• 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
• Philips was founded in Eindhoven
(Netherlands) in 1891 by Fredrick and
Gerard Philips- later joined by Gerard’s
• Targeted population
• Existing market
60+ Countries (approx. 100)
• 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.
Its health and well being sector is following an
ethnocentric attitude and it is centralizing its
management to parent country Netherlands.
• Philips is international company. Philips is
maintaining its operations in 100 countries.
• Philips Health and well-being=Global company
• 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.
• Each worker is specialized but the basic
curricula is offered to all.
Span of control
6 employees under a manager
Sound and vision
Home cinema sound
Digital photo and video
Mother and Childcare
Preparing for feeding
Mother and childcare accessories
Kettles and Tea makers
Choose a fixture
LED light bulbs
Energy-saving light bulbs
PC products and phones
Drives and storage
Mobile phone accessories
TV and Monitor accessories
Batteries and flashlights
Home entertainment accessories
• The Japanese Sony Corporation, has become a
leading manufacturer of a variety of products
• The company emphasizes open mindedness,
freedom, innovation and risk-taking
• 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
• 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
• 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
• Panasonic Way United States
• Hitachi America, Ltd.
• LG Electronics Inc.
• 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
• 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.
• 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
• 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
• 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.
• 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
• 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.
• 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
environmental reporting process. Philips also
has implemented a new process to monitor
chemicals used in processes.
• 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
• 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.
HIERARCHY OF MANAGEMENT
LEVELS OF MANAGEMENT in Pakistan
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.
• 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.
• 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.
• ActiveCrystals are a range of unique sound accessories and USB
storage devices that make a fashion statement with Philips
technology encrusted with Swarovski crystals.
• 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.
Head of HR at Philips Electrical Industries of Pakistan Limited
Pakistan Electrical/Electronic Manufacturing
Head of Human Resources at Philips Electrical Industries of Pakistan Limited
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
Cleveland State University
Western Michigan University
- 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
- Ensure effective Recruitment & Sourcing and Reward Management.
- Ensure effective operations of the Training function, through TNA and its
implementation, and imparting training where
- 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
- Handle Industrial Relations matters of Workers, as required.
- Ensure effective Security measures, checks and controls, at the Head Office and
• Philips Learning Curricula
• The Philips Learning Curricula consist of our:
Supply Management Curriculum
Project Management Curriculum
Ads and postings
Remuneration of chief executives and director
Benefits to chief Executives, directors and
executives of company
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.
Free use of cars, certain household items in accordance
with their entitlement.
Telephone facility at their residences to chief
executives and directors
• 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.
• Flexible Benefits and Perks
• On-the-Spot Recognition
• 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
• 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
• 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.
• 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
• 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,
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.
• . 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”.
• 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.
• 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.
• 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
• 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
• Continuing global partnership with IUCN, the
International Union for the Conservation of
• 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
Code of Ethics
• ISO 14001 certification ---- reporting based on
manufacturing units in the sustainability
• 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
• 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
7. Maintain a proper professional competence
8. Be accountable for adherence to the Supply
9. Reporting of violations; Report to a superior
any conflict of interest that could reasonably be
expected from any material transaction or
• Philips’ unique strengths: deep customer
insight, technology innovation, Brand, global
footprint, and people affiliated.
• LED based application and solutions
• Presence in over 100 countries
• Leadership in the field of consumer luminaire
• 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
• Dynamic and rewarding environment
• Offers flexible and consistently rewarding
environment for those who share passion for
creating innovative healthier global solutions
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
• • Growing and aging populations
• • Increase in patients managing chronic
• • Growth geographies wealth creating demand
• • Lifestyle changes fueling cardiovascular
illnesses and respiratory and sleeping disorders
• 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
• 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
• • 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.
• • 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
• • 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
• ECONOMIC CONDITION OF THE WORLD
• Growth Strategy
• Related technological diversification in recent past
• Produce Products in different but technologically
• Renewal Strategy: In India revamping, revamping
of its entire electronic markets.
• Renewal of company’s vision in 2012
• Product development
• Meaningful innovations in the same product
line offered to the existing markets such as
China, Netherlands, Dutch.
• 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.
• Compliance of social audits and risk
assessment is a challenge.
• Today’s management is focusing on scheduling
flexi-hours at work and providing virtual
• The lack of well-developed distribution
networks makes it especially challenging to
penetrate the fastest growing rural areas
• Social audit can be made more compliant.
• Marketing management needed to be
• 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.
• 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