Whirlwind Corporation is one of the largest electrical appliance-based companies in the world. The company employs around 100,000 people and has several sub-brands under its umbrella. In 2019, the company reportedly owned 50 manufacturing and technology research centers while having a global reach in all the continents of the world. The company has been able to successfully expand globally by integrating its manufacturing plants in 11 countries and partnering with suppliers and vendors in large emerging markets like India and China. In December 2019, the safety team of Whirlwind identified that some product lines associated with the washing machine category posed a fire risk to customers of the United Kingdom. The company had sold 550,000 units in the past four years. The situation that the company faced was critical because earlier that year, the company had already announced a recall of 500,000 dryers in the same year. The product recall was due to a potential fire hazard that had caused 750 fires in the five years. Whirlwind’s brand equity was at stake as it was a forced recall initiated under the directives of the British government. Justification for Problem Definition WHIRLPOOL CORPORATION 2 For global companies like Whirlwind Corporation, brand equity is the most valuable asset. The issue is analogous to the one that Samsung faced back in 2016 when its Note category of cellphones posed a threat of getting blown off during regular use. But it has to be noted that Samsung’s response was adequate and timely. The company was able to identify the underlying technical problem and was able to resolve the issue permanently. In this case, Whirlwind had repeated a fatal mistake after already suffering from a major recall that was forced by the British Government. The executive committee had to make a hard decision for the second time in the same year. Courses of action The executive committee of Whirlwind Corporation had three options at their disposal: 1. Give the customers an option to modify or repair the sold units as the company did with its driers. 2. Issue a press release and go for a recall and arrange reimbursement for the customers. 3. Issue a press release and announce the recall of products with an option of free repair or a free replacement of the machine. Evaluate each course of action and propose a Recommendation. What will be the consequences of the proposed recommendati
Whirlwind Corporation is one of the largest electrical appliance-based companies in the world. The company employs around 100,000 people and has several sub-brands under its umbrella. In 2019, the company reportedly owned 50 manufacturing and technology research centers while having a global reach in all the continents of the world. The company has been able to successfully expand globally by integrating its manufacturing plants in 11 countries and partnering with suppliers and vendors in large emerging markets like India and China. In December 2019, the safety team of Whirlwind identified that some product lines associated with the washing machine category posed a fire risk to customers of the United Kingdom. The company had sold 550,000 units in the past four years. The situation that the company faced was critical because earlier that year, the company had already announced a recall of 500,000 dryers in the same year. The product recall was due to a potential fire hazard that had caused 750 fires in the five years. Whirlwind’s brand equity was at stake as it was a forced recall initiated under the directives of the British government. Justification for Problem Definition WHIRLPOOL CORPORATION 2 For global companies like Whirlwind Corporation, brand equity is the most valuable asset. The issue is analogous to the one that Samsung faced back in 2016 when its Note category of cellphones posed a threat of getting blown off during regular use. But it has to be noted that Samsung’s response was adequate and timely. The company was able to identify the underlying technical problem and was able to resolve the issue permanently. In this case, Whirlwind had repeated a fatal mistake after already suffering from a major recall that was forced by the British Government. The executive committee had to make a hard decision for the second time in the same year. Courses of action The executive committee of Whirlwind Corporation had three options at their disposal: 1. Give the customers an option to modify or repair the sold units as the company did with its driers. 2. Issue a press release and go for a recall and arrange reimbursement for the customers. 3. Issue a press release and announce the recall of products with an option of free repair or a free replacement of the machine. Evaluate each course of action and propose a Recommendation. What will be the consequences of the proposed recommendati
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Whirlwind Corporation is one of the largest electrical appliance-based companies in the
world. The company employs around 100,000 people and has several sub-brands under its
umbrella. In 2019, the company reportedly owned 50 manufacturing and technology research
centers while having a global reach in all the continents of the world. The company has been able
to successfully expand globally by integrating its manufacturing plants in 11 countries and
partnering with suppliers and vendors in large emerging markets like India and China.
In December 2019, the safety team of Whirlwind identified that some product lines
associated with the washing machine category posed a fire risk to customers of the United
Kingdom. The company had sold 550,000 units in the past four years. The situation that the
company faced was critical because earlier that year, the company had already announced a
recall of 500,000 dryers in the same year. The product recall was due to a potential fire hazard
that had caused 750 fires in the five years. Whirlwind’s brand equity was at stake as it was a
forced recall initiated under the directives of the British government.
Justification for Problem Definition
WHIRLPOOL CORPORATION
2
For global companies like Whirlwind Corporation, brand equity is the most valuable
asset. The issue is analogous to the one that Samsung faced back in 2016 when its Note category
of cellphones posed a threat of getting blown off during regular use. But it has to be noted that
Samsung’s response was adequate and timely. The company was able to identify the underlying
technical problem and was able to resolve the issue permanently. In this case, Whirlwind had
repeated a fatal mistake after already suffering from a major recall that was forced by the British
Government. The executive committee had to make a hard decision for the second time in the
same year.
Courses of action
The executive committee of Whirlwind Corporation had three options at their disposal:
1. Give the customers an option to modify or repair the sold units as the company did with its
driers.
2. Issue a press release and go for a recall and arrange reimbursement for the customers.
3. Issue a press release and announce the recall of products with an option of free repair or a free
replacement of the machine.
Evaluate each course of action and propose a Recommendation. What will be the consequences
of the proposed recommendation?
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