Black & Decker Case Analysis Essay

933 Words Mar 1st, 2011 4 Pages
Case Analysis: The Black & Decker Corporation
Synopsis
Black & Decker Corporation is a corporation based in Towson, Maryland, United States, that designs and imports power tools and accessories, hardware and home improvement products, and technology based fastening systems.
Recent research studies showed that B&D is one of the powerful brand names in the world because of its professional tools that has high quality in the industry.

During the early 1980's; sales started to decline and it posted a restructuring cost; therefore in the period of 4 years the company lost money. Black & Decker went through a very hard time.
In 1985, the company hired Nolan D. Archibald as president and chief operating officer (CEO). Under his leadership
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• Tradesmen's bad feedback over B&D products and seeing it as for home use rather than job use.
• Makita that has a high market share had "Membership clubs" which B&D decided not to include among its tools, it would have been an opportunity for B&D to raise its revenues but it didn’t use that opportunity.
• B&D conducted laboratory tests on its own competitive products to asses performance.
• Strong competitors at the same field
• B&D was not making money in the Professional Tradesmen segment
Problems
• Environmental related
1. Rising competition from Makita and Milwaukee
2. Change in consumer taste
3. B& D's weak reputation among workers
4. Different segments need different equipments
5. Difficulty in handling the global market
• Strategy related
1. Poor marketing programs
2. Poor quality of products / product development
3. Lack of strategic direction and poor application of funds
4. Failure to achieve clear objectives
• Management related
1. Poor planning for the Professional Tradesmen segment
2. B&D advertising only supported house hold products line
3. Lack of long term planning and forecasting
4. No actions for new opportunities
5. Focusing in brand awareness rather than product quality
6. Wide range of target market
7. No available HR manual or guidelines for mergers and acquisitions

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