Case Analysis of the Newell CompanyEssay Preview: Case Analysis of the Newell CompanyReport this essayDoes Newell have a successful corporate-level strategy? Does the company add value to the businesses within its portfolio?Yes, Newell does have a successful corporate strategy and it does add value to the businesses within its portfolio. Newells corporate strategy can be summarized as follows. Newell manufactures low-technology, high-volume staple products in the categories hardware/ home furnishings, office products as well as housewares and sells to large mass retailers. It mirrors the consolidation in the retail business and the related market power of volume merchandisers by a continuous flow of acquisitions of companies. These companies are well-known brands and often claim a #1 or #2 position in terms of market share but that on the other hand are poorly managed on the cost side and hence financially underperforming. Newell substantially increases their operational efficiency and hence profitability by introducing Newells financial system, IT-based sales and order processing system and flexible manufacturing system (“Newellization”), i.e. by streamlining their processes.
Regarding its mass retail customers Newell aims at a solid reputation for its high service quality (e.g. use of EDI and POS data along with reliability of JIT delivery), commanding a price premium. This quality level is also established in the acquired companies. Moreover, by consolidating industry capacity at high and low price points Newell reduces price pressure in the market, creates economies of scale and entry barriers based on “critical mass”. Newell also capitalizes on economies of scope by leveraging relationships with discount retailers to get shelf space and favorable terms and conditions for products of other subsidiaries in its portfolio, too.
Centralized training programs, comprehensive and frequent management meetings and regular transfer of managers between divisions contribute to best practice sharing and knowledge transfer within the corporation. The corporate office provides its various product divisions with capital infusion when necessary and with financial, technological, operational and legal support.
What are Newells distinctive resources?Newell has more than 30 well-known brands, often complementing each other in covering the low and high price points in their respective market segments, as well as the corresponding manufacturing capability and capacity of its subsidiaries. Based on its high service levels and reliable delivery performance Newell also enjoys a strong reputation of being the “no problem supplier” in the industry. This immaculate reputation and the strength of Newells brands form the basis for the companys strong relationships with many large mass merchandisers – securing broad access to attractive shelf space, i.e. broad market access. Newells long-lasting
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Newell in Canada
Newell is a subsidiary of B.L.D Group and formerly of KPMG in the German, British, Korean and Israeli markets. We are based in Calgary, and serve a diverse range of customers including retailing and retail-based enterprises including consumer services and online services in several major Canadian markets, such as Canada, the United States, Australia, New Zealand and South Africa. In the United States we have established relationships with a number of leading retailers, ranging from Amazon to Home Depot. We provide customer information including telephone numbers, addresses, telephone and email addresses for our large and small companies. We sell digital products to large corporations, primarily through our social media platforms like Facebook and Twitter and through direct media, through our ecommerce and online sales channels, and through our e-commerce portals, including Amazon.com, Expo.com, Etsy.com, Etsy.com and many of the more popular ones. We sell merchandise, produce, manufacture and distill foods for a wide range of industries including food & beverage, construction, industrial production, transportation, manufacturing of jewelry and other products. Our global office facilities include our headquarters in New York City; in London, the offices of our Global Headquarters in Los Angeles; in Vancouver Island and Fort McMurray, Alberta, through the offices of KPMG and B.L.D.; in the United Kingdom and the United States our offices are in London, New York and in Victoria Hill, N. B and Melbourne, B.C .
Etsy Inc. (the “Company”) and B.L.D Group (the “Company” and “Partners”)
The Company operates within the same group of entities as our other businesses including our global office facilities and is located in Calgary, Alberta and Canada. We are based in Vancouver, British Columbia for $15 billion and have operations in the West and East Europe and Asia Pacific.
Barry Zadrove
CEO
Our current focus, being to provide outstanding products and services, will continue to serve our customers well. Our core business focuses on delivering innovative products at innovative prices to our customers. Our primary concern is to provide strong customer service, and for our members and to maintain our long term relationship with our members. For that reason, we have established relationships with major retailers and major corporations. We intend to continue working together on our product development projects and to further our goals.
Our core business, which is primarily targeted at the consumer and business segments, will not continue as part of the Business Plan. Some of our product plans focus on other strategic areas such as expanding our market base, strengthening our existing network of retail partners etc. We will continue to develop new strategies to expand our