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Case Study On Spectrum Brands

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A Case Study
Spectrum Brands, Inc.
Introduction
The company was formerly known as Rayoval which was known for the manufacture of consumer batteries and other related products. The company is currently the biggest leader in the retail industry in North America.
Spectrum Brands, Inc. was formed because the company has the aim to adapt with the current trends that takes place in the retail industry. Their main purpose for this change is to be more competitive and innovative. Although the company was established the sales and marketing team believed that there should be change and this why merging between companies like Remington, Nu-Gro, Tetra/United Group has become possible. This article would describe how Spectrum evolved through time and …show more content…

The Vice President of marketing and sales division for Canadian division of Spectrum has decided to change the company’s operation through acquiring international customer commodities to expand its products and investments for retail products that was branded.
The decision that was engaged by the company was beneficial to the economic stability of Spectrum as a result Spectrum is now the top suppliers of customer “batteries, lawn and gardening supplies, animal supplies, shaving and grooming “stuff. The acquisition made by Spectrum has maximized their selling power and has empowered their relationship with retailers thus giving the company a broader opportunity to earn more.
The consolidations have made Spectrum even more successful in generating income and the even triggered the chance of being more influential than the producer of the products. Thus the decision was very successful because it made Spectrum more competitive and stronger with its business operations in North …show more content…

All necessary adjustments should be achieved regardless of cost as long as it would give significant favor in the income activity of the company.
There are procedures that would have to be adapted in implementing a business relationship with the distributors. There has to be a specific agreement that both parties should follow.
In the part of the distributor this would be additional income, while in Spectrum the same is expected but there is a relevant change in cost for having this procedure done.
Analysis
Exhibit 1
In June 2005 Radovan has decided to acquire ownership over United/Nu-Gro. Exhibit 1 would show the effect of the consolidation made by Rayovac. In 2005 the total net sales of Rayovac was $2,359,000 and before the merging the total net sales wwas $1,417,000. The effect of the merging was very favorable in the point of view of Rayovac.
There was a 40% increase in Net sales ratio for 2005 after the acquisition made by Rayovac.
Computations were as follows:
Total Net sales in 2005 $2,359
Less: Total Net Sales in 2004 1,417
Increase in Net sales 942 *66%
*$942/$1,417=66%
* Net sales were based on all product lines by

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