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Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
Philips Pakistan
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Philips Pakistan

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  • 1. SENSE AND SIMPLICITY Global Company TO BE PRESENTED BY : SARA ISMAIL
  • 2. • A world leader in healthcare, lifestyle and lighting
  • 3. Chief Executive Officer and Chairman of the Board of Management and Executive Committee Frans van Houten
  • 4. CEO
  • 5. Values • Philips’ values, the four Ds, are like a compass – guides Philips’ employees in how to behave every day, and remind of the attitude towards work, customers and colleagues. • Delight customers Anticipate and exceed customer expectation Deliver great results Continually raise the bar • Develop people Get the best from ourselves and each other • Depend on each other Deliver more value by working as One Philips
  • 6. ORGANIZATIONAL STRUCTURE Health care Consumer lifestyle lighting Innovation group and services
  • 7. • Philips was founded in Eindhoven (Netherlands) in 1891 by Fredrick and Gerard Philips- later joined by Gerard’s brother Antonto manufacture incandescent lamps and other electrical products
  • 8. BACKGROUND OVERVIEW • Age 120+ yrs. • headquarters Amsterdam (Netherlands) • Targeted population 1.7 billions • Employees 116000 • Existing market 60+ Countries (approx. 100)
  • 9. • Globally recognized (world’s top 50) • The company is a market leader in cardiac care, acute care and home healthcare, energy efficient lighting solutions and new lighting applications, as well as lifestyle products for personal well-being and pleasure.
  • 10. STRUCTURE • Centralization Its health and well being sector is following an ethnocentric attitude and it is centralizing its management to parent country Netherlands.
  • 11. Multinational Corporation • Philips is international company. Philips is maintaining its operations in 100 countries. • Philips Health and well-being=Global company
  • 12. • POLYCENTRIC (host country) • Philips Electrical • Multi-domestic corporation • In Electrical Industries Pakistan, Pakistani employees are typically hired to manage the business and marketing strategies are tailored according to marketing demands of Pakistan.
  • 13. specialization • Each worker is specialized but the basic curricula is offered to all.
  • 14. Span of control • • • • • Narrow 6 employees under a manager Total staff 5oo employees Karachi-160 employees
  • 15. Products • Sound and vision Television Fidelio Home cinema sound Home video Home audio Digital photo and video Portable multimedia
  • 16. • Headphones Professional displays App-enabled accessories TV accessories Personal Care Shavers Hair care Shaving accessories Mother and Childcare Breast feeding Bottle feeding Preparing for feeding Gift sets Mother and childcare accessories Household products Kettles and Tea makers Cooking Food Preparation Vacuum cleaner
  • 17. • Ironing Lighting Choose a fixture Mood lighting LED light bulbs Energy-saving light bulbs Car lights PC products and phones Monitors Drives and storage Accessories App-enabled accessories Mobile phone accessories TV and Monitor accessories Audio/video/gaming accessories Headphones Shaving accessories Batteries and flashlights Home entertainment accessories
  • 18. COMPETITORS
  • 19. COMPETITORS • SONY • The Japanese Sony Corporation, has become a leading manufacturer of a variety of products • The company emphasizes open mindedness, freedom, innovation and risk-taking
  • 20. Sony • Sony believes in application of advanced technologies, hence cooperating with research institutes so as to create products that enhance people’s lives. • Sony has developed great strengths in six business segments; electronics, electronic games, music, motion picture, insurance and others.
  • 21. SAMSUNG • Samsung is driven by its values and philosophy which states : We will devote our people and technologies to create superior customer value by superior product and services thereby contributing to the global society
  • 22. • Samsung realizes the importance of its people and the use of latest technologies for achieving success in the marketplace. At the same time, it is aware of the responsibility to contribute to the society, not only in Korea but also worldwide.
  • 23. • Panasonic Way United States • • Hitachi America, Ltd. • LG Electronics Inc.
  • 24. Customers • Philips’ Customers are found all over the world. Philips sells out its products to customers in three of the main economic regions, Europe, the United States of America and Asia
  • 25. Suppliers • Philips work with a limited, carefully-selected supply base of Non-Product Related (NPR) and Bill of Materials (BOM) suppliers. And outsourcing is a key part of Philips Group Purchasing strategy. • Most of Philips top 20 suppliers are Electronic Manufacturing Services (EMS), Original Design Manufacturers (ODMs) or Original Equipment Manufacturers (OEMs). Philips focuses on suppliers that can work closely with it through early involvement in the innovation process. .
  • 26. Suppliers • goal is to build long-term relationships with key strategic suppliers who share in the risks and rewards of innovation. Overall, some 90 percent of Philips’ Bill of Materials comes from outsourcing, long-term partnerships, Original Equipment Manufacturers and Original Design Manufacturers
  • 27. Economic Environment • Philips reported a €355m loss for the last three months of 2012. The challenging economic environment in 2012, notably in Europe and United States, hence sales in 2013 is expected to start slow and pick up in the second half of the year. The confidence in its ability to further improve operational and financial performance, is enabling Philips to achieve its 2013 financial targets
  • 28. Demographic Environment • Philips is a diverse organization with employees from different cultures, ethnicity, genders, ages, socio-economic status and also the autistic persons. Philips is targeting customers of different ages, different professions, occupations, income classes, culture, religions and marital status. • From young to Elderly, from healthy to less healthy people, from less privileged to highly privileged people is focus of Philips.
  • 29. Technological environment • Through innovation in live image-guidance technology, Philips is enabling minimally invasive procedures by integrating multi-modality images at the point of treatment, solutions by Philips offer exceptional image clarity and deep insight –opening the door to new clinical procedures for safer, more effective diagnosis and treatment in a number of specialties that was not possible before. • Allura Clarity with Clarity IQ technology is another of recent breakthroughs in live image guidance. Developed in collaboration with interventional physicians and introduced in 2012, it directly addresses the ongoing concern of radiation dose level for patients and exposure to clinical staff during interventions.
  • 30. Technological environment • Philips has adopted innovative solutions in order to deliver energy-efficient light sources. It has moved from traditional vacuum based technologies to solid-state lighting technology (LEDs). A Green innovation is the core value that Philips delivers. In 2012, Philips has implemented new IT solutions for environmental reporting process. Philips also has implemented a new process to monitor chemicals used in processes.
  • 31. Technological environment • Philips has adopted innovative solutions in order to deliver energy-efficient light sources. It has moved from traditional vacuum based technologies to solid-state lighting technology (LEDs). A Green innovation is the core value that Philips delivers. • In 2012, Philips has implemented new IT solutions for environmental reporting process. Philips also has implemented a new process to monitor chemicals used in processes.
  • 32. HIERARCHY OF MANAGEMENT CEOs Board of executive committee DRECTORs REGIONAL MANAGERs OFFICERS
  • 33. LEVELS OF MANAGEMENT in Pakistan CEO, DIRECTOR REGIONAL MANAGERS OFFICERS
  • 34. Licensing • Funai taking over Philips • Under the terms of the deal, Funai is set to pay €150m plus a brand license fee to take over the Philips product lines. According to Philips, deal for its audio, multimedia and accessories businesses is expected to close in the second half of 2013. Meanwhile, Philips' video business is set to transfer to Funai in 2017 as a result of existing intellectual property licensing arrangements.
  • 35. Outsourcing • Outsourcing reduces Philips’ operating and capital costs while increasing flexibility, and decreasing time to market and to volume. It allows to leverage core competencies, and provides access to suppliers’ technologies and skills. • Strategic Alliances • Strategic alliances are an important part of business at Philips. Philips partners with more than 30 leading global companies to introduce never-seenbefore products that have revolutionized the offerings on the market. This site introduces a selection of these alliances, including products like Senseo®, PerfectDraft and ActiveCrystals.
  • 36. Alliances • Nivea • The Philips moisturizing shaving system shaver with integrated NIVEA FOR MEN lotion allows comfortable, wet or dry shaving. • Sara Lee • Senseo® coffee pod system, developed with Sara Lee (Douwe Egberts), meets the consumers’ coffee-drinking preferences with ultimate speed and convenience. The Senseo® Latte Select with integrated fresh milk container was launched in September 2008. • Swarovski • ActiveCrystals are a range of unique sound accessories and USB storage devices that make a fashion statement with Philips technology encrusted with Swarovski crystals. • Inbev • Perfect Draft brings the great taste of draft beer into the homes. Developed in collaboration with InBev, a leading global company in the brewing industry.
  • 37. Main Departments • • • • • • Manufacturing Supply chain Marketing Research Finance Innovation
  • 38. • Legacy • Sustainability • Human Resource
  • 39. • Salman Saeed • • Head of HR at Philips Electrical Industries of Pakistan Limited Pakistan Electrical/Electronic Manufacturing • Current • • • • • • • • • Head of Human Resources at Philips Electrical Industries of Pakistan Limited Past Manager Personnel Development at Siemens Pakistan Engineering Co. Limited Human Resource Consultant at The Learning Organization Manager Human Resources at Asiatic Public Relations Network (Pvt.) Ltd Education Cleveland State University Western Michigan University
  • 40. Managerial Responsibilities • • • • • • • • • • • • - Contribute in Senior Management Meetings and Combined Management Meetings, to maintain alignment of Human Resource strategy and Company strategy. - Ensure effective Management Team development, Talent Management and Succession Planning. - Ensure effective Recruitment & Sourcing and Reward Management. - Ensure effective operations of the Training function, through TNA and its implementation, and imparting training where required. - Maintain employee motivation and engagement. - Handle employee disciplinary matters, together with Compliance Officer. - Grievance handling and counseling of employees, as required. - Participate in CBA meetings to discuss various Industrial Relations matters and concerns. - Handle Industrial Relations matters of Workers, as required. - Ensure effective Security measures, checks and controls, at the Head Office and regional locations.
  • 41. Training • Philips Learning Curricula • The Philips Learning Curricula consist of our: • • • • • • • • Core Curriculum Supply Management Curriculum KAM/Sales Curriculum Marketing Curriculum Project Management Curriculum IT Curriculum HR Curriculum Finance Curriculum
  • 42. Employee Selection • • • • Resume selection and pre-screening Ability Tests Structural Interviews Assessment Centers
  • 43. Attract Employees • • • • • Career website University relations Events Ads and postings Referrals
  • 44. Employee Benefits • • • • • • • • •  Remuneration of chief executives and director  Benefits to chief Executives, directors and executives of company  Managerial remuneration  Retirement benefits  Pre-requisites  Medical expenses  Housing  Conveyance
  • 45. Provident fund  Contribution Provident fund---Equal monthly contributions are made, both by the company and the employees, to a separated fund at the rate of 10% of basic pay.  Contribution Pension Fund ---Monthly contributions at the rate of 10% of basic pay by the company to the fund.   Group insurance  Club subscriptions  Free use of cars, certain household items in accordance with their entitlement.  Telephone facility at their residences to chief executives and directors  Distributors incentives  Termination benefits  Compensated absences
  • 46. • Competitive Base Salary • A competitive base salary is offered to recognize the individual contribution and to motivate staff. Employees who consistently exceed or excel expectations will rapidly start earning a higher salary and accelerate their career. • Variable Pay: Pay for Performance • Almost everybody within Philips has a performance-related element to their pay. There are two types of programs: short-term or annual incentives ("bonus") and long-term incentives ("Stock Options & Shares"). The higher the position in the company, the more important the variable elements in the total remuneration package becomes.
  • 47. • Flexible Benefits and Perks • On-the-Spot Recognition
  • 48. Organization’s culture • Philips welcomes change thus a dynamic organization. Cultural change is actually the core theme of program “Accelerate”. Philips is driving structural change with a renewed company culture as the foundation for performance improvement and growth
  • 49. Organic Culture • The creation of a growth and performance culture is central to Accelerate! The multi-year transformation program designed to make Philips a more agile, entrepreneurial and innovative company and bring closer to customers. Philips articulated three traits in Accelerate! Behaviors – • Eager to win, Take ownership and Team up to excel.
  • 50. • With the implementation of Accelerate!, Philips is moving away from a ‘one size fits all’ company culture which has tended to inhibit growth, to a culture that drives performance – one that is focused on results and characterized by honest dialogues, fact-based conclusions and fast action. This will enable to adapt quickly to changing market conditions and outpace the competition.
  • 51. • From role modeling to recognizing and rewarding the desired behaviors, employees look to their leaders for direction. That’s why over 700 of leading executives have participated in the Accelerate! Leadership Program.
  • 52. Social Responsibility • Philips Eco-vision program that includes key performance indicators in relation to Green Product sales, improving people’s lives, Green Innovation, Green operations, Health & Safety, Employee Engagement and Supplier Sustainability, is a clear picture of Philip’s social responsibility. Philips’ goal is to improve the lives of 3 billion people a year by 2025.
  • 53. • . In 2010, Philips brought its Corporate Social Responsibility program to Pakistan. Philips’ first SH@S School was Government Gizri Girls Primary and Secondary, Abdullah Shah Ghazi in Karachi. This 5 day program aimed to increase the awareness about health and well-being in kids. The complete changeover lighting and repair works at schools was a part of this project. The program involved trainings regarding the power of air, water, light, moving, smile and earth; emphasizing their importance and ways to achieve these and becoming a “Healthy Hero”.
  • 54. • Donation of lighting of worth 0.6Million in 2010 was made to Jinnah Post Graduate Medical Centre for their accidents and emergency ward. • As the longer term rehabilitation, Philips has given its highly efficient portable solar lights worth PKR 2 Million to 700 flood affected families in Pakistan in 2010. • Also Philips provided lighting of worth 11 Million for their newly-built homes. And Medical equipment of worth 9 Million was provided by Philips in flood affected areas.
  • 55. • There are other social contributions to address societal needs including employeeengaged training session conducted for the FESF and SOS Youth homes. The training 5-day sessions included workshops and lectures on interpersonal and communication skills, Career building and personal grooming for teenage boys and girls of these institutes.
  • 56. Green Management • Philips has a long tradition of sustainability reporting. Philips’ first environmental report was published in 1999. • In 2003, Philips expanded its reporting with the launch of first sustainability annual report which also stated economic and social performance along with environmental results. In 2008, Philips published an integrated financial, social, and environmental report, reflecting their ways of doing business.
  • 57. • Philips policy continues to focus on: •  Continuing to reduce the impact of operations through Green Operations program; focusing on CO2 emissions, water waste and restricted and hazardous substances. •  Continuing Eco-Designs activities resulting in Green Products. •  Continuing global partnership with IUCN, the International Union for the Conservation of Nature.
  • 58. • Philips’ latest Eco-vision program includes key performance indicators in relation to Green Products sales, improving people’s lives, Green Innovations, Green Operations, Health & Safety, Employee Engagement and Supplier sustainability.
  • 59. Code of Ethics • ISO 14001 certification ---- reporting based on manufacturing units in the sustainability reporting system. • Supply Management Code of Ethics • The Supply Management Code is a code that applies to all employees involved in the purchasing process within Philips. The Supply Management Code is as a supporting policy, an integral part of the Philips General Business Principles
  • 60. • 1. Act honestly and ethically •  2. Avoid conflicts of interest •  3. Comply with applicable governmental laws, rules and regulations • 4. Follow a fair process to select suppliers • 5.Not share information related to quotes from suppliers (including auctions) with any other supplier at any time. •  6. Select suppliers that comply with high ethical standards
  • 61. 7. Maintain a proper professional competence level 8. Be accountable for adherence to the Supply Management Code 9. Reporting of violations; Report to a superior any conflict of interest that could reasonably be expected from any material transaction or relationship.
  • 62. SWOT ANALYSIS • Strengths • Philips’ unique strengths: deep customer insight, technology innovation, Brand, global footprint, and people affiliated. • Innovation • LED based application and solutions • Presence in over 100 countries
  • 63. • Leadership in the field of consumer luminaire design • Intelligent designs—right amount of light where and when needed • Consistent recognition • VBDO ranked Philips the top performer among 40 of the largest publicly-listed companies in the Netherland
  • 64. • Dynamic and rewarding environment • Offers flexible and consistently rewarding environment for those who share passion for creating innovative healthier global solutions
  • 65. • • • • • • • • • Philips Global Overall 35% female employees 100 countries with sales and outlet services 118 production sites all round the world 7 research laboratories spread over Europe, North America and Asia 36000 registered trademarks 3900 domain names 63000 design rights 50,000 patent rights
  • 66. Opportunities • Healthcare • • Growing and aging populations • • Increase in patients managing chronic conditions • • Growth geographies wealth creating demand • • Lifestyle changes fueling cardiovascular illnesses and respiratory and sleeping disorders
  • 67. • Consumer lifestyle • • • • Consumer focus on health and well-being • Rising middle class in growth geographies • Back to basics: simple propositions • Trusted brands combined with locally relevant portfolio
  • 68. • Lighting • • • • • • Ongoing urbanization and globalization • Increasing need for energy-efficient solutions • Fast-growing global illumination market • Expanding renovation market • Rapid adoption of LED-based lighting solutions
  • 69. Weaknesses • • Areas of non-compliance are insufficient risk assessment and social audits. • • Absence of performance objectives • • Lack of worker feedback and communication • • Inflexible work schedule in China and Japan • • Its marketing seems to be disappeared. • • Lack of brand awareness, and an icon for bulbs, TV and radio.
  • 70. Threats • • Considerable fall in market share in developing and underdeveloped countries because of high priced products. • • SAMSUNG and LG are now ruling in Television set sales market. • • Sony and Panasonic are low cost brands with enough innovations and have shown steady market progress as compare to Philips. • • Aggressive marketing by the competitors • • Greater time lag in introducing its technology to technologically least advanced countries as compare to its competitors. • ECONOMIC CONDITION OF THE WORLD
  • 71. Corporate Strategies • Growth Strategy • Related technological diversification in recent past • Produce Products in different but technologically related industries. • Renewal Strategy: In India revamping, revamping of its entire electronic markets. • Renewal of company’s vision in 2012
  • 72. • Product development • Meaningful innovations in the same product line offered to the existing markets such as China, Netherlands, Dutch.
  • 73. Management Challenges • Management Systems • Philips management system is currently challenged. There may be areas where Philips audits reveal compliance in actual practice, but the related underlying management systems to safeguard continued compliance may not be sufficient.
  • 74. Recommendations • Compliance of social audits and risk assessment is a challenge. • Today’s management is focusing on scheduling flexi-hours at work and providing virtual workplace
  • 75. • The lack of well-developed distribution networks makes it especially challenging to penetrate the fastest growing rural areas economically
  • 76. • Social audit can be made more compliant. • Marketing management needed to be improved. • Being a manufacturer of mobile phone parts it should enter into a mobile market by offering mobile sets of their own. • Distribution planning can be improved.
  • 77. CONCLUSION • Philips sensible innovation, brand promise of sense and simplicity and sustainability is what keeping it apart but the brand awareness seem to be insufficient in today’s competitive market.

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