Wilo SE: Corporate structures in times of deglobalization

Claire Cardy; Bianca Schmitz; Olaf Plötner; Johannes Habel

Product #:ESMT–321–0193–1

Supplier:ESMT European School of Management and Technology

Discipline:General Management

Details:Case (PDF) • 7 pages • 2021-11-23

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Industries:

Construction and engineering

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Wilo SE, headquartered in Dortmund, Germany, was a leading supplier of pumps and pump systems for the building services, water management and industrial sectors, which was doing business in more than 50countries. Based on current global developments in politics, economy, and society, Oliver Hermes, President and CEO of Wilo Group, saw a de-coupling of three tectonic plates centered in China, USA, and WesternEurope. At the Wilo management conference in September 2020 Hermes informed stakeholders about the decision to establish a 2nd headquarters in Beijing within the next few months, and possibly to open a 3rdheadquarters in the following year in the USA. He stated: “With the opening of a 2nd headquarters I want to set a sign. Wilo has to keep up with current global developments – whether we like them or not. A stronger regionalization of Wilo is necessary to continue our globalsuccess.” The case text introduces the key measures to establish the 2nd headquarters in China

Learning Objectives

(1) Improve students’ understanding of the phenomena of globalization/de-globalization/regionalization in economics as well as in industrial companies. (2) Familiarize students with most current external factors driving these phenomena. (3) Provide insights on how these factors currently impact the processes of value creation and decision making in globally active companies. (4) Identify and understand possible options for companies to revise their organizational structures. (5) Analyze the pros and cons of these changes and train students’ ability to evaluate strategic changes.