SUMMARY OF PHILIPS IN CHINA

Summary based on the Philips in China is the Dutch consumer electronics, lighting,
semiconductor and medical equipment conglomerate Philips NV has been operating factories
in China since 1985 when the country first opened its markets to foreign investors. Due to the
poor wages, Chinese workers could afford to buy the products they were producing. Chinese
wage rates are currently 1/3 of those in Mexico and Hungary, and 5% of those in the United
States or Japan.

Philips has a new strategy that is keep the factories in China but most of the goods
products export to the United States and elsewhere. Philips exports nearly 2/3 of the $7
Billion in products that the factories produce every year. Philips accelerated its Chinese
investment in anticipation of China’s entry into the World Trade Organization.

In 2003, Philips announced it would phase out production of electronic razors in the
Netherlands. Philips also lay off 2,000 Dutch employees, and move production to China by
2005. The attraction of China to Philips include continuing low wage rates, an educated
workforce, a robust Chinese economy, a stable exchange rate that is linked to the US dollar
and rapidly expanding industrial base that includes many other Western. Other than that the
Chinese companies that Philips uses as suppliers, and easier access to world markets given
China’s entry into the WTO.

Today more than 25% of everything Philips makes worldwide comes from China, and
executives say the figure is rising rapidly. Philips is also starting to give its Chinese factories
a greater role in product development. In the TV business, for example, basic development
used to occur in Holland but was moved to Singapore in the early 1990s.

Some observers worry that Philips and companies pursuing a similar strategy might
be overdoing it. Too much dependence on China could be dangerous if political, economic or
other problems disrupt production and the company’s ability to supply global markets. Some
observers also believe that it might be better if the manufacturing facilities of companies were
more geographically diverse as a hedge against problems in China.

In early 2003, outbreaks of pneumonia virus has struck in China led to the closure of
several plants, but even if Philips is not directly affected, it restricts travel by managers and
engineers for plants in China.
BACKGROUND COMPANY OF BOEING

Dennis A. Muilenburg is a Chairman, President and Chief Executive Officer, of the Boeing
Company. The Boeing Company is an American multinational corporation that designs,
manufactures, and sells airplanes, rotorcraft, rockets, and satellites worldwide. The company
also provides leasing and product support services. After its merger in 1997 with McDonnell
Douglas and acquisition in 1996 of the defence and space units of Rockwell International,
became the largest aerospace company in the world. Its history mirrors the history of
aviation.

The Boeing Company, incorporated on July 19, 1934, is an aerospace company. The
Company is engaged in the design, development, manufacture, sale, service and support of
commercial jetliners, military aircraft, satellites, missile defense, human space flight and
launch systems and services.

The Company's segments include Commercial Airplanes Defense, Space & Security
(BDS), including Boeing Military Aircraft (BMA), Network & Space Systems (N&SS) and
Global Services & Support (GS&S), and Boeing Capital (BCC). The Company is also a
defense contractor in the United States. Boeing is the world's largest manufacturer of
commercial and military aircraft, and it controls more than half of the market for jet aircraft,
next to military jets and helicopters, missile systems and space technology.

The corporation is the world's number one maker of commercial jetliners and military
aircraft. Boeing has more than 9,000 commercial aircraft in service worldwide, including the
717 through 777 families of jets and the MD-80, MD-90, and MD-11. In the defence sector,
the company makes military aircraft, including fighter, transport, and attack aircraft;
helicopters; and missiles. In addition to its position as the nation's top NASA contractor and
the leader of the U.S. industry team for the International Space Station. Boeing is also
involved in commercial space projects such as satellite networks and a sea-based satellite
launch platform.

In 1916 William Boeing and Navy engineer Conrad Westervelt founded the Pacific
Aero Products Company in Seattle, and they built the B&W seaplane. When one year later
Westervelt was recalled to active service in World War I, the company was renamed to the
Boeing Airplane Company. The contacts with the Navy proved to be interesting, because
during World War I the company manufactured aircraft for Navy training and patrol. Next to
building airplanes the company at first also exploited an airline, and in 1919 they started the
first international postal line between Seattle and Victoria in British Columbia. In 1927
Boeing contracted with the U.S. Mail to distribute the mail between Chicago, Illinois and San
Francisco, California, and it built its first commercial airplane, the Model 40.

In 1929 Boeing merged with engine manufacturer Pratt & Whitney, and they founded
the United Aircraft and Transport Corporation. Its growth was spectacular and it
subsequently purchased several regional airlines, and in 1931 it was renamed to United Air
Lines. But in 1934 they had to deal with federal antitrust actions and were required to split up
the company into three different companies; the Boeing Airplane Company, Pratt & Whitney
and United Airlines.
CONCLUSION OF PHILIPS IN CHINA

In conclusion, there are a lot of problems and issues in conducting a business. It is a

Technological factors also are one of many external factors that can affect businesses,
and are an integral part of PESTLE analysis. They can be defined as factors which relate to
the presence and development of technology, on either a local or global scale. [CITATION
tho16 \l 17417 ] Philips operates in various countries, so for smooth and accurate operation
new and advance technology is very important. Moreover the new production techniques
also demand for high profile technology as Philips offers electronic products according to
market features.[CITATION Has17 \l 17417 ].

The global factors have always impacted the industries in a very direct way. The
global recession therefore encompass many economic factors for Phillips to be got affected.
Another major down turn is the downfall in the consumers market that put negative effects on
the Phillips as well. This further led to the decrease in the sales market of the Phillips.

There are three problems that can be identified in this article. Firstly, more than 25
percent of everything Philips made worldwide came from China. The second problem is
Philips is hardly alone in this process where more than half of all exports from China came
from foreign manufacturers or their joint venture in China. Lastly, the problem have become
critical when an outbreak of the pneumonia like severe acute respiratory systems virus in
China resulted in temporary shutdown of several plants operated by foreign companies and
disrupted their global supply chains.

There are solution for every problem. Through all the problems that Philips face, the
company must manage the problems to achieve the solution. The solution must worked to
make the company achieved their profit again.
The company must realize that The global factors have always They can be defined as factors
even though, China is one of the impacted the industries in a very which relate to the presence and
great countries to start with, Philips direct way. The global recession development of technology, on
should not only depend into therefore encompass many either a local or global scale.
Chinese factories only. It will effect economic factors for Phillips to be (Bush, 2016) Philips operates in
Philips production if Chinese got affected. Another major down various countries, so for smooth
factories have technically problem turn is the downfall in the and accurate operation new and
or issues. consumers market that put negative advance technology is very
effects on the Phillips as well. This important
further led to the decrease in the
sales market of the Phillips.

Dennis A. Muilenburg is a The Boeing Company, incorporated Boeing has more than 9,000
Chairman, President and Chief on July 19, 1934, is an aerospace commercial aircraft in service
Executive Officer, of the Boeing company. The Company is engaged worldwide, including the 717
Company. The Boeing Company is in the design, development, through 777 families of jets and
an American multinational manufacture, sale, service and the MD-80, MD-90, and MD-11.
corporation that designs, support of commercial jetliners, Boeing is also involved in
manufactures, and sells airplanes, military aircraft, satellites commercial space projects such as
rotorcraft, rockets, and satellites satellite networks and a sea-based
worldwide. satellite launch platform.

In 1916 William Boeing and Navy Philips NV has been operating In 2003, Philips announced it
engineer Conrad Westervelt factories in China since 1985 when would phase out production of
founded the Pacific Aero Products the country first opened its markets electronic razors in the
Company in Seattle, and they built to foreign investors. Due to the Netherlands. Philips also lay off
the B&W seaplane. When one year poor wages, Chinese workers could 2,000 Dutch employees, and
later Westervelt was recalled to afford to buy the products they move production to China by
active service in World War I, the were producing. 2005.
company was renamed to the . Philips is also starting to give its
Boeing Airplane Company Chinese factories a greater role in
product development. In the TV
business, for example, basic
development used to occur in
Holland but was moved to
Singapore in the early 1990s.