Saturday 10 February 2018

The Philips Group 1987

Author Name: Adam Oliver
Institution Name: Jorge H. Steele

This entry was posted in Thecasestudysolutions.com on by Case Study Assignment Help

Answer-1

Philips is an American based multinational company which has its active roots in different parts of the world (Hayes, 2014). From the case study, it is found that Philips has undergone with numerous challenges and changes throughout their corporate history. However, the workings of their major employees were remarkable, such as Dekker and Van during the period of 1970 to 1987. From the case study analysis, it is clearly found that Dekker and Van emphasized on two main things that needed to be change in the context of Philips in order to achieve the target which they are intended to achieve.

The first change which Dekker and Van has introduced is to adopt a Japanese culture within the organization. By adopting the Japanese culture, they will become able to design the product from their respective country, and sell the products into different markets by acquiring some distribution companies. Most of the Japanese products are now using the same tactic such as Toyota, in which the manufacturing of the cars are solely based in Japan, but they send the cars in different parts of the world. The change management strategy could be highly essential for Philips, as they were previously experiencing lots of issues and problems pertaining to their higher operational cost.

The second change which has been introduced by Dekker and Van is relating to increase the interaction and communication among the management and the employees, especially with the Business Units. Previously, the Strategic Business Units (SBUs) in the company looked totally to outperform each other’s performance, which was not efficient. The company needed such strategy that can help their departments to interact with each other and maximize the level of innovation within the company.

Answer-2

This particular question is likely to get the answer regarding the substantial changes which these changes are likely to form with the company. It is required to list down the downsides of the change. There are two different strategies which have been proposed by Dekker and Van.

The first strategy was to adopt the Japanese strategy and culture in which the products will be developed from the home and then market to the relevant countries. There are certain drawbacks which are currently associated with the same strategy. Firstly, the strategy doesn’t know about the propensity of consumption in the respective market, along with the pros and cons of the market in which they are about to deliver their products. Another major downside of the same task is relating to unfamiliarity with the competition in the market that may increase the cost of the company. The second strategy is about increasing communication and interaction among the SBUs. The main problem that associated with this particular aspect is relating to decision making, as distraction may found while taking decisions by the management and the managers of the SBUs.

On the contrary, the amounts of benefits associated with these changes are essential, as it enables the company to reduce their operational costs that include the manufacturing and marketing cost as well. It also enables the company to launch the products in the respective market according to its requirement. The relevant amount of cost relating to the product would be decreased accordingly. Moreover, this particular strategy allows the SBUs to interact with each other, which is radically important for a company to achieve long run success and effectiveness. The higher the communication, the higher will be the chance that an organization can attain long run objectives, and the same is found in the same context.

Answer-3

The last question is relating to recommending to Philips regarding the acceptance or rejection of the strategies. The preceding section of the report has identified that the number of benefits associated with the number of issues is higher for Philips. In short, this particular strategy will allow Philips to make its position firm. Every company strives hard for the economic prosperity. The objectives of a company is divided into two main factors, which are financial factors and strategic factors (Hayes, 2014). Therefore, they have to achieve the same outcome by mentioning the same aspect. Hence, it can be said that Philips has to accept the strategies which have been eluded by Dekker and Van, as it will help them to achieve their financial and strategic targets accordingly. Apart from managing the operational cost, these strategies are also helpful for the company to strengthen their marketplace even in the international markets as well with prosperity and effectiveness.

References

Hayes, J., 2014. The theory and practice of change management. Palgrave Macmillan.

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