Whirlpool Research and Engineering Division (a)

8 Pages Posted: 21 Oct 2008

See all articles by Samuel E. Bodily

Samuel E. Bodily

University of Virginia - Darden School of Business

Jeffrey McNair

affiliation not provided to SSRN


The director of Corporate Research faces the problem of setting the annual budget for the various areas of research. See also UVA-QA-0210 and UVA-QA-0211.




In summer 1975, Dr. Gale Cutler, director of Corporate Research for Whirlpool Corporation, was beginning to prepare the annual research and funds allocation plan for the coming year. The question in his mind was whether the methods used to allocate funds could be improved.

Whirlpool and the R&E Division

Whirlpool manufactured home appliances such as washing machines, refrigerators, air conditioners, and vacuum cleaners. Annual sales were expected to reach $ 1.5 billion in 1975. More than 50% of these sales were made to Sears, Roebuck and Co., which sold Whirlpool appliances under its own brand names.

The company was organized into two major product groups and one corporate group, as shown in Exhibit 1. Each product group was responsible for its own research, product design, and manufacturing engineering. To supplement these activities, the Research and Engineering (R&E) Division, a part of the corporate group, provided basic research and development (R&D) and engineering support for the company as a whole.

. . .

Keywords: budgeting, decision analysis, decision theory, long-range planning, planning

Suggested Citation

Bodily, Samuel E. and McNair, Jeffrey, Whirlpool Research and Engineering Division (a). Darden Case No. UVA-QA-0209. Available at SSRN: https://ssrn.com/abstract=1283351

Samuel E. Bodily (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-4813 (Phone)
434-293-7677 (Fax)

HOME PAGE: http://www.darden.virginia.edu/faculty/bodily.htm

Jeffrey McNair

affiliation not provided to SSRN

No Address Available

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