shrm - case in example 2a
TRANSCRIPT
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A Case Study
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Whirlpool Whirlpool Corporation manufactures & markets a full
line of major appliances & related products, primarilyfor home use.
Operates in N. America, Europe, Latin America &
Asia. Headquartered in Benton Harbor, Michigan ,USA
Employs about 67,000 people.
Recorded revenues of $17,099 million during financial
year ending December 2009 (FY2009), a decrease of9.6% as compared with 2008 (FY2008)
The decrease in revenue was primarily due to lowerdemand for appliances.
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Vision - Every Home… Everywhere…
with Pride, Passion and Performance
Our vision reinforces that every home is our domain, everycustomer and customer activity our opportunity. This
vision fuels the passion that we have for our customers,pushing us to provide innovative solutions to uniquely
meet their needs. Pride... in our work and for each other
Passion... for creating unmatched customer loyalty for ourbrands
Performance... that excites and rewards global investors
with superior returns
We bring this vision to life through the power of our uniqueglobal enterprise and our outstanding people... working
together... everywhere.
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Mission
Everyone, Passionately Creating Loyal Customersfor Life
Our mission defines our focus and what we dodifferently to create value. We are a company of peoplecaptivated with creating loyal customers. From every job, across every contact, we will build unmatched
customer loyalty…one customer at a time
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Values
Our values are constant and define the way that all Whirlpool Corporation employees are expected tobehave and conduct business everywhere in the world.
Respect — We must trust one another as individualsand value the capabilities and contributions of eachperson.
Integrity — We must conduct all aspects of business
honorably – ever mindful of the longtime WhirlpoolCorporation belief that there is no right way to do a wrong thing.
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Cont.d Diversity and Inclusion — We must maintain the
broad diversity of Whirlpool people and ideas.Diversity honors differences, while inclusion allowseveryone to contribute. Together, we create value.
Teamwork — We must recognize that pride results in working together to unleash everyone’s potential,
achieving exceptional results. Spirit of Winning — We must promote a Whirlpool
culture that enables individuals and teams to reachand take pride in extraordinary results and further
inspire the "Spirit of Winning" in all of us.
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Current Strategy : 2012-13
Brand Focused Value Creation - Build strong brandsand customer base….
World’s leading manufacturer and marketer of majorhome appliances
Annual Turn over of approximately 17 billion $ in2009
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Whirlpool Corporation - 2006 April 25, 2006 ,Whirlpool Corporation net sales =
US$3.5 billion
Net earnings during that period = US$118 million
Analysts attributed this increase in earnings to thecompany's innovative products.
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Whirlpool had come a long way from where it had
been in the late 1990’s .
According to analysts, this was a direct result of the
stagnation in its product line caused by very littleattention being paid to innovation
Top management conclusion by late 1999 was to cut
10% of its international workforce and initiaterestructuring process of its global operations.
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HR Strategy used by “Whirlpool”
Dedicated efforts by “David R. Whitwam”, Chairmanand CEO of Whirlpool, in 2000.
Change in the company's corporate culture andembedded innovation as a core competency.
Mr. Whitwam’s organizational goal - Increase in sales
and customer loyalty within 2 years. HR strategy : Make “innovation” a “core competency”
at Whirlpool.
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Steps to align the organizational goal with HR
In late 1999, HR department at Whirlpool started theinnovation initiative by inviting ideas from all theemployees.
25 best employees from the company's European armsent to the headquarter at Italy.
Their assignment - Brainstorm and come up with ideas
regarding new products & services.
Use of the "I-box" strategy.
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RESULT Revenues from innovative products were almost
US$800 million in 2005 as compared to just US$10
million in 2001.
Share price also doubled up.
Between 2003 and 2005, Whirlpool's revenues hadgrown at an average of 9% per annum
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As of April 2006, Whirlpool's innovation pipeline had568 projects under development of which 195 werebeing scaled up for commercial launch….
The company expected these new appliances to rake in
another US$ 3.3 billion in annual sales once they werelaunched ….
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CONCLUSION
HR strategies when aligned with the businessgoals of the organization, at whirlpool, worked
as a turnaround strategy and changed the faceof the company completely.
Every organization can thus, rely on the HRstrategies partially, if not completely & create
the “magic of success”.