Management of Whirlpool
Management as a name refers to a group of individuals who make decisions on how a business is run. The other meaning is the process of setting up business investment portfolio and carrying out its maintenance. Therefore any management is concerned with the day to day decisions on how any business is to operate. The decision will involve the decisions on purchases, value addition and selling. This paper examines the management of Whirlpool so as to generate the purpose of management and their views in company operations as well as its importance.
Management Attitude towards Foreign OperationsAn ethnocentric attitude is the belief that a business can perform best on its own work using approaches within the home country alone. On the other hand polycentric attitude is the view that the management in the host country knows the best work approaches and practices for running their business and will be constantly approached. However, a geocentric attitude is a globally oriented view that concentrates on using the best business approaches and human resources from around the world. Since Whirlpool has been able to operate effectively in 170 countries, we get to know that the managers should take geocentric attitude. This is because the company is very successful in those countries and that can only be maintained if the managers are able to engage resources without regard of their origin. This explains the ability of business penetration in the several countries which could have only happened out of people’s assistance in respective countries.Challenges of Managing Widely Spread Business OperationsWhen the business grows and spreads widely to several countries enables increased market which comes with challenges. The challenges will be largely on the management of quality products and services throughout all its networks.
The whirlpool requires constant improvement in quality which becomes a challenge to implement throughout all its units due to high costs involved. Also, the company faces challenges of stiff competition in the appliances industry which is becoming saturated.Moreover, a challenge may arise out of different business legislations in different countries. There are countries which may prohibit some business cultures which hinder the company development. The other noticeable challenge to Whirlpool is overdependence of certain large scale customers who may cause reduced business when they switch allegiance on their products.Whirlpool’s organization structureThe Whirlpool organization structure is based on territory served. This enables the company to deliver desired quality service as per the territory requirement. This is because different countries may need different quality procedure and as such management of such territories should be in a position to offer unique decisions.
The management units will then report to the respective chain of command up to the top level management. The importance of using unit based management units is that the consumers are able to be served with company products with proper after sale service as implemented by immediate management.This form of structure is working well for Whirlpool and is delivering results. The only suggestion is improvement on the speed at which decisions are made by territory managers and overall management so as to ensure decisions made by territory is well known at the headquarters. This is important in ensuring the unit structures of the company are maintained and are able to generate profits for the company. This is because central management of all the territories may be very expensive to maintain.The Whirlpool Company is continuously improving its quality through efficient management which makes sound decisions. These include several decisions of expansion, diversification, and acquisitions which are out of proper management which results in gaining competitive advantage over its competitors.
Therefore we conclude that if the management of Whirlpool continues to be creative, it shall lead to increased business. Thus management is a fundamental aspect of success in any successful business.
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