The Black & Decker Manufacturing Company was founded in 1910 by Duncan Black and Alonzo Decker. The company only manufactured milk cap machines and candy diapers until 1916. In 1916 the company introduced the first power tool, a portable half-inch electric drill. Throughout the next forty (40) years, Black & Decker became the leader in the power tools and power tool accessories industry. In the 1980s the company started inquiring other companies, such as Emhart Corporation and General Electric (GE). During this time Black & Decker Manufacturing Company changed its name from Black & Decker Corporation to reflect its new emphasis on “being more marketing driven” rather than being merely engaged in manufacturing. Because of these acquisitions, Black & Decker went through a very hard time. In 1985, the company hired Nolan D. Archibald as president and chief operating officer (CEO). Under his leadership the Black & Decker started to turnaround their sells, although this has proved to be a very long journey. In order to do this, many of the companies acquired by Black & Decker through the Emhart acquisition, where sold to other companies. Approach
In order to help the Black & Decker Corporation, the Strengths, Weaknesses, Opportunities, Threats (SWOT) analysis was used. One of the strengths that Black & Decker had was the acquisition of Emhart and General Electric; however both of this acquisition became potential weaknesses and threats before the company’s turnaround. The company was number one in the industry of power tools and power tool accessories which was one of its strengths, however there were other rivals coming on the scene trying to become the number one producer of the small appliances, which was a company acquired from General Electric. Results
•Acquisition of other companies that were not doing so well. •Introduction of new appliances into the market.
•The hiring of highly sought after president/CEO.