Whirlpool Case Study

Essay by jspence8College, UndergraduateA, February 2009

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Whirlpool Corporation is a Fortune 500 company as well as a global manufacturer and marketer of home appliances. According to their website in 2007 they had annual sales of approximately $18 billion. In addition, they employee over 73,000 people and have more than 70 manufacturing and technology study centers around the world. Whirlpool owns many companies around the world such as; Maytag, KitchenAid, Jenn-Air, Amana, Inglis, Estate, Brastemp, Bauknecht and other major brand names to consumers in nearly every country around the world. The basis of this case is when Whirlpool acquired Kelvenator of India (KOI) in 1993 for $150 million dollars. According to the case description, KOI was located in Delhi, India and was the largest refrigerator manufacturer in India, with a brand name well regarded throughout India. Whirlpool immediately began the "integration strategy" that they had developed to quickly and proficiently incorporate KOI to the rest of Whirlpool.

Through their integration strategy was a list of shared values which included; honesty, trust, sincerity, respect for the individual, reward for performance, and the phrase "No Right Way to Do a Wrong Thing". Whirlpool's shared values completely bared any kind of bribery and termination would result for a breach. Also, according to the case, "Most things seemed to be on schedule and going pretty well. It had been determined earlier that in stream-lining and modernizing KOI, 500 of 1500 employees would need to be laid off." However, Whirlpool's president for India and head of KOI operations stated, "A problem had arisen, as eight union stewards had heard of the planned layoffs and were threatening a strike if the layoffs went forward unless they were each given $5000." The CEO for Whirlpool Asia demanded a full explanation and was faced with a choice of weather to pay the stewards or...