Whirlpool Europe Erp Case

2053 Words Dec 25th, 2011 9 Pages
Whirlpool Europe
Submitted by yovip16 on April 15, 2009 • Category: Business and Economics • Words: 1967 | Pages: 8 • Views: 237 • Report this Essay
Whirlpool Europe
Introduction
Whirlpool Corporation is a worldwide leader in the home appliance industry. Its main products include microwave ovens, dishwashers, refrigerators, freezers etc. It has made its presence felt strong in the European market, offering 6900 different SKU’s, thus catering to a wide diversity of different European countries. This has resulted in Whirlpool owing a 13% European market share. Customers include consumers who purchase stand-alone appliances, and contractors who purchase built-in appliances.

Problem
Whirlpool Europe is a very large
…show more content…
They have appropriately accounted for costs regarding the capital expenditure, implementation and maintenance. Yet they may face certain other costs which they have not accounted for. One of these could be incurred because of the fact that the company is purchasing “of-the-shelf” system rather than developing their new system. Hence they might have to incur costs for customizing the software to suit their own needs. The system has to be implemented over several processes across several countries, and therefore, customization might be required to integrate the system with every process. At the same time, during the transition phase, the processes might not be very effective, which might result in lost sales and increased costs. Moreover, the employees across countries might need to be trained in order to achieve the desired results.

Capital Budgeting
The ERP investment is financially evaluated on the basis of after-tax cash flow estimations for the years 1999-2007. It is assumed the revenues and corresponding gross margins will remain stagnant in the status quo. Since the incremental revenues comes in the year 2000 (soon after the Wave West implementation), the revenues for 1997 are taken as base year and are assumed to remain the same for 1999. It is also assumed that sales mix of units sold remains the same over the entire 9 years, which also means that per unit sales

More about Whirlpool Europe Erp Case

Open Document