Running head: “ELECTROLUX CLEANS UP” CASE 10.1 1

“Electrolux Cleans Up” Case 10.1

Cheri Luster

Everest University

Management of Professionals

MAN5266

Professor Sharon Peterson

December 01, 2012

“ELECTROLUX CLEANS UP” CASE 10.1 2

Abstract

In this paper the team was asked to read case 10.1 “Electrolux Cleans Up” and analyze the case

study and answer the following questions:

How did Electrolux Chief Executive Strasberg break down barriers (and increase

communications) between departments? Why did he do this? Explain.

What are the advantages for Electrolux in having individuals from different departments and

functional areas work together on product design? Describe.

In an era with intense competition and several low-cost products on the market, how can

Electrolux use teamwork and groups to succeed? Describe.

“ELECTROLUX CLEANS UP” CASE 10.1 3

“Electrolux Cleans Up” Case 10.1

How did Electrolux Chief Executive Strasberg break down barriers (and increase

communications) between departments? Why did he do this? Explain.

In this section we address how the CEO of Electrolux was able to launch his plan to

break communication barriers between departments resulting in a successful launch of

innovative home appliance products that elevated his company to the number spot in sales and

profitability.

In this case study the Chief Executive Mr. Hans Straberg brought creativity to the table

by braking tradition for a radical approach to bringing groups together to form a unified team.

He changed the way they communicated and interacted with one another. His plan brought all

departments together such as designers, engineers, and marketing to come together in one place

at one time to brainstorm to get people communicating between departments rather than

individual work. The goal of Mr. Straberg was to break down communication barriers between

these interdependent departments and get the group as a whole to brainstorm and come up with

innovative ideas and products that would solve consumer’s problems with their appliances as a

team. The end result was they were dynamic and quiet successfully met the challenge by the

CEO.

What are the advantages for Electrolux in having individuals from different departments and

functional areas work together on product design? Describe.

The advantages of an effective team are an increases productivity, improvement in

communication skills, diversity of skills, and improved problem solving, process improvement,

“ELECTROLUX CLEANS UP” CASE 10.1 4

and smarter use of resources. In my opinion the departments were functioning on more of a

group level than a team. Groups function individually and this company was primarily run by

engineers until Mr. Straberg changed the way the company developed their products. It was like

a production line, whereby one person has finished their part and the product moves to the next

line of production without any communication as to feedback, best practices, and new ideas. In

this case if something goes wrong then it is back to the drawing board. With his approach type

communication opened up to allow for freedom and two way communication between the

designers, engineers, and marketers. People get to be hard and different perspectives and

opinions are shared about the creativity, development and marketing of a product. It minimizes

guesswork from departments and each department adds value and builds on the other with people

feeling like they are partners rather than being told what to do. According to the Engineer

Giuseppe Frucco “We never used to create new products together. The designers would come up

with something and then tell us to build it” (Ivancevich, Konopaske & Matteson, 2011 p 308)

This new way of doing things saved the company both time and money because teams where

there onsite working together.

In an era with intense competition and several low-cost products on the market, how can

Electrolux use teamwork and groups to succeed? Describe.3

The company gained the competitive by edge by increasing the flow of communication

among the designing, engineering, and marketing departments through brainstorming sessions.

This was a concept that was nontraditional and no other companies had tried this. Making

Electrolux top notch on origination. He broke down individual barriers of the departments to a

“ELECTROLUX CLEANS UP” CASE 10.1 5

mentality we need to work together as one in order to improve its processes, in meeting the

consumer needs and therefore increasing sales and profitability.

The decision to increase investment in research and design was important in elevating the

company to the top in its industry. By doing this the company expanded their design teams and

The decision to change how the company gathered information from the consumer was a

strategic move to provide them with information that was more up to speed with what consumers

wanted. They used the in home interviews that revealed in-depth insight into what consumers

may have missed in a survey type of questionnaire. Observation of the consumers was the key to

tap into innovation for the teams resulting in a change in its development process

By attracting the best talent for innovators and bringing them onboard to train the

organization his workforce was also a sharp idea to harness the creativity and strategy concepts

to provide his departments with the best in talent, tools, and resources to perform above

expectation.

According to our reading effective teams are ones that are giving proper training, open

communications, empowerment and rewards system in place. In my opinion, Mr. Strasberg

accomplished these milestones by: securing the most talented innovators, forcing communication

among departments to function as one, invested and expanded the R& D teams, and trained his

workforce utilizing his recruited exerts in their field such as Kim Scott, formerly with P&G, or

Henrik Otto, formerly with Volvo.

“ELECTROLUX CLEANS UP” CASE 10.1 6

Electrolux was able to develop a strategy that set them apart from their competition with

products that had a combination of premium quality that met the needs of the consumer, while

being able to control of costs.

By working together as a team the different departments have a more clear and concise

goal and plan of action. When glitches or concerns arise they are there to hear each department

out and problem solve on the spot rather than losing time and money with developing a product

that will need revisions down the road due to poor communication. Their in home interviews and

truly shows how the company stays in tune with the consumer to be able to design future lines

that are exactly what the customer wants. These teams come up with ideas that are transformed

into products designs that. The increased investment in design and by joining the departments in

the brainstorm sessions, the organization gave the company the competitive edge over it’s …

In conclusion the case study is an excellent resource for understanding how dynamic

action plans can result in a profitable product lines that soar above the competition by creating

innovative household appliances that “take a fresh look at what consumers really want

and by creating new products that are specifically aimed at the purchasing

patterns and lifestyles” (Escaping the middle-market trap: an interview with the CEO of

Electrolux 2012)

“ELECTROLUX CLEANS UP” CASE 10.1 7

References:

Ivancevich, J. M., Konopaske, R., & Matteson, M. T. (2011). Organizational behavior and

management. (9th ed.). New York, NY: McGraw-Hill/Irwin.

Knudsen, Trond Riiber. "Escaping the middle-market trap: an interview with the CEO of

Electrolux." The McKinsey Quarterly Autumn 2006: 73+. Expanded Academic ASAP.

Web. 1 Dec. 2012.

Henry, C. (2007). Periscopic media tour. Strategy & Leadership, 35(3), 56-62.

doi:http://dx.doi.org/10.1108/10878570710745857