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					Phillips Electronics   1


                            Phillips Electronics Plan

                                 Michelet Hira

                             University of Phoenix
Phillips Electronics   2


       Phillips Electronics is the company identified as the subject of a practical business plan

development to demonstrate the effectiveness of using strategies to achieve the most competitive

advantages within the global. The primary sectors of economic activities dominated by this

organization are healthcare equipments development and manufacturing, research and

development of the most advance of electronics and electrical devices (Kleisterlee, 2009). To

facilitate the development and implementation of the final strategic plan, the efforts will be

focused on the organization’s core business of healthcare research and equipments

manufacturing. Glad you chose a new company!

       Phillips Electronics remains the world dominant leader in the field of research and

development of the most technologically advanced healthcare equipment available to the

industry (Phillips, 2009). This organization was founded by Anton and Gerard Phillips 118 years

ago in the Netherlands and is currently headquartered in the same country with annual average

revenue of 6.52 billion dollars (Kleisterlee, 2009). This company provides products and solutions

to meet the healthcare needs of both professionals in hospitals and clinics and consumers in

millions of houses around the world. Some of these products include Ultrasound and digital X-

ray machines that provide pictures in color and three dimensional views. Phillips is also the

global leader in the development and distribution of the newly introduced energy efficient light

bulbs to substitute the typical 100 watts unit with an 18 watts element while maintaining the

same level of lighting (Phillips, 2009). The company’s latest products are an Electro Cardiogram

that can wirelessly transmit data to hospital units and the “Electro Mechanical Pill” to deliver

specific amount of medications to precise location of the human body.
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       Phillips Electronics has demonstration a well founded sense of devotion to effective

medical diagnosis and treatment, comfortable life cycle, and conservation of the Eco system

evidenced by its mission statement: “Improving the quality of live through introduction of

meaningful innovation.” (Kleisterlee, 2009, pp. 1). Phillips model of “Sense and Simplicity” has

given its customers and employees the most effective means and tools to continuously improve

the process on which their lives depend. Such organizational culture has allowed the leadership

to develop and implement an extraordinary strategic vision, which intends to fuel growth by

making Phillips the leading brand in health and well-being. With this statement: “We are putting

people right at the center of things, with health and well-being as our overarching theme” the

firm has clearly expressed its sentiment of a market driven entity that seeks to increase

shareholder value through exemplary customer service (Kleisterlee, 2009, pp. 1). Phillips

Electronics’ core values of Sense and Simplicity and a focus on improving the lives of

individuals have tremendously contributed to the organization ability to reach its end state goal.

The development and distribution of the Phillips IPill, Heartstart Monitor, and Efficient Lighting

are clear evidence of a profound commitment to developing products through technology that is

base on common sense and simplicity.

       Considering the firm’s strategy of process effectiveness and global market dominance,

pricing and marketing are two of the strategic management process that must be analyzed to

ensure that the company does not lose its competitive advantages to new competitors. Siemens

Healthcare is a direct and effective challenger to Phillips’ strategic vision and with a statement

like: “The right balance of efficiency and values”, Siemens can actually surpass Phillips once it

learns how to simplify the use of its equipments (Siemens, 2009). By offering more competitive

benefits and compensations, other competitors can drain Phillips of its most valuable resources
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of human capitals and technology through what Nalbantian, and Szostak call “Employee Flight”


          With a revised strategic management plan, Phillips will be able to eliminate the growing

threat posed by other formidable competitor like Siemens Medical Solution. Otherwise, Phillips

would have to spend more liquid capital in marketing and absorb the loss of market shares to its

rivals and that can definitely reduce its ability to invest in research and development in the

future. After all, the primary objective of Phillips is to remain the dominant global market leader

through the improvement of the quality of life and introduction of meaningful innovation. If

Siemens finds a way to do the same thing better and at a much lower cost, it will andtherefore, be

able to reduce its unit’s price and force Phillips to relinquish its global market position and

competitive advantage. With a successful implementation of the new strategic management plan,

the organizational leadership would not have to fight to keep its most qualified employees and

change its current price strategy, which will help maintain a global competitive advantage over

the competition. A viable organization with a global dominance will definitely provide long term

investment security and eventually maximize its shareholders’ wealth and attract new capital


          Evidently, Phillips Electronics remains the most competitive global player in the field of

healthcare equipments and lighting devices research and development but the competition is

closer than appeared. The development and implementation of the new strategic management

plan will inevitably help the organization reduce the cost of operation and ownership, which will

solidify its current dominance of the market. Such position will force the competition to spend

more capital and focus on “Current Profit Maximization”, which seeks to maximize profit in

relation to revenue and cost instead of “Current Revenue Maximization” (NetMBA, 2009).
       Phillips Electronics   5

 Item                              Description                                      Percents
   1  Content and Conceptualization                                                  60/60%
   2  Logical organization of thoughts, ideas and structure                          60/20%
   3  Spelling, Grammar, APA format, etc.                                            19/20%
                                                                          Total       99%

       a. Identify the organization for which you would like to complete or are considering
           completing a strategic plan. You may focus this study on a specific department,
           group, division, or function, within the organization.
       b. Provide a brief background of this organization, including its products/services and
       c. Look for the organization’s mission and vision statements. Modify or improve them to
           achieve as much clarity as possible.
       d. How do the mission, vision, and values aid the organization in reaching its desired
           end state?
       e. What components of the strategic management process need to be analyzed in light
           of the new strategy?
         f.      What effect will the outcomes of the new strategy have on the leadership and

                culture of the organization? How will the outcomes affect stakeholders?

                                                Points: 5.94


       Kleisterlee, G. (2008). Vision 2010 Strategy. Retrieved May 25, 2009, from


       Nalbantian, H., & Szostak, A. (2004, April). How Fleet Bank Fought Employee Flight. Harvard

              Business Review, 82(4), 116-125. Retrieved May 20, 2009, from Business Source

              Complete database. <


       NetMBA. (2009). Pricing strategy. Marketing Strategy and Marketing Mix. Retrieved May 22,

              2009, from http://www.
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Phillips (2009). Another Innovation from Phillips. Retrieved May 22, 2009, from

Siemens (2009). Siemens healthcare. Retrieved May 26, 2009, from


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