Electrolux Case Study

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Chapter 1 , lntroducing Strategy 3T t{ilfiiFir.f ,i'ii:{4R!r'. il^mii'ti-r'i'';s.r/.iitl,ir.,1, "4.l'rri rti"\-q{ i'i?4, 4g2lil$q\w.-,&.e r{:rfd,rr*suun"*u,"*** i;:fts prodrias included cookers, vacuum cleaners, . -- -r,, lpashing machines, fridges, lawn mowers, chain saws .':ilnd also tools for the construction and stone indus_ ffes. It employed over 80,000 people in more than ffi00 countries. Its annual sales in 2002 were 133bn ,gwedish lftona (about €15bn) and profits about t$.Sbn Krona (* €600m). The company,s irnpressive growth and development started under the .Jeadership of Alex Wenner-Gren in lg}Os,Sweden. ,The early $owth was built around an expertise in industrial design creating the leading products in .refrigeration and vacuum cleaning. By the mid_ 1930s the company had also established production outside Sweden in Germany, UK, France, USA and ::1, the mid-2000s Sweden,s Electrolux was the hiorld's largest producer of domestic and professional t::gppliances fpr the kitchen, cleaning and outdoor use. o iT d o ! L l domestic applianqss anj Aefiohn eryanded its range into washing machines and dishwashers. In 1967 Hans Werth€n took over as president and embarked on a series of acquisitions that restructured the industry in Europe: 59 acquisitions were made in the 1970s alone followed by maior acquisitions of Zanussi (71n, $talD, White Consolidated products (USA) and the h[' Ganges Group (industrial products) in the 19g0s. i As a result by 1990 75 per cent of Electrolux,s sales were outside Sweden and this increased in the 1990s as LeifJohansson expanded into Eastern Europe, Asia and South America. He also disposed of many of the 'unrelated' industrial activities. A mafor restructur_ :, tor theal" late *199Os created g5 shape of the group ' lng I 2000s with about theper cent of sales in consumer durables and 15 per cent

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