Whirlpool Europe Harvard Case Solution & Analysis

Whirlpool Europe Case Solution


From the case, it is identified that Whirlpool is one of the most successful corporations based in Europe. Which provides various products and services in the home appliances. It also takes 13% of the overall market shares in the field of home appliances. While according to the case, it has been analyzed that the corporation wanted to expand the operations by installing the new Enterprise Resource Planning system based in all the selected European countries.

In addition to that, improve the operational efficiency by reducing the cost of operations, holding the inventory size as well as increase the profit margins in order to engage in a reinvestment activity. With all required changes and modifications, now the top management was critically reviewing the process based on 11 manufacturing locations, where they could install a unified system to help suppliers and distributors excess the connection in an effective manner.

Another objective of installing the new system was that it could reduce the overall day's sales in inventory concerning high productivity of the sale and less stock unit margin. The management also took considerations about the life of the project and implementing a capital budgeting process to know the net present value of the project at the end of the selected year.

From all these analyses and considerations, now the management had come to the conclusion that a project can be feasible to adopt because it consisted of various facilities like increase the operational size and efficiency by easy access, the reference to decrease the necessary costs overtime by reducing the day's sales stock inventory.

Another advantage that a project possessed was the ability to reduce the shipment costs subjected to a return of the finished goods by the consumer as well as contractors. In the related case, various capital budgeting tools and techniques have been applied to know how much worth the project possess at the end of the practicing year or in other words, what is the estimated value of the project at the end of the projected period.

This can be done by determining the net present value of the project by the use of capital budgeting process, which would generate the cash inflows from the related investment or the outflow of the project. Therefore, it shows that according to the changes in the operations as well as supply of goods, it can be said that the Project Atlantic would consider being a success implementation of the corporation due to the fact that it provided a unified technological services instead of adopting different processes by different regions, that could decrease the overall cost of the corporation in terms of decrease in cost of sales, operational expenses as well as provide tax benefits overtime.Whirlpool Europe Case Solution

So it is concluded that Whirlpool would increase the revenues and profit margins in the coming years, if it would properly utilize project Atlantic according to the certain requirements given in the case and thus achieve its overall objective of sustaining the process in the proper utilization level.

Financial Analysis

Baseline to budget a project

In order to budget a project properly according to the initial requirements, it has been determined that a company used a data of 1997 as the baseline for the projections. The reason was that; it might help to change the operational activities from shifting the old technological process to the new one. The data could also have considered being a reference point to implement a capital budgeting process because it provided various input data that was the baseline to calculate the results properly.................

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