Newell Company: The Rubbermaid Opportunity In October 1998, Newell Company was considering a merger with Rubbermaid Incorporated to form a new company, Newell Rubbermaid Incorporated. The agreement would be through a tax-free exchange of shares valued at $5.8 billion. Newell had revenues of $3.7 billion in 1998 across three major product groupings: Hardware and Home Furnishings, Office Products, and Housewares. Rubbermaid is a renowned manufacturer of a wide range of plastic products ranging from
Introduction In 1998, Newell Company set out to expand its revenue base through strategic acquisition of two major companies. Newell's CEO at that time was John McDonough, who was in charge of positioning the publicly traded company to an improved revenue base through differential product mix. The idea to broaden Newell Company through acquisition was an energetic and very optimistic strategic initiative to increase shareholder value in a shortened period of time. Unfortunately, the company compromised
company. 3. How do you account for Rubbermaid’s inability to improve its delivery service to Wal-Mart? What factors do you see as contributing to this ongoing deficiency? I believe that Rubbermaid does not realize now important the delivery is to customers. After reading this article, it was clear the Rubbermaid does not care about the issue of the delivery being on time to their costumers. As for Wal-Mart they realize the importance of delivery time and make sure their products are delivered in
Does Newell have a successful corporate-level strategy? Does the company add value to the businesses within its portfolio? Newell Company’s strategy is to acquire different companies that will help them grow their business in the basic home and hardware products industry before 1994 and started diversifying into unrelated field such as writing instruments and window treatments to grow the company as a whole. These companies are mostly underperforming and suffer from high cost thus Newell would
(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 Question 1: 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
Newell Company was established in 1902 by Edgar A. Newell after he purchased a brass curtain rods manufacturer. From brass curtain rods, Newell then became a manufacturer for both home and hardware products (Montgomery, 2005). Over time, the organization developed a two pronged approach to strategy. The two approaches included; following an established acquisition process (Newellization) and progression over the company’s multiple divisions. "Newellization" can be described as the process the acquired
through acquisitions, rather than internal growth. Before 1998 Newell acquired different companies in the basic home and hardware products industry and started diversifying into unrelated field such as children products, widow covering, writing instruments and others. The company was also looking to expend overseas to Europe and Asia. The target companies are mostly underperforming and suffer from high cost and sometimes inefficiency. Newell strategy was designed put these companies through a process
Financial Condition Newell Rubbermaid (NYSE: NWL), just like most organizations, took a large hit in the financial crisis of 2009, when in just 2008; the company recorded the highest revenue in recent years (Morningstar). As seen in the growth of the stock price over the past five years in Exhibit E, Newell has seen an increase in both sales and stock performance. In regards to performance, Newell has had a consistent current ratio of over 1.0, meaning they have enough market liquidity to cover
Newell Company Case Analysis Group: Nam, Xin, Shuyang Problem Statement: CEO John McDonough decided on making acquisition of Calphalon and Rubbermaid, which influent shareholders’ confidence. Newell Company’s Philosophy and Mission Newell Company created corporate advantages by following the company’s mission and philosophy. The philosophy "Build on what we do best" was started by CEO Mr. Dan Ferguson. This philosophy can be described as Newell focus on selling multiproduct to large mass
The Newell Case Lionell C. Henderson Northwood University MBA 664: Satisfying Shareholders Spring 2015 – Evening Professor Adam Guerrero, PhD. Introduction 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