Restructuring of its major appliance operations

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Reference no: EM131143077

The annual report of Maytag Corporation contained the following excerpt:

The Company announced the restructuring of its major appliance operations in an effort to strengthen its position in the industry and to deliver improved performance to both customers and shareholders. This included the consolidation of two separate organizational units into a single operation responsible for all activities associated with manufacture and distribution of the Company's brands of major appliances and the closing of a cooking products plant in Indianapolis, Indiana, with transfer of that production to an existing plant in Cleaveland, Tennessee.

The restructuring cost Maytag $40 million and disrupted the lives of many of the company's employees.

Discuss why you think management felt it was necessary for the company to undertake the restructuring.

Reference no: EM131143077

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