...Black and DECKER: power tools Case study Problem Statement Black and Decker has established its brand strength to be among the top ten firms in the United States. By creating the portable power tools business in the early 1990’s and being the world’s largest producer by the end of the decade, the firm has been vouched for offering high quality, differentiated products and excellent service in the Professional-Industrial segment. Powerful brand perception has helped Black and Decker attain the number one position in the Consumer segment. Although Black and Decker has been leading in two of the three segments of the $1.5 billion portable power tools market, it could not make a significant impact in the Professional-Tradesmen segment that was fast growing at 9%. Black and Decker has managed to occupy only 9% with no profitability of the total segment share against Makita and Milwaukee who stand at 50% and 10% respectively. Despite Black and Decker’s success in the Consumer and Professional-Industrial segment, according to surveys conducted of tradesmen, results showed poor quality perception and lack of proud ownership of the tools for the use of job specific applications and instead are perceived to be ideal for home tasks. The low favorability of Black and Decker’s power tools in the Professional-Industrial segment as compared to Makita’s and others may be attributed to (among other factors) the incompetence in product differentiation through the use of color schemes across...
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...Skil Case Analysis Introduction Skil Corporation is a portable power tools manufacturer that was acquired by Emerson Electric Company in 1979. When Skil was first acquired, it had mediocre financial performance. Its main competitors in the portable power tool industry were Black & Decker, Sears, and some Japanese manufacturers. In 1979, the electric power tools were making up the majority of the portable power tool industry. Practical Applications The Competitive Environment - The main competitive force for Skil was rivalry among present competitors. Skil and Black & Decker were two competing companies that were the first in the industry to begin using high-strength plastic in their tools, which had lead to great reduction in cost. In 1979, the electric power tool market in the United States made up 37% of the worldwide market ($868 million out of $2,350 million). In the United States during 1979, mass merchandisers such as Montgomery Ward, and J.C. Penney were the primary sellers of Black & Decker and Skil portable electric power tools. Home centers were a steadily growing channel for professional and consumer power tools, and both professionals and consumers shopped at them. Home centers were growing competition for mass merchandisers, with sales of $83 million in 1979 and growing at 13% annually. In terms of global electric power tool market share, Black & Decker, Makita, Bosche, Hitachi, and Skil ranked the highest in order of share percentage. Black & Decker...
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...Valuing Publicly Traded Equity Securities: The Black & Decker Corporation (BDK) [1] I. Introduction This teaching note describes the valuation of publicly traded equity securities using the Discounted Cash Flow (DCF) and Price/Characteristic (market comparison) approaches, with a specific spreadsheet example for The Black and Decker Corporation. Free cash flow valuation and comparables (comps) are key tools in fundamental analysis, the process of picking stocks with high expected return based on an analysis of the company. In theory, buying stocks of companies that are undervalued in the stock market will produce high returns as other investors slowly realize the company’s true value and quoted share prices increase to match that value. Three basic ideas underlie the application of discounted cash flow (DCF) analysis. First, the value of a company is ultimately derived from the cash that can be extracted from that company, and more cash is preferred to less. Second, cash received in the future is not as valuable as cash received today. Third, risky cash flows are valued less than cash flows known with relative certainty. The process of valuing publicly traded equity using DCF involves three steps. First, condensed financial statements, also called pro-forma statements, are forecasted several years into the future. Second, the forecasted statements are used to calculate free cash flows for the entire firm, which are then discounted by the...
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...TABLE OF CONTENTS Situational Analysis 3 Alternatives 7 Decision Criteria 11 Action Plan 12 In 1910, Black & Decker was founded by two 23 year olds S. Duncan Black, and Alonzo G. Decker in Baltimore. 73 years after receiving its first patent, Black & Decker was the world’s largest producer of power tools, power tool accessories, electric lawn and garden tools, and residential security hardware. The brand has also made its successful foray into households with products such as the DustBuster, and Spacemaker amongst other things. The franchise also holds nearly 30% of market share overall in the US power tools market. With strong segment shares in the professional industrial and consumer market at...
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...Introduction: Black & Decker Corporation (B&D) is one of the top power tool producing companies in the world. The company targets three main segments: Consumers, Professional-Tradesman, and Professional-Industrial. By late 1990 B&D’s market share in the Tradesman segment fell dramatically causing its main competitor, Makita, to obtain 80% of the market share in cordless drills and 50% segment share overall. Although B&D has a respectable market share holding in its other two market segments, the dramatic decline for Tradesman hurt its overall brand image. B&D is now faced with repositioning its brand to reach the Professional-Tradesman segment more effectively. If the company is successful in doing so, it will allow it to obtain an increased market share as well as generate more sales. The following are three positioning strategies that management needs to decide upon in order to better reach its Tradesman target segment: (1) Harvest Professional-Tradesman Channels: This strategy suggests placing additional focus on the two segments that are already performing strongly, Consumers and Professional-Industrial. (2) Get behind B&D Name with Sub-Branding: This strategy suggests using sub-branding, such as “Piranha by Black & Decker” to rebuild the B&D name and reputation within the Professional-Tradesmen segment. (3) Drop the Black & Decker Name from the Profession-Tradesmen Segment: This strategy recommends dropping the Black and Decker name from the product completely...
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...Buying Behaviour: Black & Decker Case Background Black and Decker (B&D) is a pioneer in portable power tools. In 1991, it is a $5 billion in sales company with 29% of these sales coming from Power Tools and Accessories. B&D is the world's larges producer of power tools and the U.S. market overall leader. Problem Statement B&D has a strong market share in the consumer and industrial markets, but is weak in the P-T market as it is currently experiencing decreased market share. In this segment, B&D is not generating profits and, at the same time, retailers want more advertising allowances and rebates. Analysis The U.S. power tools market is divided into three segments: Consumer (home use buyers), Professional-Tradesmen (P-T) (contractors who purchase their own tools), and Industrial (procuring professional buying in large quantities for industrial usage). The P-T segment is the one experiencing the largest growth potential. B&D is one of the most powerful brands in power tools. Its products are generally regarded to have high quality. B&D currently has 45% of the Consumer and 20% of the Industrial markets. However, in the P-T segment B&D holds only 9% of the market and is in near parity with Milwaukee Electric (10%) and trails Makita, which has captured 50% of the market. 1) What is the cause of B&D’s 9% share vs. Makita ‘s 50% in the Professional segment? Makita was able to grow rapidly in the P-T market as its...
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...BLACK & DECKER CASE Problem Statement: With Black & Decker being one among the most powerful brand names in the world and establishing its professional tools to be the highest quality in the industry, B&D failed to make an impact in the Professional-tradesmen segment. B&D was known for offering high quality, differentiated products and excellent service in the Professional-Industrial segment whereas its brand recognition, and image helped it attain the #1 position in the market place for Consumer segment. B&D occupied only 9% of the total share as against Makita who was leading the Professional-Tradesmen segment with 50% market share. Though B&D leads in the other two segments, it could not capture the tradesmen segment due to the following reasons. B&D was branded more as home tools; it lacked in capitalizing one of the most profitable distribution channels (membership clubs) whereas the same channel proved to be very successful for Makita (85%); the unremarkable grey color did not help B&D; and while B&D was focused in three segments, Makita was focused on only one segment of the market. Therefore, Joseph Galli, Vice president of sales and marketing for B&D, has to decide which one of the three marketing strategies must be implemented to take, the market share in the Professional-Tradesmen segment, away from the current leader Makita. Recommendation: I would recommend B&D to use the strategy of Re-branding i.e; using DeWalt name and the color yellow in order...
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...Strategic Marketing Management MBA5320 E Fall 2013 Professor Office Telephone E-Mail Office Hours Class Location Class Hours Simin Foster, Ph.D., MBA Desmarais 5140 Contact via e-mail simin.foster@uottawa.ca By appointment (confirm via e-mail) Desmarais 4170 Thursday 4:00 pm - 7:00 pm Weight on Final Grade 15% 15% 10% 15% 20% 25% Course Deliverable Case 1 – Black & Decker (A) Case 2 - Marketing Simulation Case 3 – A Case for Brand Loyalty Case 4 – Online Marketing at Big Skinny Peer-to-Peer Learning Experience Final exam Due Date September 19 Part A: September 26 Part B: October 3 Par November 14 November 21 A. February 7 To be assigned To be announced Please note that all assignments must be submitted via Turnitin™ in addition to hard copy. COURSE DESCRIPTION The objectives of this course are to demonstrate the role of marketing in the company; to explore the relationship of marketing to other functions; and to show how effective marketing builds on a thorough understanding of buyer behavior to create value for customers. Using lectures, case studies, and class discussions, students learn how to control the elements of the marketing mix—product policy, channels of distribution, communication, and pricing—to satisfy customer needs profitably. The Telfer MBA distinguishes itself by training students to Lead High Performance Organizations. Successful firms are those that integrate the objectives and resources of the organization with the needs and opportunities...
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...Black and Decker This case exemplifies the challenges, decisions, and intricacies involved when a company dives into mergers and acquisitions operations. The emergence of a global economy is no secret to anyone. Globalization offers outstanding opportunities for those companies that take advantage. Of course, globalization offers many challenges for companies to compete both domestically and globally. Black & Decker’s (B&D) global endeavor exemplifies this statement completely. The purchase of Emhart could provide for lucrative product diversification opportunism. For Power Tools, Black and Decker has become an international linchpin. This acquisition provides opportune to achieve a similar status with door locking products. If successful, this integration could be used as a standard model for future global endeavors. Emhart is spread out widely, independently among many countries. The case focuses on the high level strategy and restructuring devoted to integrating and consolidating these separate companies’ operations under B&D’s global marketing umbrella. B&D is a global company, but this acquisition of Emhart Corporation seems to have perhaps morphed the company into the transnational type with a set of loosely bound, mostly inwardly focused hardware companies. This isn’t necessarily where the company wants to go. Grunewald’s initiatives seem to be building a strategy to collapse these transnational, distinct companies into a tighter marketing umbrella. Integrating...
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...How to Take Your Company to the Global Market George S. Yip Pierre M. Loewe Michael Y. Yoshino Deciding how to deal with the globalisation of markets poses tough issues and choices for mangers. There are both external business forces, and internal organisational factors to consider. External business forces revolve around the interaction of industry drivers of globalisation and the different ways a business can be global. Understanding this interaction is key to formulating the right global strategy. Internal organisational factors play a major role in determining how well a company can implement global strategy. This paper provides a systematic approach to developing and implementing a global strategy. MOST MANAGERS have to face the increasing globalisation of markets and competition. That fact requires each company to decide whether it must become a worldwide competitor to survive. This is not an easy decision. Take the division of a multibillion-dollar company, a company that's very sophisticated and has been conducting international business for more than fifty years. The division sells a commodity product, for which it is trying to charge 400% more in Europe than it does in the United States. The price was roughly the same in the United States and in Europe when the dollar was at its all-time high. The company built a European plant which showed greater return on investment with that European price. But the dollar has fallen and, if the company drops its...
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...Motherhood, criminal justice system involvement and life occurrences. In a study done by Fleisher and Krienert, O'Neal, Decker, Moule and Pyrooz (2014), stated that 63% of female gang members that were surveyed left the gang due to pregnancy. Yet, these facts are controversial, to another study that found no such factor of motherhood to play a role (O'Neal, Decker, Moule, Pyrooz, 2014). Being part of the criminal justice system, can be a turning factor for female gang members. Being incarcerated can result in a more realistic approach in the life of a gag member (O'Neal, Decker, Moule, Pyrooz,...
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...RightNow PAGE 3 LESSONS IN CONTACT CENTER LEADERSHIP eGain PAGE 6 DOING MORE WITH LESS IN CUSTOMER SERVICE: Strategies and Best Practices Kana PAGE 7 HOW TO MAKE EVERY CUSTOMER CONVERSATION INTELLIGENT Oracle PAGE 8 TRANSFORMING SERVICE IN THE AGE OF THE CUSTOMER Verint PAGE 9 THE POWER OF WHY Astute Solutions PAGE 10 ENSURING CONSISTENT, ACCURATE AND TIMELY INFORMATION DELIVERY ACROSS ALL CHANNELS SYKES PAGE 11 INSIGHT TO CUSTOMER LOYALTY Using Customer Support to Observe Customers in Motion Convergys PAGE 12 LISTENING TO CUSTOMERS AND PROFITING FROM THEIR ADVICE Best Practices in VPI Voice Print Int’l PAGE 13 Contact Center FIVE PROVEN WAYS TO PROACTIVELY DELIVER AN EXCEPTIONAL CUSTOMER EXPERIENCE SOLUTIONS Produced by: CRM Media, LLC Autonomy etalk PAGE 14 UNSTRUCTURED AND UNDISCOVERED: Enabling the Intelligent Contact Center to Tap into a Hidden Wealth of Information 2 April 2007 Sponsored Content CRM magazine Best Practices Series: Contact Centers... The Heart (and Eyes and Ears) of CRM Multichannel contact centers are at the heart of one of the most exciting transformations in the way organizations communicate with their customers. It is this collaboration between people, process, and technology that promises to bring the best customer service to users, while enabling a crucial feedback channel to host organizations. We’re all familiar with the reasons why superior customer...
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...Case overview:The pioneer of the power tools industry is facing the blues of very low market share compared to the leader in a particular product segment. The case depicts a peculiar situation of a market leader in two product segments taking a backseat and suffering at the hands of strong competitors in another product segment. The case also brings out importance of the consumer perception and behavior in selling the product. The reasons for different and often indecipherable consumer behavior patterns need to be found out. The case also brings out an interesting fact of the market leader not being able to translate a powerful brand name and quality in actual numbers showing profitability. Situation analysisMakita electric of Japan had practically taken over the professional power tools for tradesman business since it entered the US market a decade ago. The trade was asking for advertising allowances and rebate money on B&Ds Tradesman products and profitability in this segment was near zero. Since its entry into the market in 1978, Makita had staked out leadership positions in virtually all products and distribution types within the professional tradesman segment. Professional tradesman revenues of approximately $35 million in 1990 for B&D translated into about $3 million in operating income. Some trades people viewed all B&D products as for use at home rather than on the job and conversely there had been instances of a B&D product designed for home use subjected...
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...NORTHWESTERN UNIVERSITY J.L. KELLOGG GRADUATE SCHOOL OF MANAGEMENT Marketing 430-62 Alice M. Tybout Winter Quarter 2000 Phone: 847.491.2723 Office: Leverone 468 e-mail: amtybout@nwu.edu COURSE OVERVIEW Course Objectives This is a survey course and, as such, is designed to provide students with an overview of marketing concepts and tools. While effort has been devoted to finding teaching materials that represent a variety of industries and employ a variety of media, the primary goal is to help provide you with concepts and tools that will be broadly applicable. More specifically, the course has two primary objectives: To develop your marketing decision-making skills. You should leave the course with a well-developed ability to: - analyze the marketing and business environment in which an organization is operating and identify the primary marketing problems facing the firm, - prioritize these problems and select the key issue to be addressed, - develop compelling and creative strategies for solving these problems, and - make tactical decisions that will achieve the strategy that you have selected and, thereby, solve the problems you have identified. To provide you with a set of concepts and tools that can support your decision-making. Fundamental concepts of marketing (such as marketing disciplines, segmentation, targeting, and positioning, customer satisfaction, perceived...
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