Hogeschool Inholland Rotterdam
Philips
Integrale Bedrijfsanalyse
Jordi van Dam
Chrishanty Francisca
Sascha Hennink
27-01-2019
,OE10a Financiële rapportages
Onderzoek in het kader van beroepsproduct thema 2, Business Economics, propedeuse.
Hogeschool Inholland Rotterdam
Opleiding: Bachelor Business Studies, Bedrijfseconomie en Accountancy
Opdrachtgever: Philips
Begeleiding: Twan Franken
Datum: 27 januari 2019
Studenten:
Jordi van Dam,
Chrishanty Francisca,
Sascha Hennink,
1
,Executive Summary
Royal Philips is a multinational company, which especially deals with electronics companies
and the health - and welfare technologies. Their goal is to improve the lives of 3 billion
people by 2025. Philips is focussing on a world which is healthier and more sustainable
through innovation.
Philips’ workforce should be a reflection of the society Philips is operating in. Philips
appreciates all its staff in all aspects of diversity. Philips does believe in honesty and giving
each individual the opportunity to be successful, to be heard and to be appreciated, without
prejudice.
Managers, business experts, the society and the Consumers Association are Philips’ most
important stakeholders. They are the most important, because their degree of power is high,
each in another aspect, and Philips has to involve them in their businesses.
Philips’ financial conditions have been mapped by their solvency, liquidity and profitability.
The development of the solvency is very good. Philips’ solvency is very much increased in
2017, especially because of paying off a loan. Philips liquidity is ample. Their net working
capital remained positive and their quick ratio has increased with a very stable growth in
recent years.
The decrease of the net available liquid assets was mainly driven by the refinancing of the
revolving credit facility and the transmission of net liquid assets from Philips Lighting to
suspended operations. Philips also has taken over various specialists in medical technology.
Philips’ gross profit margin has been doubled in the past two years and the net profit margin
has increased even more. These growth was mainly driven by the improvement of
operational performance, major restructuring and related costs. Philips’ return on equity is
very high in comparison to Philips’ return on assets.
Philips’ employees has had a huge decrease in numbers, because of selling shares of
Philips Lighting, causing Philips is a minority shareholder. However, Philips’ turnover per
employee has slightly increased and they lost a lot of staff costs.
2
, The market Philips is operating in, is easy to join. That’s why Philips’ has got a lot of
competitors. Philips also has to take account into the various ages of their consumers. They
should also deal with the governmental influences of 50 countries. And last but not least,
Philips has to take account into a world wanting to become healthier, more sustainable and
more innovative.
According to the portfolio matrix of the Boston Consulting Group, Philips Healthcare is a
division which is operating in a growing market, but their market share isn’t optimal. Philips
Consumer Lifestyle is a division which has a good market share, but the market isn’t growing
that fast anymore. Philips Lighting has an excellent market share, but the market hardly
grows anymore.
The expectation for 2018 and 2019 with regard to turnover is that the trend will continue, with
a slight increase to be precised. As the turnover increases, the operating result will also rise.
Expectations for the profit before taxes are that they will increase by a percentage of 24%.
Philips' strategy is to focus on medical technology. The goal of Philips is to cooperate with
hospitals in order to sell their medical products. Competition is a big problem at Philips.
Because there is a shortage of talents that work with medical data, Google is now also a
competitor.
The strengths of Philips include the free cash flow, making it easy for the company to expand
into new projects and high customer satisfaction. The weaknesses are that there are holes in
the Philips range and it is not good at predicting product questions. Because Philips has
invested in the online platform, they have opened a new sales channel. Philips is active in
many countries, exposing them to currency fluctuations. Imitation is a major threat to Philips.
The products can be counterfeit and sold for a lower price.
In order to ensure that Philips gains a larger market share, they must ensure that they
continue to invest in new technologies. As a result, they can obtain a larger capital and they
can continue to invest. Then they have to work on the product range. If they do that, Philips
can ensure that consumers do not end up at their competitors.
3
Philips
Integrale Bedrijfsanalyse
Jordi van Dam
Chrishanty Francisca
Sascha Hennink
27-01-2019
,OE10a Financiële rapportages
Onderzoek in het kader van beroepsproduct thema 2, Business Economics, propedeuse.
Hogeschool Inholland Rotterdam
Opleiding: Bachelor Business Studies, Bedrijfseconomie en Accountancy
Opdrachtgever: Philips
Begeleiding: Twan Franken
Datum: 27 januari 2019
Studenten:
Jordi van Dam,
Chrishanty Francisca,
Sascha Hennink,
1
,Executive Summary
Royal Philips is a multinational company, which especially deals with electronics companies
and the health - and welfare technologies. Their goal is to improve the lives of 3 billion
people by 2025. Philips is focussing on a world which is healthier and more sustainable
through innovation.
Philips’ workforce should be a reflection of the society Philips is operating in. Philips
appreciates all its staff in all aspects of diversity. Philips does believe in honesty and giving
each individual the opportunity to be successful, to be heard and to be appreciated, without
prejudice.
Managers, business experts, the society and the Consumers Association are Philips’ most
important stakeholders. They are the most important, because their degree of power is high,
each in another aspect, and Philips has to involve them in their businesses.
Philips’ financial conditions have been mapped by their solvency, liquidity and profitability.
The development of the solvency is very good. Philips’ solvency is very much increased in
2017, especially because of paying off a loan. Philips liquidity is ample. Their net working
capital remained positive and their quick ratio has increased with a very stable growth in
recent years.
The decrease of the net available liquid assets was mainly driven by the refinancing of the
revolving credit facility and the transmission of net liquid assets from Philips Lighting to
suspended operations. Philips also has taken over various specialists in medical technology.
Philips’ gross profit margin has been doubled in the past two years and the net profit margin
has increased even more. These growth was mainly driven by the improvement of
operational performance, major restructuring and related costs. Philips’ return on equity is
very high in comparison to Philips’ return on assets.
Philips’ employees has had a huge decrease in numbers, because of selling shares of
Philips Lighting, causing Philips is a minority shareholder. However, Philips’ turnover per
employee has slightly increased and they lost a lot of staff costs.
2
, The market Philips is operating in, is easy to join. That’s why Philips’ has got a lot of
competitors. Philips also has to take account into the various ages of their consumers. They
should also deal with the governmental influences of 50 countries. And last but not least,
Philips has to take account into a world wanting to become healthier, more sustainable and
more innovative.
According to the portfolio matrix of the Boston Consulting Group, Philips Healthcare is a
division which is operating in a growing market, but their market share isn’t optimal. Philips
Consumer Lifestyle is a division which has a good market share, but the market isn’t growing
that fast anymore. Philips Lighting has an excellent market share, but the market hardly
grows anymore.
The expectation for 2018 and 2019 with regard to turnover is that the trend will continue, with
a slight increase to be precised. As the turnover increases, the operating result will also rise.
Expectations for the profit before taxes are that they will increase by a percentage of 24%.
Philips' strategy is to focus on medical technology. The goal of Philips is to cooperate with
hospitals in order to sell their medical products. Competition is a big problem at Philips.
Because there is a shortage of talents that work with medical data, Google is now also a
competitor.
The strengths of Philips include the free cash flow, making it easy for the company to expand
into new projects and high customer satisfaction. The weaknesses are that there are holes in
the Philips range and it is not good at predicting product questions. Because Philips has
invested in the online platform, they have opened a new sales channel. Philips is active in
many countries, exposing them to currency fluctuations. Imitation is a major threat to Philips.
The products can be counterfeit and sold for a lower price.
In order to ensure that Philips gains a larger market share, they must ensure that they
continue to invest in new technologies. As a result, they can obtain a larger capital and they
can continue to invest. Then they have to work on the product range. If they do that, Philips
can ensure that consumers do not end up at their competitors.
3
