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Koninklijke Philips Electronics N.V. (Royal Philips Electronics Inc.), The foundations of Philips were laid in 1891 when Anton and Gerard Philips established Philips & Co. in Eindhoven, the Netherlands. The company begun manufacturing carbon-filament lamps By the turn of the century, had become one of the largest producers in Europe. Philips’ first research laboratory started introducing its first innovations in the x-ray and radio technology. For years, the list of inventions has only been growing to include new ideas that have continued to enrich people’s everyday lives.
Strive to make the world healthier and more sustainable through innovation. Goal is to improve the lives of 3 billion people a year by 2025. To be the best place to work for people who share same passion. Deliver superior value for customers and shareholders. Create value through company’s capabilities to develop deep understanding of customers’ needs Apply advanced technologies to create innovative solutions
Improving people’s lives through meaningful innovation. Keep innovation at as core of all activities New application, a new business model or a unique customer proposition brought about by an innovative partnership is also a innovation. Aim to help Philips grow by delivering innovations that really make a difference to people Creating and developing ideas and technologies that lead to successful products is very important Think about creating complete solutions.
ProblemsPhilips was success since itsinception, but it faced poor financialperformance during the 1990s due tothe following reasons : High manufacturing costs Lack of competitive product price Growing competition and Rapid changes in the external environment.
Solutions Philips embarked an improvement program called BEST (Business Excellent through Speed and Teamwork). And also used several tools and approaches as a part of BEST. Some of them were : Philips Business Excellence Model (PBE) Process Survey Tools (PST) Balanced Scorecard (BSC)
Philips Lighting is a leading provider of solutions and applications for both professional and consumer markets. With the new lighting technologies, such as LED technology, and the increasing demand for energy efficient solutions, Philips will continue shaping the future with ground-breaking new lighting applications. Demand for (energy-efficient) lighting in emerging markets continues to grow - Future LED solutions: application IP and luminaries will be essential City Beautification Automotive Lighting Energy Saving Lighting
Today, Philips is one of the biggest global players in consumer lifestyle in terms of turnover. Insightful understanding of people, extraordinary competence in technology and design, The many synergies within companys channels, partners and supply chain. Philips delivers deeper experiences in touch with the social and emotional needs of customers in their homes: from a cup of coffee in the morning, to a relaxing evening with an Aurea TV. Philips products are designed around their users and aim to improve people’s lives – every day.
Philips Healthcare sector is dedicated to providing solutions designed around the needs of customers and patients. A belief that Philips can make a difference by removing boundaries in healthcare with innovative and affordable technology solutions throughout the entire care cycle. Combining unique clinical expertise with human insights to develop solutions that deliver value throughout the care cycle: From disease prevention to screening and diagnosis, through to treatment, monitoring and health management – wherever care is given: in the hospital or at home.
Equal highest-ever placing (41st) on the annual Interbrand ranking of the world’s most valuable brands Philips named ‘Supersector leader’ in the Dow Jones Sustainability Index for the second consecutive year Philips won a record-breaking number of 124 design awards in 2012 UK consumer magazine Which? ranked Philips kettles, irons and Gaggia espresso machines #1 for reliability CityTouch online outdoor lighting management system honoured as a top sustainable solution at Rio+20 United Nations Conference on Sustainable Development
Globally, Philips derives 34 per cent of its revenues from lighting, in India, the figure is 58 per cent. In health care, the global contribution is 40 per cent. In India, it is 18 per cent. In consumer lifestyle, the company gets 26 per cent of its overall revenues, in India, it is 24 per cent. Totally the Indian unit closed the fiscal ended March 2012 with revenues of Rs 5,579 crore, growing at a clip of about 23 per cent per annum. Analysts say that Philips is likely to retain this pace of growth this year too on the back of double-digit growth that the three core segments are seeing.
Financial tableall amounts in millions of euros unless otherwise stated 2010 2011 2012Sales 22287 22579 24788EBITA 2556 1680 1502as a % of sales 11.5 7.4 6.1EBIT 2074 -269 1030as a % of sales 9.3 -1.2 4.2Net income (loss) 1448 -1291 231per common share in euros:- basic 1.54 -1.36 0.25- diluted 1.53 -1.36 0.25Net operating capital 11897 10372 9307Free cash flows 1358 -104 1723Shareholders equity 15007 12316 11140Employees at December 31 119775 125241 118087of which discontinued operations 3610 3353 0