MTP GROUP PROJECT

GITAM INSTITUTE OF MANAGEMENT

ELECTRONICS SECTOR

GROUP MEMBERS

NEEHARIKA D

MONICA V

PADMASHREE

SHIVANI THAKUR

RITU MANDALANNAPURNA

RESHMA SHAIK

GAUTHAM REDDY

TARESH HARVANSH

GENERAL ELECTRICS

HISTORY OF GE

Some very famous innovations

GE bio-fuel Hi- definition CT scan

Compact ECG device

Contactless transmission of

electricity

Process enterprise in GE

Growth Leaders

Innovation

Great Technology – lean 6 sigma

Difference between the leadership styles of Jack Welch and Jeffery Immelt

Products of GE

Change before you have to

Transition from manufacturing to services expansion of NBC

division

ECOMAGINATION

Revolutionizing the way we interact with the customer

Expanding product portfolio by technical and commercial innovation

CECOR

The 4 commitments

Double investments in clean R and DIncrease revenues from ecomagination products

Reduced greenhouse gas emissionKeep the public informed

HISTORY

*The Philips Company was founded in 1891 by Gerard Philips.

*The company started the production of carbon lamps and other electro-technical products in 1892

*In the 1920s, the company started to manufacture other products, such as vacuum tubes.

*In the 1930s Philips shifted much of its production outside the Netherland to avoid the import controls.

ABOUT THE MARKET Operates in Healthcare, Lighting and Consumer Lifestyle

segment

Healthcare - people focused healthcare. Learning what it is like to be a patient, as well as understanding the complexities facing the care givers- Healthcare simplified.

E.g. ECG Management, Cardiographs, Stress Testing

Lighting - Light-inspired experiences, End -user – driven and energy-efficient solutions.

E.g. LED Light, 3D TV

Consumer Lifestyle - Experience in touch with the social and emotional needs of the customers in their homes.

E.g. Hair straighteners, Sonicare Toothbrushes The Consumer Lifestyle and Healthcare Strategy is the chosen

strategic direction for the Philips business and is based on the human truth that people seek to achieve well-being by addressing a combination of both wellness and pleasure.

INTRODUCTION TO CASE In May 1990 when company posted

losses of $2.6 billion, top management launched a set of initiatives.

In 1990 Philips initiated job cuts, sold non unprofitable businesses and closed down may manufacturing facilities worldwide.

In 1999, Philips embarked on a worldwide marketing campaign for the first time and changed their company's image as technology-oriented company to one that was market-oriented.

2001, Philips launched a company wide restructuring program called 'Towards One Philips' (TOP), to foster greater cooperation among its various divisions and to make it a unified company.

Initiated by Gerard, President and CEO of Philips, TOP program helped not only in lowering costs but also promoted a spirit of collaboration

RESTRUCTURING UNDER BOONSTRA Boonstra's first move was to get rid of

business that were making significant losses. Another problem he faced was excessive

vertical integration in the company. Boonstra closed down 50 of Philip's 220

manufacturing facilities world-wide over a four year period.

Boonstra realized that Philip's marketing efforts were far from satisfactory. So company's focus was shifted from technology development to marketing and promoted Philips as a brand, associate with customer needs rather than highlighting the company's technological expertise.

In tune with this strategy, Philips came out with a series of advertisement with the theme 'Lets make things better.'

The year 1997 saw Philips with a profit of 2.60 billion euros on sales of 29.66 billion euros. In the fiscal 1998, the company's profit jumped to 6.05 billion euros on he sales of 30.46 billion euros.

By 1999, as a result of Boonstra's restructuring efforts, Philips was down to 8 divisions and 80 businesses, from 11 divisions and more than 120 businesses in 1996. however, Boonstra too found it an uphill task to get rid of the bureaucratic culture in Philips. In 2001, Boonstra retired and was succeeded by Kleisterlee

HISTORY

1873 First steps taken toward creation of Toshiba. 1932 integrated electrical equipment manufacturer formed from heavy electrical Machinery and small electrical equipment.

1940 Major government supplier during the war; exports to south east Asia begin In postwar period. 1984 Name changed to Toshiba; in-house company system promotes swifter Decision-making. Since 2000 Creating world’s No. 1 products and services to Prevail amid global competition and become an even stronger global contender.

1891 Growth , disaster and reconstruction.

CREATIVE GROWTH AND INNOVATIONS

Creatively Seeking Value Creation

• Pursuing Productivity Improvement

Developing Diverse, Creative Talent

• Moving Forward with CSR Management

Social Infrastructur

e

Elevators & Escalators

Home Applicatio

n

Air Condition

er

Office Automatio

n

Semi Conductor &

Storage

Television Power Systems

Laptops

Products & Services

Commitment to People. Commitment to the

Future.

Commitments

Comparative study of all the 3 companies

CEO’S

GENRAL MOTORS

Jeffery R. Immelt

PHILLPS

Frans van Houten

TOSHIBA

Hisao Tanaka

no of employees

305,000 (2012) 233,700 (2012) 2,06,08

Revenues

US$ 147.359 billion €24.78 billion (2012) ¥6.204 trillion (2012)[2]

Leadership Style

people oriented, effectiveness oriented

transformational leadership, customer oriented, situational

leadership

scaling leadership

General electrics

• MISSION• “Passionate, Curious, Resourceful,

Accountable, Teamwork, Committed, Open, Energizing, Always With Unyielding Integrity”

• VISION• 'We bring good things to life'

Phillips

• MISSION:• “Improving People’s lives through

meaningful innovation” Philips has been founded on innovation, with the goal to improve the quality of life.

• With global trends and challenges in mind this mission has been chosen as Philips’s strategic direction.

• The demand for affordable healthcare, the energy efficiency imperative and people’s desire for personal well-being are key examples of these trends and challenges, and are closely connected to the three businesses Philips operates in. This mission is supported by the vision Philips has on the future. They strive to make the world healthier and more sustainable through innovation, with as goal to improve the lives of 3 billion people a year by 2025.

• VISION: • “To be a world-class high volume IC

assembly and test centre flexible to market changes through advanced manufacturing, committed teams and continuous improvement

Toshiba

• MISSION OF TOSHIBA• With the manufacturing sector as

our field of specialization, we will provide IT services for all product types, including mass-produced assembled products made to order and individual products .We provide analysis and simulation services for product design. We provide IT services for all personnel, accounting, and financial operations, which are the foundation of business activity. VISION OF TOSHIBA

• We seek for the valued company, which creates new markets with innovative products and is robust and agile to the rapid changes in the economic environment.

• For industrial camera field, we sustain continuous growth by maintaining one of the highest position in the industry and diversifying extensive products, including medical. We carry out global activity in the marketplace through cooperation and competition with international enterprises in every field.

It started its operations in Fairfield, Connecticut U.S • And now world wide.

Amsterdam, Netherlands it was started in • Now it serves world wide

Started in Tokyo, Japan• now expanded to the whole world

Places in which they operate

Organizational structure

GE

•more people oriented because of the leader, more specialists than generalists

PHILIPS

•Boundary less organization because it is highly adaptive and flexible structure

TOSHIBA

•line organisation because every manager exercise a direct authority over his subordinate.

GE'S ORGANIZATIONAL PLATFORM FOR INNOVATION

Capability 1: Create Marketing Innovation Internally Capability 2: Integrate Collaboratively Within GE Capability 3: Collaborate with the Customer Capability 4: Collaborate with Entrepreneurs

PHILIPS

Global introduction of the organizational structure

Philips researcher will research local and global trends in the different sectors as well as user testing.

The main goals for Philips research are to generate many invention disclosures which can be transformed into patent applications.

This to make sure all locations of Philips research work together to a common goal. The organization structure of Philips research consists of two different parts;

Research Divisions and Research programs plus Supporting departments.

Division Managers execute line management on a number of Research Departments and Lab.

There are 10-15 Research Departments and around 30 researchers each.

Research Department Heads report to a Division manager.

Division Managers and Department Heads are responsible for allocating the right competencies, capacity and infrastructure for project execution.

DIVISIONS AND DEPARTMENTS:

• All the teams assign a particular job to do.

• Annually all Philips research programs define and redefine their proposition in process-0 in close cooperation with the respective businesses. Process-0 will be explained more in the section “research strategy”.

PROGRAM MANAGEMENT

TOSHIBA

STRATEGIES OF GE

margin expansion

new product and service launches

Growth from emerging economies to drive growth its industrial businesses in 2013.

STRATEGIES OF PHILIPS

A set of initiatives was launched by the top management called as

“OPERATION CENTURION”.

Philips launched a company wide restructuring program

called “TOWARDS ONE PHILIPS” to foster greater cooperation among its various divisions.

STRATEGIES OF TOSHIBA

Reforming life style businesses – transforming from consumer goods to B

and B

Reorganizing to accelerate the action plan

New concept innovation

FUTURE STRATEGIES OF GE

Margin Expansion

New Product And Service Launches

Growth From Emerging Economies

Energy, Healthcare And Aviation To Drive Growth

PHILIPS

Improved collaboration between all parties in the value chain.

To making real headway towards the government’s target of improving 3 million lives by 2017.

The demand for personalised learning is not adequately supported by current technology or practices- should be improvised.

TOSHIBA

Toshiba Group aims to become an even stronger global contender by unleashing the powers of imagination to anticipate, ahead of others, and capitalize on the coming trends in the world business environment.

Toshiba continue to place primary importance on pressing forward with CSR management and working to contribute to the future of a sustainable planet Earth as one of the world's foremost ecology-friendly companies.

Toshiba Group in such a challenging global business environment are focused on the transforming of our business structure and the restructuring of our businesses to assure that we have a steady, strong, and highly profitable business structure.

PHILIPS Effective communication High R&D Innovation Loyal customers Strong brand equity LED Technology Copyrights Patents Strongest company in the market before

General Electric

TOSHIBA Diversity of Toshiba Expanding Pc market Brand recognition Advanced technological capabilities

GE GE is the market leader Diversified business portfolio Strong research & development (R&D) A number of acquisitions made in the previous

few years. Strong management & culture in terms of

people, systems, technology and measures

Strengths

PHILIPS Weaker Distribution network than Competition Price The inability to get product to market first Competitive leadership Almost Dutch-only corporate level

TOSHIBA

Long term debt Lack of advertisement

GE GE is the 4th largest producer of

air and water pollution. Weak revenue growth of industrial

segment. Underperforming in Asian

markets. GE energy segment is under

performing. Generates more than half of its

profits from GE capital

Weakness

PHILIPSGovernment regulations and Green Push Increasing industrialization of developing countries more electrification higher demand for (sustainable and energy saving) lightning

TOSHIBAGrowing global semiconductor

marketGlobal Expansion

GE Focus on Corporate Social Responsibility Invasion of China market Aviation industry growth Increasing global exploration and production Servicing and regeneration of commercial airplanes

around the world customer services initiative

Opportunities

PHILIPS Competition Cheaper technology Economic slowdown Exchange rate fluctuations Lower cost competitors or imports Price wars

TOSHIBAIntense competitionWeak economy

GE Senior management – weak performance by GE has

put doubts on Jeff Immelts ability to be the next Jack Welch.

Currency fluctuations. Intense competition in the industry. Recession in majority companies. Exposure to financial markets. Government regulation on environmental concerns World economic slowdown in the US and Eurozone,

two of the most important markets

Threats

THANK YOU