Newell Company Case
Newell Company Case Analysis
Group: Nam, Xin, Shuyang
Problem Statement:
CEO John McDonough decided on making acquisition of Calphalon and Rubbermaid, which influent shareholders’ confidence.
Newell Company’s Philosophy and Mission
Newell Company created corporate advantages by following the company’s mission and philosophy. The philosophy "Build on what we do best" was started by CEO Mr. Dan Ferguson. This philosophy can be described as Newell focus on selling multiproduct to large mass retailers with high-volume and low-cost. Their mission is "Newell is a manufacturer and full-service marketer of consumer products for serving the needs of volume purchasers.” The company’s philosophy and mission has a great influence on its strategies. Newell creates various strategies to accomplish the company mission. For example, one of Newell’s key strategies is serving the mass retailer. The strategy of acquisition helps to improve manufacturing processes in order to get high-volume and low cost product. Newell’s strategies align with its philosophy and mission. It can create corporate advantages in the industry.
Moreover, the basic strategy of total Newell strategy is that “merchandise a multi-product offering of brand-name staple consumers products, with an emphasis on excellent customers service, in order to achieve maximum results for our stockholders”. The acquisition Rubbermaid and Calphalon enhanced Newell’s strength in terms of merchandise multiproduct offering and rise Newell’s brand popularity. However, with negative feedback of Rubbermaid’s customers, Rubbermaid’s strategy of customer services could not alignment with Newell’s mission and basic strategy that lead to a negative influence on shareholder satisfactions. Even though Calphalon’s competitor Meyer have the lower price than Calphalon, Caphalon is for the younger and more fashion oriented market which is not efficient to use the low cost strategy for the high-end product, because Newell maybe
Group: Nam, Xin, Shuyang
Problem Statement:
CEO John McDonough decided on making acquisition of Calphalon and Rubbermaid, which influent shareholders’ confidence.
Newell Company’s Philosophy and Mission
Newell Company created corporate advantages by following the company’s mission and philosophy. The philosophy "Build on what we do best" was started by CEO Mr. Dan Ferguson. This philosophy can be described as Newell focus on selling multiproduct to large mass retailers with high-volume and low-cost. Their mission is "Newell is a manufacturer and full-service marketer of consumer products for serving the needs of volume purchasers.” The company’s philosophy and mission has a great influence on its strategies. Newell creates various strategies to accomplish the company mission. For example, one of Newell’s key strategies is serving the mass retailer. The strategy of acquisition helps to improve manufacturing processes in order to get high-volume and low cost product. Newell’s strategies align with its philosophy and mission. It can create corporate advantages in the industry.
Moreover, the basic strategy of total Newell strategy is that “merchandise a multi-product offering of brand-name staple consumers products, with an emphasis on excellent customers service, in order to achieve maximum results for our stockholders”. The acquisition Rubbermaid and Calphalon enhanced Newell’s strength in terms of merchandise multiproduct offering and rise Newell’s brand popularity. However, with negative feedback of Rubbermaid’s customers, Rubbermaid’s strategy of customer services could not alignment with Newell’s mission and basic strategy that lead to a negative influence on shareholder satisfactions. Even though Calphalon’s competitor Meyer have the lower price than Calphalon, Caphalon is for the younger and more fashion oriented market which is not efficient to use the low cost strategy for the high-end product, because Newell maybe