Philips

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SUMMERPROJECT

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TableofContents

Table of Contents..................................................................................................................................1 Philips...................................................................................................................................................1 Philips History Philips Radio World War II Postwar era Main inventions Compact Cassette Laserdisc Compact Disc DVD Blu-Ray Sale of semiconductors Corporate affairs CEOs Acquisitions, subsidiaries and spinouts Acquisitions Spinouts Sports, sponsorships and naming rights Worldwide presence Australia Brazil Canada China Hong Kong India France Israel Mexico Poland United Kingdom United States Major consumer electronics products Environmental record Healthcare products Mission & Vision GOALS & OBJECTIVES Values SIGNIFICANT & DEVELOPMENT Company Profile Events INITIATIVESOrganizationName i ProposalTitle

PRODUCTS SERVICES Philips E-waste Management Program in India MANAGEMENT STRUCTURE OFFICERS & DIRECTORS Board of Directors SWOT ANALYSIS Strengths Weaknesses Opportunities Threats REGULATING SYSTEM/ ENVIRONMENT FACTORS Bibliography.......................................................................................................................................41

OrganizationName ii

ProposalTitle

Philips Philips KoninklijkePhilipsElectronicsN.V.(RoyalPhilipsElectronicsInc.),mostcommonly knownasPhilips,isamultinationalDutchelectronicscorporation. Philipsisoneofthelargestelectronicscompaniesintheworld.In2010,itssaleswere 25.42billion.Thecompanyemploys119,000peopleinmorethan60countries. Philipsisorganizedinanumberofsectors:PhilipsConsumerLifestyle(formerlyPhilips ConsumerElectronicsandPhilipsDomesticAppliancesandPersonalCare),Philips LightingandPhilipsHealthcare(formerlyPhilipsMedicalSystems). History Thecompanywasfoundedin1891byAntonandGerardPhilips,amaternalcousinof KarlMarx,inEindhoven,Netherlands.Itsfirstproductswerecarbonfilamentlampsand otherelectrotechnicalequipment.Itsfirstfactorysurvivesasamuseumdevotedtolight sculpture.Inthe1920s,thecompanystartedtomanufactureotherproducts,suchas vacuumtubes(alsoknownworldwideas'valves').In1939theyintroducedtheirelectric razor,thePhilishave(marketedintheUSAusingtheNorelcobrandname). PhilipswasalsoinstrumentalintherevivaloftheStirlingengine.

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PhilipsRadio On11March1927PhilipswentontheairwithshortwaveradiostationPCJJ(later PCJ)whichwasjoinedin1929bysisterstationPHI.PHIbroadcastinDutchtotheDutch

SummerProject 1

EastIndies(nowIndonesia)whilePCJJbroadcastinEnglish,SpanishandGermantothe restoftheworld. TheinternationalprogramonSundayscommencedin1928withhostEddieStartzhosting theHappyStationshowwhichbecametheworld'slongestrunningshortwaveprogram. BroadcastsfromtheNetherlandswereinterruptedbytheGermaninvasioninMay1940. ThetransmittersinHuizenwerecommandeeredbytheGermansandusedforproNazi broadcasts,someoriginatingfromGermany,othersconcertsfromDutchbroadcasters underGermancontrol. PhilipsRadiodidnotresumeafterLiberation.Insteadthetwoshortwavestationswere nationalisedandbecameRadioNetherlandsWorldwide,theDutchInternationalService in1946thoughPCJprogramssuchasHappyStationcontinuedonthenewstation.

SummerProject 2

WorldWarII On9May1940,thePhilipsdirectorswereinformedabouttheGermaninvasionofthe Netherlandstotakeplacethefollowingday.Theydecidedtoleavethecountryandfleeto theUnitedStates,takingalargeamountofthecompanycapitalwiththem.Operating fromtheUSastheNorth AmericanPhilipsCompany, theymanagedtorunthe companythroughoutthe war.Atthesametime,the companyitselfwasmovedto theNetherlandsAntilles(just onpaper)tokeepitoutof Americanhands. ItisalsobelievedthatPhilips bothbeforeandduringthe warsuppliedenormous amountsofelectric equipmenttotheGerman occupationforces,whichhas ledsomepeopletothinkthat thecompanycollaborated withtheNazis,likemany otherfirmsintheirday. However,thereisnoevidencetosuggestthatPhilipsitselforitsmanagementever sympathizedwiththeNazisortheirideologies.TheonlyPhilipsfamilymemberwhodid notleavethecountry,FritsPhilips,savedthelivesof382JewsbyindicatingtotheNazis thattheywereindispensablefortheproductionprocessatPhilips,forwhichhewas awardedrecognitionasa"RighteousAmongtheNations"byYadVashemin1995.There islittlePhilipscouldhavedonetopreventtheGermansfromabusingtheirproduction facilitiesandforcingtheiremployeestoperformslavelabourduringtheoccupation.TheSummerProject 3

productionfacilityinEindhovenwastheonlyDutchindustrialtargetthatwas deliberatelybombedbythealliedforcesduringthewar. Postwarera AfterthewarthecompanywasmovedbacktotheNetherlands,withtheirheadquarters inEindhoven.Manysecretresearchfacilitieshadbeenlockedandsuccessfullyhidden fromtheinvaders,whichallowedthecompanytogetuptospeedagainquicklyafterthe war. In1950,PhilipsformedPhilipsRecords. PhilipsintroducedtheaudioCompactAudioCassettetapein1963andwaswildly successful.Compactcassetteswereinitiallyusedfordictationmachinesforofficetyping stenographersandprofessionaljournalists.Astheirsoundqualityimproved,cassettes wouldalsobeusedtorecordsoundandbecamethesecondmassmediatosellrecorded musicalongsidevinylrecords.Philipsintroducedthefirstcombinationportableradioand cassetterecorderwhichismarketedasthe"radiorecorder"andwhichisnowbetterknown astheboombox.Laterthecassettewasusedintelephoneansweringmachinesincludinga specialformofcassettewherethetapewaswoundonanendlessloop.TheCcassette founditselfalsoasthefirstmassstoragedeviceforearlypersonalcomputersinthe1970s and1980s.Philipswouldalsoreducethecassettesizefortheprofessionalneedswiththe MiniCassette,althoughitwouldn'tbeassuccessfulastheOlympusmicrocassettewhich wasthepredominantdictationmediauptotheadventoffullydigitaldictationmachines. In1972Philipslaunchedtheworld'sfirsthomevideocassetterecorder,inEngland,the N1500withbulkyvideocassettesthatcouldrecord30minutesor45minutes.Laterone hourtapeswerealsooffered.AscompetitioncamefromSony'sBetamaxandtheVHS groupofmanufacturers,PhilipsintroducedtheN1700systemwhichalloweddouble lengthrecordingandforthefirsttimewouldfita2hourmovieontoonevideocassette;in 1977,thecompanyunveiledaspecialpromotionalfilmforthissystemintheUKfeaturing comedicpersonalityDenisNorden.ThisideawassooncopiedbytheJapanesemakers whosetapesweresignificantlycheaper.Philipsmadeonelastattemptatanewstandard forvideorecorderswiththeVideo2000systemwithtapesthatcouldbeusedonboth sidesandhadthus8hoursoftotalrecordingtime.AsPhilipsonlysolditssystemsontheSummerProject 4

PALstandardandinEurope,andtheJapanesemakerssoldglobally,thescaleadvantages oftheJapaneseprovedinsurmountableandPhilipswithdrewtheV2000systemand joinedtheVHSCoalition. Philipshadearlydevelopmentsofalaserdiskfor sellingmoviesbutdelayeditscommerciallaunchfor fearofcannibalizingitsvideorecordersales.Later PhilipswouldjoinwithMCAtolaunchthefirst commerciallaserdiskstandardandplayers.In1982, PhilipswouldteamwithSonytolaunchCompactDisc andopticaltelecommunicationsystems.Theseformats evolvedtothepresentdayDVDandBluRay,which PhilipslaunchedwithSonyin1997and2006 respectively. In1991,thecompany'snamewaschangedfromN.V. PhilipsGloeilampenfabriekentoPhilipsElectronics N.V.Atthesametime,NorthAmericanPhilipswasformallydissolved,andanew corporatedivisionwasformedintheU.S.withthenamePhilipsElectronicsNorth AmericaCorp. In1997thedecisionwasmadetomovetheheadquartersfromEindhoventoAmsterdam, alongwiththecorporatenamechangetoKoninklijkePhilipsElectronicsN.V.Themove wascompletedin2001.Initially,thecompanywashousedintheRembrandtTower,butin 2002theymovedagain,thistimetotheBreitnerTower.Inasense,themoveto Amsterdamcanbeconsideredareturntothecompany'sroots,becauseGerardPhilips livedinAmsterdamwhenhecameupwiththeideaofbuildingalightbulbfactory.He alsoconductedhisfirstexperimentsinthefieldofmassproductionoflightbulbsthere, togetherwithJanReesse.PhilipsLighting,PhilipsResearch,PhilipsSemiconductors(spun offasNXPinSeptember2006)andPhilipsDesign,arestillbasedinEindhoven.Philips HealthcareisheadquarteredinbothBest,Netherlands(justoutsideEindhoven)and Andover,Massachusetts,UnitedStates(nearBoston).

SummerProject 5

Asof2010thecompanydoesnottrytobeinnovativeanymoreinconsumerelectronics throughfundamentalresearch Maininventions

CompactCassette In1962Philipsinventedthecompactaudiocassettemediumforaudiostorage.Although therewereothermagnetictapecartridgesystems,theCompactCassettebecamedominant asaresultofPhilips'sdecisiontolicensetheformatfreeofcharge. Laserdisc Laserdiscwasa30cmdiscdesignedwithMCAmeanttocompetewithVHSandeven replaceit.ItwasnotasgenerallypopularasVHS,becauseoftheinitialinvestmentcostsof players,somewhathighercostsofmovietitles,andthereadonlyformat.Butlike Betamax,itenjoyedextensivesuccessamongseriousvideocollectors.Thetechnologies createdforLaserdiscwouldlaterbeusedagainfortheCompactDisc. CompactDisc AlthoughPhilips'andMCA'sLaserdiscprojectneverreachedtheVHSmassmarketlevel, Philipsstillthoughttheformatshouldbeabletosucceed,and,incollaborationwithSony, launchedthesmallerCDin1982.

SummerProject 6

DVD TheDVD,theeventualsuccessoroftheCD,metalongroadofsetbacks.Philipswantedto continuewiththeCDinanewformatcalledMultiMediaCompactDisc(MMCD),while anothergroup(ledbyToshiba)wasdevelopingacompetingformat,thennamedSuper Density(SD)disc.Theirrepresentatives approachedIBMforadviceonthefile system.IBMalsolearnedofPhilips'and Sony'sinitiative.IBMconvincedagroup ofcomputerindustryexperts(among themApple,Dell,etc.)toforma workinggroup.TheTechnicalWorking Group(TWG)votedtoboycottboth formatsunlesstheymergedtoprevent anotherformatwar(likethevideotape formatwar).TheresultwastheDVD specification,finalizedin1995.TheDVD videoformatwasfirstintroducedin Japanin1996,laterin1997intheU.S.as limitedtestrun,thenacrossEuropeandtheothercontinentsfromlate1998onwards. B