Black and Decker Case

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Black & Decker International: Globalization of the Architectural Hardware Line Company Background
Black and Decker was founded in 1917. It manufactured and sold a wide line of electric and battery-powered power tools and accessories, household products, outdoor products, locks and hardware, plumbing products, and mechanical fastening systems. Black and Decker acquired Emhart Corporation in 1989. In 1985, Nolan Archibald became the CEO. Two of Mr. Archibald’s key actions had been to develop a worldwide view toward the market for the company’s products and to reduce drastically the number of models needed to fill those global markets. In 1988, Black and Decker recruited Fred Grunewald to the staff position of vice president of product and market development as a key resource in the globalization initiative at Black and Decker. Problem

Should Black and Decker create a global lock business?
Case Analysis
Company: Black and Decker manufactured and sold a wide line of electric and battery-powered power tools, household products, outdoor products, locks and hardware, plumbing products, and mechanical fastening systems. Black and Decker’s objectives include: build core profitability, strengthen management, improve return on equity, and broaden the earnings base. Competition: Kwikset, Russwin, Corbin, Price Pfister, DOM, NEMEF, Lane, and ASTRA. Kwikset was the world’s largest manufacturer of residential door hardware and the U.S. leader in the retail DIY market. Russwin/Corbin was another well known U.S. manufacture of premium priced commercial and industrial locksets. Calloborators:

Context:
Customer:

Alternative Solution A: Create a global lock business
Advatanges: The additions of a global lock business will help in diversifying the company’s existing portfolio. One integrated company could bring to an estimated $15 billion world market, an opportunity for power that would more than offset some of the infrastructural differences. It would improve...
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