Topics: Price, Retailing, Game theory Pages: 2 (546 words) Published: November 5, 2012
1.Does Newell have a parenting advantage?
Yes, good handle on cost structure – how to make high volume low-cost products and relate to volume sellers; operational efficiency and profitability – Newellization, solve fundamentals of cost structures to bring operating margins to 15% Also M&As, Centralized support processes, access to large retailers • What does it mean to be a good corporate parent? (look at MGTO article) • What is Newell’s corporate strategy? Why is each word included in the strategy statement? Multi-product offering of brand name staple consumer products with an emphasis on excellent customer service Manufacture and market products serving volume purchasers

Acquire companies that manufacture low-tech, nonseasonal and nonfashionable products that would be stacked year-round, #1 or 2 in market – shelf space critical, acquire small businesses to consolidate capacity: the goal was efficiency (consolidate and rationalize) and not pricing power, exit any nonstrategic business, look for a company powerful enough by itself Global strategy: Follow customers around the world – 25% of revenues international Two prongs: Growth by acquisition + serving the mass retailer “Good, better, best” – protect shelf space at each price point “Critical mass” – Strong player and market leader in categories, presence at both price points, economies of scale and consolidation Why each word: For clear communication to company – impose values on acquired businesses quickly so that there is no ambiguity, intent clear right from the negotiation stage

2. How does Newell create value?
• How does Newell enhance the competitive advantage of its businesses? Same as parenting advantage answer
Leadership of president and controller from elsewhere 1) Integrated financial system 2) Sales and Order Processing System 3) Flexible manufacturing system. Corporate teams to centralize administration, accounting and customer-related financial aspects,...
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