Business 313 Review the corporate strategy of AB Electrolux

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fvyylcuvyyl

Business Finance

Business 313

America public university

Description

Review the corporate strategy of AB Electrolux: found here: http://group.electrolux.com/en/category/about/

As the social and demographic trends continue to evolve so do the opportunities afforded to Electrolux. The most significant demographic shift globally is the growing middle class in Asia, which includes families with incomes between US$6,000 and US$30,000. It is estimated that by 2030 there will be 3 billion more people in the global middle class than there were in 2013.(Ernst & Young, 2013)

Correlated with rising incomes worldwide, homeownership has also increased at a substantial rate giving rise to increased demand for consumer durables such as refrigerators, washing machines, and dishwashers. (Electrolux, 2013)

Electrolux (2013) Electrolux 2013 Annual Report. Retrieved from http://group.electrolux.com/en/company-overview-27...

Ernst & Young (2013) Hitting the sweet spot. Retrieved from http://www.ey.com/GL/en/Issues/Driving-growth/Midd...

In a 2400 – 2800 word essay discuss the following:

1) Use Barney’s VRIO framework to analyze the competencies of Electrolux. Discuss whether AB Electrolux can compete with local Chinese consumer manufacturers.

2) Discuss the three leading perspectives on strategy, and how this strategy tripod influences Electrolux.

3) Identify Porter’s four generic strategies. Discuss which of these would work best for Electrolux.

4) What is the corporate culture of Electrolux? Discuss two distinct attributes of culture within the organization.

This essay should be well-researched, appropriately documented and submitted in APA format.

Unoriginal Content:

Your essay may contain no more than 10% quotes from other sources. Paraphrase what you read instead of copying and pasting. You may not re-use work that you have submitted in previous classes. All work in this class must be original.

Essays that contain more than 50% unoriginal content will not earn any credit. Essays that contain between 10% - 49% unoriginal content will receive a substantial point deduction. Paraphrase instead of copying and pasting. Please note there is a difference between unoriginal content and plagiarism. Unoriginal content is correctly quoted and cited. Plagiarized sentences and paragraphs are not correctly quoted or cited. Plagiarism will result in an automatic zero for this assignment.

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Explanation & Answer

Attached.

AB Electrolux
Institution Affiliation
Name
Date

Abstract
In Electrolux Company, China is one of the key global markets that the company has to analyze
with keenness. In comparison to the VRIO set framework, Eletrolux Company can be able to
compete with the Chinese consumer manufacturers but with lack of sufficient research the task
can be difficult one to undertake.
However, Electrolux is considered as one of the most valuable companies that cherish its
customers. It is also a very competitive firm; it is currently leading the industry worldwide. In the
company, customers are highly valued and Electrolux provides them with products and services
that best fit their taste (Barney, 2010).
The capability of the Electrolux to managing its personnel and people in an effective and
efficient manner is not only a cost advantage but a source of differentiation for the company.
Different from other companies, which rely on payment and trust in the employee management,
Electrolux Co usually employs various programs to managing its employees and even develops
them as company’s leaders. This management capability allows the firm to be able to make
strategic decisions by carefully selecting its management leaders for ensuring effective
management of the company in future. Further, the capability helps to show the company leaders
on how to exchange ideas and make the most out of their market competencies. As a result, the
Electrolux Co has continued to be one of the most successful companies in terms of leadership
enhancement aspects. Apart from being valuable company, Electrolux’s capability is a rare
know-how since not so many companies that involve in employing these three different aspects of
leadership programs in such a comprehensive and extensive manner (Barney, 2010). In essence,

Electrolux has highly educated and competent HR managers who understand to develop effective
programs for efficient management.

The VRIO framework is a critical tool that can be used by the company to examine and analyze
the competencies and internal resources of the company. It can be used to determine and
evaluate whether the company can be source of continued competitive advantage in the market.
The VRIO framework considers various aspects including whether the resources are rare to
obtain, valuable, costly for other companies to imitate. The framework also considers whether
the company is well organized to seizing the resources’ value or not. If these key requirements
are met, the resources are considered to be able to generating sustainable and continued
competitive advantage for the company (Barney, 2010). In addition, effective application of the
VRIO framework can greatly help in determining if the company (Electrolux) has a strong
presence in such areas that the firm has flaws.

Introduction
Electrolux is an organizational company that was established in 1919. The company has grown
significantly and has branches all across the world. The company involves in designing various
products including washing machines, vacuum cleaners, dishwashers, dryers and other several
others. The company has expanded over the years and has over 60,000 employees in around 100
countries. According to Young and Ernest, the middle class is said to grow by 2025 and hence
ad...


Anonymous
I was having a hard time with this subject, and this was a great help.

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