of its employees and against the pollution generated by its factories.
Over time, it also started to diversify its activities. While in the beginning the firm was almost exclusively active in the lighting industry, it has developed core competencies in the healthcare industry medical equipment and in the customer lifestyle industry day-to-day consumer products and electronic devices.
But in business and even more in technologytimes change and companies have to stay open up to their internal and external environment if they want to keep up and stay competitive. Expectations towards the case study The purpose of this case study is to try to understand what a company can do to renew itself over time and to overcome crisis situation.
Particularly, analysis of the activity of a global company will inform us of the change mechanisms that must enter into action. Actually, in order to adapt itself to the external realities of the economy, Philips has had to lead several internal revolutions.
The three revolutions that are going to be presented in this document have taken place at different times in Philips history and all have their influence on what the company is today and on what it will be in the future. When analysing these three revolutions managerial, cultural and operationalit will be interesting to connect the output of our observations with the theory of the Adaptive Cycle.
More specifically, it will be interesting to observe how the revolutions fit into the four quadrants of the model and how they influence the capacity of Philips to react to change. It will also be of high interest to understand how change can be introduced, integrated and how it can add value to the overall company structure.
On one hand, we interviewed three employees working at Philips, in departments related to our field of analyse. A questionnaire had been designed and distributed before the interview so that the participants were aware of the content of the interview.
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In addition to the interview, we also attended to a speech given by a former Dutch Technology Head of Philips, Jan Post. The combination of the interview and the speech created a consistent practical background for our research.
Besides this practical background, we tried to make theoretical assumptions and to establish connections with the research material that has been put at our disposal in the framework of the VODC course. In order to go into detail, we also relied on specialized literature on Philips and on corporate business reports issued by the firm itself.
All in all, we believe that these elements have formed a complete body of qualitative knowledge we explored through this case study.
The different recent revolutions inside Philips The 1st revolution: Inafter the firm had lost a lot of market share to competitors in many different industries, the company, which employed around At corporate level, it seemed obvious that a strategic change in the leadership was unavoidable.
More specifically, as the firm was losing its fight against its Japanese competitors Sony, Canon, etc. The change process was enforced from the top and touched heavily all the level of hierarchy. In fact, Philips changed its behaviour from a comprehensive and open leadership to become more strict and dominant.The EasyClean HX/50 is one of the cheapest Philips Sonicare electric toothbrushes you can buy.
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