Newell Essay

1009 Words5 Pages
1. What are the goals and objectives of Newell? It is no wonder that the Harvard Business School selected NewellRubbermaid as a target for one of their case studies. Ever since the company switched its focus in 1969 toward acquiring companies that meshed with its core goal of providing mass retailers with non-cyclical household products, Newell has been a model for deft corporate management. This “build on what we do best” philosophy (and a commitment to keeping operating margins above 15% in all divisions) has allowed the company to virtually guarantee its spot on the shelves of Wal*Mart and Target, despite these retailers sometimes overpowering price and delivery demands. As we enter the 21st Century, Newell has taken this a step further by expanding globally in step with these mass retailers. 2. What businesses/industries are they in? Since it is pretty apparent that the company only acquires related businesses that fit the mold of their current distribution system, or at the very least can be changed to fit it, I would argue that Newell is resource-based. Executives at the company seem to think that, despite its distinct divisional structure, Newell is not a holding company. This point can be debated when you consider it empowers each division to run independently while simultaneously keeping a tight rein on each one’s financial output. Yet, due to the highly-related product attributes across the divisions, I tend to agree with the executives. Newell takes this integrative approach one step further than most when acquiring new companies, since it looks to see if it can leverage preexisting relationships with retailers whenever adding a new business. According to the case, the “most important asset in acquisition is shelf space.” Once acquired, the Newellization process begins. 3. What are the unique resources they have developed? As Newell grew

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