Electrolux

ELECTROLUX: MERGER EXPERTS<Tab/> Problem Summary Electrolux is a multinational company, which has reached its current size by an aggressive horizontal expansion strategy. Although experts in mergers, this case show the difficult process of uniting two with vastly different managing cultures and style. The core problem facing Electrolux, is how to integrate and motivate the group of 150 renegade middle managers who are hindering the success of their merger. Analysis At the …

…of them completely. The solution is either to fire them or to allocate them as other resources in the company, if they desire to stay. It would be problematic to engage in such radical change, but in the long run it would be more beneficial than having internal problems across an entire section of the company. We expect that the good relationships that Electrolux has developed with Unions will aid in negotiating such a move.