Electrox Cleans Up
Electrolux Chief Executive Straberg breaks down barriers by bringing different departments in to work together so they could come up with creative ideas that would help him make money and get back into the competition. He broke barriers down between the engineers and designers within his company. They all worked with a group leader Kim Scott she formed an interest group. These people were all from different departments and they all came together to present a plan to marketing based on the wants and desire of people.
Kim also read a skit to them and told them to pretend that they were in the person shoes and of course they all came up with creative ideas based on their own wants and desires. The advantages for Electrolux was having individuals from different departments and functional areas work together on product design is something great would be created because each of these groups work hand in hand. The designers knew how to design the engineers knew how to build and bringing it together and marketing knew how to sale the product so with these departments working together something good could be designed.
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In an era with intense competition and several low-cost products on the market Electrolux use teamwork and groups to succeed by building something huge. Gadgets with drop-dead good looks and clever features that ordinary people can understand without having to pore through a thick user’s manual. Consumers are prepared to pay for good design and good performance. By adding more departments a product was created and it turned out to be a successful creation. One that the housewives would rely on in today’s society to make our jobs easier and less time consuming.
Electrolux is an appliance making company. They make products such as refrigerator’s dishwashers, washing machines, vacuum cleaners and cookers. Electrolux is one of the most popular global leaders in the appliance household industry and the business industry. This company is known for keeping up with the industry demands. One way that they keep up with the demands of the industry is by being innovative. They come together and work as a team to create great ideas.
The team comes together and they solve problems and issues that might occur. When people come together in organizations and work together a lot can be accomplished and in less time and this in turns can create more production such as more products can be produced more efficiently. Hans Straberg Electrolux Chief Executive was brought in to the company when the company was about to completely hit rock bottom. Straberg had to make some difficult choices as how he was going to turn this company around to be a successful one again.
He sat back one day and he came up some decisions. Products wasn’t being produced in a timely manner, sales had fallen and they were steady losing customers and he wanted to fix it and he did so by putting together a team which consisted of individuals from each department and they were considered to be the Consumer Innovation Program. In 2004 Straberg and his main man H. Jertonsson went on a six-week trip visiting various company managers demonstrating the Consumer Innovation Program and how it works.
The reactions from the managers were negative; many complained that they had met their quotas. Well he quickly informed them that he wasn’t just interested in quota’s being reached, he wanted changes to take place, changes such as products, the way they were developed, bought to the market and being sold. He even changed the way bonuses were given. Bonuses were given based on how managers adapted to the new system that was put into place and those that resisted change were given warnings Straberg re-trained everyone.
With the competition threatening Electrolux success Straberg had to make changes, revamp his strategy to turn this company back into a successful company. He cut out barriers and brought departments together by making them communicate with each other to identify changes, problems and advantages of Electrolux and by bringing them together to work on product design and to show how people can work together successfully as teams for the success of the company and he proved that it could be done.
Electrox became a successful company again and their profits rose 93 percent their net profits were pounds 144. 6 million, up from pounds 76. 1 million. Electrolux uses an integration program to keep up with their profits, the program is considered to be a part of the company’s relationship management strategy it links sources of data from IBM AS/400s, Windows NT and 2000 and mainframe systems to handle customer service enquiries. This system keeps up with the sales and stock in warehouse and being sold.