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Whirlpool Case Analysis

July 12, 2003

Group 3 Cindy Branon Zach Evans Melissa Holder Kendall Joseph Brandon McLain Shane Morgan

Whirlpool Case Analysis 2 Whirlpool Case Facts The Whirlpool Corporation is one of four top appliance manufacturers in the world. Whirlpool has annual sales of between $4 and $6 dollars. Whirlpool supplies Sears with Kenmore washers and dryers, which accounts for thirty-seven percent (37%) of Whirlpool’s sales. Since growth of the United State’s appliance market had been evening out, Whirlpool looked to expand operations and sales in Europe. At that time, Europe’s market for appliances was twenty-five percent (25%) larger than that of the United States and was growing by four percent (4%) a year. In 1989, Whirlpool acquired a majority interest (53%) in Philips, an appliance manufacturer in the Netherlands. In the late 1980’s, the company also acquired the Kitchen Aide Company. Whirlpool has a highly automated factory in Clyde, Ohio, that is the largest of its nature. It is approximately 1.5 million square feet and employs 3,500 people. Whirlpool’s information technology (IT) consists of domestic processing for manufacturing, sales, and engineering located in Benton Harbor, Michigan. Parts information technology for the manufactured appliances is located in an Indiana facility. International IT locations have their own data centers. These data centers support local manufacturing, materials, and inventory and are locally managed. Whirlpool also established an eight-node T1 network in a mesh topology to support these systems. Problems and Opportunities Whirlpool wanted to maintain current growth rates, so it was necessary to consider expanding to markets outside the United States. Whirlpool also looked to increase the quality of its products, improve supplier relationships, decrease costs, and to increase sales. The company hoped to increase supplier relations through acquiring

Whirlpool Case Analysis 3 component suppliers and

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