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Electrolux Assignment over Strategy

Satisfactory Essays

Assignment for the first date over the text Electrolux from the exploring corporate strategy book Third of september, 2010 Question1 : Refer to section 1.2.1 and explain why the issues facting Electrolux were strategic. Try to find examples of all of the items cited in that section. First of all, strategic decisions are long-term decisions and so they will not bring results in a few months or faster and therefore you will not know if they will bring success to your company. So Electrolux made some decisions that will show their results in the future. They decided to move a production facility from Greenville in the US to Juarez in Mexico. Through this step Electrolux will try to cut the costs at a remarkable rate. The decision to …show more content…

The human resource programs seem to be fitting and personnel is the most important thing. You can have the best machines, but if nobody knows how to operate them you still have nothing. The stakeholder expectations are very important. As I know from having shares of different companies for myself, I first of all want a good dividend. And if a company will have to tell me that they cannot pay me a good dividend, I want to see why and what is done to improve the situation. In the text you can see that Electrolux is removing a plant from the US to Mexico what will help to save costs but will also be expensive at the moment of the decision because of building a new plant and moving from Greenville to Juarez. The most important factors for me are the staff, the staff and the staff. When I have great knowledge inside my company I will have to problems to cope with different situations and this will help to be a good competitor on the market and as a result of that I will have enough money to invest and pay good wages. Good wages will help to keep my staff and improve the knowledge. This will secure the future for my company. Question 4: Think about strategic choices for the company in relation to the issues raised in section 1.3.2. The strategic choice of buying other companies like Zanussi, Poulan/Weed Eater and AEG Hausgeräte is a very important fact to ensure the future competitiveness. The knowledge of these

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