1. How did Electrolux Chief Executive Straberg break down barriers (and increase communication) between departments? Why did he do this? Explain
Electrolux was in need of some changes. The company was losing their market share and sales were decreasing. Costs were spiraling out of control and some radical changes needed to be done in order to save the company. He began to cut company costs by moving facilities into lower cost areas in Asia. He also allowed communication in between the departments to happen to get ideas flowing. He wanted the departments to work together to come wit with new product ideas. To help with this he recruited executives from companies that had a strong track record of innovation. The reason to this approach was to save the company. This type of change energizes the company. It allows all of the employees feel as though they are contributing to the company. When your ideas can be recognized and they are welcomed that goes a long way in boosting morale of the employees.
2. What are the advantages for Electrolux of having individuals from different departments and functional areas work together on product designs? Describe
In order for the company to turn around their recent misfortunes something had to change. The company decided on changing the product designs. It definitely makes sense for the different departments to work together. You don’t want a design team to come up with a design that the engineers can’t construct. You can save time and money. The teams would not have to keep resubmitting ideas, or spending time working out glitches with flawed designs. When you have the departments working together it can only help the company become more profitable. The departments can work out their differences before the products hits the assembly line ad this reduces the need to do things over.
3. In an era with intense competition and…...