change at whirlpool

8/4/2019 Change at Whirlpool

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Agent of Change SyndicateRatri 29110313| Erika 29110310Akbar 29110319 | Deru 29110301

Shopan 29110395| Harvid 29110413


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BACKGROUND

1980-1990

New Regulation

product more

energy efficient

&

environmentalfriendly

1986

Bought Kitchen

Aid

1987

Brands

Dave Whitwam :Chairman

1989-1991

Purchase

Mayjority Stock

at Phillips

1993

DCF

GlobalOperating

PlatformWES

(WorldwideExcelence

System)

1998

Brand Focused

Value Creation

Market Share:

35%


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ANALYSIS

TYPE OF PRESSURES TYPE OF CHANGE

1987 Second order

1987 1998 First Order

Internal

Growth Pressures

From Stakeholder

Company is goingglobal

Eksternal

Hypercompetition

Market Decline

Fashion (need inovation,added features)

TYPE OF TRANSFORMATIONALType 3 : Business Vision

- Change the company vision andmission

- Change in markets and services

- Change culture

- Involve size change

IMAGE OF CHANGE

Transformational leadership DIRECTOR


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Political

The political changes are likely to influence Whirlpool only IF it can affect the markets causing

political instability that will ruin the economy condition.

Economic

The organization is affected by the prosperity of people in the markets it targets that will

translate into changes in both replacement purchases and level of activity in construction

companies

Economic activity will affect the relative weight of upscale brands such as Kitchen Aid as

compared to Frigidaire

Social

Increase in importance of family values can drive sales up

Technological

Speed of innovation in electronic appliances

Possible merging of digital , information , and household appliances technologies Environmental

Demands of environmental groups can affect manufacturing

Government regulations for environmental reporting

Legal

Non-discrimination in the workplace

Safety of equipment usage

PESTEL


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Arenas

Whirpool

prduce home

appliance for

premium

middle up

segment inNorth

America

Vehicles

Sold it

product

through

diverse

channels

with maindistributor

Sears, and

for global

market theyacquire

Philips and

joint venturein Asia

Differentiators

Establish

WES that

make able to

produce at

cost and

quality levelsthat were

competitive

with the best

operators inthe world

Stages

With

intention to

going global

by doing

acquisition

and jointventure the

company still

maintained a

centraltechnical

organization

and centralmarketing

team

EconomicLogic

Cutting cost

The Element of Strategy

PROBLEM STATEMENT


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Resistance for Change

Reason of Resistance

Dislike of change.

Discomfort of uncertainty.

Wrong in communicate thevision.

Managing Resistance

Education and communication

Participation and involvement

Facilitation and support

Negotiation and agreement

Manipulation and cooptation

Explicit and implicit coercion


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Change of ManagementKotters Eight-Step

Establish the need for urgency

Ensure there is a powerful change group to guide the change

Develop a vision

Communication the vision

Empower staff

Ensure there are short-term wins

Consolidate gains

Embed the change in the culture


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Whirlpool in Kotters Eight Step

Low Market Share

Low Customer Royalty

Tougher Competition

Sense of

Urgency

Customer Passion Team

Employee Pride Team

Shareholder Performance Team

Change Group

Every Home, Everywhere with

Pride, Passion and performance.

Manufacturing Brand-Focused Creating Value

Vision

Series of Workshop to 9

executive committee

Cascade to 400 Manage.

Yield Booklet with 4 core Values

(Integrity, Respect, Teamwork,Customer Insight)

Senior and Mid-level Manager

communicate to the front line.

Communicate

Delegate the authority to the

employee to improve theirbravery to take risk in making

decision.

Empower

Reward and recognize the

employee to improve theirmotivation.

Short-term

Wins

Reward for those who positively

engage with the change(attitude and behavior).

Training to reduce theresistance to change.

Consolidate

Gains

Create a legal policy that

support the change after it beenimplemented to the employee

first.

Embed Change

in Culture


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DONT SELL WHAT YOU MAKE BUT

MAKE WHAT YOU CAN SELL

CONCLUSION


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11/12

Whirlpool in Kotters Eight Step (1)

Lose Market Share

Low Customer Royalty

Tougher Competition in Global Market

If Whirlpool reluctant to

change from manufacture to

Brand-Focused Creating Value

Customer Passion : Review Whirlpool effort focus consumer.

Employee Pride Team : Develop capacity of the employee to lead & to change and proudin working.

Shareholder Performance Team : Examine the distributions of total shareholder return.

Ensure there is a powerful

change group to guide thechange

Every Home, Everywhere with Pride, Passion and Performance

From Manufacture Company to Brand-Focused Creating ValueDevelop a vision

Series of Workshop with 9 persons of executive committee.

Cascade to 400 Managers Yielded booklet that laid out 4 core values (Integrity,Respect, Teamwork, Customer Insight)

Senior and Mid Level Manager Communicate the values to the front line.

Communication the vision


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Whirlpool in Kotters Eight Step (2)

Delegate the authority to the employee, so they have

bravery to take a risk in making decision.Empower staff

Reward and recognize the employee to improve theirmotivation.Ensure there areshort-term wins

Reward for those who positively engage with the change

(attitude and behavior).

Training to reduce the resistance to change.Consolidate gains

Create a legal policy that support the change after it been

implemented to the employee first.

Embed the Change

in The Culture

change at whirlpool

Documents