Sample Management Case Studies Paper on Electrolux AB

Electrolux AB

            Innovation is the new business strategy that all companies with the desire of achieving business success are employing in the current world. Technology has provided so many new opportunities for business people, which is both good and bad from a business point of view. The new ways of production ensures that companies are in a position to meet their consumer needs but it also increases the amount of competition in the market. As a result, companies must come up with ways to stay ahead of competition and the best way to manage competition effectively in business is by avoiding it. Innovation gives entrepreneurs a chance to be good at something authentic that no other company can manage to beat them. However, attaining success in innovation is quite a task because it takes more than just an executive to come up with an innovative idea, implement it, and grow it.

            Electrolux AB, a global company that majors in home appliance and other related products is one of the companies that are trying the new way of business operation: innovation. Based on the case study, the company can be rated six out of ten due to various reasons. First, the organization lacks an innovative culture, something that is integral to any innovation procedure in an organization. Additionally, innovation is not just about creating and improving products based on consumer needs. A good innovative company knows the needs of its consumers more than the consumers do. In other words, the organization should be able to predict the needs of its customers in a more precise way for success in innovation to happen. Based on the case study, the company measures the effectiveness of their products based on the consumer perception only rather than on the organizational innovative ability. Moreover, innovation is not just about production alone but it extends to sales and marketing too something that does not exists in Electrolux AB.  

            Collaboration in an organization means simply focusing all the energy towards the attainment of the organizational goal rather than personal gain. In the case of Electrolux AB, the organization must ensure that all employees understand the purpose of innovation and the goals that the organization is trying to achieve through the new business operation method. Additionally, in a collaborative organization, personal needs are set aside and the responsibility of organizational success becomes everybody’s responsibility rather than the top managements. Persistence and a supportive environment aid in creating a collaborative organization. In the case of Electrolux AB, the managers and the people with the innovative ideas must relentlessly continue to push the ideas to the rest of the staff. Additionally, the management team must create an environment conducive enough to let the new ideas take root and become part of the organizational culture.

            Lundberg and Rask have to implement a few issues in the organization before innovation can be successful in the organization. First, they need to come up with a group of innovators rather than trying to create some because innovation is not something that person can instill on another. Second, they need to ensure coordination between departments so that innovation does not just happen in the lab but in the entire organization. Thirdly, the effectiveness of innovation lies within specialization. Therefore, Lundberg and Rask must change the perspective of the organization from focusing on all household appliances to focusing on a specific line of production that is unique and can serve as the organizational brand.