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Unformatted text preview: has proven to be incredibly efficient and work on a large scale basis. It has proven to increase efficiency which intern creates a higher profit margin and makes any company more profitable. 4. What challenges faced the company in the late 1990’s? Rubbermaid found difficulties when diversifying in the wrong areas. They hit a rough patch when they didn’t have grown in their product lines. One quote that shows this is, “once a bunch of no-names who peddled junk – have a greatly improved over the past half dozen years. The premium prices Rubbermaid charges over its rivals have grown too large, and customers are turning away. This along with expected growth rates of 15 percent put employees in a stressful environment, which lead to decrease in productivity. 5. In this context, does the acquisition of Rubbermaid make sense? Yes, I think that all the areas in which Rubbermaid was falling short Newell was striving in. The products and markets were there, and Newell had the system to bring it all together....
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- Spring '14
- Management, Value added, Newell Rubbermaid, Rubbermaid, Newell