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    Electrolux: (Case Example)

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    sadafmatin
    Electrolux is a multinational home appliance company that faces strategic issues around product development, innovation, brand management, and social responsibility. The company operates at the corporate, business, and operational levels of strategy. Key factors in Electrolux's strategic position include focusing on consumer needs through product innovation, playing a major role in social responsibility, and making environmentally-conscious decisions. As a multinational, Electrolux must coordinate strategies and allocate resources across diverse products, markets, brands, and business units globally.

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    Electrolux: (Case Example)

    Uploaded by

    sadafmatin
    1K views3 pages
    Electrolux is a multinational home appliance company that faces strategic issues around product development, innovation, brand management, and social responsibility. The company operates at the corporate, business, and operational levels of strategy. Key factors in Electrolux's strategic position include focusing on consumer needs through product innovation, playing a major role in social responsibility, and making environmentally-conscious decisions. As a multinational, Electrolux must coordinate strategies and allocate resources across diverse products, markets, brands, and business units globally.

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    Electrolux(2)

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    Electrolux is a multinational home appliance company that faces strategic issues around product development, innovation, brand management, and social responsibility. The company operates at the corporate, business, and operational levels of strategy. Key factors in Electrolux's strategic position include focusing on consumer needs through product innovation, playing a major role in social responsibility, and making environmentally-conscious decisions. As a multinational, Electrolux must coordinate strategies and allocate resources across diverse products, markets, brands, and business units globally.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    1K views3 pages

    Electrolux: (Case Example)

    Uploaded by

    sadafmatin
    Electrolux is a multinational home appliance company that faces strategic issues around product development, innovation, brand management, and social responsibility. The company operates at the corporate, business, and operational levels of strategy. Key factors in Electrolux's strategic position include focusing on consumer needs through product innovation, playing a major role in social responsibility, and making environmentally-conscious decisions. As a multinational, Electrolux must coordinate strategies and allocate resources across diverse products, markets, brands, and business units globally.

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    Electrolux

    (Case Example)
    I.) Reasons for the issues faced by Electrolux being strategic:
    1. Decisions were concerned with the product development , innovative products and services to
    be provided that people want to buy.
    2. Decisions were about trying to achieve some advantage for the organization over competition.
    3. Decisions related to brand development and management also comprised of strategic decisions.
    Husqvarna, AEG and Zanussi were brands, other than the leading Electrolux brand, that came
    under the Electrolux’s umbrella.
    4. Social responsibility related decisions were also strategic because it confirmed the company’s
    commitment to act as a responsible employer and a good corporate citizen.

    II.) Levels of strategy at Electrolux:


    Corporate level

    a) Social responsibility.
    b) Work Place Code of Conduct.
    c) Brand Management
    d) Organization

    Business level

    a) Product development- innovative products and services that people want to buy.
    b) Talent management- Building an increasingly stronger talent base with the right attitude
    and enthusiasm.

    Operational level

    Six group processes- purchasing, people, branding, product development, demand flow
    and business support.
    III.) Main factors about strategic position of Electrolux:
    Environment

    a. Strategic decisions taken in relation to Social responsibility


    b. Refrigerators free of CFC’s
    c. Socially responsible behavior at Electrolux
    d. Workplace Code of Conduct

    Capability

    a. Consumer insights
    b. Consumer needs oriented product development
    c. Core competency in product innovation and development

    Expectations

    a. Electrolux developed products as needed by consumers


    b. Corporate governance by playing major role in social responsibility
    c. Environmentally concerned decisions
    d. Sector heads had complete responsibility for financial results and balance sheets
    and each sector had its own board.

    IV.) Strategic choices for Electrolux included product development and


    innovation through focusing on consumer needs.
    a. Brand building of ‘Electrolux’ apart from Husqvarna, AEG and Zanussi.
    b. To be socially responsible or not or to what extent play a role in social responsibility.

    V.) Main issues about strategy into action that might determine the
    success or failure of Electrolux strategies are:
    Organizational structure- 7 business sectors

    28 product lines

    5 supporting group staff units

    Enabling- Business model

    Strategic decisions regarding product development, innovation and brand


    management.
    VI.) Multinational Electolux is affected by, in its approach to strategic
    management, in the following way:
    a. Diverse products
    b. Diverse geographic markets
    c. Different brands
    d. Allocation of resources at different and often competing demands.
    e. Coordination of operational logistics across different business units and different countries.

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