The Case Develops Around Newell 's Ceo Dan Ferguson

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The Newell Case
Lionell C. Henderson
Northwood University
MBA 664: Satisfying Shareholders
Spring 2015 – Evening
Professor Adam Guerrero, PhD.

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).
Executive Summary
Newell focused its attention on acquiring manufacturing businesses that were under performing, whether due to increased costs and poor operating margins of 10% or less. This allowed Newell to acquire over 30 major companies in the following 20 years. These included businesses that manufactured nonseasonal, low technology, non fashionable, and non cyclical items whose volume rested on retailers’ shelves throughout the year. Immediately following the acquisition, the companies experienced “Newellization”(Montgomery, 2005). The goal
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