Strategic Management and Balance Scorecard Assignment
Added on - 18 Sep 2019
Running Head: Balance ScorecardStrategicManagementBalance Scorecard
Balance Scorecard1IntroductionPhillips is considered as a Dutch technology organization whose headquarter is situated inAmsterdam. It mainly focuses on the production of electronics, lighting and healthcare. It wasestablished by Gerard Philips and Frederik in 1891. It is considered as one of the largestelectronic organization in the world. In this paper, we will study about the different keyperformance indicators of Phillips in several areas. This will provide us with a glimpse of thestrategic performance of the organization. Philips employs more than 100,000 people acrossmore than 50 countries. The organization is specially organized into three different sections suchas Phillips lighting, Philips healthcare and Philips Medical. The organization is considered alarge manufacturer of lighting items and earns large revenue than other existing lightingorganizations. During 2012, Phillips was considered the largest producer of lighting goods. Theorganization is known for its high quality of products. With the high quality, the organizationplaces itself in the eyes of its target customers. Due to this they become brand loyal and preferonly the products produced by Phillips. The organization produce different types of productssuch as Philips Radio, Stirling engine, bulbs, tube lights, and shavers (Hitt, 2012). A largevariety of the products facilitates the organization in capturing a huge market size so that it canoffer products to a large number of customers.Strategy and Value PropositionThe strategic objective of the organization is to improve the lifestyle of individuals by providingthem innovative products and services. Innovation is the core base of every activity of Philips. Itidentifies and understands the global trends and challenges facing the individuals in their dailylives. It ensures that aspirations and needs of individuals remain at the heart of its innovation
Balance Scorecard2endeavors. With its innovative steps, the organization wants to make the whole world sustainableand healthier (Rothaermel, 2015). The organization wants to provide a suitable place toindividuals where they can share their passion.The organization takes a systematic approach to creating its value proposition. The organizationdelivers value to its customers with the help of following aspects:Intellectual: The organization mainly utilizes design and innovation experts who facilitateeffective establishment of new products and solutions that fulfill local customers’requirements.Manufacturing: The organization significantly applies Lean techniques to produceinnovative goods.Human: The organization mainly hire talented and diverse individuals and provide themproper training and skills which they require to perform different functions (Danaei,2014).Product LeadershipIt is considered as the leader of a market in manufacturing lighting products. The organizationachieved product leadership by following below-mentioned points:Innovate in LED products technologically and commercially to grow in the existingmarket.Utilization of Accelerate program to improve the operational excellence in organization.Capture different adjacent value with the help of new business models and services.
Balance Scorecard3Cost LeadershipIn order to survive in a competitive market, the organization decided to keep its pricing policiesstraightforward and simple. The management of the organization mainly decided not tocompromise with its high quality even if some products are higher priced than its competitors.But, basically, the organization utilizes a competitive pricing strategy for its products whichenable the organization to provide goods at reasonable cost.Specific KPI's related to strategy and value propositionThe following are the Key performance indicators of Phillips:Group Strategy: The organization ensures that it clearly defined its business strategiesand efficiently allocates its resources to enhance value creation.Caps: It focuses more on leverage and strengthens its main capabilities, positions andassets. Technological innovation trusted brand feature, and deep customer insights helpan organization in creating differential value (Parmenter, 2015).Excellence: It applies basic operating practices and principles to deliver excellenceservices to its products.Organization ArchitectureThe architecture of Phillips is diligent t bringing its nationally acclaimed design to every projectwhile fulfilling the needs of the desired budget. From 1989 the organization has offeredcommercial and architectural interior services for ground up, tenant space planning, addition, oralteration projects. The architecture of the organization mainly includes schematic design, décor