Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Electrolux: the acquisition and integration of ZANUSSI


Published on

Presentation done during Strategic Management class with professor Mostefa Ider at WSB-NLU
by Aleksey Narko
and Kun Chen

Published in: Education, Business
  • Be the first to comment

Electrolux: the acquisition and integration of ZANUSSI

  1. 1. Electrolux: the acquisition and integration of ZANUSSI By: Aleksey Narko Kun Chen
  2. 2. Questions:  What are the Electrolux and Zanussi?  What are the key characters of E. and Z. in 1983?(include strategy, organization, performance)  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?
  3. 3. Introduction • 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 the world. • Electrolux acquired Electro-Helios in 1962.
  4. 4. 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 profit center.
  5. 5. Electrolux prior to the acquisition of Zanussi • The general situation of Zanussi in 1983. • Why Zanussi lost its position in the market? • It was a good deal for Electrolux to buy Zanussi.
  6. 6. The three issues from the Acquisition process • Union and Workforce reduction. • Prior commitments of Zanussi. • Financial structure and ownership.
  7. 7. What can we learn • From Electrolux’s approach to acquisition decision making. • From this case we can learn about the acquisition integration approach.
  8. 8. Immediate post acquisition actions • capacity utilization. • Cost-cutting in purchase. • Revitalizing sales.
  9. 9. Strategic transformation: building competitiveness • Improving Production Technology via investment. 1.100 billion invested in Susegana plant 2.200 billion ivested in Porcia plant
  10. 10. Strategic transformation(cont.) • Innovation and new product development. • Enhancing Product quality.
  11. 11. Organizational revitalization: changing attitudes • Statement of Mission ,Values and Guiding Lines • Management development workshops. • Middle Management Problems. • Structural Reorganization.
  12. 12. 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 management development.
  13. 13. Integration of Production and Sales/Marketing
  14. 14. Brand Positioning and Product development. • How to group brands if the company has so many acquisitions? • To put them into groups! A.Electrolux B.Zanussi C.Other two to regroup a number of local brands
  15. 15. Questions: • 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 company go?
  16. 16. Thank you for attention!