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P&G Japan: the Sk-Ii Globalization Project

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1. Philips is an electronics company that focuses on a wide array of electronic related goods since its early beginnings with light-bulbs in 1892. However, the journey of being a leading consumer electronics company didn’t go without a few bumps on the road that leads it to its prominence. In relation to the question, Philips became the leading consumer electronics company in global terms due to its decisive attempt of organizational development. In order to be very competitive, strong research would be vital to its success and survival in the company’s post war era. It wasn’t a success at first try, but after recapturing their target market through successive roles of CEO’s with strong incentives, it slowly began to regain its corporate goals of success. The most important period in the company’s history in terms of overturning its slow growth would be during the Boonstra’s Reorganization period.

At the end of this period, the company succeeded in achieving the objective of retaining a 24% return on net assets which eventually increased the market value of the firm by five-fold. The consequential growth was the result of shifting major corporate resources to marketing, including 40% increase in advertising which was an attempt to raise awareness of the firm. At the beginning of the last decade, the firm still continued their interest on broad range of volatile, high-volume products such as consumer electronics, semiconductors, and components. For a company to grow, it needs to focus on a wide array of goods with high quality. The last CEO, Kleisterlee, was determined to “organize from the outside in” and therefore committed to leave a company that continues to strive for corporate success through innovation and the continuance of organizational restructure.

Like any other successful firm, the products that are being produced within the corporation will not

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