Maytag's Three Alternative Strategies

     Labor union issue

 

HR manager should work closely with the labor union and try to reduce employee dissatisfaction and unionizations efforts.

Pro’s: By mingling up with the workers he would be able to resolve the issues at the initial level and risks of union members going on a strike would be reduced. Thus work would be carried out effectively and efficiently.

Con’s:  HR manager would be role overloaded as well as some black sheep’s would be creating problems every now and then, he would not be able to concentrate on his core job.

• After sales service is outsourced

Company can provide after sales and repairs services at Maytag’s exclusive retail outlets in order to maintain customer satisfaction.

                                

Pro’s: It would be beneficial for the company in terms of image and increase customer satisfaction.

Con’s: This would increase company’s cost as more technical force would be required to solve these problems.

  

     Growth Strategies

In its growth orientation strategy, company should plan to have a horizontal growth. Through horizontal growth we will have a horizontal integration. Growth means development, and new market shares, this could be done by acquiring domestic and niche players such as Sub-Zero/wolf, Guangdang Midea Group or by buying shares in competitive corporations such as ABElectrolux is Related diversification.

Pro’s: Increase in product line and company’s operations across North America by acquisition of related companies.

Con’s: Cultural-clashes and unable to have administrative control as happened in the past could result in a drawback.

                                                                              

Stability Strategies

Stability – keep the three larger subsidiaries. Maytag, Amana and Hoover as they produces large variety of the products and could be regarded as backbone of the company. 

Pro’s: Company would be more focused

                                                                                                         

Con’s: new opportunities could be missed out

Retrenchment Strategies

In the past, Maytag Corporation expanded its product line, trying to gain market share against its competitors. Maytag Corporation bought small companies like Jade, Jenn-Air, Amana, Hoover, Magic Chef were included in the Maytag Corporation. The strategy of expanding the product line by purchasing these companies has not been successful. Company should sell Jenn-Air, Jade, Magic Chef, and Dixie Narco as well as the commercial appliances segment. Besides this joint venture with China’s Hefei Rongshida turned out to be unprofitable and market share has even failed to grow. This is why management should end this joint venture.

Pro’s: By selling the above mentioned subsidiaries company would be able to focus on their initial product line. This would help us to make our product better than our competition and enable Maytag to save money. Through better marketing efforts we can gain a better market share.

Con’s: Maytag might be giving up its future opportunities.