Philips and Gerard Kleisterlee

Essay by Ness55811University, Bachelor'sA, April 2010

download word file, 2 pages 0.0

Philips and Gerard Kleisterlee

Date: April 6, 2010

Management Policy and Strategy

Unit 2

Gerard Kleisterlee is the currently both President and Chief Executive Officer of Philips and Chairman of its committees on the Board of Management and Group Management. Kleisterlee joined Philips in 1986, and made his way to President in 2001. Kleisterlee was determined to better Philips' image with consumers and focus on becoming a high-growth, high-tech company. These lofty goals were something that ten years of restructuring and two predecessors fell well short of accomplishing. (wiki, 2009)

Some of the things Kleisterlee was able to accomplish have been cutting the number of factories almost in half, slashed overhead, and production outsourcing of mobile phones handsets and VCRs to save cost. With these major changes he was able to raise Philips global rating by 23 notches since 2004. Additionally, Kleisterlee was given the distinction of Europe Businessman of the Year in 2006.

In May 2003, Philips announces the initial closing of two factories in England, with the loss of up to 1,000 by the end of 2004. Philips stated that the decision to close the factories was due to the undesirable business and economic conditions and the competitive yet consolidating industry. Phil Styles, the GM of manufacturing at Newport, commented on the situation as well. Styles said the decision to close was not the solution they wanted to have to come to; but was reached because the adverse business situation gave them no other choice. Styles went on to say that the closing of the plants was not indicative of the employees' performance, and that the employees have worked hard and demonstrated their commitment. (uk news, 2003)

Philip signed a multimillion dollar business outsourcing deal in Indian based Infosys. As part of the outsourcing 1,400 members of the...