Electrolux Composition

Case 10. 1: Electrolux Washes Up

Brief summary

Electrolux makes household items which produce household products to help simplify household chores. In 2002, Hans Straberg became Electrolux Leader. He signed up with the company when the company experienced spiraling costs and had been losing their customer base. Because Chief Executive, he previously to make hard choices in order to make the corporation successful. This individual decided to boost communication, rely on group clubs, and reduce costs by closing down many plants in the Western The european union and switching work to cheaper places.

Breaking down boundaries between departments

Straberg brought on change in the organizational culture. He forced his designers and designers, marketers and managers to work together in a groups and teams. This individual encouraged those to increase details sharing between them to remove communicational barriers to brainstorm and work together to come up with products. To be able to speed up the transition and build the groups, he appointed executives via successful firms who have already executed these systems successfully in other organizations just like Proctor & Gamble and PepsiCo.

Betty Scott, group leader kept brainstorming sessions and she urged everybody to think of themselves as the customer. Research and development worked well closely while using designers with new designs which avoided technical glitches.

Advantages upon work clubs

The incorporation of the idea of teams in Electrolux was definitely a good decision. Several advantages appear when persons in an corporation work together. The team can accomplish a whole lot more quicker. Because of their idea sessions, they came up with several innovative goods. They also designed a product that experienced less technical glitches than previously. Designers in the past developed items on their own and these products produced issues. This kind of team contacted saved all of them time and money. Merchandise launches doubled in...



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