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Why did Philips’ decentralized structure make sense in the 1950s and 1970s? Why did this structure start to create problems for the company in the 1980s?

The closing case “Philips NV” answer questions 1- 3.

The questions must be answered using an essay format. Submit the paper following the guidelines of the APA including academic references as appropriate.

QUESTION 1: Why did Philips’ decentralized structure make sense in the 1950s and 1970s? Why did this structure start to create problems for the company in the 1980s?

QUESTION 2: What was Philips trying to achieve by tilting the balance of power in its structures away from national organizations and toward the product divisions? Why was this hard to achieve?

QUESTION 3: What was the point of the organizational changes made by Cor Boonstra? What was he trying to achieve?


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