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Case
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Reference no. IMD-5-0730
Subject category: Marketing
Authors: Sean A Meehan
Published by: Institute for Management Development (IMD)
Originally published in: 2007
Version: 14.12.2007
Length: 10 pages
Data source: Field research

Abstract

This is the second of a three-case series (IMD-5-0729 to IMD-5-1731). In 2001 Gerald Kleisterlee took over as Chief Executive Officer of Philips amid a financial crisis. The company was about to post its worst ever losses and was being viewed by many as a candidate for takeover or break-up. Kliesterlee engages in a process for re-establishing priorities for Philips and reformulating its strategy from being a conglomerate story to be a high growth electronics play. He knows that the company needs to be more externally focussed and decides to hire a Chief Marketing Officer, Andrea Ragnetti, to provide the impetus. The (A) case ends by posing the question: What should be Ragnetti''s initial plans and priorities? The (B) case describes the key initiatives launched and driven by the Ragnetti as well as all the other activities going on that support the new focus on being market-oriented. Having established a research validated rationale for a new positioning, some divisional heads once again oppose the plan on the basis of cost and allocations thereof. The (B) case ends by asking what Kleisterlee should do. The learning objectives are: (1) to better understand how to create the conditions for outside-in transformation of a complex corporation; and (2) to appreciate the bridge brand and customer insights play in linking the customer to the corporation.
Location:
Industry:
Size:
EUR30 billion approx
Other setting(s):
2002-2007

About

Abstract

This is the second of a three-case series (IMD-5-0729 to IMD-5-1731). In 2001 Gerald Kleisterlee took over as Chief Executive Officer of Philips amid a financial crisis. The company was about to post its worst ever losses and was being viewed by many as a candidate for takeover or break-up. Kliesterlee engages in a process for re-establishing priorities for Philips and reformulating its strategy from being a conglomerate story to be a high growth electronics play. He knows that the company needs to be more externally focussed and decides to hire a Chief Marketing Officer, Andrea Ragnetti, to provide the impetus. The (A) case ends by posing the question: What should be Ragnetti''s initial plans and priorities? The (B) case describes the key initiatives launched and driven by the Ragnetti as well as all the other activities going on that support the new focus on being market-oriented. Having established a research validated rationale for a new positioning, some divisional heads once again oppose the plan on the basis of cost and allocations thereof. The (B) case ends by asking what Kleisterlee should do. The learning objectives are: (1) to better understand how to create the conditions for outside-in transformation of a complex corporation; and (2) to appreciate the bridge brand and customer insights play in linking the customer to the corporation.

Settings

Location:
Industry:
Size:
EUR30 billion approx
Other setting(s):
2002-2007

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