Gabe Newell

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

(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

1. What opportunities and threats did Newell face in the late 1990s? Using the industry analysis in the model of environmental threats identified Newell company opportunities and threats revealed the industry. Newell has gain opportunity in the entry industry by acquiring the foreign businesses by gaining a new market to Newell it increases more self-space in international market. Another opportunity Newell faces is supplier leverage in 1997, the company products spread consist of consumer products

market, Newell Rubbermaid's strategy has long been one of acquisition. One of the company's strengths has become its ability to quickly integrate new companies into the Newell Rubbermaid business. But with each acquisition, the IT and business teams were left struggling to manage additional independent brands with very divergent sets of technologies. With the emergence of e-business as an increasingly important opportunity for driving down costs and providing better service online, Newell Rubbermaid

the mass retail stores. Newell's initial focus was on home and hardware products which later on expended to other markets. The company strategy was to grow and expand its product line 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

the years, Newell Company has followed the philosophy as described by Dan Ferguson, “build on what we do best”. The basic strategy was to merchandise a multi-product offering of staple products with excellent customer service to maximize stockholder’s return. This philosophy prompted the strategy of growth through acquisition, where acquisition not only increased the product offerings to the big retailers, but also provided the opportunity to sell other items. This strategy helped Newell diversify

The Newell Company (Newell) uses acquisitions as the foundation of its growth strategy, and in 1998 the firm looked to acquire Rubbermaid Incorporated (Rubbermaid). The deal would consist of an exchange of shares between the two companies and allow for a significant level of growth for Newell. However, the directors of Newell are questioning whether or not the acquisition of Rubbermaid matches the strategic vision of the firm and if it will add value to the firm's shareholders. The analysis of

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

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

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