The vision of Whirlpool Corporation is EveryHome...

Everywhere with Pride Passion and Performance

The Mission of Whirlpool Corporation is Everyone...Passionately Creating Loyal Customers for Life

Whirlpool Corporation is the worlds leading manufacturer and marketer of major home appliances.
The company manufactures in 13 countries and markets products in more than 170 countries under
major brand names such as Whirlpool, Kitchen Aid, Roper, Estate, Bauknecht, Ignis, Laden, Inglis,
Brastemp and Consul. Whirlpool Corporation is also the principal supplier to Sears, Roebuck and Co. of
many major home appliances marketed under the Kenmore brand name.

PEST Analysis

Political Influence: Federal election law allows corporations to establish Political Action Committees
(PACs) The WCPAC is supported solely by voluntary contributions from Whirlpool employees WCPAC
uses six criteria to evaluate a candidate before PAC dollars are contributed: Pro-business philosophy
A favourable voting record or position on key issues of importance to Whirlpool. Constituent
relationship with Whirlpool Campaign finance need Chances of winning and closeness of race
Committee affiliation

Economic Influences Revenue US$ 18.366 billion (FY 2010) Operating income US$ 1.008 billion
(FY 2010) Profit US$ 619 million (FY 2010) Total assets US$ 15.584 billion (FY 2010) Total equity
US$ 4.320 billion (FY 2010)

Social Influences Corporate social responsibility and corporate governance became a focus of
business and society; Whirlpool Corporation employees were conducting business with integrity and
extending a helping hand to stakeholders in times of need. Throughout the years, Whirlpool has built a
culture of doing the right things based on living up to our commitments to stakeholders and by quietly
working behind the scenes to strengthen the economic and social fabric of the communities in which we
operate

Technological Influences Design and built in Germany in 2001, the award winning Whirlpool duet
fabric care system remains the best selling and most popular front loading washer in North- America.
Following are the new technologies: Whirlpool Cabrio Fabric Care system Maytag Epic Fabric Care
System 6th Sense Technology

Threat of New EnterantsBargaining Industry Bargaining power of power of Buyers competitors

suppliers Threat of Substitutes

Consumer Oriented Products. Global operating platform. Strong Brand name. Expert in driving
channel sales. First company to introduce top loading automatic washer. Market share leadership.
Good HR policies, work culture and values in the organization.

Whirlpool is industries which require constant innovations that are sometimes hard to come by. It
tied up with Sears, the largest retailer of white goods to produce goods for them, only to be sold under
Sears private brand label Kenmore. Consumers generally did not associate a brand name of the parent
company if the two werent the same. Whirlpool failed to capitalize on its Dominant Consumer
Franchise initiative which added special features to existing products. It failed due to cost & service
issues. Poor after Sale Service Reducing profit

Innovation Product and services expansion To arrange Capital Growing Asian Market Ac and
Microwave category are larger and fast going categories Providing attractive schemes By 1980s,
Whirlpool became the second largest white goods maker in the US after acquiring Kitchen Aid.

Increase raw materials cost LG, Samsung, Kenwood and other companies are most competitors
Patents on innovation are short lived. New EU Directives Threat of cheap goods from other countries
especially Japan Other companies looking to acquire whirlpool for consolidating the industry. Longer
lifespan of products slowing replacement demand.

Stay focused on consumer needs. Create new markets & tie-ups to increase sales & revenues.
Look at acquiring companies that pose threat.

Technological It has award winning design and technology. With latest 6th sense technology
consumer can achieve significant savings in time.

PEST VARIABLE

Political Canada is politically stable so there is always positive impact on business.

Economical: Canada has grooving market. Customers are well educated so they know what to use
and not.

Social It can impact on customers life by making it easy with 6th sense technology. It shows life
style of customers

Team plans to do to enhance salesvolume: Company should increase the warranty period of their
product which is less than others in the market. Company could encase brand name by giving little bit
more profit margins to retailers in comparisons to others. Company should improve their post sale
services where it is lacking behind.

Company StrategyCompany strategy is relies on six steps: o Selecting a market or product category for
study o Choose a bases or basic for segmenting the market o Select Segmentation Description o Profile
and Analyze Segment o Select Target Market o Design, Implement, and Maintain appropriate marketing
mixes

Competitive Strategy For whirlpool, Success literally depended on it, given the goal for an on-
demand, self-service model for assets retrieval and distribution. Meeting the goals would allow
whirlpool to support different use cases according to customer type, setting the stage for broad internal
and external user adoption. This approach would be demonstrating customer satisfaction and in turn
increasing whirlpool competitive advantage.
 Thank You

genda Industry Analysis

Porter 5 Forces Change at Whirlpool Corporation CONCLUSION & FURTHER RECOMMENDATIONS

INDUSTRY ANALYSIS KEY CONCLUSIONS Strategy for a company acting in this environment should
account for:

Global approach to secure the production competitiveness, gain scales and ensure the arise of new
competitors that are regional players;

Technological investment New features and consumption efficiency present as the new trends in the
industry;

Price and quality competitiveness The end consumer is now able to compare prices and quality
reviews from all over the world;

Distribution and standardization Be able to quickly put the product in any international market and
preferable the same product. Its important though to be aware that standardization can mean
inability to adapt to certain markets. Based on Whirlpool internal and external analysis and from
studying what they have done so far in terms of strategy we came up with some recommendation for
their future.

First, Whirlpool needs to innovate: Innovation has never been mentioned as an adjective to qualify the
company neither in the culture definition, nor after. Whirlpool has chosen to be the first to move on a
global market and it wont last if they dont propose new concepts.

Improving its globalization process -The strategy Whirlpool applied in Europe when they acquired
Phillips should be implemented in other regions. Whirlpool should increase its worldwide implantation
by acquiring local entities in emerging countries and in Asia. INTENSITY OF COMPETITIVE RIVALRY
THREAT OF SUBSTITUTE PRODUCTS BARGAINING POWER OF SUPPLIERS THREAT OF NEW COMPETITION
BARGAINING POWER
OF CUSTOMERS Four major players: Whirlpool, Electrolux, GE and Maytag (About 93% of market share)

Agility of the Asian markets forecasts the shift in Business as Usual New major competitors depend on:

Cost efficiency

& Price competitiveness Ongoing incremental change, more then breakthrough innovation Fear of
arrival of substitute products is low,

nevertheless is important to keep up

with the industry's change Increasing over time, mainly due to the Internet

Access to user reviews, worldwide online retailers and price comparison Companies need to have an
integrated strategy and ensure that prices and quality are constant worldwide Four major players
control the majority of the manufacture of home appliances.

Ongoing pursuit for new advances (incremental research)

The first one to come up with a new approach is in the position to charge premium

Other companies follow-up in less than one year Need to keep up in the technology development and
have fast responses Raw Materials:

Need easily fulfilled

Not a difficult market to access

Specialized components:

Inside production Outsource

Strict relationship Although the raw material suppliers easy to access, the specialized are more loyal and
difficult to access Industry Analysis

PESTEL P T E S E L olitical Due to the industry size and worth some countries present protectionism
measures. As so, there is a need to create joint-ventures or other investments when entering certain
markets.

Reallocate manufacturing may imply home-countries de-investment and unemployment what can
jeopardize the brand recognition and appreciation on those markets conomic echonologycal
nvironmental ocial egal Regular consumer market: suffers from the oscillation in financial markets (
Consuption retraction)
Construction Market (New house owner ): clearly linked with the economic issues, thus being a market
that will be severely harmed in case of any crisis linked real estate. Increasing pace level of society
induces the appliances market growth. For more and more working families, from heating food, to wash
clothes and dry them, everything as a mechanical help that provides time to the family.

This is a social phenomenon that tends to grow all over the world. As every industry that relies on
technology, the home appliance industry needs to have a constant pursuit of knowledge in order to
create and improve products and gain leverage from their competitors.

Any company that wants to succeed in this industry has to ensure that an investment in R&D is made in
order to be successful. Growing trends in the world point to a need to have a higher efficiency
appliances

Target on decreasing the energy consumption

Production that ensures less possible resources usage.

Green Growth policies The legal disposition that applies specifically to this industry are mainly related to
security for the consumers, as so, this is not a key issue thus manufactures have already internal policies
to prevent accidents in the usage of the products. Whirlpool Company Overview Company Analysis
SWOT Analysis I. Home appliance industry

Industry Porters 5 forces Analysis

PESTEL Analysis

Industry analysis key conclusions

II. Company Analysis

Company Overview

SWOT

Competitors analysis

III.Company Strategy analysis

Different changes and actors

IV. Conclusion & Further Recommendations Whirlpool Brands Chronology 1911 1929 1947 1916 1950
1958 Upton Machine Company begin producing electric wringer washers. Upton begins making washers
for Sears, under the Allen trade name Merger with the 1900 Washer Company of forming 1900 Corp.
First automatic, spinner-type washer under Sears' Kenmore brand Whirlpool Brand First move outside
the US: Bought a stake in Brasmotor S.A.(Brazil) 1986 Company acquires the KitchenAid 1989 Joint
Venture between Whirlpool - Phillips

in Europe 1986 1991 1997 Whirlpool buys out its European partner, taking full control of Whirlpool
Europe Global restructuring involving the elimination of 4,700 jobs, the closure of plants and other
facilities Whirlpool buys Maytag

Some representative figures about Whirlpool:

170 countries

67 factories and production centers

5 design studios

3 centers of technologies and development

54 millions of appliance by years produced all over the word

71 000 Employees Company acquires the KitchenAid WHIRLPOOL TODAY 2006 S trengths Global
market leader

Brand Name

Economies of scale

Multi-local management W eaknesses Regional adaptation of the products

Insufficient knowledge to penetrate Asia markets O pportunities Potential for increasing demand

Global expansion

More market share in BRICS T hreats Increasing competition

Lower return of investments

Overcapacity due to over optimistic demand forecast Company Analysis Competitors Analysis Changes
in Whirlpool Conditions of an Effective Management of Change Type of Changes Globalization Market
saturated , each and every company was on the same state locally speaking

Do we get global or not ? Answer is YES

Vision :reaching worldwide to bring excellence home

Acquisition of Philips in Europe, expended alliances in Brazil and joint ventures in Asia Manufacturing
Major differences in the manufacturing practices and performances

Little share among facilities globally and locally because of a complex product line

Challenge: integrate global operations

Creation of a global operating platform to rationalize allocation of products to plants Organization,

brand, product line The P&L was built on products category but in reality, each brand had its core best
product. Shift to a P&L built on brands.

Diverse channels of distribution (independent appliance chains, store dedicated to home improvement
and mass merchants)

Whirlpool was always closer of one of them than the other.. Whirlpool, which has always focused on
what makes a retailer successful, must be careful and concerned equally by all its retailers. Support
functions Central organization and marketing team and low turnover Whirlpool is a small big
corporation

1990: First work on the culture. Common adjectives and values, set up as a list for which people voted

1995: Rework on the culture: concerted effort among every employee in the company. Core values of
whirlpool: respect, integrity, teamwork and customer insight The path to brand value creation
Simplification of the product.

Ultimate goal : Operational excellence

Not sufficient for Witwam: New vision every home everywhere with pride, passion and
performance and new way of thinking:

The customer passion team

The employee pride team

The shareholders performance team

For each employee to had a deep understanding of the end-customer and to be more customer focused

The employee pride team

To develop employees leading and changing capacities and make their work meaningful

The shareholders performance team

Maximize the shareholders return Time available: A few years to make the change effective

Scope of change: large breadth and medium depth..

Preservation of some aspects of the organization

Capability of managing change: Whitwam is the leader

Capacity for change: Whirlpool has the resources needed

Readiness for change: awareness that change is needed

Power to effect change: the executive committee and the shareholders have this power Context of
change Forcefield Analysis Whitwam is the key agent of change. He is a leader and a link between all
units.

Participative style of change : he creates involvement in the change and the strategy and make people
work on the issue by group

Benefits: increase in the ownership and improvement of the quality of the decision. It contributes to
create readiness and capability for change. Change agents Combination of Theory E (levers as changes of
structure, change of system, portfolio changes ) and Theory O (development of organizational capability
through culture change, learning and participation in change, programs and experimentation)

Challenging the taken for granted.

Changing the routines

Symbolic processes Levers of change Empowering the organization

A clear strategic vision:

Continual change and a commitment to experimentation

Stages of transition

Irreversible changes

Sustained top management commitment

Winning hearts and minds Managing the evolutionary change Thank you for your attention Marie-
Caroline Colin

Pedro Correia

Camille Kunetz