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Management case - Essay Example

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Newell Company was considered as the benchmark in nearly all the markets it was competing in. Newell Company was able to protect itself from new markets entrants thanks to its…
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Management case
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Case Analysis #3 Questions – Newell Company: Corporate Strategy By the late 1990s Newell Company has progressed to an area of relative strength inthe marketplace. Newell Company was considered as the benchmark in nearly all the markets it was competing in. Newell Company was able to protect itself from new markets entrants thanks to its numerous price points for all of its products, which made it hard for any new competitor to rival the company. While from the outside this may appear to be a good market position for Newell Company, in fact that company has reached an almost unobtainable point for many of its businesses. Most of its offerings already had significant margins, and those that werent at this level were close or were expected to in the near future. The challenge that Newell Company faced was trying to remain the market leader for all of its industries at the same time.
2) Newell Company has many distinctive resources due to the strong credibility the brand has built up over the years. Because the company has many different product categories, a strong management style is necessary to ensure that every sector runs smoothly. In addition, Newell Company has good relationships with its supply partners, and these relationships help the company to remain number one in all areas of its business portfolio. Finally, Newell Company has access to Electronic Data Interchange (EDI), which helps the company to organize all of its purchase orders, invoices, and payments to and from its retail partners. Because most of Newell Companys orders are placed through this system, the company is able to keep track of all of its deadlines and needs.
3) Newell Company does seem to have a successful corporate level strategy because the management and administration is interlinked, which helps to build a solid kind of corporate culture. Another area that shows Newell Company is successful in the corporate area is through acquisitions. The company buys other companies that can add value and expand the operation of Newell Company. This is a very difficult process because the new acquisitions need to be the right fit. If a new acquisition is not up to the same speed of Newell Company, then that acquisition has the potential to bring the whole company down.
4) I feel that Newell Company acquiring both Calphalon and Rubbermaid are good business decisions for a variety of reasons. First of all, Calphalon is a good fit for Newell Companys housewares division because the company has access to the high end of the market where Newell Company has not been so successful. Also, Calphalon has strong brand recognition, so it is likely that these customers will not want to stray from the brand, thus giving Newell Company a new market of customers. For Rubbermaid, this move was a little more risky because the company is very large but also it is inefficient. This will take some time for Newell Company to bring the brand under the Newell umbrella, so there could be some short-term problems here. Read More
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