StudentShare solutions
Triangle menu

Whirlpool Corporation - Essay Example

Extract of sample
Whirlpool Corporation

In each major European market, Whirlpool had a country sales office which handled sales generation and forecasting, order processing, billing and collection. They served 2 types of customers – direct consumers who purchases appliances for their homes and contractors who needed built-in appliances for new home constructions and kitchen remodeling. Success in these 2 markets depended on product quality, price, availability, and on-time delivery. Currently, with the wide scope of Whirlpool’s operations, it has disjointed information systems implemented in the various business units which hamper the company’s success in meeting its customer and operations requirements. To remedy this, Whirlpool is evaluating the plan to implement a company-wide enterprise resource planning system, called Project Atlantic. The cost of Project Atlantic is sizeable both in financial and non-financial terms. A rigorous capital investment appraisal, both quantitative and qualitative need to be conducted before embarking on the project (Case Resource).
Question 1: Summarize the main factors that Whirlpool Corp needs to take into account when deciding whether to invest in the enterprise resource planning (ERP) systems named Project Atlantic. Your summary should include:
- The BENEFITS to be gained from the system
- The COSTS likely to be incurred by its implementation and maintenance
- The RESOURCES to be used in its implementation and maintenance

Whirlpool Corp's Project Atlantic is an undertaking to design and implement an enterprise resource planning (ERP) system that would allow the company to better serve its consumer and contract markets for appliances, as well as reduce its inventory by 12 days of sales. Enterprise resources are the manpower, machines and materials necessary for business operations and which have to be properly allocated and utilized to achieve business objectives. The main factors that Whirlpool Corp needs to take into account to decide whether to invest in Project Atlantic are the benefits that can be derived from the project; the costs of design, implementation and maintenance; whether benefits outweigh the costs and when will the company get payback from the ERP systems; how long will the process of designing and implementing take and what external and internal resources are necessary; and what changes need to be undertaken by the company to enable the new systems to fit in, how will these changes affect concerned employees, and how shall changes be handled in the least obtrusive way (Wailgum, 2008).
The benefits expected from Project Atlantic include:
Working capital reduction through reduction of the number of days of inventory by making the supply chain transparent and efficient;
Revenue and gross margin increase through increase in product availability through a more visible supply chain more visible and integrating sales forecasting and inventory management;
Cost savings through simplification of customer orders processes and the accounting function - reducing the number of order desk employees and finance employees; reduction of warehouse space due to the decrease in inventory levels; reduction of customer returns; reduction of bad debt expenses and information systems expenses
Increased efficiency in the distribution process by allowing country sales offices to monitor products throughout the supply chain;
Allow the company to build products to specific orders from contractors
Projected Atlantic is expected to reduce 12 days of inventory in each wave of implementation yielding a total of USD 34.3 million inventory savings. It is also expected to improve product availability which will increase sales equivalent to 25% of the improvement and increase company profitability by the ...Show more

Summary

Whirlpool Corporation is the worldwide leader in the home appliance industry with a 13% share of the European market. It operated 11 manufacturing plants producing 6,900 SKUs. …
Author : natalie77
Whirlpool Corporation essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Whirlpool Corporation"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Case study - international marketing
Disney is dependent on tour operators because of which, it has to lose out its revenues to restaurants rather than Disney’s destinations. With more brand awareness amongst Chinese consumers and the world markets, Disney would not have to rely on the channel of tour operators to get revenues as this would automatically generate independent demand in the markets.
6 pages (1500 words) Essay
Whirlpool Corporation Essay. Problem For Whirlpool And Solutions
Whirlpool had operations in more than 170 countries and had a revenue flow that exceeded $13 billion dollars per annum. The world leader in home appliances business, this is a truly multinational company. During the 1990s the rise of the East Asian tigers had a string of home appliance businesses come from there.
8 pages (2000 words) Essay
Corporate Global Strategy: What Lies Ahead for Electrolux
Whirlpool manufactures a wide variety of appliances and has benefited from Maytag's positive image because they have made sure the Maytag brand was connected to Whirlpool. Maytag marketed their washing machines in North America with an advertising campaign focusing on reliability-the Maytag repairman never had anything to do because the machine was so well made.
9 pages (2250 words) Essay
Challenges of Whirlpool Corporation
The company faced a number of challenges during the end of the decade 1990. The challenge was to survive and sustain a $1 billion annual growth in a highly competitive home appliances business. The company serves customers in 170 countries and makes a revenue in flow of over $13 billion per annum and stays at the top of the home appliances business across the globe.
8 pages (2000 words) Essay
Whirlpool Corporation
Whirlpool was under threat and its margins were fast depleting. Three key factors were identified as the root cause of these changes: 1. Materials Management: The Company was besieged by
7 pages (1750 words) Essay
Whirlpool Corporation
The competition was immense and this led to depleted margins for Whirlpool. Whirlpool had to necessarily counter this threat. The main issues that were causing the problem for Whirlpool include the following: 1. Cost of the spares was a major
7 pages (1750 words) Essay
Globalization Strategies
According to the discussion organizations are required to deliver in terms of cost, quality, reliability and flexibility while keeping employees happy, machines operational and delivering products and services when and where the customer wants them at low prices and in a variable range of quantities.
14 pages (3500 words) Essay
'The accounting 'economics' of innovation
In each major European market, Whirlpool had a country sales office which handled sales generation and forecasting, order processing, billing and collection. They served 2 types of customers – direct consumers who purchases appliances for their homes and
8 pages (2000 words) Essay
Marketing plan
The company provides the customers quality products at affordable prices. The company is known for its quality god across the world and being socially responsible in China as well. The company works on the philosophy of combining people and orders in
6 pages (1500 words) Essay
Action Plans
Whirlpool’s Innovation Group has tremendously grown for the last years. During the first quarter of 2015, the company registered a net earnings of $ 191 million compared to what it registered of $ 160 million for the similar prior
1 pages (250 words) Essay
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Click to create a comment