Chapter 3. Case-Study Summaries, Key Findings, and Early Warning Signs
Manufacturing Sector (Asset-Heavy)
Maytag Corporation
In 1980, Maytag was a high-end, niche manufacturer of clothes washers, dryers, and dishwashers. The company grew by acquisition through the mid-1980s, becoming a full-line manufacturer of major appliances. Late in the decade, Maytag added overseas acquisitions for international growth. While that strategy helped diversify the corporation’s product lines, the overseas businesses did not meet its internal profitability standards. Maytag subsequently sold off its poorly performing European and Australian operations. Maytag used the proceeds to pay down debt and strengthen its balance sheet, reinvest in its core North American ...
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