...GLOBAL SOURCING Strategic Soucing at Whirpool China Finding the ideal supplier CASE ANALYSIS Assignment 1 STRATEGIC SOURCING AT WHIRLPOOL CHINA FINDING THE IDEAL SUPPLIER CASE ANALYSIS 1. What are the key problem areas for Whirlpool? Finding the right supplier. 2. What is the importance of strategic sourcing? Sourcing the right components is the first step in launching the new product. 3. What are the pros and cons of Whirlpool’s global sourcing strategies? Cons: Payment terms. Pros: To avoid delays in launching the new product. 4. How are suppliers identified, evaluated and selected? It was necessary to define the commodity and allocate responsibilities and resources through co-ordination of global and regional activities. Using the Sourcing Strategy Development (SSD) process in 4 steps: Step 1: internal analysis, identified and prioritized the process –partner requirements, then evaluated the performance of the existing supply base and reviewed the existing supply base, it also identify the switching costs. Step 2: external analysis, which includes analysing the supplier industry and competitors and evaluating competitor performance and strategies. The evaluation process makes use of SWOT (Strength, Weakness, Opportunities, Threat). Step 3: strategy development, is to analyse the competitiveness and their financial impact. Preliminary negotiations could be carried out, a suitable strategy and suppliers should be selected and...
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...Question 1: What is the nature of Whirlpool’s domestic and international business environments? What type of risk does the firm face? Domestic market * Maturity of the US market in the 90s accompanied stiff competition, more demanding buyers which resulted in low profit margin and the need for management to consider internationalising. International market * Fall of trade barriers, customer affluence grew and capitalism flourished. * Management was quick to understand that a more global approach would encourage economies of scale in the firm’s manufacturing and assembly operations. * The firm sought cost reduction mechanisms in R&D, manufacturing, and services by locating plants in lower-cost locations like China, Mexico and Poland. * Global expansion strategy (Acquisition) – Acquired the appliance market of Phillips in Europe, 65% of Italian cooling compressor manufacturer (Aspera), purchased Poland’s second appliance maker, and formed a joint venture to produce air conditioners in China etc. * The firm launched a differentiation campaign to distinguish itself from the ‘Sea of White’ appliances and the ‘White goods business’ perception that the industry witnessed. * A knowledge management intranet site and a DIY course in innovation yielded high potential, innovative ideas from the global workforce. * Local preferences – cross-regional teams collaborate to adapt innovations to local demands. * As a result, since 2003, revenue quadrupled...
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...Joanna Nowicka-Jakubczyk EMBA XVII edition Whirlpool Corporation’s Global Strategy - Case Report As many American based companies, Whirlpool Corporation after building strong position and success in North America, decided to “go international” and start its global expansion. The main Whirlpool’s objective was becoming the world market leader in home appliances, in what CEO of Whirlpool – David Whitwam strongly believed. Whitwam’s “go global” strategy plan was based on: * entering different markets, European, Asian, South American in parallel; * acquisitions of competitive appliance companies, i.e Philips, Indian companies; * creating joint ventures in targeted markets, like China; * new investments, mainly in South America. Despite great initial enthusiasm and proofs, that their strategy was successful, in the mid-1990s, serious problems had occurred in Whirlpool’s international operations, for instance significantly decreased profitability, also on home market, reported losses in Europe and Asia, failures in joint ventures, and last but not least in general lack of truly integrated strategy and company. To respond to a question, what happened, why Whirlpool faced so many problems on its way to be an international leader, we need at first give answer to a question, was their strategy assumptions correct? In formulating and development of global strategy, in my opinion Whirlpool made some general assumptions for industry development, which might...
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...Running he WHIRL ead: LPOOL’s GL LOBAL STR RATEGY CA ANAL ASE LYSIS 1 Whirlpool Co W orporation’s Global Str s rategy Case Analysis International Man nagement – Assignmen 2 nt Candidate: Emad Abou uElgheit ISM - International School of Manageme f ent Doctor of Philosophy ( P (Ph.D.) Presented to: Professor Peter Horn t P 26 July 201119 July 2011 1 Word Coun 3,706 nt: WHIRLPOOL’s GLOBAL STRATEGY CASE ANALYSIS 2 Abstract The paper analyses Whirlpool Corporation’s Global Strategy case study conducted in the year 2001. The paper aims to spot key reasons behind the declining performance the company experienced in the late 1990s a few years after the start of its globalization plan in the year 1987. The plan initiated under the new leadership of David Whitwam encountered many problems in its early stages illustrated in a declining profitability in its home market, losses in the European market and failure in some of its joint ventures in the Asian market.1 With such poor performance and failure in achieving competitive edges in global markets, Whirlpool was at a great risk of losing huge investments made in foreign markets, and losing highly-potential market shares in emerging international markets to aggressive competitors. The paper illustrates core strategic mistakes around three main strategies; sourcing and operations, entry, and marketing strategies adopted. The goal is to address lessons learned from Whirlpool’s experience in globalization in order to shed...
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...radically changing time in the business environment for Whirlpool. There are large deals taking place with Whirlpool and other companies that are changing the global appliance market. While Whirlpool begins more global expansion it faces a new competitor in the U.S. market, Electrolux. Whirlpool also has other troubles on the home front with a multiple lawsuits. As whirlpool deals with these adversities, they are still pushing forward to remain the major home appliance manufacturer; they have launched a new, authentic ad campaign to continue to earn trust here in its home market. Industry The Swedish company, Electrolux, has recently overtaken Whirlpool as the number one appliance supplier in the U.S. Electrolux just finalized a $3.3 billion deal purchasing GE’s appliance department. As seen in the graphic above, with the acquisition of GE, Electrolux has barely overtaken Whirlpool by just 0.9%. Whirlpool still surpasses Electrolux globally however, with $19 billion in annual sales; $3.1 billion dollars more than Electrolux with $15.9 billion. Whirlpool has declined to comment on the new competition which is detailed in the Wall Street Journal article titled “Electrolux to Buy GE Appliances Business for $3.3 Billion.” This article details the deal and its effect on Electrolux and the North American market. Legal/Technological Whirlpool is facing other harsh conditions besides competition from Electrolux. Whirlpool is also a part of two lawsuits. The first is over a plant...
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...Whirlpool's dramatic turnaround through internationalization Whirlpool's Dramatic Turnaround through Internationalization Q1: The Whirlpool Corporation manufactures dryers, washers, refrigerators, freezers, dishwashers, microwave ovens, compactors and ranges in thirteen countries and trades them in almost 170 countries under the brand names Whirlpool, Magic Chef, Maytag, Jenn-Air, Kitchen Aid, Amana, Kenmore, Bauknecht and Brastemp. Whirlpool generated more than $19 billion in 2006 as the annual sales indicting an increase of 26% from fiscal 2005. This was due to increased international demand for its innovative products and brands. Whirlpool acquired Maytag Corporation in the same year in a bid to increase the sale levels. The company employs not less than 80,000 employees in more than 60 technology and manufacturing centers in the whole world. The firm generates nearly 60% of its total sales from the North America niche, 25% from Europe, 15% from Latin America and 2% from Asian markets. Whirlpool suffers some risks which include low profit margins due to increase in the number of demanding buyers counteracted with high domestic competition. The domestic markets are at risk due to the competition from Haier, the largest appliances brand in China. This fifth largest appliance maker in the world has established a distribution centre and some production base in U.S specifically, South Carolina. Haier has recently established a subsidiary in New York, thus threatening Whirlpool's...
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...Whirlpool: Redefining Innovation If you look at our history, innovation had been the responsibility of a couple of groups, engineering and marketing. Now, you have thousands of people involved. It's speeded things along. It's changed the focus of innovation to trying to deeply understand the customer and a belief that we could actually build customer loyalty in the appliance industry. The way we'll know it's successful is if it changes every job at Whirlpool.1 - Nancy Snyder, Vice-president Leadership and Strategic Competency Development, Whirlpool Jeff M. Fettig succeeded David R. Whitwam, as Chairman and Chief Executive Officer of Whirlpool Corporation in 2004. The year 2005 had proved to be a year of exceptional achievements for the world’s number one home appliance brand company2. Whirlpool had achieved record net earnings of $422 million3 on record sales revenues of $14.3 billion4 (Annexure I), which had in turn, propelled the company’s share price to an all-time high of $92.645 by April 2006 (AnnexureII). Fettig attributed much of Whirlpool's performance to the new products and features introduced by the company over the past four years. The innovations were a result of the ‘innovation system’ established by Whitwam in 1999 to counter the company’s almost stagnant performance over the past decade, in everything from stock price to profit margin to market share. The company’s failure to introduce exciting products or product features had reduced Whirlpool’s machines to mere...
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...describe the origin of the report, objective of the report, scope and limitations of the report. Objective of The Report: The BBA Program under the department of finance offers a course named “Management (F-108)” which requires submitting a report on a specific topic determined by the course instructor. The report under the headline ‘Whirlpool Corporation’ has been prepared towards the purpose. Objective of the report: There are several objectives to conduct the study which are: To Provide an overall information about the whirlpool company To provide the position in the BCG Matrix To analyze the SWOT of the organization To give an economical analysis. Methodology: To prepare this report we mainly depend on the primary data. But also take some help from our seniors. Process of collecting secondary data: We went to our senior to know about the procedure of making a good report. Then we ask for advices that should be followed to collect a standard data. Process of collecting primary data: Primary data are collected from the following sources: We collected our necessary primary data by the help of internet. Here the web address of Whirlpool proved to be very helpful to us. Reasons for collecting primary data: It is not possible to complete the report with the secondary data. To cross checking the secondary data couldn’t be possible without using primary data. Scope of The Report: Everything has some advantage which helps that work to be completed thoroughly. We...
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...STRATEGIC SOURCING AT WHIRLPOOL CHINA: FINDING THE IDEAL SUPPLIER op yo Dr. Martin Lockstrom, Thomas E. Callarman and Shengrong Zhang wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of Business Foundation, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2012, CEIBS Version: 2012-06-19 tC It was April 10, 2011, when Gianluca Castelletti, head of Whirlpool’s Asia International Procurement Office in Shanghai, was informed by his colleagues that the company was about to launch a new refrigerator model in just six months. With the current worldwide focus on energy saving, and as one of the biggest home appliances producers, Whirlpool China planned to introduce a new energy-efficient refrigerator. No Castelletti immediately spotted a challenge in Whirlpool China’s plan to launch...
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...Running he WHIRL ead: LPOOL’s GL LOBAL STR RATEGY CA ANAL ASE LYSIS Whirlpool Co W orporation’s Global Str s rategy Case Analysis International Man nagement – Assignmen 2 nt Candidate: Emad Abou uElgheit ISM - International School of Manageme f ent Doctor of Philosophy ( P (Ph.D.) Presented to: Professor Peter Horn t P 26 July 201119 July 2011 1 Word Coun 3,706 nt: 1 WHIRLPOOL’s GLOBAL STRATEGY CASE ANALYSIS 2 Abstract The paper analyses Whirlpool Corporation’s Global Strategy case study conducted in the year 2001. The paper aims to spot key reasons behind the declining performance the company experienced in the late 1990s a few years after the start of its globalization plan in the year 1987. The plan initiated under the new leadership of David Whitwam encountered many problems in its early stages illustrated in a declining profitability in its home market, losses in the European market and failure in some of its joint ventures in the Asian market.1 With such poor performance and failure in achieving competitive edges in global markets, Whirlpool was at a great risk of losing huge investments made in foreign markets, and losing highly-potential market shares in emerging international markets to aggressive competitors. The paper illustrates core strategic mistakes around three main strategies; sourcing and operations, entry, and marketing strategies adopted. The goal is to address lessons learned from Whirlpool’s experience ...
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...Synergy in the Whirlpool Environment Larry A. LaPine MGT 498 June 28, 2013 Timothy Fiscus Synergy in the Whirlpool Environment Many organizations today rely on the objectives, but fail to focus on the means to achieve the objective. Some of these organizations refuse to be flexible by adjusting to market trends and rely solely on today and the past instead of focusing the objectives to the future. If one knows the organizational strength and understands what objectives the organization is trying to obtain, the organization can work through weaknesses and threats, and use opportunities to maintain sustainability. Any organization can succeed with this strategy by remaining focused on the objectives. Most industries today are facing an ever-increasing level of environmental uncertainty so organizations scan their environment to understand the external forces of change, even industries that used to be entirely domestic are becoming global in their manufacturing processes. Whirlpool Corporation is the world's leading manufacturer and marketer of major home appliances with annual sales of approximately $18 billion in 2012, 68,000 employees, and 65 manufacturing, and technology research centers in the world. The company markets Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Brastemp, Consul, Bauknecht and other major brand names to consumers in nearly every country around the world (Maytag Corporation, 2012). Competitive Advantages and Strategies Thinking ahead of...
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...learning at campus. The trainee is expected to work on live projects and work out a feasible solution for the same. For the learner, it is an opportunity to understand about the functioning of the organization at broader level, understanding and experiencing what to expect after joining the corporate world. It is an opportunity to understand work culture. On 15st March 2012 I started my project under the guidance of Mr. CHIRAG THAKKAR (Asst. Manager) SURAT. I have been allocated the area for survey in SURAT. The areas covered by me which are Varachha, Parvat patiya, Station area, Katargam, etc. In 1st phase of this project I have visited service centre of Whirlpool at Adajan for collecting technical information of stabilizers that Whirlpool manufactures. In 2nd phase of the research I have visited to dealers of stabilizers in Surat for doing survey about different brand of stabilizers. In 3rd phase I have prepared a summary report of Surat electronic market on that basis it observed that stabilizer market is on peak in Surat due to problem of voltage fluctuation and thus competition is enormous. In 4th phase I prepared few questionnaire and on that basis done survey in different electronic retail outlets in Surat. In 5th phase of the research I analyzed the entire thing and on that basis I prepared a report. Objectives...
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...MAYTAG – BUNGLING A PROMOTION IN ENGLAND In August 1992, Hoover Limited, Maytag’s British subsidiary, launched this travel promotion: Anyone in the United Kingdom buying more than 100 U.K. pounds worth of Hoover products (about $150 in American dollars) before the end of January 1993 would get two free round-trip tickets to selected European destinations. For 250 U.K. pounds worth of Hoover products, they would get two free round trip tickets to New York or Orlando. A buying frenzy resulted. Consumers had quickly figured out that the value of the tickets easily exceeded the cost of the appliances necessary to be eligible for them. By the tens of thousands, Britishers rushed out to buy enough Hoover products to qualify. Appliance stores were emptied of vacuum cleaners. The Hoover factory in Cambuslang, Scotland, that had been making vacuum cleaners only three days a week was suddenly placed on a 24-hour, seven days a week production schedule—an overtime bonanza for the workers. What a resounding success for a promotion! Hoover managers, however, were unhappy. Hoover had never ever expected more than 50,000 people to respond. And of those responding, it expected far less would go through all the steps necessary to qualify for the free trip and really take it. But more than 200,000 not only responded but qualified for the free tickets. The company was overwhelmed. The volume of paperwork created such a bottleneck that by...
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...Whirlpool and the Global Appliance Industry Xavier’s Institute of Management By: Soham Pradhan - UEMF15027 Srijeet Mishra - UEMF15028 Sumeet Patnaik - UEMF15029 By: Soham Pradhan - UEMF15027 Srijeet Mishra - UEMF15028 Sumeet Patnaik - UEMF15029 INTRODUCTION TO HOME APPLIANCE INDUSTRY: Home appliances market include; washing machines/ dryers, fridges and freezers, coffee machines, air conditioners, heaters, TVs, recording devices etc. The global market for household appliances can be split into two parts. 1. Mature markets (Western Europe, North America, Japan and Australia/New Zealand) : * Population growth is low. * Sales are dominated by replacement products. * Consumers are more conscious about Green aspects of every product. 2. Growth markets (Africa, the Middle East, Eastern Europe, Latin America, Southeast Asia and China) : * Rapidly rising standards of living. * Growing middle class per capita income. * Higher economic growth. GLOBAL MAJOR HOME APPLIANCE PLAYERS Whirlpool | LG Electronics | Haier | Samsung | Bosch-Simens | Electrolux | MIdea | | Company Overview: Whirlpool Whirlpool (WHR) a US based company ,is one of the world’s leading household appliance manufacturers, which specializes in laundry appliances, refrigerators and freezers, cooking appliances, dishwashers, mixers, and other portable household appliances. These household appliances are sold under various brand names, including...
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...everything from amazing wording to the way they drew the advertisement for their targeted audience. There is no doubt the Hoover Company made a wise decision with their advertisement techniques in the late 40’s, which benefited their company, due to their targeted consumers. There are different reasons why this advertisement was such a success. On the political side of it, unfortunately you have sexism. Women were expected to stay home, clean house, take care of their children, prepare dinner, and tend to their husband. There were views on women compared to men on an everyday basis in the late 1940's early 1950's. It was not meant in a negative way, it was just the way things were back in that time period. No matter the time frame, in most cases, women were looked at as a lesser importance in the work field than men. Women were, "not as strong", or, "not as smart" as men, so it was said that is. Women are portrayed to the media as only doing the house work; and for the most part that is how it was. Therefore, there is no better way to sell household items than to make a hardworking woman's job easier. Making a woman’s job easier would definitely...
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