Philips NV: Dealing with a Global Financial Crisis
Philips NV, a multinational organization based in the Netherlands, is facing strategic dilemmas. The company has been in the middle of a transformation involving a shift in focus from lighting and health care products towards consumer products and services when a financial meltdown, triggered by a crisis in the U.S. housing market, leads to a credit crunch in financial markets. Countries that have traditionally sustained the demand for Philips merchandise — e.g., the United States, Germany, the United Kingdom and France — have been witnessing a decline in key indicators of economic growth. Philips’s revenues and margins are under pressure. Remedial actions are required to ensure that the company is on track to reach its own growth targets. The case deals with two dilemmas: How should Philips deal with the credit crunch in the short term? How should Philips come out of it as a robust company in the long term?
Collection: Ivey Business School (Canada)
Ref: IVEY-9B13M011-E
Format: PDF
Number of pages: 19
Publication Date: Feb 7, 2013
Language: English
Review date: Feb 7, 2013
What material is included in this case:
Description
Philips NV, a multinational organization based in the Netherlands, is facing strategic dilemmas. The company has been in the middle of a transformation involving a shift in focus from lighting and health care products towards consumer products and services when a financial meltdown, triggered by a crisis in the U.S. housing market, leads to a credit crunch in financial markets. Countries that have traditionally sustained the demand for Philips merchandise — e.g., the United States, Germany, the United Kingdom and France — have been witnessing a decline in key indicators of economic growth. Philips’s revenues and margins are under pressure. Remedial actions are required to ensure that the company is on track to reach its own growth targets. The case deals with two dilemmas: How should Philips deal with the credit crunch in the short term? How should Philips come out of it as a robust company in the long term?
Read more
Year: 2008
Geographic Setting: Netherlands
Industry Setting: Manufacturing;
Learning Objective
·To provide insight into the impact of a global financial crisis on the strategy of a large multinational enterprise competing in the health care, lighting and consumer lifestyle industries. ·To develop students’ ability to provide guidance to an international company that is facing turbulence in its key geographic markets. ·To develop students’ skills in making holistic strategy recommendations to a multinational enterprise that is facing a major threat on a global scale.
Leave your rating
"Philips NV: Dealing with a Global Financial Crisis"
Register for free with IESE Publishing and enjoy all the advantages
What type of account do you want to create?
Choose account type
Professors
Academic Institutions
Companies
Individuals