te____________ Strategic Management _____________ (BUSA 5051)MBA (PART TIME) (2013)Individual Assignment (Session 5) | | Egor A. Oussov (Student No. 578723)Word Count: 996 Submission Date: May 15, 2012 |
Table of Contents Table of Contents 2 1. Newell Case Study 3 Question 1: 3 Question 2: 4 Question 3: 4 Question 4: 5 List of References 6
1. Newell Case Study
Does Newell have a successful corporate-level strategy? Does the company add value to the business within its portfolio?
Newell has a successful corporate-level strategy which has definitely proven itself over nine decades with annual revenue reaching $6 billion. The corporate strategy is embedded on well…show more content… Finally, it possesses technology and infrastructure to support excellent service levels and consistent products availability as per customers’ requirements.
What challenges faced the company in the late 1990s?
The main challenge the company incurred in the late 1990, was to be able to achieve and maintain its critical mass in all product lines in order to maintain better bargaining power and relationships with its buyers and subsequently maintain its profit margins above 15% and achieve higher price/earnings multiplies and achieving increasing returns to scale (Whitelegg 1997).
By end of 90’s the company was dominant in many of the categories it competed in. The challenge was found in whether it can continue its dominance in it’s new, expanding product ranges and could maintain its dominance and synergy in its all categories on low and high price offering in hardware, home furnishings, office and house ware, while maintaining its management and corporate structures.
Another challenge was found on whether the company should go global and whether it will be able to maintain its efficiencies over the border.
In this context, does the acquisition of Calphalon make sense? Rubbermaid?
The takeover of Calphalon created additional value for Newell by extending its exposure into the