Newell Company Case Summary

Corporate governance in itself has no single definition but common principles which it should follow. For example in 1994 the most agreed term for corporate governance was “the process of supervision and control intended to ensure that the company’s management acts in accordance with the interest of shareholders” (Parkinson, 1994)1. Corporate governance code is not a direct set of rules but a self-regulated framework which businesses choose to follow. This code has continued to change in the past 20 years in accordance with what is happening in the business world. For example the Enron scandal caused reform in corporate governance with the Higgs Report which corrected the issues which were necessary. Although it does not quickly fix problems, it gives a better framework to

Newell Company chose to diversify their product line for the simple reason to improve shareholder value. This is

The case develops around Newell’s CEO Dan Ferguson, the protagonist, as he purchases two key acquisitions, the Calphalon company and the Rubbermaid company. Ferguson feels these acquisitions will assist the company in reaching its goal of a market capitalization of $10 billion, which will allow Newell to control a higher price per earnings multiple. “The company’s plan is to gain access to the capital markets by aggressively adding new products by acquisition”(Montgomery, 2005). The key to this approach was a two part strategy, the acquisition process and guaranteeing company continuity throughout the division to assist the company’s in its market performance. “Executives must balance a company’s growth with its ability to manage the growth”(Raisch and Krogh, 2007).

The takeover of Calphalon created additional value for Newell by extending its exposure into the

After acquiring, Newell would get the service level of each business to their standards as fast as possible to make sure that these businesses do not damage its reputation. Thus association of brand name to Newell highly enhanced the individual companies inside Newell’s portfolio to be of good service and fast distribution. Other than these factors, the acquisition of different companies might bring in different skills and synergies to complementing goods such as production knowledge and complementary assets. Companies that produce complementary products are able to know what exactly to produce that would suit their customers, while companies producing differentiated products of the same category would be able to learn from each other to produce better products for each customer segment. Companies of similar nature are also consolidated and the plants upgraded to increase manufacturing efficiency which will benefit these companies in the cost aspect.

Their employees are united by the strong values of accountability, respect, teamwork and integrity. They make sure that extraordinary ethical standards, and a steady commitment to safety, invade company’s organization. Some of corporate governance has found lacking as following its area;

Martin Company is a company that manufactures computer chips and cellular phones. As the assistant chief accountant at Martin Company, AggiePride Nationwide was in charge of preparing a trial balance so that the financial statements could be prepared and released to management and regulatory agencies. With the deadline, 4 p.m., slowly approaching Agg-ie was om a rush to do her task. During his completion of the trial balance, Agg-ie noticed that the total credits exceeded debits by $1,000. Agg-ie decided to add the difference to Equipment because of the large account balance.

My thoughts on this case are that the supplier is trying to bribe Jim so that they will sell 20% of his supplies from Avery, so, Jim will get a free vacation for him and his family and that this scenario is unethical. I also think that even thought not giving an employee is illegal, it is still not right, especially when Jim is the top performing purchasing agent for Hooks Incorporated. Also, with Avery Company bribing Jim with a free vacation not only is unethical, but in most companies is against company policy. Another thing is that now Avery Company is getting into Jim’s personal life, which should be separate from work, especially with a supplier. Therefore, my thoughts on this case are that the supplier is trying to bribe Jim so that they will sell 20% of supplies to him from Avery Company and that is unethical.

Knight’s team had collected the data shown in Exhibit 4 based on operations in March 2000. The team felt that this month was typical of ongoing operations. Some people recalled, however, that when demand was really heavy last year, the machines had worked 12,000 hours in a month and the factory handled up to 180 production runs and 400 shipments without experiencing any production delays or use of overtime.

The strategy that Newell had were a great impact for its mission. They have a very solid plan and partner with the right company. Newell found its opportunity and take control of the situation. The control Newell uses fits its strategy because they focus on flexible manufacture system and to sell different product to large retailers a high volume to low cost. They cut cost and cost control strategy help the organization to grow more. These 3 controls that they implement an integrated financial accounting system, a sales and order processing and tracking system, and a flexible manufacturing system, were a huge support to reduce cost to the company. They actually were be able to spend less money that was project to spend. All the controls

1. Describe the various perspectives from which quality is viewed at Deere & Company. How do each of the formal definitions of quality relate to this specific company? Deere & Company strives to be a low-cost producer in the market while maintaining an image of quality and staying customer focused. The company values are quality, innovation, integrity, and commitment.

There is a gentle balance between Newellization and protective the reliability of the Calphalon brand. The distinctive method to Newellization has been one of captivation. Newell keeps the brand name of the aim firm and rejects the present people and procedures. Calphalon has made its brand parity, in great part, because of the determinations of its sales power and its emphasis on educating merchants and end users on the merchandise. If taken also far, Newellization may wear away Calphalon’s best service and abolish the obstacle of entrance for premium participants at great end merchants. (Newell Company: Corporate Strategy,

Newell’s business objective was to manufacture and distribute volume merchandise to mass merchandisers with the view of providing multi-product offering and enhanced customer service. Consolidation and centralization increased product diversification within existing

The corporate governance can be referred to as a set of standard operation procedures or set of guidelines that control and directs how the company performs all its regulatory practice and procedures. (Brusseau, 2012) The guidelines are then reviewed and approved by the board of directors. The corporate governance standards primarily involve looking out for things like the interest of stakeholders, to include laying out the rights and responsibilities of all the stakeholders within that company. (Brusseau, 2012) The stakeholders can be anyone with interest in the business such as shareholders, governments, communities, customers, suppliers, financiers, and or managers.

Corporate Governance refers to the way a corporation is governed. It is the technique by which companies are directed and managed. It means carrying the business as per the stakeholders’ desires. It is actually conducted by the board of Directors and the concerned committees for the company’s stakeholder’s benefit. It is all about balancing individual and societal goals, as well as, economic and social goals. Corporate Governance is the interaction between various participants (shareholders, board of directors, and company’s management) in shaping corporation’s performance and the way it is proceeding towards. The relationship between the owners and the managers in an organization must be healthy and there should be no conflict between the