Electrolux iCase Study 5: Electrolux Cleans UpKimberly PalmerOrganizational BehaviorDr. Steven SeayAugust 12, 2012
Electrolux 1SummaryThis case study sheds light on how ingenuity and creative thinking can change the direction of a company. In this situation, Electrolux was facing rising costs and decreasing sales and the new CEO, Hans Straberg, had to make some significant changes (Sains, Reed, Arndt, 2006).Straberg shifted manufacturing to lower-cost locations but also made changes within the company infrastructure. Instead of departments working independent of each other, Straberg broke down walls, thus forcing the designers, engineers, and marketers to work together (Sains, Reed, Arndt, 2006) . This allowed issues with design and manufacturing be resolved sooner saving time and money (Sains, Reed, Arndt, 2006).Along with improved design process, Straberg also increased the budget for R&D. Straberg firmly believes that customers will pay more for a product that is well designed and performs well. Due to the changes the CEO has made, Electrolux has increased sales and has maintained admirable market share even in a difficult economy (Sains, Reed, Arndt, 2006).