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Shannon Dorsey Brian Patera Leslie Royer Hope Sutton Brandi Wisenbaker. PHILIPS sense and simplicity. History. 1892: Philips & Co established 1912: Incorporated 1914: 1 st research lab established Multiple reorganizations Marketing changes “Let’s make things better.”
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Shannon Dorsey Brian Patera Leslie Royer Hope Sutton Brandi Wisenbaker PHILIPSsense and simplicity
History • 1892: Philips & Co established • 1912: Incorporated • 1914: 1st research lab established • Multiple reorganizations • Marketing changes • “Let’s make things better.” • “Sense and simplicity.” • 2007: Vision 2010
Mission • "Improve the quality of people’s lives through timely introduction of meaningful innovations."
Vision and Values • “In a world where complexity increasingly touches every aspect of our daily lives, we will lead in bringing sense and simplicity to people.” • Delight Customers • Deliver Great Results • Develop People • Depend on Each Other
Sectors • Healthcare • Lighting • Consumer Lifestyle
Goals • Group EBITA: 10-11% in 2010 • Healthcare EBITA: 15-17% • Lighting EBITA: 12-14% • Consumer Lifestyle: 8-10% • 6% Sales growth for period 2008-2010 • Return on invested capital: 12-13% in 2010
1st Quarter 2010 Financials • Group EBITA: 9.8% • Healthcare : 10.7% • Lighting : 14.0% • Consumer Lifestyle: 9.2% • Sales growth: 12% increase • ROIC
Internal Stakeholders • Employees • Board members • Stockholders
External Stakeholders • Customers • Suppliers • Creditors • Government • Communities • General Public
Most Important Stakeholders • Customers • Employees • Stockholders
Strategies • Corporate Level • Unrelated Diversification • Business Level • Differentiation • Functional Level • R&D, Marketing
Five Forces Analysis • Low Threat of Entry because of economies of scale, high start-up costs • Increased Rivalry because of consolidated industry, high exit barriers, declining demand, and high fixed costs.
Five Competitive Forces • Increased Threat of Substitutes because many competing brands offer similar products and no switching costs • Low Power of Buyers because there is a large number of buyers • Low Power of Suppliers because there are many supplier firms and the supplied input is not highly differentiated
Macroeconomic Forces • Global • Technological • Demographic • Social • Political & Legal • Macroeconomic
Competitive Advantage • Innovation* • Customer Responsiveness* • Efficiency • Quality
Core Competences • Humanities, design • Life sciences • Physics & Chemistry • Electronics • Informatics & mathematics • Technology, engineering
Corporate Governance • Two Tier System - Supervisory Board - Board of Management • Group Management Committee - Highest consultative body within Philips
Ethics • General Business Principles • Code of Ethics • Act honestly & ethically • Avoid conflicts of interest • Comply with applicable govt laws, rules, regulations