Business Case Study: The Electrolux Company

The focus of the case study this week is the Electrolux Company, one of the largest home appliance companies in the world. The first question asks, “How did Electrolux Chief Executive Stråberg break down barriers (and increase communication) between departments? Why did he do this?” (Bethel University, 2011, p. 216). One way Stråberg accomplished removing barriers and improving communications was through the creation of a formal group for the purpose of improved research and development. The team’s composition was expanded to include engineers, designers, and marketers from the companies various divisions, who all met in Stockholm, Sweden, the home of the company’s headquarters, for a week long session. By developing a team with varied viewpoints

(Bethel University, 2011, p. 216). Stråberg’s idea for creating a broader based design team also brought more and varied ideas to the table for the purpose of catching the public’s attention. Through the utilization of this team concept a number of potential problems could be avoided before they could become problems. For instance, the design team would also function as a “problem-solving team” by catching potential problems and eliminating them before they could get to the production floor. This same team could also be classified as a “cross-functional team” in that it is made up of people from all of the various departments within the company such as engineering, human resources, marketing, and others. The team effectiveness will most likely improve greatly as time goes by. The members will need time to adjust to the new format which will include learning to trust one another which will in turn lead to an improved performance among the members. The group’s cohesiveness will grow as they move forward toward their common goal of introducing new and better products to their customer base. Will it be a positive or negative cohesiveness? Provided the end result is met, meaning the company goal of getting those new products to market the cohesiveness should be positive but if the opposite proves to be