Electrolux Cleans Up

In: Business and Management

Submitted By missy524
Words 1089
Pages 5
Electrolux Cleans Up

Webster University

Electrolux Cleans Up Electrolux is a maker of appliances that has locations all over the world. The Chief Executive of Electrolux, Hans Straberg, is very motivated to try new product ideas to increase sales for the company. The company is having a weeklong seminar in Stockholm where the employees of different divisions, work together to come up with new product ideas and try to put their self into situations of the everyday man and woman. With all of these new ideas, the company employees know that interdependency, empowerment, cross-functional teams, and new ideas are important to continue with the success of the company.
Making A Move Hans Straberg faced many challenges when he took over in 2002. Costs were increasing and Electrolux was losing their market share to lower cost goods produced in Eastern Europe and Asia. Competition in the United States was fierce, so Straberg had to make some radical changes. Straberg closed production plants and moved production to Asia and Eastern Europe where the cost of labor is cheaper. Straberg also broke down barriers between departments by forcing engineers, marketers and designers to work together in an effort to produce new products.
Cross-Functional R&D
The method of forcing different divisions to work together is known as cross-functional R&D (Ivancevich, Konopaske, Matteson. 2011). The purpose of a cross-functional R&D team is to reduce the amount of time needed to introduce a new product to the marketplace. Previous research has shown that cross functional integration has a positive effect on performance measures (Brettel, Heinemann, Neubuer. 200). Interdependence is the key factor; each department has to work together as a team in order to succeed (Holland, Gaston and Gomes. 2000).
In this company, Electrolux has…...

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