Whirlpool CaseStudy

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    Innovationm atWhirlpool: Creating

    a New CompetencySUBMITTED BY

    NITHIN

    PRERANA

    RAHUL JAISWAL

    UJWAL

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    WHAT IS SHRM?

    Strategic human resource managementhas been defined as the linking of

    human resources with strategic goalsand objectives in order to improve

    business performance and developinnovative organizational culture that

    foster innovation and flexibility.

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    OBJECTIVE:

    This case is about the organization

    development (OD) initiatives undertaken at

    Whirlpool Corporation (Whirlpool) to create anew core competency in the form of building

    an innovation culture within the organization.

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    Introduction:

    The Whirlpool Co

    rporation is an American multinational manufacturer

    of major home appliances headquartered in Benton Charter Township,

    United States.

    In 1911, Three brothers-Frederick , Louis and Emory Upton- set up a

    company, Upton Machine Corporation at St. Josephs , Michigan , USA.

    In 1929, Upton Merged with Nineteen Hundred Corp of New York ,

    USA began entering global markets, and sold its washers in Europe and

    Asia.

    In 1950, Nineteen Hundred Corp officially changed its name to

    Whirlpool.

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    April 25, 2006 ,Whirlpool Corporation net

    sales = US$3.5 billion

    Net earnings during that period = US$118million

    Analysts attributed this increase to the

    company's innovative products.

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    Whirlpool had come a long way fromwhere it had been in the late 1990s .

    According to analysts, this was a directresult of the stagnation in its product linecaused by very little attention being paid to

    innovation.

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    HR Strategy used by Whirlpool

    Efforts by David R. Whitwam, chairman

    and CEO of Whirlpool, in 2000.

    change in the company's corporate cultureand embed innovation as a core

    competency.

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    Mr.Whitwam's organizational goal - Increase

    sales and customer loyalty within 2 years.

    HR strategy : to make innovation a core

    competency at Whirlpool.

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    Steps taken to align the organizationalgoal with human resource:

    In late 1999, HR dept started the innovation

    initiative by inviting ideas from all the

    employees.

    25 best employees from the company's

    European arm sent to the headquarter at Italy.

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    Their assignment - brainstorm and come out

    with ideas regarding new products or services.

    I-box" strategy.

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    RESULT

    Revenues from innovative products were almost

    US$800 million in 2005 as compared to just

    US$10 million in 2001.

    The share price had also doubled.

    Between 2003 and 2005, Whirlpool's revenueshad grown at an average of 9% per annum

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    As of April 2006, Whirlpool's innovation

    pipeline had 568 projects under development of

    which 195 were being scaled up for commercial

    launch.

    The company expected these new appliances to

    rake in another US$ 3.3 billion in annual sales

    once they were launched

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    CONCLUSION

    HR strategies when aligned with the business

    goals of the organization, at whirlpool, worked

    as a turnaround strategy and changed the face ofthe company completely.

    Every organization can thus, rely on the HR

    strategies partially, if not completely, and create

    the magic of success.

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    Thank You.