Free Essay

Individual Case Analysis: Newell Company: the Rubbermaid Opportunity

In:

Submitted By dwill2391
Words 977
Pages 4
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 items, operations, not being able to compete with rival prices, to a decline in the company’s net earnings.
In this case Newell Company contemplated whether or not acquiring Rubbermaid would be a good decision to make. Although Rubbermaid posed great growth opportunity and could possibly bring an increase in income for Newell, I do not think it would be a wise idea for them as a company to merge. Newell Company is highly respected and well known for its customer satisfaction, in-full delivery, the ability to implement sophisticated EDI tie-in with its customers, and the provision of marketing and merchandising programs for the different products they offer. Rubbermaid has had many problems when it comes to customer service, competing with their competitors, and unrealistic financial targets. In an article done by Fortune it was revealed that Rubbermaid had angered their most important retail buyers with ballooning cost forcing them to give shelf space to competitors, lacked modern machinery and making deliveries on time, and finally their prices compared to rivals had grown too large. Acquiring Rubbermaid would then make Newell responsible for all of these problems. In the future Rubbermaid could cause more bad than good, from operation problems to disappointing competitive strategies posing a threat to Newell's reputation.
I would recommend Rubbermaid build a better relationship with its retail buyers as well as gain back customer loyalty by adjusting different product price, should also develop a new product line in order to compete with its competitors, they also need to create a new strategy to ensure deliveries get mad on time.
I analyzed whether or not it would be a good idea for Newell to merge with Rubbermaid. I used the evaluation the Internal and External factors, the company’s financials, and recommended strategies to improve the current problems to conduct the proper answer.
Internal Strengths: * Newell has established a sustainable competitive advantage for the corporation and with many acquisition opportunities and internal growth momentum. * Newell practiced a competitive strategy that was to differentiate in the basis of superior service to its mass merchandise customers.
Internal Weakness: * Although acquiring Rubbermaid would help Newell's growth it would challenge the company's capacity to integrate and strengthen its acquisitions. * Newell's corporate management held monthly reviews to track multiple operating and financial measures and as a result divisional management operated in a goldfish bowl under high pressure.
External Threats: * In 1995 Rubbermaid was ranked among top 10 in Fortune’s list of America’s admired companies had drastically fallen in 1998 to No.100. * Rubbermaid had angered their most important retail buyers with the way it passed along ballooning costs.

External opportunities: * For several decades Rubber maid was well known for a wide range of plastic products from children's toys through housewares to commercial items. * Rubbermaid was ranked among top 10 in Fortune's list of America's most admired companies, including the No.1993-1994.
External Factor Evaluation

Key External Factors | Weights | Ratings | Weighted Score | | | | | Opportunities | | | | For several decades Rubber maid was well known for a wide range of plastic products from children's toys through housewares to commercial items. | 0.07 | 4 | 0.28 | Rubbermaid was ranked among top 10 in Fortune's list of America's most admired companies, including the No.1993-1994. | 0.04 | 2 | 0.08 | Rubbermaid earned its early reputation by setting aggressive goals for 15 percent growth in revenues and profits and then, by large, meeting its targets. | 0.05 | 2 | 0.1 | As a company profits peaked in 1994 at $228 million. | 0.06 | 3 | 0.18 | In 1998, Rubbermaid manufactured and sold over 5,000 products under four key brand names: Rubbermaid, Garco, Little Tikes, and Curver. | 0.08 | 3 | 0.24 | Rubbermaid's international sales and operations had been growing in recent years. | 0.05 | 2 | 0.1 | Rubbermaid has 23 product lines and specializes in mainly utility products encompassing five categories Kitchen, Home Organizations, Health Care, Cleaning, and Hardware | 0.07 | 3 | 0.21 | | | | | Threats | | | | In 1995 Rubbermaid was ranked among top 10 in Fortune’s list of America’s admired companies had drastically fallen in 1998 to No.100. | 0.07 | 3 | 0.21 | Rubbermaid had angered their most important retail buyers with the way it passed along ballooning costs. | 0.08 | 4 | 0.32 | Retailers began to give more shelf space to Rubbermaid’s competitors. | 0.08 | 4 | 0.32 | Rubbermaid was laggard in areas such as modernizing machinery, eliminating unnecessary jobs, and making deliveries on time. | 0.07 | 2 | 0.14 | The Premium prices that Rubbermaid a charge over its rivals has grown too large and they are losing customer loyalty. | 0.08 | 3 | 0.24 | The company’s financial targets seem to be unrealistic and trying to reach them is becoming troublesome. | 0.06 | 2 | 0.12 | Although sales were up in 1995 were up eight percent the company took a restructuring charge of $158 million pre-tax and net earnings fell $60million. | 0.07 | 3 | 0.21 | The strategies Rubbermaid as a company were using reflected uneasy balance of inconsistent ambitions. | 0.07 | 2 | 0.14 | Total | 1 | | 2.89 |

Financial Analysis:
Newell Ratio Analysis:

Work Cited
"Business Strategy Blog." : Newell Company: Corporate Strategy. N.p., 20 Feb. 2011. Web. 24 Apr. 2013.
"Case Example: Newell and Rubbermaid Corporation." Case Example: Newell and Rubbermaid Corporation. N.p., n.d. Web. 24 Apr. 2013.
M, Erik. "Business Case Study: NewellRubbermaid." Yahoo! Contributor Network. N.p., n.d. Web. 24 Apr. 2013.

Similar Documents

Premium Essay

Case Study Analysis

...| Newell & Rubbermaid | Case Study Analysis | | Submitted By:Vinesh MotwaniZain AliAffan RiazFaryal ArifNabil Nasir | 6/23/2014 | | | | | | | | | COMPANY BACKGROUNDTimeline * 1903 Created in 1903 by the acquisition of curtain rods manufacturer by Edgar Newell * 1921 First acquisition of Barnwell Mfg. Co. and renamed to Western Newell * 1965 Dan Ferguson named President who crafted the growth-by-acquisition strategy * 1983 onwards – acquisitions of W.T Rogers, Sanford, Levelor, Goody, Kirsch, Rolodex, Calphalon, Rubbermaid and othersVisionNewell is a manufacturer and full service marketer of consumer products serving the needs of volume purchasers”Offerings: Best better good“Newellization” – Well-established profit improvement and productivity enhancement process that is applied to integrate newly acquired product lines to the parent company.Newell’s key resources and capabilities are tailored around the company’s needs for growth and their customers need for diversity and efficient distribution. The company’s product range and depth (good, better, best) creates huge incentive for retailers to stock product from only one supplier. Their logistics operation with nearly100% first-pass line fill and expanding global presence help the company improve and expand with their customers (mass-merchandisers). The process of “Newellization” is a valuable resource to the company by which Newell acquire, convert, and integrate a new acquisition...

Words: 3116 - Pages: 13

Premium Essay

Market Plan for Rock-a-Baby Accessory

...Market Plan for Rock-a-Baby Accessory Devry – Keller Graduate School of Management 2/7/2010 Executive Summary Rock-a-Baby is a direct market company that sells accessories that complement infant care products to the public exclusively through the internet. The company develops and distributes to the customer while manufacturing is facilitated through a partner. Rock-a-Baby is a start up company entering the infant product market. The first product is an infant car carrier rocker accessory. The goal for the first year with the infant car carrier rocker accessory is to gain market share and to build brand recognition. The sales goal is to capture 5% of the target market by selling 67,000 units with a gross revenue forecast at $4,153,330. The sales goal for the year after will be doubled to 10%. Consumers spend $5,790 (babycenter, 2010) in the first year on basic infant needs. With 1,726,523 first born in the US for 2007 that is a $9.9 billion dollar industry. This number will increase as birth rates are projected to increase. One of the must have item is an infant car carrier which is required by law to bring home an infant. Rock-a-Baby will focus on equipping parents with accessories for the infant car seat carrier that will benefit them and their children. After establishing a brand name Rock-a-Baby will branch out and introduce other accessories to other essential baby products. The majority of infant soothing accessories require parents to remove...

Words: 4952 - Pages: 20

Premium Essay

Wal Mart

... Wal-Mart is revolutionizing the way the retail items are passed from producer to end-user by drastically cutting costs at every opportunity and demanding the same of their suppliers. These savings passed onto the consumers has not come without a price! Where some see a discount or a job opportunity, others see an empire that pulls the rug out of existing businesses. For years, Wal-Mart has been accused of a number of criminal actions and questionable ethical practices. Many people, from all walks of life, find themselves discussing (and some even arguing) the topic: “Is Wal-Mart good for America?” Many blame this modern trend of globalism, the outsourcing of manufacturing, the closing of mom & pop stores and independent grocers on Wal-Mart. But the question that must be asked is as follows: Is Wal-Mart really to blame for all the things that they are being accused of? After all, aren’t the consumers fueling Wal-Mart’s position as the number one retailer in the world by their constant search for the lowest possible price? And don’t we have a choice as to where we should shop and isn’t it our responsibility to avoid businesses that we deem are unethical? Is Wal-Mart unethical or are they just misunderstood? Background Wal-Mart has been forced to defend itself against several lawsuits that were filed against them. In the case; Cynthia Haddad vs. Wal-Mart stores, Inc. Wal-Mart was found liable for unequal compensation and wrongful termination of employment...

Words: 4304 - Pages: 18

Premium Essay

Maytag

...MARKETING MANAGER MARKETING ASSISTANT DESIGN DIRECTOR PRODUCT DESIGNER SENIOR PRODUCTION MANAGER ASSOCIATE PRODUCTION MANAGER PRODUCTION EDITOR COVER DESIGNER George Hoffman Franny Kelly Brian Baker Jacqueline Hughes Amy Scholz Kelly Simmons Marissa Carroll Harry Nolan Allison Morris Janis Soo Joel Balbin Eugenia Lee Kenji Ngieng This book was set in 10/12 New Caledonia by Aptara®, Inc. and printed and bound by Courier/Westford. The cover was printed by Courier/Westford. This book is printed on acid-free paper. Founded in 1807, John Wiley & Sons, Inc. has been a valued source of knowledge and understanding for more than 200 years, helping people around the world meet their needs and fulfill their aspirations. Our company is built on a foundation of principles that include responsibility to the communities we serve and where we live and work. In 2008, we launched a Corporate Citizenship Initiative, a global effort to address the environmental, social, economic, and ethical challenges we face in our business. Among the issues we are addressing are carbon impact, paper specifications and procurement, ethical conduct within our business and among our vendors, and community and charitable support. For more information, please visit our website: www.wiley.com/go/citizenship. Copyright © 2014, 2009, 2006, 2004 John Wiley & Sons, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form...

Words: 180086 - Pages: 721

Premium Essay

Mm4 Details Case Study

...www.it-ebooks.info www.it-ebooks.info E L E V E N T H E D I T I O N MARKETING MISTAKES AND SUCCESSES 3 0 T H A N N I V E R S A RY Robert F. Hartley Cleveland State University JOHN WILEY & SONS, INC. www.it-ebooks.info VICE PRESIDENT & PUBLISHER EXECUTIVE EDITOR ASSISTANT EDITOR PRODUCTION MANAGER PRODUCTION ASSISTANT EXECUTIVE MARKETING MANAGER ASSISTANT MARKETING MANAGER MARKETING ASSISTANT DESIGN DIRECTOR SENIOR DESIGNER SENIOR MEDIA EDITOR George Hoffman Lise Johnson Carissa Doshi Dorothy Sinclair Matt Winslow Amy Scholz Carly DeCandia Alana Filipovich Jeof Vita Arthur Medina Allison Morris This book was set in 10/12 New Caledonia by Aptara®, Inc. and printed and bound by Courier/Westford. The cover was printed by Courier/Westford. This book is printed on acid-free paper. Copyright © 2009, 2006, 2004, 2001, 1998, 1995, 1992, 1989, 1986, 1981, 1976 John Wiley & Sons, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc. 222 Rosewood Drive, Danvers, MA 01923, website www.copyright.com. Requests to the Publisher for permission should...

Words: 177260 - Pages: 710

Premium Essay

Fundamentals of Human Resources Preview

...es acculpa dolecae. Re nes eum nescimos inci dolum venihilitem ius, aut earchic ideriss equam, omnim nonet voles est quaere reptas am fugiatiis et rempelibus alibus. Ommost od et ulpa quid et mo blaut odi testios et, officia sitaqua sperum ipid qui blandaecus aperum dit vidis vollenda nimporr ovitatem nonet accusdaeris et aut earchilique porent. Itat odis nulpa se proreni sinciae. Ent eatur, coria voluptation ex et estionet remporporum quid ma culpa quate mincil moloria ndaestrunt. Minctas mi, tesciis delesti stiorrorest modipic iusdaniata nobit et lamet eum fuga. At rerspid itempor as quunt ationet omniendipis vendios con nulluptur, si deles pos magnam incid quos delique essequam nes dendis sae poremqui dit occabora in est, nimuscitiore di omnimodit quatum voluptas acerupit invenim inienimet volorecabo. Nam, ni omnis min res experio. Et omnimil lestruptate in est, ium volupis delest lique lab illoritatus. Henihit atiorestia dolor sit perspel endignis quo mod mincit quist fugit inci qui rehenis repero mo voles management in practice Riassi dentiumquam, officiis aligenihita nossimint. For Certificate IV BSB41013 and Diploma BSB50613 ly volorrum rehent officabo. Corio maiore ni ullore quis et quaecepremo et on Lisimaxi magnihicit esciendit que eratem. Non eos ipsam quo to maximagnam human resource management in practice e ese ped eveliquis il mi, ommolup tatinis etur sequiscienis autaque earibus. pl alitior estrund emquodiatur...

Words: 40577 - Pages: 163

Premium Essay

Vault Guide Resumes, Cover Letters & Interviews 2003

...“The best place on the web to prepare for a job search.” – Fortune “[Vault guides] make for excellent starting points for job hunters and should be purchased by academic libraries for their career sections [and] university career centers.” – Library Journal “The granddaddy of worker sites.” – US News and World Report “A killer app.” – New York Times One of Forbes' 33 “Favorite Sites” – Forbes “To get the unvarnished scoop, check out Vault.” – Smart Money Magazine “Vault has a wealth of information about major employers and jobsearching strategies as well as comments from workers about their experiences at specific companies.” – The Washington Post “A key reference for those who want to know what it takes to get hired by a law firm and what to expect once they get there.” – New York Law Journal “Vault [provides] the skinny on working conditions at all kinds of companies from current and former employees.” – USA Today VAULT GUIDE TO RESUMES, COVER LETTERS & INTERVIEWS © 2003 Vault Inc. VAULT GUIDE TO RESUMES, COVER LETTERS & INTERVIEWS HOWARD LEIFMAN, PhD, MARCY LERNER AND THE STAFF OF VAULT © 2003 Vault Inc. Copyright © 2003 by Vault Inc. All rights reserved. All information in this book is subject to change without notice. Vault makes no claims as to the accuracy and reliability of the information contained within and disclaims all warranties. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical...

Words: 46382 - Pages: 186

Premium Essay

Marketing Lecture

...1 March 30, 2003 To the reader: You are enrolled in a principles of marketing course. This publication is intended to supplement your lecture materials. As you read through the text, note that it is keyed to illustrations used in class. The course is divided into three sections. Section one covers introduction to marketing, consumer behavior, industrial buyer behavior, the marketing environment, where marketing fits into the organization, market segmentation, and product differentiation. Section two covers product and pricing. Section three covers promotion (sales) and distribution. As you read the book, consider that it is organized as follows: marketing and its environment (consumer behavior, industrial buyer behavior, marketing environment), product, pricing, promotion, and distribution. So, coverage begins with introductory concepts and proceeds into the marketing mix elements (product, price, promotion and place). You may wonder whether this book covers all aspects of marketing. No, it does not cover all aspects of marketing. You will find only basic concepts herein. If you seek specific, contemporary examples of marketing concepts, check out a traditional textbook from the library or purchase a recent edition from a used book store. Try the Perreault and McCarthy textbook (14th edition) or the Kotler and Armstrong textbook. Section I: Concepts of Marketing A. Who is a Marketer? Consider first that marketing is driven by people and their needs. It is people driven...

Words: 39450 - Pages: 158

Premium Essay

Kotler

...Ingredient Branding Philip Kotler· Waldemar Pfoertsch Ingredient Branding Making the Invisible Visible Professor Philip Kotler Kellogg Graduate School of Management Northwestern University Evanston, IL 60208, USA p-kotler@kellogg.northwestern.edu Professor Waldemar Pfoertsch China Europe International Business School 699 Hongfeng Rd. Shanghai 201206, China wap@ceibs.edu e-ISBN 978-3-642-04214-0 ISBN 978-3-642-04213-3 DOI 10.1007/978-3-642-04214-0 Springer Heidelberg Dordrecht London New York Library of Congress Control Number: 2010926489 © Springer-Verlag Berlin Heidelberg 2010 This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer. Violations are liable to prosecution under the German Copyright Law. The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. Cover design: WMXDesign GmbH, Germany Printed...

Words: 106805 - Pages: 428

Premium Essay

Strategic Management

...SIXTH EDITION STRATEGIC MANAGEMENT IN ACTION Mary Coulter Missouri State University Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montréal Toronto Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editor in Chief: Stephanie Wall Senior Acquisitions Editor: April Cole Editorial Project Manager: Claudia Fernandes Director of Marketing: Maggie Moylan Senior Marketing Manager: Nikki Ayana Jones Marketing Assistant: Gianna Sandri Senior Managing Editor: Judy Leale Production Project Manager: Kelly Warsak Senior Operations Supervisor: Arnold Vila Operations Specialist: Cathleen Petersen Creative Director: Blair Brown Senior Art Director: Kenny Beck Text Designer: LCI Design Cover Designer: LCI Design Cover Art: Svetoslav Iliev/Shutterstock.com Permission Specialist: Brooks Hill-Whilton Media Project Manager, Production: Lisa Rinaldi Senior Media Project Manager, Editorial: Denise Vaughn Full-Service Project Management and Composition: Integra Printer/Binder: RRD/Willard Cover Printer: Lehigh-Phoenix Color Text Font: 10/12, Times LT Std Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on appropriate page within text. Copyright © 2013, 2010, 2008 Pearson Education, Inc., publishing as Prentice Hall, One Lake Street, Upper Saddle River, New Jersey 07458. All rights...

Words: 154599 - Pages: 619

Premium Essay

Strategy Management

...CONNECT FEATURES Interactive Applications Interactive Applications offer a variety of automatically graded exercises that require students to apply key concepts. Whether the assignment includes a click and drag, video case, or decision generator, these applications provide instant feedback and progress tracking for students and detailed results for the instructor. Case Exercises The Connect platform also includes author-developed case exercises for all 12 cases in this edition that require students to work through answers to assignment questions for each case. These exercises have multiple components and can include: calculating assorted financial ratios to assess a company’s financial performance and balance sheet strength, identifying a company’s strategy, doing five-forces and driving-forces analysis, doing a SWOT analysis, and recommending actions to improve company performance. The content of these case exercises is tailored to match the circumstances presented in each case, calling upon students to do whatever strategic thinking and strategic analysis is called for to arrive at a pragmatic, analysis-based action recommendation for improving company performance. eBook Connect Plus includes a media-rich eBook that allows you to share your notes with your students. Your students can insert and review their own notes, highlight the text, search for specific information, and interact with media resources. Using an eBook with Connect Plus gives your...

Words: 219639 - Pages: 879

Free Essay

International Business

...globalization debate and understanding the impact of ethics on global businesses. Additionally, students will explore the evolution of international trade from past to present, with a focus on how firms and professionals can better understand today’s complex global business arena by understanding the impact of political and legal factors. The section concludes with a chapter on understanding how cultures are defined and the impact on business interactions and practices with tangible tips for negotiating across cultures. WHERE? Section two develops student knowledge about key facets of the global business environment and the key elements of trade and cooperation between nations and global organizations. Today, with increasing numbers of companies of all sizes operating internationally, no business or country can remain an island. Rather, the interconnections between countries, businesses, and institutions are inextricable. Even how we define the world is changing. No longer classified into simple and neat categories, the rapid changes within countries are redefining how global businesses think about developed, developing, and emerging markets. This section addresses the evolving nature of country classifications and helps develop a student’s ability to comprehend the rationale of how to analyze a specific country’s stage of development—rather than just memorize which countries are emerging....

Words: 239764 - Pages: 960

Premium Essay

Middle Market Investment Banking

...best place on the Web to prepare for a job search.” – Fortune “[Vault guides] make for excellent starting points for job hunters and should be purchased by academic libraries for their career sections [and] university career centers.” – Library Journal “The granddaddy of worker sites.” – U.S. News & World Report “A killer app.” – The New York Times One of Forbes’ 33 “Favorite Sites.” – Forbes “To get the unvarnished scoop, check out Vault.” – SmartMoney Magazine “Vault has a wealth of information about major employers and job searching strategies as well as comments from workers about their experiences at specific companies.” – The Washington Post “A key reference for those who want to know what it takes to get hired by a law firm and what to expect once they get there.” – New York Law Journal “Vault [provides] the skinny on working conditions at all kinds of companies from current and former employees.” – USA Today Customized for: Mian Badr (mian.iftikhar@studbocconi.it) Customized for: Mian Badr (mian.iftikhar@studbocconi.it) VAULT CAREER GUIDE TO MIDDLE MARKET INVESTMENT BANKING JOE BEL BRUNO AND THE STAFF OF VAULT Customized for: Mian Badr (mian.iftikhar@studbocconi.it) Customized for: Mian Badr (mian.iftikhar@studbocconi.it) Copyright © 2009 by Vault.com, Inc. All rights reserved. All information in this book is subject to change without notice. Vault makes no claims as to the accuracy and reliability of the information contained within and disclaims...

Words: 71250 - Pages: 285

Free Essay

Jezz Bezos

...Begin Reading Table of Contents Photos Newsletters Copyright Page In accordance with the U.S. Copyright Act of 1976, the scanning, uploading, and electronic sharing of any part of this book without the permission of the publisher is unlawful piracy and theft of the author’s intellectual property. If you would like to use material from the book (other than for review purposes), prior written permission must be obtained by contacting the publisher at permissions@hbgusa.com. Thank you for your support of the author’s rights. For Isabella and Calista Stone When you are eighty years old, and in a quiet moment of reflection narrating for only yourself the most personal version of your life story, the telling that will be most compact and meaningful will be the series of choices you have made. In the end, we are our choices. —Jeff Bezos, commencement speech at Princeton University, May 30, 2010 Prologue In the early 1970s, an industrious advertising executive named Julie Ray became fascinated with an unconventional public-school program for gifted children in Houston, Texas. Her son was among the first students enrolled in what would later be called the Vanguard program, which stoked creativity and independence in its students and nurtured expansive, outside-the-box thinking. Ray grew so enamored with the curriculum and the community of enthusiastic teachers and parents that she set out to research similar schools around the state with an eye toward writing a book about...

Words: 120163 - Pages: 481