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Published by: Institute for Management Development (IMD)
Originally published in: 2003
Version: 29.07.2003

Abstract

In December 2001, Merloni Elettrodomestici purchased General Domestic Appliances Ltd (GDA) in order to consolidate itself as Europe''s third largest producer in the white goods market. Merloni, who had been sourcing its tumble dryer production from competitors, aimed at switching its sourcing to GDA''s old and not highly efficient plant. The case focuses on the manufacturing challenges faced by Bob Vernon, Merloni UK industrial director, in implementing Merloni''s new tumble dryer development strategy. After having analysed the pros and cons of each option, participants are asked to recommend whether Vernon should continue to develop its two products lines independently or as a single common platform.
Location:
Size:
EUR1.4 billion revenues
Other setting(s):
April 2003

About

Abstract

In December 2001, Merloni Elettrodomestici purchased General Domestic Appliances Ltd (GDA) in order to consolidate itself as Europe''s third largest producer in the white goods market. Merloni, who had been sourcing its tumble dryer production from competitors, aimed at switching its sourcing to GDA''s old and not highly efficient plant. The case focuses on the manufacturing challenges faced by Bob Vernon, Merloni UK industrial director, in implementing Merloni''s new tumble dryer development strategy. After having analysed the pros and cons of each option, participants are asked to recommend whether Vernon should continue to develop its two products lines independently or as a single common platform.

Settings

Location:
Size:
EUR1.4 billion revenues
Other setting(s):
April 2003

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