Fluss AG, the Swiss parent company of FWD (Fluss Washer and Dryer Division), having 51,000 employees was established in 1947. Fluss specialized in design and manufacture of large households Appliances and also expanded its business across the globe. FWD division was divided initially into three geographic regions: Asia, Europe and the America. After becoming Director of FWD in 2004, Johannes Linden restructured the geographic regions from three to six ( i.e. South America, North America, Europe & North Africa, China & South East Asia, Japan-Korea & Australia and India & Indonesia) to get all aligned with the strategic division for FWD. After implementing the new regional structure, Linden created the Global Executive…show more content… In broader sense, the RDs existed to think from a macro aspect.
The GEC was supposed to be good at 'change management '. Also, it wasn 't enough to be prepared to respond to global changes but also keep an eye on local preferences. RDs were to keep a tab on revenue and market share as well.
Competition was getting tougher and profit margins kept getting slimmer. In this highly competitive scenario it was of utmost importance that newer growth opportunities were spotted and worked upon promptly. RDs were needed to be a step ahead of competitors.
It was expected that GEC would set an example of BPS (best practice sharing) on global level, at the same time attuned to local needs.
Extent to which GEC fulfilled its purpose:
Linden shares CEO 's remark at one of GEC meetings that FWD has made invaluable contribution to the overall corporate performance during the worst financial crisis in generations. This says it all; it shows GEC 's grit.
We are shown through the case that GEC started with fumbling baby steps, but it took off quite well gradually in the able guidance of Linden.
Looking at the go getter dynamic style of Linden and his high expectation of GEC we doubt the success of GEC. But, nowhere it is