Electrolux Case Study

Organisations with strategic plans have goals that are long term essentially five year plans that guides programs and functions of administration,

To achieve its long-term objectives that would enable an organization, strategic or institutional management is the conduct of implementing, evaluating cross-functional decisions and drafting. In order to design and achieve these objectives and then allocating resources to implement the programs, projects, plans and policies, it is the process of specifying the organization’s objectives, mission and vision, developing policies and plans, often in terms of projects and programs. Companies often evaluate the overall performance of the business and its progress towards objectives through a balanced scorecard.

‘Strategy is the direction and scope of an organisation over the long term, which achieves advantage in a changing environment through it’

An organization’s strategic planning, development, and implementation are governed by the company’s vision; how the company founders and current executives envision the growth, longevity, and output of the organization, what

Whirlpool is the world’s largest producer and marketer of small and large home appliances such as mixers, food processors, washing machines, refrigerators, air conditioners, etc. Whirlpool also has a long standing relationship with Sears, which sells Whirlpool products under the brand name Kenmore. In addition to its North American presence (both manufacturing and sales), Whirlpool also has a strong presence in Mexico, and Europe. Being the largest producer in the world has helped Whirlpool to compete on lower costs through economies of scale and through its Global Procurement Organization (GPO). In addition, its large networks also help in

The general plan of major actions through which a firm intends to achieve is long-term objectives is called its A. corporate plan B. long-term goal C. grand strategy D. mission Correct! The correct answer is: C. Concept: EXTERNAL AND INTERNAL ENVIRONMENTS Concepts Mastery EXTERNAL AND INTERNAL ENVIRONMENTS 100% Questions 7 7.

The most dominant problem addressed in the case that Haier is facing is that it lacks of brand popularity in the global market, comparing to its direct competitors such as Whirlpool, GE appliances, and Electrolux. Even though Haier made its effort to amplify its brand image and popularity globally by making a bid to acquire Maytag Corporation yet did not succeed, it is still difficult for Haier to enter the high-end segment of the US white goods market. According to statistics from Euromonitor, Haier’s 2013 market shares in consumer appliances segment in the North American and Western European markets were 0.9% and 0.5% respectively, which are significantly lower than Whirlpool’s, one of Haier’s major competitors in the U.S. and Europe,

Strategic planning will show what direction the business is going to achieve its aims. The planning may last for up to 4 years and is drawn

The products with high cost will have less attractive due to higher price. In addition, the automation level is relative low due to the strategy.

Chandler (1977) believes strategy is about using the necessary recourses so the organizations are able to carry out their long-term goals and aims. Which relates to Johnson (1987, pp. 4-5) who states, “Strategic decisions occur at many levels of managerial activity and will be concerned with the long-term direction”.

By end of 90’s the company was dominant in many of the categories it competed in. The challenge was found in whether it can continue its dominance in it’s new, expanding product ranges and could maintain its dominance and synergy in its all categories on low and high price offering in hardware, home furnishings, office and house ware, while maintaining its management and corporate structures.

Even though a company must invest a large amount of money to get started in a foreign country, this can have the long-term effect of lowering costs. by take advantage of large tax benefits. The company can also pay less for labour and other goods that may be needed for the production of products. This lowers the overhead for the company and helps it operate more profitably

Johnson, Wittington, Scholes, Angwin and Regnér (2014, p. 3) defines strategy as ‘the long-term direction of an organisation’.

These minor details are what set Electrolux apart from the competition. The company’s ability to function as a team allowed them to gain different perspectives and create in a shorter time period than the rest. The case study proves that when it comes to the consumers, they do not care about price as much as they do effectiveness. If the product gives the consumer exactly what they need and want, they are more than willing to pay the price. A company’s success depends solely on each department’s ability to function as one and without teamwork this task is impossible.

For international business strategy, Hill and Jones (2004) suggested that there is four basic components of strategy development need to be addressed by a firm in order to succeed in foreign markets. These components are: ¡¥distinctive competence¡¦, ¡¥scope of operations¡¦, ¡¥resource deployment¡¦, and ¡¥synergy¡¦. By applying the theory, it is revealed that Whirlpool¡¦s distinctive competence is its brand name ¡V Whirlpool, the world¡¦s largest white-goods manufacturer. For the scope of operations, Whirlpool is specialised in broad middle market niche of white-goods products. In terms of resource deployment, Whirlpool allocates the resources equally to its three product lines. As far as synergy concern, due to the poor business performance of Bauknecht and Ignis, Whirlpool is not benefited in whole.