Electrolux – a global leader with a customer focus
Electrolux is a global leader in household appliances and appliances for professional use, selling more than 40 million products to customers in more than 150 markets every year. The company focuses on innovations that are thoughtfully designed, based on extensive consumer insight, to meet the real needs of consumers and professionals. Electrolux products include refrigerators, dishwashers, washing machines, vacuum cleaners, cookers and air-conditioners sold under esteemed brands such as Electrolux, AEG, Eureka and Frigidaire.
Electrolux vision and strategy
Electrolux vision is to be “the world leader in making life easier and more enjoyable with the help of powered appliances”.
Strong brands and rapid launches of new innovative products are the pillars of Electrolux strategy. Strong brands grow sales in existing markets and gain access to new ones. Developing consumer-insight based products with high quality, excellent design and services supported by operational excellence are crucial to achieve a market-leading position. Electrolux ambition is to become the best appliances company in the world measured by customers, shareholders and employees.
Electrolux objective is to grow with consistent profitability.
Respect and diversity
Electrolux corporate culture is imbued with the spirit from the time of its founder, Axel Wenner-Gren. His success was built on proximity to customers and the ability to identify new business opportunities ahead of others. The Electrolux corporate culture in combination with a strong set of values form the core of the Group’s operations. The employees’ passion for innovation, their consumer obsession and motivation to achieve results set Electrolux apart.
Sustainability
The company takes a consistent approach to sustainability in the more than 150 countries where Electrolux operates. Understanding and engaging in challenges such as climate change, creating ethical and safe workplaces, and adopting a responsible approach to sourcing and restructuring are important for realizing the business strategy. Values such as respect, diversity, integrity, ethics, safety and sustainability are at the core of all employee actions when they interact with customers and colleagues around the globe. Key policies in this context include the Electrolux Code of Ethics, the Electrolux Workplace Code of Conduct and the Electrolux Policy on Corruption and Bribery.
In the Dow Jones Sustainability World Index (DJSI World) for 2011, Electrolux was named Durable Household Products sector leader. The Dow Jones Sustainability Indexes evaluate the performance of the world’s leading companies in sustainability – from each industry on a global and regional level, respectively. The evaluation is based on criteria such as corporate governance, risk management, branding, climate change mitigation, supply chain standards and labor practices.
During 2011, an ethics training program was initiated and the implementation of a whistleblowing system — the Electrolux Ethics Helpline — has started. The ethics training program and the implementation of the whistleblowing system through-out the Group will continue during 2012.
Risk assessment
Risks in connection with the Group’s operations can, in general, be divided into operational risks related to business operations and those related to financial operations. Business risks are normally managed by the operative units within the Group, and financial risks by the Group’s treasury department.
Electrolux operates in competitive markets, most of which are relatively mature. Demand for appliances varies with general business conditions, and price competition is strong in a number of product categories. The Group’s ability to improve profitability and increase shareholder return is based on three elements: Innovative products, strong brands and cost-efficient operations. Realizing this potential requires effective and controlled risk management.
The Group’s development is strongly affected by external factors, of which the most important in terms of managing risks currently include: Fluctuations in demand, price competition, exposure to customers and suppliers, changes in prices for raw materials and components as well as adapting production capacity. In addition, the Group is exposed to risks related to financial operations, e.g., interest risks, financing risks, currency risks and credit risks.
The Group has established internal boards to manage these risk exposures.
The internal audit function, Management Assurance & Special Assignments, has been developed to provide reasonable assurance that the Group’s goals are met in terms of efficient operations, compliance with relevant laws and regulations and reliable financial reporting, see Internal control over financial reporting.
Management and company structure
Electrolux aims at implementing strict norms and efficient processes to ensure that all operations create long-term value for shareholders and other stakeholders. This involves the maintenance of an efficient organizational structure, systems for internal control and risk management and transparent internal and external reporting.
The Group has a decentralized corporate structure in which the overall management of operational activities is largely performed by the Business sector boards.
Electrolux operations are organized into six business sectors. Within Major Appliances, the business sectors are geographically defined, while the sectors Professional Products and Small Appliances are global. There are seven Group staff units that support all business sectors: Finance, Legal Affairs, Human Resources and Organizational Development, Marketing and Branding, Technology development, Design and Communications.
There are a number of internal bodies which are forums that are preparatory and decision-making in their respective areas. Each body includes representatives from concerned functions and in most cases the President and CEO.
In order to fully take advantage of the Group’s global presence and economies of scale, a global organization within Major Appliances was established in 2009 with responsibility for product development, purchasing and manufacturing. Since October 2011, the Global Major Appliances Leadership Team includes the four Major Appliances business sector heads, the functional heads of Manufacturing, Technology development, Purchasing, the Chief Financial Officer, the Chief Marketing Officer, the Chief Design Officer and the head of the Product Boards.
