Six Philips Product Divisions example essay topic
318 words
A Year of Transformation The year 2001 was one of transformation for Philips generally and, in particular, for Philips in the United States. During the year Philips completed a $5 billion, three-year acquisition program for Philips Medical Systems with the purchase of Agilent's healthcare business and Marconi's medical imaging business. The result is a new Philips Medical Systems, the global number two player in medical diagnostic imaging equipment. In the United States, Philips Medical has become the second largest medical equipment imaging company (behind General Electric) and the single largest Philips business, with 10,500 employees. Philips Medical's sales are larger than those of all U.S. consumer businesses (Consumer Electronics, Domestic Appliances & Personal Care, Lighting) combined. All six Philips product divisions operate in the United States, and the economic downturn in the technology sector has adversely affected many of them.
Semiconductors and Components, both global businesses, were severely impacted, and the slowing of the economy affected the consumer divisions - Consumer Electronics, Domestic Appliances & Personal Care, Lighting - as well. The overall impact of the economic deceleration and our cost containment measures has resulted in a substantially reduced workforce of 24,000 people (30,000 people in 2000) and fewer production facilities. At the same time, almost every Philips division has pursued alliances and joint venturing as a way to reduce costs while stimulating growth. Two that have had significant impact on the U.S. marketplace are: the creation of LG. Philips, a display technology joint venture between Philips Components and LG Electronics of Korea; and the strategic alliance between Philips and AOL Time Warner to collaborate on device development and a series of online, on-air and print marketing initiatives, to help increase both the reach and scope of the brands around the world. Detailed annual results for 2001 are available at: web North American region North American Headquarters.
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