Newell Aquisition Write-Up - Carter Rhoad Management 488 Dr...

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Carter Rhoad Management 488 Dr. Watkins 3/19/14 Newell Co:The Rubbermaid Opportunity: 1. Does Newell have a successful corporate-level strategy? Yes, Newell actually strived on the fact that their corporate level strategy was the best. By acquiring already profitable companies and adding in their tools for success they believed that their acquisitions would grow between 2 and 5 percent. 2. Does the company add value to the businesses within its portfolio? Yes, by adding Rubbermaid into Newell’s portfolio they add significant value to the company. First it stretched Newell’s product lines and adds new areas for business. Rubbermaid was a competitor in some of the product lines that Newell was in, but it also had its foot sternly in the door in areas that Newell had no products in. 3. What are Newell’s distinctive (scarce) resources? The most distinctive thing about Newell is their proven business strategy. By having reachable goals on a massive level they allow for employees to surpass expectation. Also their Newelliztion program is genius. They have a system that
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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
  • Watkins
  • Management, Value added, Newell Rubbermaid, Rubbermaid, Newell

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