The Black & Decker Corporation.

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The Black & Decker Corporation.

Mission Statement

Black & Decker is the worlds leading manufacturer and marketer of many consumer and industrial products. Black & Decker is committed in offering always the most innovative, high quality and technologically advanced products and is recognised worldwide for its reputation and excellence.

Apart from its commitment to the customers the company had devoted much effort for the satisfaction and good relation with its stockholders, suppliers, and associates. Black & Decker has made a remarkable growth in the last years and looks to the future with eagerness for outstanding performance on its current strategic choices.

COMPANY PROFILE

Black and Decker was incorporated in 1910. During the next 70 years the company established itself as the dominant name in power tools and accessories, first in the United States and then in a broad international level with emphasis in the Europe markets. The company has achieved growth by adding to its line-up of power tools and accessories and by increasing its penetration in the foreign markets. Moreover the company performed a number of acquisitions of similar and different businesses in order to expand and diversify its operation.

Currently Black & Decker is a diversified global manufacturer and marketer of household, commercial, and industrial products. The company operates 61 manufacturing plants, 32 in the United States and 29 in 14 other countries. Black & Decker products are marketed in more than 100 countries worldwide. In 1985, the firm has changed its name from Black & Decker Manufacturing Co. To Black & Decker Corp. to reflect its new emphasis on “being more marketing driven” rather than being merely engaged in manufacturing.

The business portfolio of Black & Decker consists of :
Power tools and power tool accessories for both do-it-yourselfers and professionals. •Household appliance products.
Consumer-use fastening products.
Security hardware for both residential and commercial use. •Lawn and garden care products.
Outdoor recreational products.
Plumbing products.
Commercial fastening products.
Machinery for making glass containers.
Machinery for manufacturing printed circuit boards.
Information services.

The current business portfolio of Black & Decker was the result of an aggressive expansion strategy which started in 1984 with the acquisition of the General Electric’s housewares business for $300 million. Black & Decker wanted to diversify due to the increased maturity of its core power tool business. Although General Electric brands had a 25% market share of the small appliance market and generated sales revenues of $500 million annually, GE wanted to sell the unit because of its low profitability.

The greater marketing challenge for the company was to transfer the consumer’s brand loyalty for GE small appliances over to Black & Decker. Competitors saw the brandname transition as an opportunity to gain market share in the small appliances business, and increased their marketing and advertising efforts. Black & Decker have responded with a series of actions, to the brand transition and according to business analysts the Brand transfer program has been completely successful.

Apart from the acquisition of GE’s small appliances division, B&D acquired three European tool manufacturers in order to expand and fill its power tool and accessories product line.

One major step in the expansion program of Black & Decker was the acquisition of Emhart Corporation, which was significantly larger than B&D, for $2.8 billion. Emhart Corporation was a diversified manufacturer of industrial products, information and electronic systems, and consumer products. The table below presents a summary of the financial data for the two companies :

1988 Financial DataEmhart Corp.Black & Decker

Sales Revenues$ 2.76 billion$ 2.28 billion
Net earnings...
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