Analyse a Case Study `Change at Whirlpool Coroporationanalyse a Case Study `Change at Whirlpool Coroporation

1435 words 6 pages
Environmental analysis (PESTEL , 5 forces
Political
The political changes are likely to influence Whirlpool only insomuch it can affect the markets the company sells to , causing political instability that will wreak havoc in the economy . The company has already sustained , for instance , losses in South America - it can suffer more if the region experiences riots or major political upheavals
Economic
The organization is affected by the prosperity of people in the markets it targets that will translate into changes in both

replacement purchases and level of activity in construction companies
Economic activity will affect the relative weight of upscale brands such as KintchenAid as c compared to Frigidaire or Rapor brands
Social
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Management determination 2
Change aversion (-3 ? Presence of strong brands 1
Emphasis on operational excellence (-1 ? Globalization drives 4
The sum of the forces appears to be in balance since the sum of restraining forces equals the sum of the driving forces
-2-4-3-1 3 2 1 4
To tilt the balance further toward change , the management can implement training for personnel that will help create greater initiative and reduce risk aversion
The change kaleidoscope will produce the strategy as a result of the following eight factors
Time : Whirlpool has to move toward change quickly , getting its brands out before the industry stalemate begins
Scope : To avoid radical change , the company can choose to realign its existing brands rather than introduce a large-scale transformation
Preservation : Preserving operational excellence is a key challenge
Diversity : There can be difference between management and staff
Capability : Need to strengthen the marketing staff
Capacity : Whirlpool 's healthy profits 688 million in 1998 ) enable it to implement change
Readiness for change : There is need to strengthen this component effecting changes in culture
Power : Power is at this point vested with the management because of the centralized structure , so the management has the power to implement change
Process of strategy development (intended , emergent
Whirlpool can choose to follow either an emergent or an

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