Transcript of "Electrolux: the acquisition and integration of ZANUSSI"
Electrolux: the acquisition
and integration of ZANUSSI
What are the Electrolux and Zanussi?
What are the key characters of E. and Z.
in 1983?(include strategy, organization,
As Leif Johansson, would you recommend
the Z acquisition in 1983?
What lessons, if any do you draw from E’s
approach to acquisition decision making?
• Leif Johansson
• Electrolux has gone from a
massive loss of 120 billion
in 1983 to a tidy profit of 60
billion in 1987.
• Electrolux became the
largest producer of
household appliances in
• Electrolux acquired
Electro-Helios in 1962.
Growth through acquisitions
• A. the core strategy of Electrolux in 1983
• B. Electrolux never went looking for acquisition
and bankrupt companies.
• The subsidiaries were always considered as
Electrolux prior to the
acquisition of Zanussi
• The general situation of Zanussi in 1983.
• Why Zanussi lost its position in the
• It was a good deal for Electrolux to buy
The three issues from the
• Union and Workforce reduction.
• Prior commitments of Zanussi.
• Financial structure and ownership.
What can we learn
• From Electrolux’s approach to acquisition
• From this case we can learn about the
acquisition integration approach.
Immediate post acquisition
• capacity utilization.
• Cost-cutting in purchase.
• Revitalizing sales.
• Improving Production Technology
1.100 billion invested in Susegana plant
2.200 billion ivested in Porcia plant
• Innovation and new product development.
• Enhancing Product quality.
• Statement of Mission ,Values
and Guiding Lines
• Management development
• Middle Management Problems.
• Structural Reorganization.
Integration of the two companies.
• Forming the task forces:
• 2-each for components, product development
and commercial appliances.
• 1-each for the marketing function and
Brand Positioning and Product
• How to group brands if
the company has so
• To put them into
C.Other two to regroup a
number of local brands
• What strategic and organizational
challenges remained for Electrolux in
1988?What are the main options?
• What should Leif Johansson do now?
• What’s the situation of the company now.
Which strategic orientation should the