Maytag Strategic Analysis
I. Executive Summary
Maytag Corporation was founded in 1893 by Fred L Maytag and two other men. The company built its first washing machine in 1907. From there the company quickly expanded into a national corporation. With the sweeping globalization movement of the 1990’s, Maytag has attempted to establish a presence as a global competitor in the appliance industry.
As the company has tried to establish itself in the developing global marketplace, it has had difficulties. Not only were consumers taste and preferences changing in the domestic market, but the company needed to develop products that would appeal to the new global markets. Maytag will need a great deal of money to make these large changes.
The current strategy that Maytag has used was to buy small companies in countries where the company wished to compete. Yet, these companies are not falling in line with Maytag’s strategic mission and values. So, the company must decide how to better handle its international expansion.
Currently, Maytag has spent a great deal of money to develop global operations. Then, these new global companies are not adding enough to the bottom line to cover their costs. So, Maytag is currently must find a way to make more money and to operate its new international operations more effectively.
II. External Analysis
A company must begin its external analysis may scanning its external environment for strengths and weaknesses. In scanning the environment Maytag must look at its society environment that includes general forces that do not affect the short-run activities of the organization but influence long-term decisions. There are four forces that a company must look at. First, sociocultural forces are those that regulate the values, mores, and customs of society. Second, are economic forces that regulate the exchange of materials, money, energy, and information. Third, are political-legal forces that allocate power and provide constraining and protecting
Maytag Corporation was founded in 1893 by Fred L Maytag and two other men. The company built its first washing machine in 1907. From there the company quickly expanded into a national corporation. With the sweeping globalization movement of the 1990’s, Maytag has attempted to establish a presence as a global competitor in the appliance industry.
As the company has tried to establish itself in the developing global marketplace, it has had difficulties. Not only were consumers taste and preferences changing in the domestic market, but the company needed to develop products that would appeal to the new global markets. Maytag will need a great deal of money to make these large changes.
The current strategy that Maytag has used was to buy small companies in countries where the company wished to compete. Yet, these companies are not falling in line with Maytag’s strategic mission and values. So, the company must decide how to better handle its international expansion.
Currently, Maytag has spent a great deal of money to develop global operations. Then, these new global companies are not adding enough to the bottom line to cover their costs. So, Maytag is currently must find a way to make more money and to operate its new international operations more effectively.
II. External Analysis
A company must begin its external analysis may scanning its external environment for strengths and weaknesses. In scanning the environment Maytag must look at its society environment that includes general forces that do not affect the short-run activities of the organization but influence long-term decisions. There are four forces that a company must look at. First, sociocultural forces are those that regulate the values, mores, and customs of society. Second, are economic forces that regulate the exchange of materials, money, energy, and information. Third, are political-legal forces that allocate power and provide constraining and protecting