Corporate Strategy of the Newell Company - Essay Example

2) Newell Company has many distinctive resources due to the strong credibility the brand has built up over the years. Because the company has many different product categories, a strong management style is necessary to ensure that every sector runs smoothly. In addition, Newell Company has good relationships with its supply partners, and these relationships help the company to remain number one in all areas of its business portfolio. Finally, Newell Company has access to Electronic Data Interchange (EDI), which helps the company to organize all of its purchase orders, invoices, and payments to and from its retail partners. Because most of Newell Company's orders are placed through this system, the company can keep track of all of its deadlines and needs.

3) Newell Company does seem to have a successful corporate-level strategy because the management and administration are interlinked, which helps to build a solid kind of corporate culture. Another area that shows Newell Company is successful in the corporate area is through acquisitions. The company buys other companies that can add value and expand the operation of Newell Company. This is a very difficult process because the new acquisitions need to be the right fit. If a new acquisition is not up to the same speed as Newell Company, then that acquisition has the potential to bring the whole company down.

4) I feel that Newell Company acquiring both Calphalon and Rubbermaid are good business decision for a variety of reasons. First of all, Calphalon is a good fit for Newell Company's housewares division because the company has access to the high end of the market where Newell Company has not been so successful. Also, Calphalon has strong brand recognition, so, likely, these customers will not want to stray from the brand, thus giving Newell Company a new market of customers. For Rubbermaid, this move was a little more risky because the company is very large but also it is inefficient. This will take some time for Newell Company to bring the brand under the Newell umbrella, so there could be some short-term problems here. Read More