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spin around campaign depth psychology July 12, 2003 Group 3 Cindy Branon Zach Evans genus Melissa Holder Kendall Joseph Brandon McLain Shane Morgan course role Analysis 2 birl Case Facts The twiddle sess is one of four top whatchamacallum manufacturers in the world. Whirlpool has annual sales of between $4 and $6 dollars. Whirlpool supplies Sears with Kenmore washers and dryers, which accounts for thirty-seven percent (37%) of Whirlpools sales. Since issue of the United enjoins appliance market had been evening out, Whirlpool looked to expand operations and sales in Europe.At that time, Europes market for appliances was twenty-five percent (25%) larger than that of the United States and was growing by four percent (4%) a year. In 1989, Whirlpool acquired a majority interest (53%) in Philips, an appliance manufacturer in the Netherlands. In the late 1980s, the society as well acquired the Kitchen adjutant stork Company. Whirlpool has a highly automated factory in Clyde, Ohio, that is the largest of its nature. It is roughly 1. 5 million square feet and employs 3,500 people.Whirlpools breeding engine room (IT) consists of municipal processing for manufacturing, sales, and engineering located in Benton Harbor, Michigan. Parts information technology for the manufactured appliances is located in an Indiana facility. International IT locations have their aver data centers. These data centers support local manufacturing, materials, and inventory and are topically managed. Whirlpool also established an eight-node T1 network in a lock away topology to support these systems.Problems and Opportunities Whirlpool cute to maintain authorized growth rates, so it was necessary to consider expanding to markets outside the United States. Whirlpool also looked to increase the quality of its products, modify supplier relationships, decrease costs, and to increase sales. The community hoped to increase supplier relations through and through acquiring Whirlpo ol Case Analysis 3 component suppliers and encouraging these companies to lower costs and improve quality. The company also wanted to develop products for special needs customers much(prenominal) as the blind, elderly, disabled, etc. sing computer-assisted development applications. Whirlpool also wanted to integrate ITs capabilities into operations such as research and development, the study and soothsaying of sales, and the evaluation of its products. Whirlpool also had the problem of integrating the newly acquired Philips Corporation into its own business IT architecture. Whirlpool faced problems with the European culture, telecoms inconsistency, and different manufacturing standards abroad. Whirlpool envisioned a world(prenominal) information system to establish militant advantage to change better sales predictions and improve supplier relations.Alternatives We think that Whirlpool has a couple of alternates. The first being developing and implementing a world(a) IS system s. The company could foster European relations by having a team from all countries involved in working on a global solution. Consulta nts might aid the development of the system by incorporating current national and international telecommunication standards, business practices, and other issues of global magnitude. once a global system is in place, any acquired companies would be combine into the existing global network.This network would ideally be centered in the current US location with connections to to each one country allowing real-time plan of attack and local input. Another alternative would be for Whirlpool to let each country continue to operate its own data centers. This allows for competition in each IS shop, and the data would Whirlpool Case Analysis 4 be different among each unique location. Combining data from different shops would coiffe a definite challenge to the company. However, Whirlpool would not ha ve to leave out money to upgrade current systems.The com pany might have to pop off money to upgrade telecommunication lines to make them compatible with US telecommunication standards. Recommendation We believe that Whirlpool should develop and implement a global IT system. Whirlpool should use IT staff from Europe as well as outside consultants to provide input into the specifics of the system. A global system would enable Whirlpool to serve customers in the United States and abroad better through improved sales forecasts and faster planning service for appliance Components (better supply and demand forecasts for each country).The first alternative would be the best alternative for Whirlpool. Actual Implementation Whirlpool is still looking for a global solution. According to Dave Whitman, Whirlpool Chairman and CEO, the company has only achieved fifty to threescore percent of building a global company. The first object for Whirlpool to achieve a global company is to integrate the procurement process, and the n technology, and last, product development. Each acquisition is carefully studied to ascertain how it raise benefit Whirlpool as a whole.By combining these three attributes, Whirlpool can become more efficient and produce better products. At this time, Whirlpool has not been able to develop a global information system, although it hopes to some day. In 1999, Whirlpool had problems with an implementation of software from SAP and E-Commerce. The company started the system even though there were problems Whirlpool Case Analysis 5 with it. Eventually, the problems were worked out with SAP, and the company continued to use it.Whirlpool also apply web technology for customer research and ordering capabilities for retailers. Eventually, the company would identical to add the capability for repair facilities to submit invoices for work completed to discover payment. One-half of sales from retailers were generated from the Internet in 2000. Whirlpool acquired manufacturing facilities in Mexico and in Poland in 2002. Local Whirlpool companies are still fulfilling market niches in their own regions. The company also hopes in incorporate IT strategy into its boilers suit business strategy in the future.