Whirlpool Europe

3955 Words Oct 30th, 2005 16 Pages
About Whirlpool Corporation:

1989: Whirlpool entered European Markey by buying a 53% stake in the appliance division of Dutch based Philips Electronic for $ 470 million .Formed a joint venture firm named Whirlpool International BV (WIBV).

1990: Added the whirlpool brand name to the Philips product line.

1991: whirlpool bought the rest of the Philips stake (47%) for $ 600 million to become the sole owner of Whirlpool International BV.

1991-1999: WIBV developed three pan European brands to differentiate its product line. Whirlpool, Bauknect, and Ignis. Regional brands like Laden which was sold exclusively in France were also created.

MARKET SHARE – 13%.

Value Chain Analysis of Whirlpool Europe

Manufacturing through 11
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2) MARGIN PER UNIT figures have been calculated by the following formula:
Margin / Units Sold

Care has been taken to include the margin improvements over the years (TABLE 11)

3) COGS PER UNIT figures have been calculated by subtracting price per unit figures with margin per unit figures for respective waves and years.
Price per Unit – Margin per Unit

By subtracting the price per unit figure with the margin per unit figure, the analysis has made sure that it captures the effect of the inflation and the margin improvements over the years.

CHANGE IN WORKING CAPITAL (TABLE 22): for analysing the viability of Project Atlantic, only the incremental units sold are taken into consideration.
In the absence of any data from the case regarding the accounts receivable and accounts payable, the analyses has assumed that inventory is the only constituent of the working capital. Therefore, in calculating the change in working capital figures, only the incremental inventory (TABLE 21) is considered.

Incremental inventory is arrived at by the following formula:
DSI x (Incremental COGS / 365)

Care has been taken to calculate incremental revenue for each wave for successive years and then subtracting the current year 's figures from the

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