BRIEF HISTORY OF ELECTROLUX

The origins of Electrolux can be traced back to the introduction of the vacuum cleaner, the invention of the absorption refrigerator and a marketing genius named Axel Wenner-Gren. Legend has it that Mr Wenner-Gren saw an unwieldy Santo vacuum cleaner in Vienna and went to work for them. When he had learnt enough, he went home to Stockholm, worked on his idea with colleagues and staff and presented the Lux 1, the world's first household vacuum cleaner in 1912. In 1901, AB Lux, Stockholm, was established. The company launches the Lux lamp - a kerosene lamp for outdoor use - which proves to be a tremendous sales success. The lamp was also used in lighthouses all over the world. On October 30, 1917, Elektron (In which Axel Wenner.Gren owns a large interest) purchases all the shares of Elektromekaniska. Wenner-Gren was elected member of the board of Elektromekaniska and likewise, Sven Carlstedt joins the board of Elektron. On August 1, 1919, an agreement was reached between AB Lux and Svenska Elektron AB (in which Wenner-Gren was the dominating owner) giving Elektron the sole sales rights to AB Lux vacuum cleaners. The agreement, which was valid through 1929, obligates Elektron to buy its vacuum cleaners from Lux and show Lux the manufacturer on all the vacuum cleaners. At the Annual General Meeting on August 29, 1919, Elektromekaniska AB (wholly owned by Wenner-Gren-dominated Elektron) changes its name to AB Electrolux. The new name was a combination of Elektromekaniska and Lux. In 1925, the first Electrolux absorption refrigerator was launched and Electrolux started in its quest to be the largest household appliance producer in the world.

Mission of the organization: The Electrolux mission is to be the world leader in profitably marketing innovative product and service solutions to real problems, thereby making the personal and professional lives of our customers easier and more enjoyable. Vision of the organization: The vision of Electrolux is to become the best appliance company in the world as measured by customers, employees and shareholders. The goal of the organization: This must be seen into the future of the organization. The goal was to accelerate the development of Electrolux as a market driven company based on greater understanding of customer needs. Gaining advantage over its competitors: Another issue facing Electrolux was gaining advantage over its competitors. Thus maintaining competitive production costs is a pre-requisite for survival in the market, and there is the need to relocate production from high-cost to low cost countries, relocating to low cost countries thus moving from the us market to Mexico, Buying components, shifting of competitors focus to product development marketing and brand image building.

Strategy level of the organization

From the case study there three levels of strategy should be envisages. These are: Corporate level Strategy: the acquisitions and disposals made by Electrolux were done at the corporate levels which emphasizes that major restructuring exercise undertaken was with the view of adding value to the different parts of the business.

Business levels strategy: The second strategic level adopted by Electrolux was the business strategy which is how to strengthen market position and build competitive advantage and also actions to build competitive capabilities in a particular market. This has seen captured under Electrolux strategies in the case study and the goals stated are: Operational levels strategy: The third level strategy adopted by Electrolux is the strategy. This level takes into consideration the provision of a game plan for managing is particular activity in a way that support the overall business and add relevant details to the whole of the overall business strategy. This operational level strategy has been undertaken under a more efficient production and logistics and also a more efficient purchasing arrangement. The systemic development of both brands and personal a combination of continued focus on cast and intensified product renewal are also strategic decisions been implemented at the operational level. The human resource capabilities have been attested in the access to competence section of the case study. Continuing to cut costs and drive out complexity in all aspects of operations.. Increasing investment in marketing, and building the Electrolux brand as the global leader in the industry.

Strategic capabilities
The most strategic capabilities of a organization are depending on its resources and competences. The resources here talk about human, economical, the organizations resources and the capability to meet up with up with the stakeholders goals. In considering the stragic capabilities, we look at the Strengths and weakness of the organizations, ie, whether the organization wants competitive benefits or not over its competitors.

Strength Electrolux managed to produce efficient products with low energy and environmentally friendly.

 Electrolux managed to increase its operating profit margin with firstly achieving low suppliers and production costs. Electrolux achieved a more comprehensive thinking when expansion, based not only on low prices but make evaluations of labour and transportation costs, access to new suppliers and the extend of growing markets. The companys strategy also contains locating to medium or high cost companies due to taking advantage of the technology evolution of those countries.
WEAKNESSES:

After a effective performance following its access into the market, Electrolux found itself starting on a campaign of products in European nations. In complete, 59 companies were obtained in 1967. This technique became risky. These were countries in which price of manufacturing was high.

Besides generating at a more expensive of manufacturing, Electrolux had problems when it came to buying. First, its suppliers were many and therefore a project had to be designed under which the number was significantly decreased.

Strategic choices for Electrolux included product development and innovation through focusing on consumer needs.
a. Brand building of Electrolux apart from Husqvarna, AEG and Zanussi. b. To be socially responsible or not or to what extent play a role in social responsibility.

The success or failure of Electrolux strategies:

The strategies that Electrolux actually pursued were combination of intended and the emergent. At Electrolux, they saw that the company was restructured to manage the under-performers. Also, in the 1930s, the company spread its wings by establishing production outside Sweden. This was done to create the leading products in refrigeration and vacuum cleaning.

A major restructuring was undertaken by Electrolux in the late 1990s which created the shape of the organization in the early 2000s. This saw the organization making 85% of its sales in the consumer durables and 15% in the professional products. This clearly shows that in pursuing some of its strategies, there might be the need for structuring the organization to support successful performance.

Strategy lances:
Experience lens: They have global market experience

Ideas lens: Leader of innovation of home appliances Continues product development based on customers demand

Multinational Electrolux is affected by, in its approach to strategic management, in the following way:
a. Diverse products b. Diverse geographic markets c. Different brands d. Allocation of resources at different and often competing demands. e. Coordination of operational logistics across different business units and different countries.