DOES NEWELL HAVE A SUCCESSFUL CORPORATE-LEVEL STRATEGY? DOES THE COMPANY ADD VALUE TO THE BUSINESSES WITHIN ITS PORTFOLIO?
Newell’s has a good corporate- level strategy as they had over 40 businesses in the late 1990’s. They main objective is to acquire companies failing and have financial problems. They bring up these companies by developing them to become cost efficient through operational strategies and creating profits. This will take Newell up to 18 months to transform these companies. The companies Newell acquires have potential but undervalued. These companies are suffering because they do not have major clients and there overhead costs are high. As Newell purchases these companies, they share their activities and costs with a major company reducing its cost and increasing revenue and profits. For this to work, they Newell’s needs to acquire companies with similar trades such as basic home and hardware products as they already have the client’s base to increase volume of sales. To further reduce the operating costs Newell also have strict control for the time the customers pay, this is within 30-45 days. They also have monthly meetings for avoid changes in there forecasted profits Newell transfers there skill such as technology and operation strategy to produce large amounts of the new acquired companies product and to assure they get delivered on time for their major clients. If there delivery is not on time, there penalties could get up to the value of profit there lost by not having the stock. Newell have the technology and skill that they delivery and stock amount is almost 100%. So therefore they use the basic corporate strategy of port-folio management, restricting, transferring skill and sharing activities to develop a successful corporate-level strategy and add value to the business.
WHAT ARE NEWELL'S DISTINCTIVE RESOURCES?
There reputation is highly important as they want to be known to have the best products on the market and...
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