SM-II ASSIGNMENT-3 Group-10 Manish Kumar (14PGP025) Robin Singh (14PGP059) Chythra TC (14PGP014) Vivek Singh (14PGP054) Q1. Does Newell have a parenting advantage (in other words, does it have a successful corporate strategy)? How does Newell create value, i.e. how does it enhance the competitive advantage of its businesses? Ans. Newell’s strategy as written by Ferguson is to “identify its focus as the market for hardware and Do- It- Yourself products to volume merchandisers”. GOAL - Newell’s goal is to increase its profitability and sales by offering a wide and exhaustive range of products and service to the mass retail channel. Newell has chosen to expand through key acquisitions, rather than internal growth. The strategy …show more content…
The key to the success is the process of Newellization which was mentioned earlier. Taking a glance at Exhibit – 3, the major acquisitions are in line with Newell’s goals, their product line and their strategy of expansion. And given the size of the company, the product line and number of successful acquisitions, it can be inferred that Newell has an effective corporate strategy. Ways by which Newell enhance Competitive advantage of its business. • Acquisition: Newell knew that to remain in the market and keep growing on year on year basis, it has to keep expanding and add new product lines to its business. Keeping this in mind Newell acquired different businesses having products in the hardware home products but different from those of Newell. This is clear from the case as Newell made 30 acquisitions in 20 years. • Service Quality: Newell was known for its service quality, which keep them ahead of their competitors. One the question asked in the industry was ‘Do you ship as well as Newell’. Whenever an acquisition was made Newell get its service level up to Newell’s standards as soon as possible, for that the company was willing to carry larger inventories immediately following the …show more content…
Discuss about Newell’s organization structure. How does Newell’s headquarters (corporate office) add value to the businesses? Newell maintained a centralized administration at the corporate level. Since Newell has chosen the strategy to expand through acquisitions, ensuring Newellization and corporate continuity across the division are the key responsibilities of the organization structure it adopted. The basic functions like legal and tax issues, benefits, EDI, credit and collection, and financial control systems were administrated from this centralized corporate office. Exhibit_8 shows the company’s organization chart as on October 1998. Board of directors chairman W.P Sovey followed by vice chairman & CEO J.J McDonough and president & COO T.A Ferguson represents the very top corporate leadership. Under them, top financial responsibilities were divided between two corporate executives: Vice President-Finance who managed outside asset and liability, and senior vice president-Corporate Controller who focused on internal operations. They reported directly to company president and president reported to CEO. Value to the
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In the review of the corporate level strategy, we can see many different competitive advantages branching from their use of corporate diversification and vertical integration. Going deeper into those strategies the three elements that allow for a competitive advantage for The Kroger Co. include operating into different markets, having a successful customer reward program, and by having many different locations nationwide under many different brand names. The VRIO analysis found that all three of these give Kroger’s a sustainable competitive advantage by being valuable, rare, costly to imitate and having the right organization structure business wide. In the review of the business level strategy, there were just as many different competitive
This is an example of flat organisational structure as there is no middle management. The organisational structure of Macmillan Is split up into 6 different sections. The first and most important sector is the chief executive whose job it is to make the big decisions and to manage the major operations and resources of the company and finally acting as the main communicating point between board of directors and corporate operations, and then there is a board of trustees that the chief executive rely on to help them with the important decisions.
Today home improvement is one of the highest areas that people want to spend money on. While the branding of Lowes pulls you in the rest of the business is successful enough to pull you in. Once any business is able to use its branding than management takes over. Lowes knows what’s it home improvers want and that’s
4 Bias Examples Against Wal-Mart Blaming Wal-Mart for the downing of Rubbermaid. According to the documentary, Rubbermaid was forced out of business and sold to Newell due to Wal-Mart not accepting their price hike caused by the raw materials. By researching a bit more about what exactly went wrong with Rubbermaid, it entails that Rubbermaid had polished a prettier picture than what was really there. According to two different articles, How Rubbermaid Managed to Fail From Most Admired To Just Acquired and Case Example: Newell and Rubbermaid Corporation, Rubbermaid was not covering the basics of manufacturing and marketing.
The diversification lowered the overall risk of the firm and created an information network among the divisions, which was critical for the company to gain competitive advantage. The loyal customer base was another strength. The $60 billion assets that under the company’s management provided the company a positive brand image and made it easier for the company to attract new customers. Weakness:
It is widely recognized by the customers for introducing a variety of innovative and high-quality products to the market while the competitors could not do the same. “During this period of time, the company grew at a very fast rate and expanded its market to Europe, Asia, and Latin America” (dynacorp case study). However, Dynacorp’s glory did not last long. The company started to face many problems while its competitors began to close the technology gap and gained back the
Kraft Heinz Case Study Executive Summary Problem Statement The focal problem that Kraft Heinz Company (KHC) faces is the decrease in demand of packaged-foods, while trying to increase revenue. Analysis This analysis studies Kraft Heinz Company’s strategy, competitive position in the market, problems being faced, and the company’s financials.
This compare and contrast paper will explore the history and development of these two corporate giants; conduct a strategic and financial analysis of each company; and compare and contrast the executive leadership, corporate strategy, acquisitions and divestments of each. The future direction of the companies over the next three to five
STRATEGIC MANAGEMENT CASE STUDY: MCDONALD’S CORPORATION 1. INTRODUCTION McDonald’s Corporation is the world’s leading fast food restaurant chain with more than 34,000 local restaurants serving approximately 69 million people in 119 countries each day. More than 80% of McDonald’s restaurants worldwide are owned and operated by independent local franchisees. Its revenues come from the rent, royalties, and fees paid by the franchisees, as well as sales in company-operated restaurants (McDonald’s, n.d.).
Introduction The company selected for this research is McDonald’s Australia Holdings, a patented public company in Australia. The company specializes in food and beverage products such as burgers, coffee, sandwiches, McCafe beverages, and soft drinks, among others. The primary activity of the company, which generates most of its revenues from food and beverage services, entails establishing and operating a chain of family restaurants that offer quick services throughout Australia. While the company owns and runs a smaller number of the McDonald’s Australia Holdings’ restaurants, a larger number of the restaurants is owned and ran by franchisees, who shell out the company’s service fees and rent (Buchan, 2012). The 2013 annual revenue of the
Internal strengths work as the main success factors for an organization. The main strength of the company was its Research and Development section in which it spends almost 9% of its total sales amount. Again the company had very high innovation aggressiveness which led the company to remain in its price differentiation strategy. Moreover the company always had been under the supervision of charismatic leaders which accounted for its strategic success. Lastly, the simple and user friendly premium looking device with uniqueness accounted for the brand loyalty of its
A-Four support activities: 1- firm infrastructure and finance : -Strong brand, product, marketplace solution, delivery and support. (brand value from 35$ in 1973 to 10.7 billion in 2014 ). -Empowerment of top management –geographic structure. -Low debt, short term debt 2.9 billion, and long term debt 1.1 billion. Cash in hand 2.2 billion.
3.1.3. Opportunities of Harley Davidson: 1. Asian & Europe Markets: The demand of the Harley Davidson in the developing Asian & European nations is increasing. There are very less number of players competing the Harley in this segment. Thus, it is a very attractive opportunity for Harley to capture these Asian & Europe markets aggressively.