Philips in China

In: Other Topics

Submitted By asif22
Words 650
Pages 3
Chapter 9 = Production & Logistics
Philips in China
The Dutch consumer electronics, lighting, semiconductor and medical equipment conglomerate Philips NV has been operating factories in china since 1985 when the country first opened its markets to foreign investors. Then china was seen as the land of unlimited demand and Philips like many other Western companies demand of Chinese consumers snapping up its products by the millions, but the company soon found out that one of the big reasons the company like china-the low wages rates-also meant that few Chinese workers could afford to buy the product they are producing. Chinese wage rates are currently one third of those in Mexico and Hungary, and 5 percent of those in United States or Japan. So Philips hit on a new strategy; keep the factories in china but export most of the goods to the United States and elsewhere.
By the mid-2000s, Philips had invested over $2.5 billion in china. The company now operates 25 wholly owned subsidiaries and joint ventures in china. Together they employ approximately 30,000 people. Philips accelerated its Chinese investment in anticipation of Chinese entry into the World Trade Organization. The company plans to move even more even production to china in the future. In 2003, Philips announced it would phase out production of electronic razors in Netherlands, lay off 2000 Dutch employees, and move production to China by 2005. A week earlier Philips had started that it would expand capacity at its semiconductor factories in China, while phasing out production in higher cost locations elsewhere.
The attention of China to Philips include continuing low wage rates, an education workforce, a robust Chinese economy, a stable exchange rate that is pegged to the U.S dollar, a rapidly expanding industrial base that includes many other Western and Chinese companies that Philips uses as supplies…...

Similar Documents

Philip Morris and Mission Statement

...Philip Morris the makers of Marlboro cigarettes, amongst other leading brands, have taken steps to alert its customers of the dangers of smoking. The company have faced a number of major legal actions in the United States the most recent being a $10 billion (£6 billion) damages settlement related to its marketing of 'light' cigarettes. The company have taken out adverts in major newspapers to advise customers that 'light' cigarettes offer no significant health benefits over any other type of cigarette. A Mission Statement defines the organization's purpose and primary objectives. Its prime function is internal – to define the key measure or measures of the organization's success – and its prime audience is the leadership team and stockholders. There are four main points in the Philip Morris’s mission statement. The first point is to invest in leadership, this meant they would take care and invest in only the best people to lead the product forward; this also includes investing in leading brands and external stock holders. The second point is to basically understand the concerns of the society and try to meet the demands relevant to their company. The third point is to create innovative products which will satisfy the demands of the adult portion of the public better. Lastly it is to have growth in the company; this includes executing plans correctly and having growth both in the marketing sector and the return for shareholders. In my opinion Philip Morris cannot satisfy all...

Words: 628 - Pages: 3

Philip

...Philip Anderson 1. Which of the investment alternative: Provides the highest returns to the client? Provides the highest profits to Stuart & Co.? Alternative C provides the highest returns to the client. It has the highest average annual total returns over last 5 years (net of management fees). And its load or commission is moderate. Alternative B provides the highest profits to Stuart & Co. It has the highest management fees, which direct benefits Stuart & Co., and the highest load or commission. 2. Which alternative should the top management of Stuart & Co. want Philip to recommend to his client? Is the company’s control system designed to ensure that choice? The top management of Stuart & Co. would want Philip to recommend Alternative B to his client, since Alternative B Can bring in maximum profits to the company. The company’s control system designed to ensure that choice. The management implement results controls. The demand on branch managers to push specific products is in-corporated into their annual sales budgets. And reword system also exists. So, if employees generate good results (selling specific products), they would get bonuses. It may cause employees to be concerned about the consequences of the actions they take. 3. If Philip recommends the highest profit choice (for the company), is he acting unethically? Personally, I don’t think that recommending the highest profit choice (for the company) is acting......

Words: 343 - Pages: 2

Philips Sustainability

...Assessment of Philips Electronics: Is Sense & Simplicity Sustainable Andrew M. Froning Rensselaer Polytechnic Institute Submitted: May 4th, 2013 Abstract Koninklijke Philips Electronics N.V has been recognized as an industry leader for sustainability. In the past decade is has undergone a whole culture shift in the way it does business. But is what Philips doing really sustainable or are they just green washing their products. The report looks at how a sustainable business operates and how Philips’ programs and initiatives line up with those constructs of sustainable business development. Table of Contents Abstract 2 Assessment of Philips Electronics: Is Sense & Simplicity Sustainable 4 Enterprise Thinking 5 Inclusiveness & Value Networks 8 Suppliers 8 Stakeholders 9 Connectedness 10 Social Responsibility 10 Philanthropy 11 Reuse & Recycling 11 Life Cycle Thinking 12 Innovativeness & Leadership 13 Conclusion 14 References 15 Footnotes 16 Figures 19 Assessment of Philips Electronics: Is Sense & Simplicity Sustainable Koninklijke Philips Electronics N.V., also known as Royal Philips Electronics but commonly known as “Philips”, is an electronics company based in the Netherlands with facilities located across the world. It is one of the largest electronics companies in the world and the largest manufacturer of lighting.1 In 2004 Philips released their brand promise, “Sense and Simplicity”......

Words: 3620 - Pages: 15

Philips Arena

...The Philips Arena Brandon Rabon One of my favorite events was when I went to the Philips Arena to watch the Hawks and the Heat play. My friend and I went on a trip to Atlanta to go see our first NBA game. This was very exciting to go watch the most exciting team in the NBA play. We really didn’t know what to expect but assumed it would be like any other venue just like the Colonial Life Arena. The drive there was nice and it was pretty easy to spot the venue in the middle of the city. Parking was a different story all together. It took us probably 30 minutes to try to find a spot. They had a few police officers trying to direct traffic but there could have been more. We ended up having to parking like three or four blocks away from the venue and just walked there. They could have improved parking by using some of the parking garages around the venue. While we were walking back I saw at least two or three garages that were not being used and just shut down for the night. Arriving to the venue, the size of the Philips Arena was amazing. They haven’t opened the doors yet so there were a lot of people waiting to get in and seated. The crowd management up to this point is handled well because everyone got into lines fairly quickly once the doors opened. The tickets were scanned easy and quickly to get everyone in. We got into the lobby and then upstairs to the concessions portion of the arena. The signage in the arena could have been a lot better. It took me 10- 15 minutes to......

Words: 664 - Pages: 3

Philips

...and Strategy of PHILIPS” Submitted to: Dr. Rohit Singh, Professor, Principle of Management Submitted By: Priyesh Patel Preet Shah Nishit Deora B.B.A – Semester – I (Block - I) of Hospitality and Management Contents Executive Summary 4 1 Company Profile 5 2 Mission and Vision 6 2.1 Leadership Statement 6 2.2 Mission 6 2.3 Vision 6 2.4 Brand Promise 6 2.5 Four Values 7 3 Goals and Strategy 7 3.1 Ambition for 2015 7 3.2 Healthcare 7 3.3 Consumer Lifestyle 8 3.4 Lighting 8 3.5 Priorities for 2015 9 4 Organisational structure 9 4.1 The Board of Management 10 5 SWOT Analyses 12 5.1 Strength 12 5.2 Weakness 12 5.3 Opportunity 12 5.4 Threat 12 6 Philips Competitors 13 7 Share Value of Royal Philips Electronics 13 Annexure 15 Reference 17 Executive Summary Philips has been a leading brand in electronics in India and across the world. Philips with its wide range of products caters to the premium segment of the market. Philips faces intense competition, especially from the low-cost, local rivals of the market. With intense competition, Philips has to satisfy the various needs and demands of their consumers. This project targets at identifying the organisational structure, marketing strategy, market condition, and competitors with reference to Lighting, Consumer Lifestyle and Healthcare sectors of the company Royal Philips Electronics.......

Words: 3721 - Pages: 15

Philips vs. Matsushita

...Philips vs. Matsushita Assignment Hussain AlmakramiUniversity of Scranton | 11/14/2013 | | Strategies followed by Philips and Matsushita Philips focused on their R&D and it tried to be the independent organization. It tried decentralized method to market its products. It had very strong relationships with their suppliers and that’s why it had more than 250 suppliers in the world. It started a program called “partners for growth” to improve its relationship with the suppliers. It tried to take supply from the countries where cost is low like China, France, and Brazil. For marketing and selling their products Philips used very dedicated sales representatives and other options also like indirect channels. Customer service is very good. It provides 24 hr. service to clients. On the other hand Matsushita focused on centralization and it has highly efficient organization in Japan. It focused on local sourcing but still they got the control of quality and productivity of their goods. It was not dependent on one supplier. It has suppliers in all the parts of the world. It works with its suppliers and has very good relationship with the suppliers which help in maintaining the quality of the goods. It also tried to set up plants and produce raw material for their final products. Globalization becomes difficult for Philips It became difficult for Philips to globalize its strategies because of the fast growing competitors in the market. The other factors were......

Words: 537 - Pages: 3

Philips

...Philips vs. Matsushita Case Greg Tensa 1. How did Philips become the leading consumer electronics company in the world post war era? What distinctive competencies did they build? What incompetancies did they build? Prior to World War II, Philips had created a culture of embracing technical innovation. On the production side, Philips was a leader in industrial research, and scrapped old plants in favor of new machines or factories whenever advances were made. On the product side, strong research enabled the company to broaden its product line, starting with light bulbs but growing into vacuum tubes, radios and X-ray tubes by the 1930s. Because Holland was such a small country, Philips was forced to start exporting in the early 1900s in order to have enough sales volume for its mass-production facilities. Philips evolved into a highly centralized company with decentralized sales and autonomous marketing in 17 countries. Political events in the world during the 1930s forced Philips to change into a truly multi-national company. First, the depression caused countries to erect trade barriers and enact high tariffs, forcing Philips to build local production facilities in the foreign markets they served. Second, in anticipation of World War II, Philips transferred its overseas assets into trusts in Great Britain and the U.S. They moved the bulk of their research staffs to England, and their top managers to the United States. With these assets, the national organizations (NOs)......

Words: 1891 - Pages: 8

Philips

...“pushback” came form within the company itself. Even though the subsidiaries had been given more and more power to make decisions themselves and to even be able to order parts from outside companies, the companies were still severely dependent on the parent company for answers to their problems. One of the biggest problems the company had to overcome was the feeling of control form central. This was proven by the product division managers still having ordering control over the subsidiaries. 5. For the Philips company, we suggest that they have to pay more attention on after services rather than cutting costs. Despite the high total cost, it will make the profit to go down. However, cutting the cost too much will lead to series of problem on productions and sales. We couldn’t ignore new worldwide market demands for more segmented products and higher consumer service. For example , in the Chinese market, Philips have been lodged a complaint by lots of consumer which buy Philips’ earphone. The consumer feel the service attendants have a bad manner and they are too impatient after they receive customer’s phone call for appeal. This kind of activity will hurt Phillips’s reputation in the long run. We believe that the company’s reputation is even important than the quality of their products in a certain extent. Lost reputation means that you’re losing your market share. Morishita’s challenge was that the productive capacity had exceeded the demand and of the change of the......

Words: 1569 - Pages: 7

Case Study Exam Philips

...CASE STUDY OF PHILIPS INTRODUCTION Market and product research lie at the heart of any successful business. Market research involves talking to customers to find out what they want and then supporting these findings with product research which involves supplying products with the benefits that customers want. Philips is a global company so the research that it carried out took place on a global scale. Philips involved more than 1650 consumers and 180 customer companies around the world to make sure that it repositioned its brand in an appropriate way. Philips also undertook BEAT (Brand Equity Assessment Tool) research involving 26,000 respondents. RESEARCH Qualitative research involves working with relatively small focus groups which in this case consisted of Philips' consumers and professionals (trade and opinion leaders, e.g. hospital surgeons who use its scanning equipment). Quantitative research typically involves questionnaires/surveys to bigger samples of consumers. The research was designed to: * enable Philips to have a better understanding of its existing position in the market * identify and test new routes for moving the brand forward * check the effectiveness of the chosen route. Philips' market research was designed to help the organisation to define appropriate positioning. A combination of qualitative and quantitative research was carried out in: UK Germany France Netherlands Brazil Hong......

Words: 840 - Pages: 4

Philips vs Matsuhita

...9-910-410 DECEMBER 11, 2009 CHRISTOPHER A. BARTLETT Philips versus Matsushita: The Competitive Battle Continues Throughout their long histories, N.V. Philips (Netherlands) and Matsushita Electric (Japan) had followed very different strategies and emerged with very different organizational capabilities. Philips built its success on a worldwide portfolio of responsive national organizations while Matsushita based its global competitiveness on its centralized, highly efficient operations in Japan. During the first decade of the 21st century, however, both companies experienced major challenges to their historic competitive positions and organizational models. Implementing yet another round of strategic initiatives and organizational restructurings, the CEOs at both companies were taking their respective organizations in very different directions. At the end of the decade, observers wondered how the changes would affect their long-running competitive battle. Philips: Background In 1892, Gerard Philips and his father opened a small light-bulb factory in Eindhoven, Holland. When their venture almost failed, they recruited Gerard’s brother, Anton, an excellent salesman and manager. By 1900, Philips was the third largest light-bulb producer in Europe. Technological Competence and Geographic Expansion While larger electrical products companies were racing to diversify, Philips made only light-bulbs. This one-product focus and Gerard’s technological prowess......

Words: 9318 - Pages: 38

Philips

...The current issue and full text archive of this journal is available at www.emeraldinsight.com/0953-4814.htm Leadership style and entrepreneurial change The Centurion operation at Philips Electronics Leadership style 73 Luchien Karsten University of Groningen, Groningen, The Netherlands Sjoerd Keulen University of Amsterdam, Amsterdam, The Netherlands Ronald Kroeze Free University of Amsterdam, Amsterdam, The Netherlands, and Rik Peters University of Groningen, Groningen, The Netherlands Abstract Purpose – This paper aims to look at the role of the top and middle management of the Philips organization during the transition from one type of organizational change to another in the 1990s and the role the history of the organisation played in this process. Design/methodology/approach – The paper analysis is based on historical records, literature and interviews with former Philips top managers. Findings – The paper shows that Philips’ leaders used different styles of leadership to create a deliberate atmosphere and willingness to change. The final emergent transformation, however, could only sufficiently materialise while it rejuvenated existing management concepts like Quality Management. The success was partly based on the fact that these concepts played a historical role in the Philips organisation. Originality/value – The paper adds the historical style approach to leadership research and pays attention to the important role of the organization’s history during processes...

Words: 10260 - Pages: 42

Philip Anderson

...In this case, we have really two different points of view: in one side, there is Philip Anderson, the Phoenix branch manager of Stuart & Co., who manages a team with his ways, his idea, his experience but the results do not reach the targets fixed by the firm. In the other side, there is the direction of Stuart & Co., which has opposite ideas to Philip Anderson. I will try to analyze the challenges Philip Anderson faces from the point of view of costs of control and considering ethical concerns. Reading this text, we could easily feel that Philip Anderson’s work way is totally opposite to the firm way. The sentence “how far he [Philip Anderson] could bend without breaking” shows the challenge of the alone man is important for him. We could feel Philip’s desire to show ethical concerns are at least as important as costs control. Despite the demand of the branch managers to push specific products to be sold in the aim to improve cost control, Philip Anderson tries to resist managing his team with his way. The results of the man are ethically good but don’t in term of achieving budget targets. The cost control of the firm causes negative attitude, resistance and frustration of Philip Anderson because he does not agree with this control system: by managing cost, some ethical dilemmas created by Philip could be lost that is why he shows such a resistance. Then, we can not say that Philip Anderson is a bad manager. Indeed, by reading the text, despite the new......

Words: 879 - Pages: 4

A Philip Randolph

...A. Philip Randolph Daneka Ruiz Born on April 15, 1889 in Crescent City, Florida, Reverend James W. and Elizabeth Randolph gave birth to their second son, Asa Philip Randolph. James worked as a tailor and minister, while Elizabeth worked as a seamstress. Both of his parents were supporters of equality for African Americans as well as general human rights. Being black during that era meant having to live through difficult circumstances while striving to survive. Through the guidance and nurture from his parents, Asa inherited his compassion and drive towards racial inequality. In 1891, the Randolph’s moved to Jacksonville, Florida, which had a positive, and well-established African American community. Asa and his brother were superior students. Their parents always made sure that the boys had many books to read. The collection of books was small, but powerful. They were exposed to Charles Dickens, Shakespeare, Jane Austen, Charles Darwin, and many more of the greats. They attended the Cookman institute, one of the first schools of higher education for African Americans. Throughout his high school career Asa excelled in many subjects and was noticed for his articulate and confident voice, which he had inherited from his father. Reverend James continuously supported him by letting him know that he was gifted. With those gifts, Asa went on to pursue public speaking, drama, and singing. He graduated as class valedictorian. James and Elizabeth instilled many important......

Words: 1701 - Pages: 7

King Philips

...King Phillip's war began in 1675. This historic moment was named after the Wampanoag Indian Chief, named Metacornet, also known as Philip. A name given by the English as a symbol of friendship and esteem. Philip was the son of Massasoit, who in 1621 signed a peace treaty with the English. The treaty was maintain up until the death of Massasoit, but in the years after his death, his tribe was forced to undergo increasing the domination of the English in 1621. The Wampanoag's hospitality ended up being hostility. As quoted there is evidence that points towards Philip's attempt to form an Indian confederation, but he fought as one of several important chieftains and not as the leader of confederation (Millet & Maslowski, 1994, p.15). In June 1675, a few Wampanoag's looted and burned down many abandoned buildings in a frontier community, but was disregarded as an act of vandalism than a military attack. Inconsequential events had consequences, the Plymouth colonies gathered to attack, but the Wampanoag's were prepared to defend themselves and not too long after a war had begun. Colonists feared about how many tribes would join the Wampanoag's (Millet & Maslowski, 1994, p.16)The colonist's were more concerned about the Narragansett's, because they helped the English eliminate the Pequot's in 1637 (Millet & Maslowski, 1994, p.16). The colonist's decided to attack the Narragansett's, this attack is known as the war's most famous battle called, the Great Swamp Fight of...

Words: 440 - Pages: 2

Philip Condit

...Philip Condit and the Boeing 777: from Design and Development to Production and Sales 1. What steps did Condit take to make the 777 a successful project? In order to be successful, Condit needed to create an airplane that was preferred by the airlines at a price that was competitive. Philip campaigned aggressively to get customers to buy-into the project early and cut production costs by steadily improve worker skill over time which cuts labor cost. He also updated the manufacturing strategies and outmoded Boeing’s engineering production system. To do this, he introduced several innovations in technology (new FBW system), managerial approach (open forum, candor discussion between VPs), and employee empowerment (workers appeal to management decisions). 2. With a $15 Billion investment cost, how was the risk managed? Boeing utilized subcontracting as a risk-sharing strategy which comes about from high and increasing cost product development. The subcontractors would share a substantial part of the airplane’s development cost which ensured that detailed design work be performed and major subsections of the new plane would be assembled while airframe integrator designed and combined systems and equipment into the airplane. Also, the jet engines came from a completely different company since the venture to design and build one is very risky and costs a vast amount of resources are poured into research and development. Also, the engine itself is highly complex and demanding......

Words: 530 - Pages: 3