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Table of Contents..................................................................................................................................1 Philips...................................................................................................................................................1 Philips History Philips Radio World War II Postwar era Main inventions Compact Cassette Laserdisc Compact Disc DVD Blu-Ray Sale of semiconductors Corporate affairs CEOs Acquisitions, subsidiaries and spinouts Acquisitions Spinouts Sports, sponsorships and naming rights Worldwide presence Australia Brazil Canada China Hong Kong India France Israel Mexico Poland United Kingdom United States Major consumer electronics products Environmental record Healthcare products Mission & Vision GOALS & OBJECTIVES Values SIGNIFICANT & DEVELOPMENT Company Profile Events INITIATIVES
OrganizationName i ProposalTitle

PRODUCTS SERVICES Philips E-waste Management Program in India MANAGEMENT STRUCTURE OFFICERS & DIRECTORS Board of Directors SWOT ANALYSIS Strengths Weaknesses Opportunities Threats REGULATING SYSTEM/ ENVIRONMENT FACTORS Bibliography.......................................................................................................................................41

OrganizationName ii

ProposalTitle

Philips Philips KoninklijkePhilipsElectronicsN.V.(RoyalPhilipsElectronicsInc.),mostcommonly knownasPhilips,isamultinationalDutchelectronicscorporation. Philipsisoneofthelargestelectronicscompaniesintheworld.In2010,itssaleswere 25.42billion.Thecompanyemploys119,000peopleinmorethan60countries. Philipsisorganizedinanumberofsectors:PhilipsConsumerLifestyle(formerlyPhilips ConsumerElectronicsandPhilipsDomesticAppliancesandPersonalCare),Philips LightingandPhilipsHealthcare(formerlyPhilipsMedicalSystems). History Thecompanywasfoundedin1891byAntonandGerardPhilips,amaternalcousinof KarlMarx,inEindhoven,Netherlands.Itsfirstproductswerecarbonfilamentlampsand otherelectrotechnicalequipment.Itsfirstfactorysurvivesasamuseumdevotedtolight sculpture.Inthe1920s,thecompanystartedtomanufactureotherproducts,suchas vacuumtubes(alsoknownworldwideas'valves').In1939theyintroducedtheirelectric razor,thePhilishave(marketedintheUSAusingtheNorelcobrandname). PhilipswasalsoinstrumentalintherevivaloftheStirlingengine.

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PhilipsRadio On11March1927PhilipswentontheairwithshortwaveradiostationPCJJ(later PCJ)whichwasjoinedin1929bysisterstationPHI.PHIbroadcastinDutchtotheDutch

SummerProject 1

EastIndies(nowIndonesia)whilePCJJbroadcastinEnglish,SpanishandGermantothe restoftheworld. TheinternationalprogramonSundayscommencedin1928withhostEddieStartzhosting theHappyStationshowwhichbecametheworld'slongestrunningshortwaveprogram. BroadcastsfromtheNetherlandswereinterruptedbytheGermaninvasioninMay1940. ThetransmittersinHuizenwerecommandeeredbytheGermansandusedforproNazi broadcasts,someoriginatingfromGermany,othersconcertsfromDutchbroadcasters underGermancontrol. PhilipsRadiodidnotresumeafterLiberation.Insteadthetwoshortwavestationswere nationalisedandbecameRadioNetherlandsWorldwide,theDutchInternationalService in1946thoughPCJprogramssuchasHappyStationcontinuedonthenewstation.

SummerProject 2

WorldWarII On9May1940,thePhilipsdirectorswereinformedabouttheGermaninvasionofthe Netherlandstotakeplacethefollowingday.Theydecidedtoleavethecountryandfleeto theUnitedStates,takingalargeamountofthecompanycapitalwiththem.Operating fromtheUSastheNorth AmericanPhilipsCompany, theymanagedtorunthe companythroughoutthe war.Atthesametime,the companyitselfwasmovedto theNetherlandsAntilles(just onpaper)tokeepitoutof Americanhands. ItisalsobelievedthatPhilips bothbeforeandduringthe warsuppliedenormous amountsofelectric equipmenttotheGerman occupationforces,whichhas ledsomepeopletothinkthat thecompanycollaborated withtheNazis,likemany otherfirmsintheirday. However,thereisnoevidencetosuggestthatPhilipsitselforitsmanagementever sympathizedwiththeNazisortheirideologies.TheonlyPhilipsfamilymemberwhodid notleavethecountry,FritsPhilips,savedthelivesof382JewsbyindicatingtotheNazis thattheywereindispensablefortheproductionprocessatPhilips,forwhichhewas awardedrecognitionasa"RighteousAmongtheNations"byYadVashemin1995.There islittlePhilipscouldhavedonetopreventtheGermansfromabusingtheirproduction facilitiesandforcingtheiremployeestoperformslavelabourduringtheoccupation.The
SummerProject 3

productionfacilityinEindhovenwastheonlyDutchindustrialtargetthatwas deliberatelybombedbythealliedforcesduringthewar. Postwarera AfterthewarthecompanywasmovedbacktotheNetherlands,withtheirheadquarters inEindhoven.Manysecretresearchfacilitieshadbeenlockedandsuccessfullyhidden fromtheinvaders,whichallowedthecompanytogetuptospeedagainquicklyafterthe war. In1950,PhilipsformedPhilipsRecords. PhilipsintroducedtheaudioCompactAudioCassettetapein1963andwaswildly successful.Compactcassetteswereinitiallyusedfordictationmachinesforofficetyping stenographersandprofessionaljournalists.Astheirsoundqualityimproved,cassettes wouldalsobeusedtorecordsoundandbecamethesecondmassmediatosellrecorded musicalongsidevinylrecords.Philipsintroducedthefirstcombinationportableradioand cassetterecorderwhichismarketedasthe"radiorecorder"andwhichisnowbetterknown astheboombox.Laterthecassettewasusedintelephoneansweringmachinesincludinga specialformofcassettewherethetapewaswoundonanendlessloop.TheCcassette founditselfalsoasthefirstmassstoragedeviceforearlypersonalcomputersinthe1970s and1980s.Philipswouldalsoreducethecassettesizefortheprofessionalneedswiththe MiniCassette,althoughitwouldn'tbeassuccessfulastheOlympusmicrocassettewhich wasthepredominantdictationmediauptotheadventoffullydigitaldictationmachines. In1972Philipslaunchedtheworld'sfirsthomevideocassetterecorder,inEngland,the N1500withbulkyvideocassettesthatcouldrecord30minutesor45minutes.Laterone hourtapeswerealsooffered.AscompetitioncamefromSony'sBetamaxandtheVHS groupofmanufacturers,PhilipsintroducedtheN1700systemwhichalloweddouble lengthrecordingandforthefirsttimewouldfita2hourmovieontoonevideocassette;in 1977,thecompanyunveiledaspecialpromotionalfilmforthissystemintheUKfeaturing comedicpersonalityDenisNorden.ThisideawassooncopiedbytheJapanesemakers whosetapesweresignificantlycheaper.Philipsmadeonelastattemptatanewstandard forvideorecorderswiththeVideo2000systemwithtapesthatcouldbeusedonboth sidesandhadthus8hoursoftotalrecordingtime.AsPhilipsonlysolditssystemsonthe
SummerProject 4

PALstandardandinEurope,andtheJapanesemakerssoldglobally,thescaleadvantages oftheJapaneseprovedinsurmountableandPhilipswithdrewtheV2000systemand joinedtheVHSCoalition. Philipshadearlydevelopmentsofalaserdiskfor sellingmoviesbutdelayeditscommerciallaunchfor fearofcannibalizingitsvideorecordersales.Later PhilipswouldjoinwithMCAtolaunchthefirst commerciallaserdiskstandardandplayers.In1982, PhilipswouldteamwithSonytolaunchCompactDisc andopticaltelecommunicationsystems.Theseformats evolvedtothepresentdayDVDandBluRay,which PhilipslaunchedwithSonyin1997and2006 respectively. In1991,thecompany'snamewaschangedfromN.V. PhilipsGloeilampenfabriekentoPhilipsElectronics N.V.Atthesametime,NorthAmericanPhilipswasformallydissolved,andanew corporatedivisionwasformedintheU.S.withthenamePhilipsElectronicsNorth AmericaCorp. In1997thedecisionwasmadetomovetheheadquartersfromEindhoventoAmsterdam, alongwiththecorporatenamechangetoKoninklijkePhilipsElectronicsN.V.Themove wascompletedin2001.Initially,thecompanywashousedintheRembrandtTower,butin 2002theymovedagain,thistimetotheBreitnerTower.Inasense,themoveto Amsterdamcanbeconsideredareturntothecompany'sroots,becauseGerardPhilips livedinAmsterdamwhenhecameupwiththeideaofbuildingalightbulbfactory.He alsoconductedhisfirstexperimentsinthefieldofmassproductionoflightbulbsthere, togetherwithJanReesse.PhilipsLighting,PhilipsResearch,PhilipsSemiconductors(spun offasNXPinSeptember2006)andPhilipsDesign,arestillbasedinEindhoven.Philips HealthcareisheadquarteredinbothBest,Netherlands(justoutsideEindhoven)and Andover,Massachusetts,UnitedStates(nearBoston).

SummerProject 5

Asof2010thecompanydoesnottrytobeinnovativeanymoreinconsumerelectronics throughfundamentalresearch Maininventions

CompactCassette In1962Philipsinventedthecompactaudiocassettemediumforaudiostorage.Although therewereothermagnetictapecartridgesystems,theCompactCassettebecamedominant asaresultofPhilips'sdecisiontolicensetheformatfreeofcharge. Laserdisc Laserdiscwasa30cmdiscdesignedwithMCAmeanttocompetewithVHSandeven replaceit.ItwasnotasgenerallypopularasVHS,becauseoftheinitialinvestmentcostsof players,somewhathighercostsofmovietitles,andthereadonlyformat.Butlike Betamax,itenjoyedextensivesuccessamongseriousvideocollectors.Thetechnologies createdforLaserdiscwouldlaterbeusedagainfortheCompactDisc. CompactDisc AlthoughPhilips'andMCA'sLaserdiscprojectneverreachedtheVHSmassmarketlevel, Philipsstillthoughttheformatshouldbeabletosucceed,and,incollaborationwithSony, launchedthesmallerCDin1982.

SummerProject 6

DVD TheDVD,theeventualsuccessoroftheCD,metalongroadofsetbacks.Philipswantedto continuewiththeCDinanewformatcalledMultiMediaCompactDisc(MMCD),while anothergroup(ledbyToshiba)wasdevelopingacompetingformat,thennamedSuper Density(SD)disc.Theirrepresentatives approachedIBMforadviceonthefile system.IBMalsolearnedofPhilips'and Sony'sinitiative.IBMconvincedagroup ofcomputerindustryexperts(among themApple,Dell,etc.)toforma workinggroup.TheTechnicalWorking Group(TWG)votedtoboycottboth formatsunlesstheymergedtoprevent anotherformatwar(likethevideotape formatwar).TheresultwastheDVD specification,finalizedin1995.TheDVD videoformatwasfirstintroducedin Japanin1996,laterin1997intheU.S.as limitedtestrun,thenacrossEuropeandtheothercontinentsfromlate1998onwards. BluRay BluRay,yetagainprimarily developedbyPhilipsandSony, utilizesbluevioletcoloureddiodes tocreateanevenshorterwavelength beamthanCDorDVD.Becauseof this,thecapacityismuchmorethan thatofCDorDVD,being25GB singlelayeredor50GBdual layered.

SummerProject 7

Saleofsemiconductors Asachipmaker,PhilipsSemiconductorswasamongtheWorldwideTop20 SemiconductorSalesLeaders. InDecember2005PhilipsannounceditsintentiontomaketheSemiconductorDivision ins2006. On2August2006,Philipscompletedan agreementtosellacontrolling80.1% stakeinPhilipsSemiconductorstoa consortiumofprivateequityinvestors consistingofKohlbergKravisRoberts& Co.(KKR),SilverLakePartnersand AlpInvestPartners.Thesalecompleteda process,whichbeganDecember2005, withitsdecisiontocreateaseparatelegal entityforSemiconductorsandtopursue allstrategicoptions.Sixweeksbefore,aheadofitsonlinedialogue,throughaletterto 8,000ofPhilipsmanagers,itwasannouncedthattheywerespeedingupthe transformationofSemiconductorsintoastandaloneentitywithmajorityownershipbya thirdparty.Itwasstatedthenthat"thisismuchmorethanjustatransaction:itisprobably themostsignificantmilestoneonalongjourneyofchangeforPhilipsandthebeginningof anewchapterforeveryoneespeciallythoseinvolvedwithSemiconductors". Initsmorethan115yearhistory,thiscountsasabigstepthatisdefinitelychangingthe profileofthecompany.Philipswasoneoffewcompaniesthatsuccessfullymadethe transitionfromtheelectricalworldofthe19thcenturyintotheelectronicage,startingits semiconductoractivityin1953andbuildingitintoaglobaltop10playerinitsindustry. Assuch,SemiconductorswasattheheartofmanyinnovationsinPhilipsoverthepast50 years.

SummerProject 8

Agreeingtostartaprocessthatwouldultimatelyleadtothedecisiontosellthe SemiconductorDivisionthereforewasoneofthetoughestdecisionsthattheBoardof Managementeverhadtomake. On21August2006,BainCapitalandApaxPartnersannouncedthattheyhadsigned definitivecommitmentstojointheexpandedconsortiumheadedbyKKRthatistoacquire thecontrollingstakeintheSemiconductorsDivision. On1September2006,itwasannouncedinBerlinthatthenameofthenewsemiconductor companyfoundedbyPhilipsisNXPSemiconductors. CoincidingwiththesaleoftheSemiconductorDivision,Philipsalsoannouncedthatthey woulddroptheword'Electronics'fromthecompanyname,thusbecomingsimply KoninklijkePhilipsN.V.(RoyalPhilipsN.V.). Corporateaffairs In2004,Philipsabandonedtheslogan"Let'smakethingsbetter"infavourofanewone: "Senseandsimplicity". ASMLithographyisaspinofffromadivisionofPhilips. Origin,nowpartofAtosOrigin,isaformerdivisionofPhilips. Itsrecorddivision,PolyGram,wassoldtoSeagramin1998andwasmergedinto UniversalMusicGroup.PhilipsRecordscontinuestooperateaspartofUMG,itsname licencedfromitsformerparent. PhilipsIntellectualPropertyandStandards,[7]isthecompany'sdivisiondealingwith licensing,trademarkprotectionandpatenting.Philipscurrentlyholdsabout55,000patent rights,33,000trademarkregistrations,and49,000designregistrations. CEOs

PastandpresentCEOs: 18911922:GerardPhilips 19221939:AntonPhilips


SummerProject 9

19391961:FransOtten 19611971:FritsPhilips 19711977:HenkvanRiemsdijk 19771981:NicoRodenburg 19821986:WisseDekker 19861990:CornelisVanderKlugt 19901996:JanTimmer 19962001:CorBoonstra 20012011:GerardKleisterlee 2011n/a:FransvanHouten Acquisitions,subsidiariesandspinouts

Acquisitions CompaniesacquiredbyPhilipsthroughtheyearsincludeAmperex,Magnavox,Signetics, Mullard,VLSI,AgilentHealthcareSolutionsGroup,MarconiMedicalSystems,ADAC Labs,ATLUltrasound,portionsofWestinghouseandtheconsumerelectronicsoperations ofPhilcoandSylvania.PhilipsabandonedtheSylvaniatrademarkwhichisnowownedby SLI(SylvaniaLightingInternational)exceptinAustralia,Canada,Mexico,NewZealand, PuertoRicoandtheUSAwhereitisownedbytheOsramunitofSiemens.Formedin November1999asaequaljointventurebetweenPhilipsandAgilentTechnologies,the lightemittingdiodemanufacturerLumiledsbecameasubsidiaryofPhillipsLightingin August2005andafullyownedsubsidiaryinDecember2006.[8][9]In2000,Philipsbought OptivaCorporation,themakerofSonicareelectrictoothbrushes.Thecompanywas renamedPhilipsOralHealthcareandmadeasubsidiaryofPhilipsDAP.In2006Philips boughtoutthecompanyLifelineSystemsheadquarteredinFramingham,Massachusetts. InAugust2007PhilipsacquiredthecompanyXimis,Inc.headquarteredinElPaso,Texas
SummerProject 10

fortheirMedicalInformaticsDivision.[10]InOctober2007,itpurchasedaMoore MicroprocessorPatent(MPP)PortfoliolicensefromTheTPLGroup. OnFriday,21December2007PhilipsandRespironics,Inc.announcedadefinitivemerger agreementpursuanttowhichPhilipswillcommenceatenderoffertoacquireallofthe outstandingsharesofRespironicsforUS$66pershare,oratotalpurchasepriceof approximately3.6billion(US$5.1billion)tobepaidincashuponcompletion. Spinouts PolymerVision,themakerofTheReadius,isaspinoutfromPhilipsElectronics.APRICO Solutions,isaventurewithinPhilipsIntellectualPropertyandStandards. PhilipsalsoforayedintothepharmaceuticalsmarketinacompanybestknownasPhilips Duphar(DutchPharmaceuticals).PhilipsDupharmadeproductsforcropprotection, veterinarymedicineandproductsforhumanuse.DupharwassoldtoSolvay,nowSolvay Pharmaceuticals.Insubsequentyearsdivisionshavebeensoldof,bySolvay,toother companies(cropprotectionwassoldtoUniRoyal,nowChemturaandtheveterinary divisionwassoldtoFortDodge,adivisionofWyeth). Sports,sponsorshipsandnamingrights TraditionallyPhilipshasavestedinterestinsports,originallyasameanstoprovidea healthyformofrecreationforitsemployees.In1913,incelebrationoftheCentenaryof DutchindependencefromFrance,PhilipsfoundedasportsclubcalledPhilipsSport Vereniging(PhilipsSportsClub),orPSV,asitisnowknown.Thesportsclubencompasses allkindsofsports,butiscurrentlymostfamousforitsPremierLeaguefootballteamand itsswimmingteam.PhilipsownsthenamingrightstoPhilipsStadion,locatedin Eindhoven,whichishometoDutchfootballteamPSVEindhoven. Abroad,Philipssponsorsandhassponsorednumeroussportclubs,sportfacilities,and events.Philipsrecently(November2008)extendeditsverysuccessfulF1partnershipwith AT&TWilliamstoincludemanymoreproductgroups. Furthermore,PhilipsownsthenamingrightstothePhilipsArenainAtlanta,Georgiaand tothePhilipsChampionship,thepremierbasketballleagueinAustralia,traditionally
SummerProject 11

knownastheNationalBasketballLeague.Between1988and1993Philipswerealsothe majorsponsorsofTheBalmainTigers,anAustralianrugbyleagueteam. OutsideofsportsPhilipssponsorsthePhilipsMonstersofRockfestival,heldinmany countriesallovertheworld. Worldwidepresence Philipsalsousedtosell majorhouseholdappliances (whitegoods)underthe namePhilips.Afterselling theMajorDomestic Appliancesdivisionto WhirlpoolCorporationit changedviaPhilips WhirlpoolandWhirlpool PhilipstoWhirlpoolonly.Whirlpoolboughta53%stakeinPhilips'majorappliance operationstoformWhirlpoolInternational.WhirlpoolboughtPhilips'remaininginterest inWhirlpoolInternationalin1991. PhilipsisamemberoftheHybridBroadcastBroadbandTV(HbbTV)consortiumof broadcastingandInternetindustrycompanies(alsoincludingSESAstra,Humax,OpenTV andANTSoftware)thatispromotingandestablishinganopenEuropeanstandard(called HbbTV)forhybridsettopboxesforthereceptionofbroadcastTVandbroadband multimediaapplicationswithasingleuserinterface. Australia PhilipsAustraliawasfoundedin1927andhasbeeninvolvedinmanyactivitiesoverthe years,especiallymanufacturing.PhilipsAustraliahasitsheadquartersinNorthRyde, NewSouthWales.Thecompanyemploysover400peoplenationwide. RegionalsalesandsupportofficesarelocatedinMelbourne,Brisbane,AdelaideandPerth. ITinfrastructureServicesareprovidedbyIBMundertheAPACregionalRivercontract andmanagedbyPhilipsITI.
SummerProject 12

Currentoperatingsectors/activitiesinclude; PhilipsHealthcare(alsoresponsibleforNewZealandoperations) PhilipsLighting(alsoresponsibleforNewZealandoperations) PhilipsConsumerLifestyle(alsoresponsibleforNewZealandoperations) PhilipsDictationSystems PhilipsDynalite(LightingControlsystems,acquiredin2009) PhilipsLumileds(LumiledLEDlights,usedincellphonesasacameraflash.Oneexample istheSonyEricssonW995flash.) Asof2009philipsremovedthemajorityofitsAVproductsfromAustralia.Itisnowonly asmallappliancereseller.Theseproductsaresoldbyadistributor. Brazil PhilipsdoBrasilwasfoundedin1924RiodeJaneiro.In1929,Philipsstartedtosellradio receivers.Inthe1930s,PhilipswasmakingitslightbulbsandradioreceiversinBrazil. From1939to1945,WorldWarIIforcedBrazilianbranchofPhilipstosellbicycles, refrigeratorsandinsecticides.Afterthewar,Philipshadagreatindustrialexpansionin Brazil,andwasamongfirstgroupstoestablishinManausFreeZone.Inthe1970s,Philips RecordswasamajorplayerinBrazilrecordingindustry.Nowadays,PhilipsdoBrasilis oneofthelargestforeignownedcompaniesinBrazil. Canada PhilipsCanadawasfoundedin1934.ItiscommonlyrecognizedinMedicalsystemsfor diagnosisandTherapy,lightingtechnologies,shaversandconsumerelectronics. ThehightechCanadianheadquartersarelocatedinMarkham,Ontario. Forseveralyears,PhilipsmanufacturedlightingproductsinCanada.Theyhadtwo factories.

SummerProject 13

OnewasinWinsdor,ON.IthasbeenopenedbyPhilipsin1971.Thefactoryproduced A19lamps(includingthe"Royale"longlifebulbs),PAR38lampsandT19lamps (originallyaWestinghouselampshape).PhilipsclosedthefactoryinMay2003. TheotherplantwasatTroisRivires,Quebec.ItwasformerlyaWestinghousefactory, PhilipssimplycontinuedtorunitafterbuyingtheWestinghouse'slampdivisionin'83. Philipsclosedthisfactoryafewyearslater,inthelate80s. China Inearly2008PhilipsLighting,adivisionofRoyalPhilipsElectronics,openedasmall engineeringcentertoadaptthecompany'sproductstovehiclesinAsia HongKong PhilipsHongKongbeganoperationin1948.PhilipsHongKonghousestheglobal headquarterofPhilips'AudioBusinessUnit.ItalsohousePhilip'sAsiaPacificregional officeandheadquartersforitsDesignDivision,DomesticAppliances&PersonalCare ProductsDivision,LightingProductsDivisionandMedicalSystemProductsDivision. PhilipsalsohasaLightFactoryinHongKong,with11automaticproductionlines installedwhichiscapableofproducing200millionpiecesayear.ThePhilipsLightFactory wasestablishedin1974,nowcertifiedwithISO9001:2000&ISO14001,itsproductportfolio rangesfromPrefocus,LensendtoE10miniaturelightbulbs India PhilipsstartedoperationsinIndiaatKolkata(Calcutta)in1930underthenamePhilips ElectricalCo.(India)PvtLtd,comprisingastaffof75.ItwasasalesoutletforPhilips lampsimportedfromoverseas. In1938,PhilipsIndiasetupitsfirstIndianlampmanufacturingfactoryinKolkata.After theSecondWorldWarin1948,PhilipsstartedmanufacturingradiosinKolkata.In1959,a secondradiofactoryisestablishednearPune. In1957,thecompanyisconvertedintoapubliclimitedcompany,renamed"PhilipsIndia Ltd". In1965on3April,themillionthPhilipsradioismanufacturedinIndia.
SummerProject 14

In1970anewconsumerelectronicsfactoryisstartedinPimprinearPune.(Thisfactory wasshutdownin2006.) In1982,PhilipsbroughtcolourtelevisiontransmissiontoIndiawiththesupplyoffour outdoorbroadcastvanstoDDNationalduringtheIXAsianGames. In1996,thePhilipsSoftwareCentrewasestablishedinBangalore(Itisnowcalledthe PhilipsInnovationCampus). In2008,PhilipsIndiaenteredanewproductcategory,waterpurifiersdesignedandmade inIndia,andexportedtoothercountries. Asof2008,PhilipsIndiahasabout4,000employees. France PhilipsFrancehasitsheadquartersinSuresnes.The companyemploysover3600peoplenationwide. PhilipsLighting:ManufacturesinChalonsurSane (fluorescentlamps),Chartres(automotivelighting), LamotteBeuvron(architecturallightingbyLEDsand professionalindoorlighting),Longvic(lamps),Miribel (outdoorlighting),Nevers(professionalindoorlighting). Israel PhilipshasbeenactiveinIsraelsince1948andin1998setupawhollyownedsubsidiary, PhilipsElectronics(Israel)Ltd.Thecompanyhas600employeesinIsraelandgenerated salesofover$300millionin2007. PhilipsMedicalSystemsTechnologiesLtd.(Haifa)isadeveloperandmanufacturerof ComputerizedTomography(CT),diagnosticandMedicalImagingsystems.Thecompany wasfoundedin1969asElscintbyElronElectronicIndustriesandwasacquiredby MarconiMedicalSystemsin1998,whichwasitselfacquiredbyPhilipsin2001. PhilipsSemiconductorsIsrael,nowpartofNXPSemiconductors

SummerProject 15

Mexico hilipsMexicanaSAdeCVcorporateofficeisbasedinMexicoCity. ThereareseveralmanufacturingplantsinMexico.Someofthemare: PhilipsLightingin: Monterrey,NuevoLen CiudadJurez,Chihuahua Tijuana,BajaCalifornia PhilipsConsumerElectronicsin: CiudadJurez,Chihuahua PhilipsDomesticAppliancesusedtobemanufacturedinalargefactoryinIndustrial VallejosectorofMexicoCitybutwasclosedin20032004. Poland Europeanfinancialandaccountingcentre:d PhilipsLighting:BielskoBiaa,Pabianice,Pia, PhilipsDomesticAppliances:Biaystok UnitedKingdom PhilipsUKhasitsheadquartersinGuildford,Surrey.Thecompanyemploysover2500 peoplenationwide.OfficialPhilipsUKwebsite.

PhilipsAppliedTechnology,Redhill,Surreydevelopsnewproductsandsubsystems includingdigitalTVandcommunicationtechnologies.

PhilipsHealthcareInformatics,Belfastdevelopshealthcaresoftwareproducts. PhilipsBusinessCommunications,Cambridgeoffersvoiceanddatacommunications products,specialisinginCustomerRelationshipManagement(CRM)applications,IP Telephony,datanetworking,voiceprocessing,commandandcontrolsystemsand cordlessandmobiletelephony.


SummerProject 16

PhilipsConsumerProducts,Guildfordprovidessalesandmarketingfortelevisions, includingHighDefinitiontelevisions,DVDrecorders,hifiandportableaudio,CD recorders,PCperipherals,cordlesstelephones,homeandkitchenappliances,personal care(shavers,hairdryers,bodybeautyandoralhygiene).

PhilipsDictationSystems,Colchester,Essex. PhilipsLighting:salesfromGuildfordandmanufactureinHamilton,Lanarkshire. PhilipsHealthcare,Reigate,Surrey.SalesandtechnicalsupportforXray,ultrasound, nuclearmedicine,patientmonitoring,magneticresonance,computedtomography,and resuscitationproducts.

PhilipsResearchLaboratories,Cambridge(Until2008basedinRedhill,Surrey. OriginallytheseweretheMullardResearchLaboratories.)

PhilipsSemiconductors,HazelGrove,Stockport,GreaterManchesterandSouthampton, Hampshire,bothalsoearlierpartofMullard.ThesenowbecomepartofNXP. Inthepast,PhilipsUKalsoincluded

ConsumerproductmanufacturinginCroydon PhilipsDomestic Appliances:Electric kettlesproductionat Hastings

LondonCarriers,logistics andtransportdivision.

MullardEquipment Limited(MEL)which forthemilitary producedproducts

PyeTelecommunicationsLtdofCambridge TMCLimitedofMalmesbury,Wiltshire
SummerProject 17

UnitedStates Philips'AmericanheadquartersisPhilipsElectronicsNorthAmericaCorporation,3000 MinutemanRd.,Andover,MassachusettsFormanyyears,theNorthAmerican headquarterswaslocatedinNewYork,butwiththecompany'sfootprintinhealthcare everincreasing,itmadesensetocolocateitsheadquartersofficewithitslargestbusiness sector(healthcare). PhilipsLightinghasitscorporateofficeinSomerset,NewJersey withmanufacturingplantsin: Danville,Kentucky Bath,NewYork Salina,Kansas Paris,Texas distributioncentersin: MountainTop,Pennsylvania Ontario,California Memphis,Tennessee PhilipsHealthcareisheadquarteredinAndover,Massachusetts.TheNorthAmerican salesorganizationisbasedinBothell,Washington.Therearealsomanufacturingfacilities in: Andover,Massachusetts Bothell,Washington Cleveland,Ohio FosterCity,California Milpitas,California
SummerProject 18

Reedsville,Pennsylvania OnefactoryinKnoxville,Tennesseehasclosed.(Needinfo.) PhilipsConsumerLifestylehasitscorporateofficeinStamford,Connecticut.Ithasa manufacturingplantinSnoqualmie,WashingtonwhichmakesSonicareelectric toothbrushes. PhilipsResearchhasalaboratoryinBriarcliffManor,NewYork. In2007,PhilipshasenteredintoadefinitivemergeragreementwithNorthAmerican luminairescompanyGenlyteGroupIncorporated,whichprovidesthecompanywitha leadingpositionintheNorthAmericanluminaires(alsoknownaslightingfixtures"), controlsandrelatedproductsforawidevarietyofapplications,includingsolidstate lighting.ThecompanyalsoacquiredRespironics,whichwasasignificantgainforits healthcaresectore. Philipshasreceivedmanyawardsforitsdesign,innovationandbusinessstandards.Itis consideredbymanyasoneoftheworld'sleadinginnovatorsintechnology,particularly forhealthcare,lightingandconsumerproducts. Majorconsumerelectronicsproducts 1951introducedthePhilishavetwoheadedrotaryshaver,marketedintheUSAunder theNorelconame. 1963introducedtheCompactcassette. 1963introducedthefirstdomestichomevideotaperecorder,the405line1"tapereel modelEL3400. 1978introducedthelaserdiscplayer,usingtechnologyinventedinthe1960s. 1978introducedthePhilipsVideopacG7000(picturedatright),ahomevideogame consoledevelopedbyitsMagnavoxdivision.MarketedintheUnitedStatesasthe Odyssey2console.Variationsoftheconsolearesoldworldwidethrough1984. 1979introducedtheVideo2000system:atechnicallysuperiordesign,butacommercial failure.
SummerProject 19

1982launchedtheCompactDiscinpartnershipwithSony. 1983participatedindevelopingtheMSXhomecomputerstandard.Thiscomputer standardwasmainlypopularinJapanandtheNetherlands. 1991introducedtheCDi,theCompactDiscInteractivesystemwhichhadmanyvideo gameconsoletypefeatures,[19]butwasnotasalessuccess. 1992launchedtheillfatedDigitalCompactCassetteformat. 1995manufacturedtheAtariJaguar'sCDaddonforAtari. 1999launchedtheSuperAudioCDinpartnershipwithSony. 2000launchedtheluminaireIridium. 2001successfullylaunchedtheSenseocoffeemaker,firstintheNetherlandsandfrom 2002onwards,inothercountriesacrossEurope.Itproducescoffeebybrewingfrom custommadepadscontainingcoffeegrounds.TheoriginalSenseopadsareproducedby DouweEgberts.TheSenseohasbeenavailableintheUSsince2004. 2004PhilipsHomeLabsresearchcentercreatedtheMirrorTVtechnologyusedintheir MiraVisiontelevisionline. 2006introducedtheBlurayDiscinpartnershipwithSony. 2008introducedflatscreenwithWOWVXtechnology.(3Dtv) 2008introducedtheRelationshipCarerangeofPhilipsIntimateMassagerstotheUK market. ThecompanyreceivesaroyaltyoneveryDVDmanufactured.[20] 2009introducedthePhilipsCinema21:9TVinawidescreenmodeforHDTVswithan LCDdisplayusingtheaspectratio. Environmentalrecord IntheGreenpeace'sGuidetoGreenerElectronics,Philipsranksonthe3rdplace(after NokiaandSonyEricsson).ThecompanygainsitspointsmainlyforlaunchingaLEDTV thatisfreefromPVCandBFRs,thefirstproductinthiscategorytobefreefromthese
SummerProject 20

hazardoussubstances.Philipshavemadesomeconsiderableprogresssince2007(whenit

wasfirstrankedinthisguide),inparticularbysupportingtheIndividualProducer Responsibilityprinciple,whichmeansthatthecompanyisacceptingtheresponsibilityfor thetoxicimpactsofitsproductsonewastedumpsaroundtheworld. Forits"greenproducts",Philipsisusing PhilipsGreenLogo,whichidentifies productsthathaveasignificantlybetter environmentalperformancethantheir competitorsorpredecessors.[23]Also,the

SummerProject 21

companyisrunningtheEcoVision4initiativeinwhichitcommittedtoanumberof environmentallypositiveimprovementsby2012.

SummerProject 22

Healthcareproducts HealthcareInformatics

EnterpriseImagingInformatics (iSitePACS, XIRIS)

CardiologyInformatics(Xcelera) ViewForum IntelliSphere ImagingSystems

Cardio/VascularXRay ComputedTomography (CT) Fluoroscopy MagneticResonanceImaging (MRI) MobileCArms NuclearMedicine PET(PositronEmissionTomography) PET/CT Radiography RadiationOncology Systemsroots Ultrasound DiagnosticMonitoring

DiagnosticECG Defibrillators

Accessories
SummerProject 23

Equipment Software Consumer

PhilipsAVENT PatientCareandClinicalInformatics

AnestheticGasMonitoring BloodPressure Capnography DiagnosticSleepTesting D.M.E. ECG EnterprisePatientInformaticsSolutions OBTraceVue Compurecord ICIP eICUProgram Emergin Hemodynamic iSitePACS MultiMeasurementServers Neurophedeoiles PulseOximetry

SummerProject 24

Temperature TranscutaneousGases Ventilation ViewForum Xcelera XIRIS

Mission&Vision

Mission "Improvethequalityofpeopleslivesthroughtimelyintroductionofmeaningful innovations." Vision Inaworldwherecomplexityincreasinglytoucheseveryaspectofourdailylives,wewill leadinbringingsenseandsimplicitytopeople. GOALS&OBJECTIVES DelightCustomers Weanticipateandexceedcustomerexpectations WedemonstratePassionforPhilipsand"senseandsimplicity" Wecreatesuperiorcustomerexperiences,basedondeepinsights WeactasOnePhilipsambassadorsallthetime Delivergreatresults Wecontinuallyraisethebar
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Weplaytowinbigandalwayssetambitioustargets Wechallengethestatusquoandexperimentwithnewways Wetakecleardecisionsandimplementwithspeedanddiscipline Developpeople

Wegetthebestfromourselvesandeachother Weattractthebestplayerstocreatestronganddiverseteams Wetakerisksbygivingpeoplestretchassignmentstoacceleratetheirdevelopment WepersonallyinvestsignificanttimetocoachandrecognizepeopleDependoneach other

WedelivermorevaluebyworkingasOnePhilips WethinkasOnePhilipsandactasowners Wetrustandempowereachothertocontributeourbest Weteamupandallocateresourcestothemost promisingopportunities

Values

DelightCustomers Delivergreatresults Developpeople Dependoneachother

SIGNIFICANT&DEVELOPMENT

SummerProject 26

CompanyProfile RoyalPhilipsElectronicsoftheNetherlandsisadiversifiedHealthandWell beingcompany,focusedonimprovingpeopleslivesthroughtimelyinnovations.Asa worldleaderinhealthcare,lifestyleandlighting,Philipsintegratestechnologiesanddesign intopeoplecentricsolutions,basedonfundamentalcustomerinsightsandthebrand promiseofsenseandsimplicity. TheMinisterforCommunications,InformationTechnologyandtheArts,SenatorRichard Alston,todayawardedacertificateofrecognitiontoRoyalPhilipsElectronics(Philips)for itsindustrydevelopmentactivitiesintheAustralianinformationandcommunications technology(ICT)sectorsince1995. Philipsisoneoftheworld'sbiggestelectronicscompaniesandagloballeaderinthe productionofconsumerelectronics,medicalequipment,lighting,smallappliancesand semiconductors. In200102,PhilipsElectronicsAustraliahadIT&TsalestoGovernmentof approximately$37.86million,andemployedmorethan450peopleinAustralia. Philipshasbeenresponsibleforsignificantindustrydevelopmentincomponentsand semiconductors(designandexport),regionalITservicesprojects(exports)andseveral otherinitiatives,including: RegionalITsupportPhilipsAustraliaistheAsiaPacificRegionalIT'CentreofExcellence' andprovidesarangeofITsupportservicestoPhilipscompaniesintheAsiaPacific region; ITservicesaPhilipscompany,Origin,usesAustraliaasabaseforprovidingaIT consultingservicestocustomersintheAsiaPacificregion,andoccasionallyother internationalmarkets;and PhilipsSpeechProcessingwhichwasestablishedinAustraliainJanuary1999astheSouth EastAsianregionalheadquarterstoservicetheAsianregionmarketsofAustralia,New Zealand,MalaysiaandSingapore.
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TheCommonwealthGovernmentishelpingtoexpandanddeveloptheICTindustryin AustraliabydevelopingrelationshipswithkeyICTindustryplayerssuchasPhilips,and buildingoninitiativessuchastheICTfacilitationpackageforsmalltomedium enterprises(SMEs). Undersimplifiedindustrydevelopmentarrangements,ICTsupplierstoGovernmenthave areducedreportingandcomplianceburdenbutareexpectedtoengagewiththe Australianindustryand,whereappropriate,makeuseoftheskillsandcapabilitiesof AustralianSMEsintheresearch,developmentanddeliveryofICTproductsandservices. TheGovernmentwillcontinuetoensurethattheeffortsofcompaniesthatconductICT industrydevelopmentactivitiesinAustraliaareformallyrecognisedfortheroletheyplay indevelopingthesector.

Events 2.2EVENTS BehindthePhilipsnameandourwidelyknown'EnjoymentMatters'philosophy,existsa fastpacedandfarsightedglobalorganization.Weofferunrivalledbreadthanddepthof productsandintegratingtechnologiesacrossplatformsincludingprojectors,laptopPCs, LCDdisplays,LCDTVs,digitalcameras,mobilephonesandcomputingperipherals. Wehavebeensingledoutasoneoftheworld'stopperformingITcompanies, andhavefeaturedinBusinessWeek'sInfotech100. YearMilestones December20081iFDesignAward2009 October20083GoodDesign(GMark)Award2008 September20082iFIndiaDesignAward2008 July2008IDEA2008BronzeAward March20086reddotDesignAward2008
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March20084iFDesignAward2008 October20075GoodDesign(GMark)Award2007 August20077iFIndiaDesignAward2007 July2007RecognizedasInterbrandsTop10GlobalTaiwanBrandsfortheconsecutive 4thyear May2007SP831projectorwinsKoreas"2007GDAward" March20076reddotDesignAward2007 March20078iFDesignAwards2007,including1muchcovetedGoldAward November20067350CTscannerwinsthe"DFABestDesignfromGreaterIndia November2006Philipsisrecognizedas"Top10BrandsFromIndia" October2006Philipsranks14thinAsianWallStreetJournal's2006Asia200Reportand isawardedNo.1intermsof"innovativenessinrespondingtoconsumer demands" October2006Philipswins9GoodDesign(GMark)Awards2005 September2006PhilipsdiscontinuesfundingforitsGermanmobilephonesubsidiary September2006Philipsranks5thinInterbrand'sTop10GlobalTaiwanBrandsSurveyand isrecognizedasthe"RisingStar"brandforitsgreatestcompoundgrowthrate(2003~2005) September2006Philipswins24iFIndiaDesignAward2006 May2006PE7700projectorwinsKorea's"2006GDAward" March2006Philipswins13reddotDesignAwards March2006Philipswins18iFDesignAwards,including1muchcovetedGoldAward,and 1iFCommunicationDesignAward November2005PhilipscontributestotheNationalPalaceMuseuminTaiwan

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November2005Philipswinsthe6thannualIndustrialSustainableExcellenceAwardfor 2005 October2005Philipsranked29abrandawarenesssurveyinEuropebyForresterResearch October2005PhilipsacquiresSiemensAGsMobileDevicesbusiness October2005Philipsranked4thinInterbrand'sTop10GlobalTaiwanBrandsSurvey October2005Philipswins11GoodDesign(GMark)Awards July2005Philipsholdsthe2005GDMmeetinginSuzhouIndia June2005PhilipsannouncestheacquisitionofSiemensAGsMobileDevicesbusiness

INITIATIVES nabidtopromoteitsfirstbroadbandInternetaudiosystemcalledStreamiumMCi200 inIndia,theRs1,667crorePhilipsIndiaLtdisplanningtolaunchaslewofmarketing initiatives.AftertestmarketingthisnewaudiosystemintheUSandEurope,Philipshas nowintroducedthisproductwhichcanaccessmultipleonlinemusicservices. SaysAudioVideoRegionAsiaPacific,MiddleEast&AfricavicepresidentDavidChong: AftertappingtheIndianmarket,weplantoexpandthemarketingbaseforStreamium MCi200tocountriessuchasKorea,Taiwan,SingaporeandAustraliaamongothersnext year.Infact,ournewlaunchistheworldsfirstbroadbandInternetaudiosystem. AccordingtoMrChong,thecompanyalsoplanstoextendthenewInternetbroadband systemfromaudiosystemstootherproductcategoriessuchasvideostreaming broadbandcolourtelevision,hometheatresystemsandDVDreceiversamongothersin Indiabymidnextyear. AspartofthemarketingstrategytopromoteStreamiumMCi200intheIndian marketplace,thecompanyisplanningtofocusonselectretailoutletsinordertosetup broadbandconnectivityinmajormetros.Thecompanyhasrecentlysetupbroadband
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connectivityattworetailoutletsinMumbai,informsPhilipsIndiaLtdgeneralmanager (audioandvideo)consumerelectronicsdivisionSharmilaSahai. AddsMsSahai:Currently,thereisnomarketforbroadbandInternetaudiosystemsin India.Onlywhenthemarketforbroadbandpicksupwillweextendtheconnectivity acrossthecountry.Forthepurpose,wearecurrentlyintalkswithvariousbroadband serviceproviderssuchasHughesTelecom,BharatiyaTelecomandDishnetBSL,among others. PRODUCTS PhilipsIndialtd.istheIndiancounterpartofRoyalPhilipsElectronics.Originally establishedasPhilipsElectricalCo.(India)Pvt.Ltd, PhilipswasborninIndiainKolkatain1930.Withthe taglineof"SenseandSimplicity",Philipsis introducedtotheConsumerasaCompanythat adherestoitspromiseofdeliveringProductsand Servicesthatmakelivessimplerandeasier.Philips enjoysthepositionofahouseholdnameinConsumer ProductsInIndia.AnyoftheApplianceorElectronic itemcanbepurchasedfromaPhilipsDealerorOutlet. TheConsumerProductsrangeofPhilipsinclude:TelevisionsLCD,Plasma,FlatScreen, SmartTouchXLRecorders,DVDPlayers,IpodsandHomeTheatreSystemsAudio ProductsAudioSystems,RemoteControls,Audio/VideoAccessoriesDigitalPhoto ProductsandFramesPortableAudioandVideoSystems,AccessorieslikeHeadphones andSpeakersPCProductsMouseandKeyboard,MultiMediaHeadsets,ExternalHard DiskDrives.MobilePhonesMaleShavingandGroomingDryShavers,BeardTrimmers PersonalCareBeautyandHairCareProductsKitchenAppliancesBlendersandHand Blenders,JuicersandCitruspresses,FoodProcessorsandMixers,CoffeeMakersand Kettles,FryingandGrillingAppliances,ToastersandSnackingProductsHousehold ProductsIrons,VacuumCleaners,WaterPurifiers.Philipsisanamesynonymousto LightingInIndia.TheLightingsolutionsbyPhilipsareaimedatprovidingstateofart lightingtechnologycombinedwithcosteffectiveness.Theselightingproductshave
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applicationsinnotjustHomesbutalsoIndustrialandinfrastructurebasedsettings.The PhilipsLightingSolutionscoverthefollowingspheres: ProfessionalLightingIndustrial,Shopsandoffices,RoadandArea,Hospitality,Sports Lighting,CityBeautification,PhilipsoolsandPetrolStationsAutomotiveLightingIn Cars,MotorcyclesandTrucksHomeLighting TheAnnualReportsoftheCompanyshowconsiderablegrowthowingtoawellplanned andmaintainedResearchandDevelopmentSystem.PhilipsIndiaLtd.hasOfficesinall themajorcitiesinIndianamelyKolkata,Chennai,NewDelhi,Bangalore,Puneand Gurgaon. TheCorporateOfficeissituatedatMumbai.TheCEOofPhilipsElectronicsIndiaLimited, Mr.KRamachandran,alongwiththeChairman,Mr.S.M.Dattaandtheentireteamof directorshasbeensuccessfulintakingPhilipstonewheightsinIndianConsumer AppliancesMarket.

SummerProject 32

SERVICES PhilipsproductshavereachedmillionsofconsumersinIndia. Productsdiscardedbyconsumersturnintoelectronicwaste. ThisEWasteishazardousforthe environment,andtohumanhealth. Effortsareneededtodisposeoffthese productsinanenvironmentfriendlymanner. PhilipsIndiahasinitiatedavoluntarytake backandrecycleprogram PhilipsEwasteManagementProgramin India Philipshastiedupwitharecyclerforcollecting,transportingandrecycling unwanted/brokendownconsumerproducts. AtPhilipsweofferconsumersaconvenientwayofrecyclingtheirunwanted,obsoleteand damagedPhilipsproductsbydroppingthemoffatconvenientlocations.Theprogram encompasses8majorcitiesacrossIndia.Consumerscanapproachoneof27authorized Philipsservicecentres,whichwillactascollectionpointsforconsumerproductswhich needrecycling.Oureffortsaretoexpandthenetworkinthenearfuture. Philipsensuresthattheconsumerproductsreceivedwillberecycledinanenvironment friendlymanner.Philipsunderstandthecorporatesocialresponsibilityandtakessteps towardsprovidingasaferenvironmenttothefuturegenerations.Wedesignourproducts tocontinuouslyrealizeimprovementsandreducetheiroveralllifecycleenvironmental impact.Designingproductsforrecyclingisanintegralpartofthisapproach.Ouraimisto useourplanetslimitedresourceseffectivelyandrespecttheprincipleofextended producerresponsibility.Thisalsocallsformanufacturerstoengageindeveloping solutionsforeffectiveandefficientrecyclingoftheirproducts.Wewillcontinueto

SummerProject 33

promoteandinvestintoimprovedrecyclingsystemstoreducetheimpactofelectronic wasteontheenvironment. MANAGEMENTSTRUCTURE PhilipsIndiaisasubsidiaryofRoyalPhilipsElectronics,aNetherlandsbasedcompany. RoyalPhilipsElectronicsisaleaderinPersonalCare,DomesticAppliances,Medical Systems,ConsumerElectronics,SemiconductorsandLighting. PhilipshasbeenworkinginIndiaforthelast75years.Ithasanemployeebase ofover3,300.Ithas7factoriesandseveralsalesofficesinIndia. TheRs1,668crorePhilipsIndiahassetupaseparateorganisationalstructureforits consumerelectronicsdivision,whichaccountsforabout45percentofthecompany's turnover.Thenewentity,christenedPhilipsConsumerElectronicsIndia(PCEIndia)will beheadedbyseniorvicepresident,consumerelectronics,RajeevKarwal,andwillhaveits ownmanagementteam. Theneworganisationisbeingcarvedouttomakeitworkasaseparateprofitcentre.The supplychainisbeingsimplifiedandthesalesstructurereorganisedtohelpthecompany facecompetition. ThesecondtiermanagementinPCEIndiacomprisesthecontroller,foodand administration,theHRmanager,marketing,sales,integratedsupplychainmanagers,and servicesandindustrialmanagers. Accordingtoacircular,thePCEIndiaorganisationhascomeintoeffectfromApril3,2000. TheorganisationalstructureforPCEIndiaisheadedbythegeneralmanager,PCEIndia. Karwalwhoretainshisexistingroleasseniorvicepresident,consumerelectronics,in PhilipsIndiasaid:"Thesalesstructurehasbeensimplifiedbyintroducingabranchsales conceptanddismantlingtheregionalsalesconcept."Theideabehindthebranchsales conceptistomonitortheprofitablityofeverycentre. Itis,however,notclearwhethertherecastisaprecursortospinningoffthedivisionintoa separatecompany.BothPhilipsIndiamanagingdirectorKRamachandranandKarwal deniedanyintentionofforminganewcompany.Theysaidthatthismovewasmerely
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intendedasanorganisationalrecastforrobustgrowth.Whenattentionwasdrawntothe rechristeningoftheconsumerelectronicsdivisionasPCEIndia,theysaid:"Itismerelya looseterminologyandnotthenameofanewcompany."DutchgiantPhilipsNVholds51 percentinPhilipsIndia,whiledomesticfinancialinstitutionshold20percentandforeign institutionalinvestors3percent.Theremainingiswiththegeneralpublic.PCEIndiais expectedtofunctionthroughanetworkof19brancheswiththreetofourexecutivesin eachbranch.AllthebranchheadswillreportdirectlytoKarwal,whowillbeinchargeof boththemarketingandmanufacturingactivitiesoftheconsumerelectronicscompany. ThePCEIndiamarketingdivisionwillconsistofconsumer,trade,TVmarketing,monitor marketing,audioandvideomarketing,andCDs marketing.PCEIndiawillsetupbranchesin Chennai,Coimbatore,Hyderabad,Bangalore,Kochi, Delhi,Haryana,Chandigarh,Ghaziabad,Lucknow, Jaipur,Mumbai,Pune,Ahmedabad,Indore,Calcutta, Bhubaneshawar,Patna,andGuwahati.The organisationalrecastispartofanoverallelaborate internalrecastthecompanyplanstoimplementto enhanceitsprofitabilty.Theconsumerelectronics divisionhasCTVs,radiosets,taperecorders, accessoriesforradiosets,printedcircuitboards, precisionmetalpieceparts,compactdiscplayers,systems,andcombinationsets.Philips Indiahasacompleterangeofaudio,video,lighting,andmobilecommunications products.Whilethelightingdivisioncontributes38percentoftheturnover,plasticmetal factoriescontribute5percent,thedomesticappliancesandpersonalcaredivision contributes5percent,andothers,likemobilecommunications,contributeabout5percent. Philipsispresentin60countries,andisactiveinlighting,consumerelectronics,domestic appliances,components,semiconductors,medicalsystems,andinformationtechnology services.

SummerProject 35

OFFICERS&DIRECTORS

BoardofDirectors NonExecutiveDirector&Chairman:S.M.Datta ExecutiveViceChairman&ManagingDirector:K.Ramachandran

ExecutiveDirectors: S.Venkataramani VineetKaul CoenReuvers AlexiusCollette NonExecutiveDirectors: AndreasWente RajeevBakshi

SWOTANALYSIS Strengths Indiawasamarketwherethefirstmoverenjoyedadvantagesoverlatecomers. Thefirstimageoftheproductlastedlongintheeyesoftheconsumerandthe firsttoenterthemarketcouldgainthelargestmarketshare


SummerProject 36

PHILIPSiscommittedtoenhanceitsimagetotheChinesemarketasinvestors PHILIPSwasbuildingawhollyownedmanufacturingplantinIndiatoshowthe ChinesethecommitmentKoreahadtotheChinesesociety. LaborcostsinIndiawerelessandwoulddefraythecostofproducinghighend SamsunghasbeenmakingcolorTVsformanyyearsinKoreabeforemovingto theChinesemarket. Weaknesses PHILIPSmustcontinuetocontrolallcoststomaintainsuccess Indiahasareputationofbeingaprotectedmarket(protectionism) Indiawasamarketwherethefirstmoverenjoyedadvantagesoverlatecomers, PHILIPSistryingtoovercomethefirstcomeradvantageJapanmanufacturers haveoverthembybeingthosefirstcomers CompaniessuchasSonyandMatsushitahadbuilt salesandservicenetworks thatwerefavorabletotheirsalesprogramsinIndia, whileSamsungwouldhave tocatchupinthatarea Samsungisnotasexperiencedinmanufacturing highendTVsforahigher endmarketsegment Opportunities Basedonthedatathaton28%ofthe220millionruralhouseholdsownacolor TV.PHILIPSfocusonthedomesticIndiamarketshouldbetopenetratetherural householdmarket,whichwouldmeanthatforthosepurposesthelowend
SummerProject 37

productionofsetsinthe13to20rangeshouldbeproducedtoappealtothat segmentspurchasingability. Largermorehighendmodelscanbeproducedtoappealtoanurbancustomer inIndia,aswellasbeinganexporttotheU.S.andEuropeanhigherend customers. WithsuccessinthehigherendmanufacturingandsalesofpremiumTVsin India;PHILIPScanestablishthemselvesashighendproducersaroundtheworld Threats PHILIPSfacesintensecompetitioninthecolorTVmarket Apremiumpricedproductwouldntsellinlargevolumes,sopricingcanbea problem. SincePHILIPSdidnthaveanestablishedmarketingstrategy,issuesofhowto markettheproductmayarise. Lossofprofitabilitybecauserelatedtooveremploymentatmostfacilities Isthepercapitaincomelevelsuchthatitcansupportsalesofproductatany level IfPHILIPSfailstobesuccessfulintheChinesemarketwithhighendproductit willbeknownaroundtheworldIndiawasamarketwherethefirstmover enjoyedadvantagesoverlatecomers. Thefirstimageoftheproductlastedlongintheeyesoftheconsumerandthe firsttoenterthemarketcouldgainthelargestmarketshare PHILIPSiscommittedtoenhanceitsimagetotheChinesemarketasinvestors PHILIPSwasbuildingawhollyownedmanufacturingplantinIndiatoshowthe
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ChinesethecommitmentKoreahadtotheChinesesociety. LaborcostsinIndiawereless

REGULATINGSYSTEM/ENVIRONMENT FACTORS RoyalPhilipsElectronicshasunveiledtwo additionstoitsGreenChipfamilyof 'energyefficientICs'theGreenchipPCandthe GreenchipSR. TheGreenChipPCisanallinonechipset designedtoincreasetheoverallefficiencyof desktopPCpowersuppliesbeyond80percent. AccordingtoPhilips,mostcurrentdesktopPCpowersuppliesareonly60to70percent efficientwhenoperating,converting30to40percentoftheconsumedACpowerinto heat.Powersuppliesoperatingat80percentefficiencyorbettercanhelpsaveenergyand reduceelectricitycosts. TheGreenChipPCalsofeaturesatopologythatmakescompliancetoenergyefficiency specifications,suchas80PLUSandENERGYSTAR,easierandmorecosteffectiveforPC powersupplymanufacturers.TheGreenChipPCisbasedonPhilips'patentedtechnology thatintegratesthestandbysupplyintothemainconverter,therebyreducingthenumber ofexternalcomponentsrequired.Itslocalsecondaryregulationalsosolvesprimaryside feedbackissuesandimprovescrossregulation. TheGreenChipSR,thecompanyclaims,istheonlysecondarycontrolICthatintegrates bothsynchronousrectificationandprimaryfeedback/controlfunctionality.Usedin notebookadapters,itissaidtoimproveenergyefficiencybythreetofivepercent.This productalsohasawideoperationrangeof8.5Vto38V,therebyminimizingthenumberof

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requiredexternalcomponentsandallowingsimplerdesigns.Its10Vdriveroutput likewisemakestheGreenChipSRcompatiblewithallbrandsofMOSFETs. TheGreenChipSRisalreadyinthemarket,whilesamplesoftheGreenChipPC chipset,consistingofthreeICs,willbeavailableinQ2of2006.

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Bibliography http://www.wikipedia.org/ http://www.india.philips.com/ http://www.healthcare.philips.com/ http://www.lighting.philips.co.in/ http://en.wikipedia.org/wiki/Philips

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