...Maytag Analysis Report Yi Ye For: J.M. Walecki BUS 525 ECONOMICS OF THE FIRM Date: 07,24,2013 Abstract Introduce and analysis the Maytag. Solve some problems also mention some theory. From this nine following part : Nature of Product/Service, Market trends, Production/ Supply Process & Costs, Structure of the industry/ Market, Government role, Business environment, Firm/industry location, Business & Pricing Strategies and Entrepreneurial ability of managers. Abstract………………………………………………………………………………2 Maytag background…………………………………………………………………4 Nature of Product/Service……………………………………………………………5 Market trends…………………………………………………………………………6 Production/ Supply Process & Costs…………………………………………………7 Structure of the industry/ Market,……………………………………………………9 Government role……………………………………………………………………...10 Business environment………………………………………………………………..11 Firm/industry location………………………………………………………………..14 Business & Pricing Strategies………………………………………………………..14 Entrepreneurial ability of managers………………………………………………….15 Reference……………………………………………………………………………………17 Maytag Background Maytag is a large company with a long history. The original business, formed in 1893, manufactured feeder attachments for threshing machines. In 1907, the company moved to Newton, Iowa, a small town 30 miles east of Des Moines, the capital. Manufacturing emphasis turned to home laundry equipment, and wringer-type washers. The history of Maytag Corp can be divided into four stages: 1. at the turn of the century...
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...and then you see whether or not this promotion works out for the company, and then you can extend the promotion. Initially the offer was for two round-trip tickets to Europe, but the destinations were later expanded to include the USA. At this point the consumer response increased enormously, as the normal price of these flights was several times more than the £100 purchase required to get free tickets. The company subsequently found itself overwhelmed by the demand both for tickets and for new vacuum cleaners, and by the cost of the flights. Large numbers of unwanted Hoover appliances bought for the purposes then Hoover had apparently not anticipated this outcome. 2. Given the fiasco that did occur, how do you think Maytag should have responded? I think Maytag should give it self-examination within the company. It should realize what the mistakes are. I mean, yes, the promotion was quite successful, but it was not enough. Because of this promotion, it makes the factory unhappy; making worker works over time. By the end, only a portion of customer gets the tickets, but what about other. With the complaints from the other customer, will only lower the company's reputation. 3. “Firing the three top executives of UK Hoover is unconscionable. It smacks of a vendetta against European managers by American parent. After all, their only ‘crime’ was a promotion that was too successful. ” Comment on this statement. At first the company only wanted to used this promotion to increase...
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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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...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 the next obstacle is a proactive approach to keeping an organization moving forward. When creating value over time the growth of the organization is increased through market share or improving profitability, one critical aspect of quality management is the need to remain flexible, Whirlpool Corporation was successful for many years by offering the most reliable brand in North American major...
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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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...products in 11 countries and markets products in nearly every country around the world under brand names such as Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Bauknecht, Brastemp and Consul. Whirlpool’s geographic segments consist of North America, Latin America, EMEA (Europe, Middle East and Africa) and Asia. As of December 31, 2012, Whirlpool has approximately 68,000 employees. Products & Markets In North America, Whirlpool markets and distributes major home appliances and portable appliances under a variety of brand names. In the United States, we market and distribute products primarily under the Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Roper, Estate, Admiral and Gladiator brand names primarily to retailers, distributors and builders. In Canada, we market and distribute major home appliances primarily under the Inglis, Admiral , Whirlpool , Maytag , Jenn-Air , Amana , Roper , Estate and KitchenAid brand names. In Mexico, we market and distribute major home appliances primarily under the Whirlpool, Maytag, Acros, KitchenAid and Supermatic brand names. We sell some products to other manufacturers, distributors, and retailers for resale in North America under those manufacturers’ and retailers’ respective brand names. In Latin America, we market and distribute our major home appliances primarily under the Consul, Brastemp, Whirlpool, KitchenAid, Maytag and Eslabón de Lujo brand names. We manage appliance sales and distribution in Brazil, Argentina, Chile and Peru through...
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...expertise in being the world leader; he is aware about how to operate efficiently with separate cultures as well as separate people. Michael Todman shows that on routine basis by his best communication skills, assertiveness, Creativity along with Passion and also dedication 2. Identify at least three leadership roles Todman emphasizes as president 01 Whirlpool International. Everyone has been a leader in one or other as well as few people have the inborn leadership qualities, therefore leader should show confidence in his/her own capabilities to lead for gaining confidence of rest of the to follow. Mike Todman led North American business by one of most challenging economic times within decades, stated Fettig. He finished integration about Maytag along with positioned business for the growth. In its newer role, Mike would concentrate on increasing our position in fast increasing International markets as well as would in addition broaden his leadership about important worldwide initiatives. 1. Spokes-person Spokesperson is a communicator who previously reports to the...
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...a multinational business as a firm that owns and operates producing units in foreign countries (pg 68). Once, Whirlpool Corporation was a true corporation. Today Whirlpool, according to their website, has 70 manufacturing and technology research centers throughout the world in 2014. I would consider Whirlpool a multinational business now. Their world headquarters are located in North America. Here at home, they represent the brand Whirlpool, Maytag, KitchenAid, Jenn-Air, Gladiator and others. In Europe, Middle East and Africa Regions the headquarters office located in Italy represents the brands Whirlpool, KitchedAid and Baukchent. The brands in Latin America are Brastemp, Consul and KitchenAid. In just Brazil there are three factories, two administrative offices, four technology centers, three distribution centers and twenty-three laboratories! Nearly 25% of the corpations global sales on made in the Latin America Region. Their final region is Asia which is divided into two headquarters. Asia North offers the brands Whirlpool, Maytag, and Baukencht. Asia South has Whirlpool and KitchenAid brands (Global Locations). To add to their global dominance in the appliance world, on May 18, 2015 Whirlpool entered into an agreement to acquire the American Dryer Corporation. This will give Whirlpool’s commercial laundry business the opportunity to reach new markets and channels. Whirlpool has evolved a lot in the past one-hundred plus year. They are now in more than 170 countries...
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...rP os t Sw W12079 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...
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...------------------------------------------------- Dheyab Alhammadi 201510155 ------------------------------------------------- Junaid Al Marzooqi 201510204 Q3: What actions has Whirlpool management taken to ensure that the firm succeeds in local markets throughout the world? To what extent is the appliance business local/regional rather than global? 1. Background of the case: ------------------------------------------------- Whirlpool Corporation manufactures electronic appliances such as: fridges, washing machines, dryers….etc. they supply their products around the world, they got Suppliers & Franchisee’s almost in every country, they produce to 13 country & than these countries supplies them to 170 others in different brand name as well (such as: Maytag, Magic chef, Amana, KitchenAid…etc.), they generated 19$ billion in 2006 from their annual sales, also they got 80,000 employees worldwide. 2. Respond to the question (explain concepts): ------------------------------------------------- Whirlpool locally is preferable rather than globally, since each country has its own benefit that suits them as product of choice that acclimate with its culture & climate, however when thinking globally & becoming more of internationalization, than setting an operation in each region after that a distribution & service center in each country could be a benefit for...
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...Origin of The Report: In this chapter we tried to 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...
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...CASE STUDY Whirlpool Corporation Evolution of a supply chain Whirlpool Corporation is the world’s leading manufacturer and marketer of major home appliances, with annual sales over $19 billion, more than 80,000 employees and more than 60 manufacturing and technology research centers globally. Consumers around the world enjoy Whirlpool’s innovative products marketed under Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Brastemp, Bauknecht and other major brand names. With this varied inventory, plus a large direct sales force in more than 170 countries and an unpredictable sales cycle, effective supply chain management is critical for continued growth. Whirlpool has not always considered logistics a competitive advantage. However, since naming Penske as lead logistics supplier, Whirlpool experienced cost savings, increased customer satisfaction and found a partner to help integrate the recent acquisition of Maytag. Whirlpool as its single logistics provider for the Quality Express network. Penske was responsible for the logistics of the entire network, including managing the relationship of the two regions it subcontracted. This Penske-Whirlpool partnership replaced Whirlpool’s previous logistics solution, comprised of two incumbent third-party logistics providers. The partnership accomplished Whirlpool’s early logistics objectives, most notably, to establish effective processes and procedures, allow for more visibility of the company’s distribution network and reduce supply...
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...Ethics MGT 498 November, 2012 Ethics Edward O Wilson, an American biologist and theorist proposed that in the end, success or failure will come down to an ethical decision; one on which those now will be judged for generations to come (ThinkExist, 2012). Organizations require members to adhere to the established guidelines and ethics to maintain compliance with internal and external directives. The ability of the company to remain profitable without sacrificing ethics is a competitive advantage that will ensure consumer loyalty and enhance its reputation. Additionally, ethical decision-making contributes to a company’s fulfillment of corporate social responsibility. This analysis will describe how ethics and social responsibility influence the development of a strategic plan. Furthermore, it will provide an example of an unethical action and present an alternative method for handling the situation. Influence of Ethics The Free Dictionary.com (2012), defines ethics as a set of principles of right conduct or standards governing the conduct of a person or the members of a profession (Ethics). Although many believe that ethics and business cannot exist simultaneously, the cost of unethical behavior in organizations is unacceptable. According to Wheelen and Hunger (2010), a survey by the Ethics Resource Center of 1,324 employees of 747 U.S. companies found that 48% of employees surveyed said that they had engaged in one or more unethical and/or illegal actions during the...
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...Introduction of Whirlpool Corporation[1] Whirlpool Corporation is engaged in the manufacturing and marketing of home appliances worldwide. The company markets its products primarily to manufacturers, distributors, dealers, retailers and builders. Whirlpool also sells its products to other manufacturers, distributors and retailers, for resell under those manufacturers, and retailers’ respective brand name primarily in North America. The company was founded in 1906 and is based in Benton Harbor, Michigan. Some of the key competitors of Whirlpool Corporation are as below: ➢ LG Electronics ➢ Samsung Electronics ➢ Haier Electronics Group ➢ Daewoo Electronics Corporation Mission of Whirlpool Corporation[2]: The Mission of Whirlpool Corporation is “Everyone...Passionately Creating Loyal Customers for Life” Some of the key highlights of the Mission of Whirlpool Corporation are summarized below: ➢ Consumers have become very smart these days. One of the most important success factors for the consumer durable companies is to come up with innovative and new products. People always look for products which can make life easier and this sector’s success will depend on how they meet the expectation of the people. ➢ Development of existing product in the market is also very important for this sector. Every time the companies have to come up with advance versions of the existing products. ➢ The company is working...
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...* 1782- First washing machine designed by H. Sidgier of Great Britain (People had to scrub their clothes on a scrubbing board and hang it up to dry.) * 1797- the washboard was the earliest washing machine * mid-1800s- Chinese owned & operated most of the laundries in California * 1874- among many of the earliest inventors of washing machine was an Indiana corn planter & manufacturer named William Blackston who created a washing machine as a birthday gift for his wife * 1893- Maytag Corporation began with F. L. Maytag * 1900- first electric washing machine developed (motor moved the tub) * 1908- Hurley Machine Company of Chicago, Illinois introduced the first ever electric-power washing machine, named Thor (a drum form with a stimulated tub and an electric motor). * 1911- Whirpool Corporation started as the Uptown Machine Company, founded in St. Joseph, Michigan to produce electric-motor driven wringer washers * 1922- Maytag Corpor. began producing agitator washing machine * 1960s- Automation washing machine began * 1990- James Dyson, a British inventor, invented a washing machine with two...
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