Newell Case

Grace Schory

Professor McCollough

Bus 490

Newell Company: Corporate Strategy

Q1: Newell’s corporate-level strategy focuses on manufacturing low- technology but high-volume staple products in the hardware and home good product line, as well at office products and home furnishings which sell to large mass retailers. Newell is aiming to acquire a continuous flow of companies that are well known established brands. These brands often claim the top two positions in terms of the market share but are poorly managed on the cost side and are financially underperforming. Newells owner ship over these companies and products are efficient due to their profitability, financial systems, workers salary based sales and their approach to centralized training programs as well as their own training program known at “Newellization.” It is successful due to the standards it holds its employees and managers to as well as the standard of its products it produces and the companies Newell has acquired. Exibit 1 written by Daniel C. Ferguson CEO in 1965 set high employee and company standards for what he felt Newell should represent.

Q2: Being the successful company Newell is, it has more than 30 well-known brands that often complement each other when it comes to covering the low and high price points in their market segment. As well as high service levels and reliable delivery performance Newell did not lose focus on its goal of keeping a solid reputation with national chains, possessing technology that was more adequate for its retailers and was able to do this because of it corporate structure. Newell also reduces it competitiveness and improved its position in the market by highlighting their internal strengths. This is mostly done by acquire new companies, after Newell would acquire companies such as Rubbermade and Calphalon.

Q3: Yes, Newell does add value to the business within its portfolio it aims at a solid reputation for its high service, quality and commanding a price...