Subject category:
Strategy and General Management
Published by:
London Business School
Length: 31 pages
Data source: Field research
Share a link:
https://casecent.re/p/22894
Write a review
|
No reviews for this item
This product has not been used yet
Abstract
In July 1990, when Philips had shocked the financial world with the announcement of a 2 billion guilder loss, the semiconductor division was the primary contributor to the company''s misfortunes. But, within the next three years, under the leadership of the very uncharismatic Heinz Hagmeister, the division achieved a remarkable turnaround from a loss of nearly 600 million guilders to a profit of 210 million guilders. Underlying this radical change in performance were not only a variety of strategic actions - from a financial restructuring to a drastic pruning of the product portfolio - but also a fundamental change of culture and of the behaviours of people. The case describes this transformation of Philips Semiconductors, and the role of leadership in managing such a radical process of change.
Location:
Industry:
Size:
USD2 billion sales
Other setting(s):
1993
About
Abstract
In July 1990, when Philips had shocked the financial world with the announcement of a 2 billion guilder loss, the semiconductor division was the primary contributor to the company''s misfortunes. But, within the next three years, under the leadership of the very uncharismatic Heinz Hagmeister, the division achieved a remarkable turnaround from a loss of nearly 600 million guilders to a profit of 210 million guilders. Underlying this radical change in performance were not only a variety of strategic actions - from a financial restructuring to a drastic pruning of the product portfolio - but also a fundamental change of culture and of the behaviours of people. The case describes this transformation of Philips Semiconductors, and the role of leadership in managing such a radical process of change.
Settings
Location:
Industry:
Size:
USD2 billion sales
Other setting(s):
1993