Electrolux Case

Case 1


Business Strategy


Why are the issues facing Electrolux strategic?

The issues are facing Electrolux are strategic because:

-They are long term direction issues. Globalization, market polarization and consolidation of retailers are issues that have a process of happening. They are going to have consequences in the long term for company. The results of those changes are not going to be seen in the short run.

-These changes are going to have impact on the organization activities because of the effect that the changes of the market structure has over the company one. The company has to adapt its structure to the needs of the costumers. The strategy of a company has to fit with the business environment where the company develops its activity and Globalization, Market polarization and Consolidation of retailers have much to do with the business environment of the company.

- Another reason of why the issues facing Electrolux are strategic is that if the company get to be adapted to these changes the firm will obtain a competitive advantage and a privileged position in the market.

What levels of strategic can you identify?

First of all, Corporate-level strategy, these levels of strategy is the one that refers to the overarching strategy of the diversified firm.   The kinds of decisions that are made in that level are the orientation of the firm toward growth, stability, and retrenchment, the industries or markets in which the firm is going to compete like the decision about product renewal.

The second level of strategy that we can see in the case is Business- level strategy that refers to the aggregated strategies of single business firm or a strategic business unit in a diversified corporation. The case says “We have divested or changed the business, model for units…” that is a business-level strategy.

The third level of strategy is the operational level which primarily is...