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This case discusses how Philips, the international electronics group, sought to change its strategy and culture to meet the challenge of global competition. By the 1970s Philips had developed an organisational structure based on national subsidiaries who had traditionally enjoyed a high degree of autonomy. Whilst this structure had served the company well for almost fifty years, it had become increasingly outmoded in the face of the competitive challenges posed by notably its Japanese competitors. This competition was manifest in many ways, but not least an increasing deterioration in Philips'' financial performance. The richness of the case lies in the detail that it provides on the internal context to Philips and its organisation''s dynamics. In particular the case provides detail not just on the content of Philips'' new strategies, but on the processes adopted to refocus the organisation. The case draws heavily on internal company documents; analysts'' reports; discussions with staff who have been involved in Operation Centurion; and the company''s annual report and accounts. Using these sources the longitudinal development of the company over a ten year period is mapped, including analysis of corporate and business level performance up to, and including 1995.