Management case - Essay Example

Case – Newell Company: Corporate Strategy One challenge that Newell faced in the late 1990s was the emergence of large-scale retailers. The three main retailers were able to extend their dominance of the market from 70% in 1992 to 80% in 1998. Because of the size of the market controlled by these retailers, Newell had to find a way to increase efficiency in its supply chain and distribution systems. Another challenge that Newell had in that time was partly due to its own actions of making acquisitions.

These acquisitions were risky to some people because of the vast size of them. Typically when a company acquires another company, the new acquisition is considerably smaller. Newell had to get these acquisitions through the Newellization process in a short amount of time so Newell can make gains in those markets.2. One resource that Newell has is its Newellization process, which helps to bring new acquisitions into the brand and get them up to speed. The brand name is strengthened because of this and customers become loyal to the Newell brand.

This process also helps new firms to follow the same basic management principles across all sectors, and this helps to ensure that Newell is the market leader in all of its markets. Another distinctive resource that Newell has got is the different products offerings. Because Newell separates its products into different market levels, this allows customers of all financial backgrounds to afford the products. This has a knock-on effect of creating strong brand presence and loyalty, two traits that will serve the company over the long term.3. Newell has a centralized administration, which helps to ensure no miscommunication between departments.

Newells strong corporate structure is based on each division focused on its own operations and leaving the major decisions to top management. This makes Newell a company that is decentralized but also with a strong top management focus. Other areas of Newells good corporate structure are is annual meetings and financial reviews. These things help Newell to keep focus and make sure that no part of the firm is slacking off. Lastly, with high demand for positions within the company, it shows that there is competitiveness there and also employees feel satisfied being part of the team.4. Both the acquisition of Calphalon and Rubbermaid make sense because they have something to offer Newell.

Newell already has a good process for integrating new acquisitions, and the company can improve both companies even better than they were when the acquisitions were made. Once the acquisitions go through the Newellization process then there are many advantages that these brands can bring. Both acquisitions already have good customer markets that Newell does not have great access to, so there is a potential for expanding here. Calphalon has good customer connections due to its focus on customer services, and this is a strategy that has served Newell well over the years.

Also, Newell can expand its global presence with the acquisition of Rubbermaid, which already has good brand equity.