Case Study: The Electrolux Company

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Introduction. Electrolux is a well-known company maker of home appliances. The company produces household products all over the world. In 2002, it has been taking over by the Hans Straberg. At that time, Hans Straberg had to faces many challenges. One of it is the Electrolux Company was losing their market share to the lower cost goods that has been produced in Asia and Eastern Europe. Hans Straberg had to make some radical changes due to the situation beside from the fierce competition in the United States. Hans Straberg had closed all the production plants and moved it to the Asia and Eastern Europe because the cost of labor is cheaper at there. Besides, Hans Straberg also broke down the barriers between the departments. Hans Straberg, the chief executive of Electrolux Company, is motivated to try new ideas to create new products to increase the sales of the company again. A few products has hit the bottom of the sales after that and the company had successfully getting up from the critical situation. Electrolux still maintain the market share of the profitable household appliance market in North America in 2008. Questions. 1. How did Electrolux Chief Executive Straberg break down barriers (and increase communication) between departments? Why did he do this? Explain. The Chief Executive of the Electrolux Company, Hans Straberg is breaking down the barriers of the departments because some radical changes need to be done to get the new ideas and new products

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