Newell

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The case is about the company Newell considering the acquisition of Rubbermaid Incorporated to develop a new company. . Rubbermaid is a manufacturer of plastic products ranging from children’s toys, house wares, to commercial items. Acquisitions are Newell’s main foundation when it comes to growing as a company and making sure every acquisition goes through the proper Newellization process to improve new businesses. Rubbermaid suffered from problems affecting the retail buyers who purchased their items, operations, not being able to compete with rival prices, to a decline in the company’s net earnings. In this case Newell Company contemplated whether or not acquiring Rubbermaid would be a good decision to make. Although Rubbermaid posed great growth opportunity and could possibly bring an increase in income for Newell, I do not think it would be a wise idea for them as a company to merge. Newell Company is highly respected and well known for its customer satisfaction, in-full delivery, the ability to implement sophisticated EDI tie-in with its customers, and the provision of marketing and merchandising programs for the different products they offer. Rubbermaid has had many problems when it comes to customer service, competing with their competitors, and unrealistic financial targets. In an article done by Fortune it was revealed that Rubbermaid had angered their most important retail buyers with ballooning cost forcing them to give shelf space to competitors, lacked modern machinery and making deliveries on time, and finally their prices compared to rivals had grown too large. Acquiring Rubbermaid would then make Newell responsible for all of these problems. In the future Rubbermaid could cause more bad than good, from operation problems to disappointing competitive strategies posing a threat to Newell's reputation. I would recommend Rubbermaid build a better relationship with its retail buyers as well as gain back customer loyalty by adjusting different...
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