Newell Rubbermaid
Newell 1966-1998: Describe Newell's corporate strategy from 1966 through 1998 under Daniel Ferguson with a focus on explaining why the strategy was successful? Was the decision to acquire Caphelon and Burnes a good idea? Why or why not?
Newell, "a privately held curtain rod manufacturer" (Montgomery, C. September 2, 2005.) under the direction of CEO Daniel Ferguson, branched out "and assembled a stable of businesses via acquisition" (Montgomery, C. September 2, 2005. 1) which produced and sold "durable, staple consumer goods that stayed the same from year to year" (Montgomery, C. September 2, 2005. 2). The corporate strategy designed by Ferguson was to utilize the trend and significant growth of the discount retailers. "Rather than selling one product, curtain rods, to many channels, Newell would sell a variety of products to one channel- the discount retailers" (Montgomery, C. September 2, 2005. 1). The strategy depended several key factors: the timely acquisitions of existing manufacturers which produced high quality housewares items, a product line which consisted of "high quality, no frills, utilitarian goods that were reasonably priced" (Montgomery, C. September 2, 2005. 2), and an efficiency of operations which controlled selling, general, and administrative expenses.
These elements however, worked only in conjunction with the growth of the discount retailer. Newell did not have to concern itself with bringing new products to market, as their acquisition strategy handled that aspect of corporate growth; rather the company flourished because it could effectively manage their discount retailer relationships. "Newell's management interfaced with their customers- the discount retailers-at every level" (Montgomery, C. September 2, 2005. 3).
In riding the train of success of the discount retailers, Newell captured significant market share, "in all its product categories…and emerged as the single most...
The solution was to reduce processing and manufacturing costs (Lynch, 1998) Patents: Tate & Lyle got their products licensed and obtained patents for them; this strategy was highly useful when the demand for one of the company's sweeteners increased and the company was the only one with rights to produce it (Lynch, 1998) Despite the expected beneficial results, the company's international expansion failed to deliver the foreseen growth as its profitability
Corporate Strategy for British Airways Airlines compete for a finite amount of passengers worldwide with a growing number of local, national and international carriers. Some airlines are specifically termed discount because they cut their costs in extreme ways to allow passengers to fly at much reduced rates. It is difficult for a full service international airline to compete and turn a profit in the environment that has grown up in the
Vermeulen, Freek. 2001 'Controlling International Expansion.' Business Strategy Review Vol. 12 Issue 3 pp29-36. Reynolds, Scott & Hatfield, Alcinda 1996 'Shanghai's Rising Tide of Consumerism Means Food Export Opportunities' AgExporter. [online] available at http://findarticles.com/p/articles/mi_m3723/is_n7_v8/ai_19161841 Gamble, Jos & Huang, Qihai 2007 Multinational Retailers in the Asia Pacific. [online] available at http://www.consume.bbk.ac.uk/research/gamble.html http://www.sucralose.com/uk/index.php Kage, Ben 2006. 'Sugar Industry Claims Splenda Engaged in Deceptive Advertising' NaturalNews [online] available at http://www.naturalnews.com/021026.html The PEST or PESTLE Analysis Rapidbi.com [online] http://www.rapidbi.com/created/the-PESTLE-analysis-tool.html Hoffmann,
This fits perfectly with the resource-based view of the organization. We will set out to acquire -- via compensation packages and stimulating work assignments -- talent from our competitors, the military and government. Then we will focus our efforts on retention, keeping such workers out of the hands of our competition. This isolation strategy should yield a workforce that our competition simply cannot match. 3. While it is expected that the
Corporate Strategies: Why are they so Important? Domino's Pizza Strategic Leadership Strategic Entrepreneurship Innovation Applied What is your biggest Professional Accomplishment? Organizational Design and Culture The 80s and Deregulation The Election of Barack Obama US rise as a world super power Domino's Pizza Dominoes use the strategy by depending on the population and household. They believe that the population and household income are what needs to help when it comes to figuring out if people are willing to pay the pizza
The problem with this kind of thinking is: once it begins to spread within an organization, it is only a matter of time until the entity will be slow to respond to changes that are take place. Once this happens, it can mean that a company can go from dominating their competitors, to becoming a cautionary tale. A good example of this can be seen with Sony's obvious lead
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