This but for Microsoft Company please
I. Current Situation A. Current Performance Poor financials, high debt load first losses since 1920s, price/earnings ratio negative. First loss since 1920s. Laid off 4500 employees at Magic Chef. Hoover Europe still showing losses. B. Strategic Posture 1. Mission Developed in 1989 for the Maytag Company: "To provide our customers with products of unsurpassed performance that last longer, need fewer repairs, and are produced at the lowest possible cost." Updated in 1991: "Our collective mission is world class quality." Expands Maytag's belief in product quality to all aspects of operations. 2. Objectives "To be the profitability leader in the industry for every product line Maytag manufactures." Selected profitability rather than market share. "To be number one in total customer satisfaction." Doesn't say how to measure satisfaction. "To grow the North American appliance business and become the third largest-appliance manufacturer in unit sales) in North America." To increase profitable market share growth in the North American appli- ance and floor care business, 6.5% return on sales, 10% return on assets, 20% return on equity, beat competition in satisfying customers, dealer, builder, and endorser, and move into third place in total units shipped per year. Nicely quantified objectives. Strategi Global growth through acquisition, and alliance with Bosch-Siemens. Differentiate brand names for competitive advantage. Create synergy between companies, product improvement, investment in plant and equipment. CHAPTER 13 Suggestions for Case Analysis 31 4. Policies Cost reduction is secondary to high quality, Promotion from within. Slow but sure R&D: Maytag slow to respond to changes in market. II. Strategic Managers A. Board of Directors 1. Fourteen members - eleven are outsiders. 2. Well-resp Americans, most on board since 1986 or earlier 3. No international or marketing backgrounds. 4. Time for a change? B. Top Management 1. Top management promoted from within Maytag Company. Too inbred? 2. Very experienced in the industry. 3. Responsible for current situation. 4. May be too parochial for global industry. May need new blood. I. Current Situation A. Current Performance Poor financials, high debt load first losses since 1920s, price/earnings ratio negative. First loss since 1920s. Laid off 4500 employees at Magic Chef. Hoover Europe still showing losses. B. Strategic Posture 1. Mission Developed in 1989 for the Maytag Company: "To provide our customers with products of unsurpassed performance that last longer, need fewer repairs, and are produced at the lowest possible cost." Updated in 1991: "Our collective mission is world class quality." Expands Maytag's belief in product quality to all aspects of operations. 2. Objectives "To be the profitability leader in the industry for every product line Maytag manufactures." Selected profitability rather than market share. "To be number one in total customer satisfaction." Doesn't say how to measure satisfaction. "To grow the North American appliance business and become the third largest-appliance manufacturer in unit sales) in North America." To increase profitable market share growth in the North American appli- ance and floor care business, 6.5% return on sales, 10% return on assets, 20% return on equity, beat competition in satisfying customers, dealer, builder, and endorser, and move into third place in total units shipped per year. Nicely quantified objectives. Strategi Global growth through acquisition, and alliance with Bosch-Siemens. Differentiate brand names for competitive advantage. Create synergy between companies, product improvement, investment in plant and equipment. CHAPTER 13 Suggestions for Case Analysis 31 4. Policies Cost reduction is secondary to high quality, Promotion from within. Slow but sure R&D: Maytag slow to respond to changes in market. II. Strategic Managers A. Board of Directors 1. Fourteen members - eleven are outsiders. 2. Well-resp Americans, most on board since 1986 or earlier 3. No international or marketing backgrounds. 4. Time for a change? B. Top Management 1. Top management promoted from within Maytag Company. Too inbred? 2. Very experienced in the industry. 3. Responsible for current situation. 4. May be too parochial for global industry. May need new blood
