Whirlpool Europe’s implementation of an enterprise resource planning (ERP) system is a positive business investment. One of the biggest challenges that Whirlpool Europe faces is a disconnect in the information systems. This disconnect has led to a decrease in product availability, loss in sales, and an unreasonably high inventory. A new system will allow Whirlpool Europe to improve operating effectiveness and efficiency. The cost of implementation of the ERP is quite substantial. However, the benefits do outweigh the costs when net present value is calculated and compared. Once the ERP system is implemented, sales offices will be able to view inventory across the entire supply chain to determine what products will be available and which need to be built specifically to the needs of the customers. Additionally, there will be a decrease in lost revenue as a result of shipping errors. This ERP system can be implemented in four different geographic phases, over a period of five years.…
G.E. had a large competitive advantage in the large turbine industry for three primary reasons: better r&d and hence improved technology, a clear focus on larger, more technologically sophisticated units, and its status as a price leader in the market. GE had almost twice the R&D budget of both of its major competitors, while simultaneously spending less on R&D as a percentage of sales. This allowed it to have the best technology in the most important market segment in terms of growth: large, complex units that had the lowest per-megawatt cost. In addition, these turbines were built far in advance, and were not subject to price volatility of the more competitive small turbine landscape. Finally, its status as the price leader allowed it to set more consistent prices in both upturns and downturns in its market and not be subject to intense negotiation.…
Its products included cookers, vacuum cleaners, washing machines, fridges, lawn mowers, chain saws and also tools for the construction and stone industries. It employed about 70,000 people and sold about 40 million products annually in about 150 countries. Its annual sales in 2005 were 129 billion Swedish krona (~A14bn; ~£10bn) and profits about 3.9bn krona (~A420m). But 2005 saw two changes that would push the company into second place in the industry – behind the US company Whirlpool. First, Whirlpool completed its acquisition of Maytag – which gave it about 47 per cent market share in the USA and global sales of some $US19bn (~A15bn).…
This was not only a business decision, but it carried social and ethical responsibilities with it because the company was thinking for the benefit of its shareholders and consumers by making more energy-efficient products while keeping consumer prices fair. By moving the operation to Mexico this allowed the company to do so. But their ethical and social responsibilities to the community and to their employees were not held up due to lay-offs and relocation. Whirlpool did not consider, address, and/or value the impact of the plant closing and how it would affect vendors, suppliers, and the community as a whole. Thus they disregarded the American economy to meet consumer expectations and increase shareholder investments.…
The Whirlpool Europe case provides an opportunity to look at different ways to evaluate a major IT investment the company is considering. To undertake this analysis we have to make a few assumptions because the case does not have all the details needed to estimate benefits and investment cost. However, if you were in a company faced with this situation, these numbers would be available.…
The closure of Whirlpool plant definitely carries social and ethical implications. Many people will lose their jobs, leading to high unemployment rate. In addition, it may seem to be a “business decision” to the management; however, it is definitely not in the eyes of their employees.…
First of all, there are a lot of answers to that question. What strikes most is the high number of acquisitions undertaken by the Newell Company, which in the end let it become the single most important company in the business of housewares.…
Once they successfully established themselves as a local market, the company focused their resources on growth. They began to open additional stores and within 12 years of it 's inception, WFM became a public company (Thompson, Jr. et al. 2010, p. C-6). In doing so, the company displayed their ability to be flexible in their strategy while remaining focused on the bigger picture: establishing and maintaining a competitive edge. In this effort, they acquired a number of organic/natural markets in the United States, Great Britain, and Canada. Not only did these acquisitions give WFM a competitive edge, it afforded them the ability to exercise more bargaining power with their suppliers, and greatly reduced administrative costs (Thompson, Jr. et al. 2010, p. C-9).…
Whirlpool Corporation (NYSE: WHR) is a Fortune 500 company and a global manufacturer and marketer of major home appliances, with annual sales of approximately $20 billion, more than 70,000 employees, and more than 70 manufacturing and technology research centers around the world. The company markets Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Gladiator Garage Works, Inglis, Estate, Brastemp, Bauknecht, Consul, and other major brand names to consumers in nearly every country around the world.…
Whirlpool has adopted a successful adaptation product strategy. When the company decided to globalize, they realized that each market required a different set of specifications to make the product successful. In order to keep costs down and increase productivity, they were able to streamline the design and production of the base of the product and adapt the special features that each country and market prefer. A perfect example of this is the item they created when they moved into the Brazilian and Indian markets. These markets required a much more economical product but did not expect certain features that the larger markets preferred. By customizing color, size, height and cost, Whirlpool was able to successfully integrate into those markets.…
During the late 1980s and into the 1990s, Whirlpool Corporation aimed at reducing their number of suppliers to achieve a better competitive advantage from others in the same market. One of the main components purchased and used for products was steel. They decided the best choice was to create an alliance with one of their current suppliers. After carefully considering and answering several different questions within the company, Whirlpool’s attention was brought towards their supplier Inland Steel. During this time period Inland Steel was also aiming to create a new product design that needed much capital (Strategic Alliance). The two companies realized that they both had the same strategic vision that would ultimately lead to a partnership. However, this partnership was going to be no easy task for either party.…
Whirlpool’s culture has contributed to its performance in many ways, but most noticeable is the financial gains. “Since 2001, revenues from products that fit the company 's definition of innovative have risen up from $10 million to $760 million in 2005, or…
3)Are Whirlpool’s difficulties with its global strategy due to internal factors or to external factors beyond its control?…
Whirlpools values are: respect, integrity, teamwork, learning to lead and spirit of winning, Whirlpool did not show any of qualities to their employees when requiring unreasonable timelines and insufficient or improper training. No employees were not dealt with properly, because where is the incentive for the service technicians who now need to add additional routes to their areas as well as handling more calls per day leading to unreasonable timelines. Also the call center workers who are now going to be required to answer more challenging questions with no training will lead to inexperienced or incompetent consultants.…
As the largest domestic products manufacturer in the world, Electrolux has about 70000 employees all around the world in about 150 countries, making 14 billion euros in sales in 2005. However, an acquisition case from its main competitor, Whirlpool, is challenging the first place of Electrolux, at the time Electrolux has just decided to divest its outdoor division. A huge decrease in sales in the following years is expected. Starting from 1920s, Electrolux has been famous for its expertise in industrial design on products such as vacuum cleaner and refrigeration. The products quickly got popular not only in its home country in Sweden, but in other western countries such as Germany, France, USA and UK, due to the homogeneous culture of these countries. A major growth in demand after World War II contributed a lot to its growth. With a large amount of accumulated cash of the past decades, Electrolux decided to expand quickly through a number of acquisitions for more market share and diversification. In late 20th century, Electrolux discovered new markets in developing countries when the market in western countries was already very mature and was even showing a sign of going down. It also went through a phase of restructuring the segmentations of products as well as abandoned some less important activities. Up until 2006, the company has addressed its new strategies mainly on functional level to correspond to the challenges. To maximize the profit, the production would be outsourced to developing countries with lower labor costs. More efficient logistics has made the globalization more feasible and cost-saving. On the product market level, due to the market polarization, a more distinguishing product segmentation would be applied. While keeping the basic low-price products, Electrolux is launching a series of products with higher prices to satisfy the high-end market. On the other hand, 2% of…