Preview

MGMT102 G8 Tan Tuan Qi Newell

Powerful Essays
Open Document
Open Document
1441 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
MGMT102 G8 Tan Tuan Qi Newell
AY2014-15 Term 2

CASE ASSIGNMENT 1
(Newell Company)
12th March 2015

MGMT 102 – Strategy (G8)
Instructor: Assistant Professor Abhijith G. ACHARYA

Done by:
Tan Tuan Qi
S9132306J

Q1. Newell is a company with a successful corporate-level strategy of using horizontal integration through acquiring companies that fit its criteria for acquisition in order to achieve synergy through economies of scope. Such companies manufacture hardware and do-it-yourself products that are low-technology, non-seasonal, non-cyclical and non-fashionable to volume merchandisers. They compete on cost rather than on production differentiation and targets the same type of customers (large mass retailer) and thus exhibit many similarities with Newell. As such, potential synergies can be achieved through Newell’s acquisition. Important to Newell’s success in corporate-level strategy is its core competence which is its ability to provide a high service level to the mass retailers. Crucial this is its organization capability and resources. Newell has previously invested in computer and communication hardware which is a valuable, rare, costly to imitate and organized to capture value. It is a valuable resource that is organized to capture value as it seeks to provide Newell’s customers with what they want, namely reliable delivery that allows the mass retailers to maximise sales yet minimise holding costs while also reducing claims from retailers on unfilled orders. Such a resource is also rare and hard to imitate for Newell’s rivals due to the relatively high cost of such investment for smaller manufacturers. However, for Newell, having started investment early and having many different divisions, this cost is justifiable due to having economics of scope for their ability to streamline data from retailers through its Electronic Data Interchange (EDI). This works by streamlining data management to serve Newell’s many different divisions and allow all divisions within to

You May Also Find These Documents Helpful

  • Powerful Essays

    Best Buy Company is one of the leading companies in US and Canada dealing with the retailer of the consumer electronics. The company has over 400 stores worldwide offering a wide variety of products worldwide , among the company’s major products include the following ; mobile phones, gaming systems appliances, computers , televisions among other components and accessories. However, the company has adopted a variety of strategies that sees it enter successfully into the competitive markets; for instance, it has developed a culture that promotes excellence customer services, minimized or no commission on some products, employing highly experienced and skilled staffs . These have seen the Best Buy company expand to many successful branches and increased production over some a good period of time.…

    • 2103 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    Lands End ANALYSIS

    • 517 Words
    • 2 Pages

    Alternatively, Lands’ End IT-driven strategy is somewhat in the hands and control of Archetype Solutions (ATI), since they developed and hold the design of the entire IT system Lands’ End e-commerce uses with its customers. This allows Lands’ End’s customers to catch up and takes away the customer advantage if they acquire the existing system ATI has created. Additionally, Lands’ End IT resources are very difficult to replicate gathering all the customers’ information from what (i.e., color, type of clothing, size, etc.) they are purchasing, how often (i.e., seasonal, daily, weekly, etc.) they are…

    • 517 Words
    • 2 Pages
    Better Essays
  • Good Essays

    In augmentations, both Land's End and HEB concentrated on enhancing their profit utilizing IT and saving cost. One principal path in which the two organizations decided to utilize technology was supply chain management, as HEB decided to fundamentally create economies of scale utilizing ECR (Efficient Consumer Response) while Land's End decided to seek a partnership with ASI (Archetype Solution, Inc) with a specific end goal to add to its mass customization framework. Both strategies prompted upgrades in organization proficiency and synergistic vertical associations with suppliers and producers. Before the end of HEB's patching up of their POS framework and full usage of the CRP framework, both Land's End and HEB had a comparable framework of taking out the requirement for manual purchasing and contact with makers. HEB was able to use their CRP and POS scanning system to allow manufacturers to access their inventory levels and supply them based on forecast demand and other constraining factors (McFarlan, 1997). Land's End has a comparable thought in which e-commerce based requests for altered merchandise would go specifically to the producer, ASI, and would consider a lessening in stock administration inside of the firm. This additionally considered cooperative energies between the retailers and their point of view producers and suppliers in which stock levels at both the retailer and producer could be…

    • 1012 Words
    • 5 Pages
    Good Essays
  • Better Essays

    The integration of the two organizations can be challenging as well as costly. Decisions must be made on who will manage the organization, employee rationalization, vendor rationalization, facilities, and so on. Similar to an acquisition the combined financials of the new organizations must be secure enough to ensure payment of current obligations. Projected cost savings may not be realized thereby impacting the financials of the organization. An intangible threat to completing a merger is the melding of two corporate cultures who may have had very different ways of conducting business even though they were in the same…

    • 1693 Words
    • 7 Pages
    Better Essays
  • Better Essays

    Kroger Swot Analysis

    • 1083 Words
    • 5 Pages

    It is the country’s largest grocery store chain and second only to Walmart as the nation’s leading retailer. Either directly or indirectly through its subsidiaries, Kroger reported operating 3574 stores as of 2010 and maintains markets in 31 states. Kroger is notoriously unionized and has a mission and strategy that is focused on providing quality products among all of its subsidiaries and marketplaces which are economically practical and providing superior customer service to its respective consumer base. Over time, Kroger has reached its growth maturity, and now competes directly with Walmart in many of its markets. Currently Kroger’s growth opportunities are through methods such as acquisition of other popular competitors. This opportunity is currently being leveraged by Kroger in the recent acquisition of 212 stores in North Carolina of the ‘Harris-Teeter’ chain (Kroger,…

    • 1083 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    MGMT303

    • 488 Words
    • 3 Pages

    TCO 2: Given a continuous scanning of one's actual and potential environments (internal, external, and interfaces), analyze a case describing a business about to expand or contract in its market by preparing a SWOT document that collectively analyzes the effect of the proposed expansion or contraction on the company's profitability and that recommends a course of action based on your analysis.…

    • 488 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    mgmt 368

    • 4592 Words
    • 20 Pages

    Business Ethics, 7th ed., by Richard T. DeGeorge. (Prentice Hall, 2010), 523 pages with index.…

    • 4592 Words
    • 20 Pages
    Powerful Essays
  • Good Essays

    Case Alex

    • 581 Words
    • 3 Pages

    Alexander Electronics Ltd. (AEL) is a retailer of home electronics, software, music, and video games in a medium-sized Canadian city. The store has been in business for many years and has grown along with the community. Recently, AEL’s owner decided to sell the store because he felt he was too old for the rigours of operating it. Ryan Evans has expressed interest in buying AEL and he and the current owner have been negotiating for several months. Mr. Evans has worked for AEL as a marketing manager and he is confident it will continue to be successful. Buying AEL will also fulfill a lifelong ambition of Mr. Evans to own his own business. The current owner and Mr. Evans have agreed in principle to base the selling price on AEL’s net income before unusual items for the year ended December 31, 2009.…

    • 581 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The three organizations to be discussed in this summary are: Frito-Lay, Vangard, and an automotive parts supplier. The three mini Case Studies all show the need for a better method of storing, sharing and transferring of knowledge. Frito-Lay and Vangard share a common theme in that they both need to improve in house knowledge management; with the ultimate goal of using this to improve their services to their customers. The parts supplier on the other hand, needs a more structured method of taking in house knowledge and combining it with external knowledge streams with the goal of making better purchasing decisions that will allow lower stock levels, higher inventory turns, and better price discounts.…

    • 534 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Staples Case Study

    • 664 Words
    • 3 Pages

    The general retailing industry was looking for new ways to cut costs and consolidate a typically fragmented system. Rather than deal in specialties and niche markets, manufactures as well as retailers were looking for ways to increase economic value. This value could be measured in such factors as customer satisfaction as well as increased market share.…

    • 664 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Already very early did Wal-Mart realize that logistic was a key factor to its success. By investing very early in state of the art information technology (IT) which tracked every item in every Wal-Mart store, the company was able to shrank inventory-taking lags from several months in the 1950s to near real time in the 1990s. Their core IT competence is the ability to track every item and share this information with their suppliers. Additionally to this feature Wal-Mart possesses its own distribution centers (84 in the US only) which operate together with the discount stores on basis of a hub and spores system. Furthermore did Wal-Mart establish the “cross-docking” system. This system allows the transfer of merchandise directly from inbound trucks to store-bound trucks without storing goods inside the distribution centers. With this system and the above mentioned IT systems, Wal-Mart is able to minimize the time its goods are stored inside the distribution centers and the goods needed inside its discount stores are nearly delivered just in time.…

    • 886 Words
    • 4 Pages
    Good Essays
  • Good Essays

    horizontal integration - that is, the merging of companies to create a more advanced product- to…

    • 1554 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Consolidation and Integration: Large retailers, wholesalers, and other members of channels of distribution have sufficient economic power and leverage to influence business practices among suppliers and their customers. Transportation companies have…

    • 1268 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    The Newell Company

    • 1379 Words
    • 6 Pages

    Newell’s sales approach was to sell a high volume of goods to large retailers. They pursued a clear cost-advantage strategy. Low-technology products were provided on large scale and on a regular basis. Good customer relations could evolve, as Newell was famous for their reliability and their capability of accomplishing JIT-deliveries and quality demands. Therefore Newell needed some relation-specific investments like specialized workforce, but also up-to-date technology. Although Newell was facing buyer-power to a large extent (which it tried to escape from later by acquiring stronger brands), it could afford to charge a…

    • 1379 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Serving the mass retailers is a sustainable business strategy, as long as the mass retailers dominate the retailing space, which seems to be the case for foreseeable future. Newell operationally efficient execution complemented very well the needs to the mass retailers. But it’s not going to help Newell sustain for say next 100 years as there will be disruptions in the retailing not know currently that will impact Newell…

    • 453 Words
    • 2 Pages
    Satisfactory Essays