Newell Rubbermaid Upgrades Newell Rubbermaid is a varied manufacturer and marketer of a variety of high volume brand-name consumer products. The firm is divided into four business groups‚ which are the Rubbermaid group‚ Sharpie group‚ the Levolor/Hardware group and the Calphalon Home Groups. The Rubbermaid group consists of products such as storage containers‚ waste and recycling containers‚ cleaning products‚ play systems and children’s toys. Sharpie group produces writing instruments‚ while
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NEWELL / RUBBERMAID Analysis BACKGROUND In October 1998‚ Newell Company was considering a merger with Rubbermaid Incorporated to form a new company‚ Newell Rubbermaid Incorporated. The amalgamation would be through a tax-free exchange of shares valued at $5.8 billion. Newell had three major product groupings: Hardware and Home Furnishings‚ Office Products‚ and Housewares. Rubbermaid is a renowned manufacturer of a wide range of plastic products ranging from children’s toys through housewares.
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pillar for the success of Newell‚ it can be deemed its competitive advantage. Newell’s corporate strategy is to grow through acquisitions‚ by leveraging synergies in the aforementioned resources rather than in product offerings. The critical resources that are shared throughout Newell’s firms are its managers. This allows for best practices to be disseminated among its newly acquired firms without undermining the business units’ autonomy. In terms of sharing resources‚ Newell has centralized key administrative
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Introduction In 1998‚ Newell Company set out to expand its revenue base through strategic acquisition of two major companies. Newell’s CEO at that time was John McDonough‚ who was in charge of positioning the publicly traded company to an improved revenue base through differential product mix. The idea to broaden Newell Company through acquisition was an energetic and very optimistic strategic initiative to increase shareholder value in a shortened period of time. Unfortunately‚ the company compromised
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Newell Company: The Rubbermaid Opportunity In October 1998‚ Newell Company was considering a merger with Rubbermaid Incorporated to form a new company‚ Newell Rubbermaid Incorporated. The agreement would be through a tax-free exchange of shares valued at $5.8 billion. Newell had revenues of $3.7 billion in 1998 across three major product groupings: Hardware and Home Furnishings‚ Office Products‚ and Housewares. Rubbermaid is a renowned manufacturer of a wide range of plastic products ranging from
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Does Newell have a succession corporate strategy? Does the company add value to the business within its portfolio? Newell uses the basic corporate strategy of restricting‚ transferring skills and sharing activities. In doing so they have developed a successful corporate-level strategy that adds value to the business. Newell’s succession corporate strategy is something they like to call “Newellization.”The main objective for Newell is to acquire companies that are failing and have financial problems
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Does Newell have a successful corporate-level strategy? Does the company add value to the businesses within its portfolio? Newell Company’s strategy is to acquire different companies that will help them grow their business in the basic home and hardware products industry before 1994 and started diversifying into unrelated field such as writing instruments and window treatments to grow the company as a whole. These companies are mostly underperforming and suffer from high cost thus Newell would
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1. In assessing Newell Company’s corporate-level strategy and whether the company adds value to the businesses within its portfolio‚ it is necessary to identify its overarching strategy and then explain it with context to how it affects the various businesses within the larger corporate body. Newell Company’s main corporate-level strategy as defined by Dan Fergurson was “build on what we do best”. The company focused on growth through strategic acquisitions of firms that sold low cost and high
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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.
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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
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