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Newell Case Strudy

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Submitted By eoussov
Words 1080
Pages 5
te____________ Strategic Management _____________ (BUSA 5051)MBA (PART TIME) (2013)Individual Assignment (Session 5) | | Egor A. Oussov (Student No. 578723)Word Count: 996 Submission Date: May 15, 2012 |

Table of Contents Table of Contents 2 1. Newell Case Study 3 Question 1: 3 Question 2: 4 Question 3: 4 Question 4: 5 List of References 6

1. Newell Case Study
Question 1:
Does Newell have a successful corporate-level strategy? Does the company add value to the business within its portfolio?
Newell has a successful corporate-level strategy which has definitely proven itself over nine decades with annual revenue reaching $6 billion. The corporate strategy is embedded on well defined pillars, which has a strong emphasis on the growth through acquisitions of top performing brands in relating industries, creating efficiencies though centralised administration with an assessment of the divisional performance in terms of profitability and distributing their products through mass retailers.
Newell’s CEO believed acquisitions contributed towards growth strategy which provided “course corrections”, increasing their market power and striving towards $10 billion plus market mass which would help to reach the critical mass to help to increase their profitability and market dominance.
I strongly believe that Newell corporate division adds value for its businesses within its portfolio. The head office is responsible for identifying, screening and acquiring strategically contributive entities and “Newellisation” process of integration of newly acquired entities, while converting it to Newell’s profit structure and mission critical aspects of the business. This function is crucial to insure sustainability and synergy with a newly acquired component and allows divisional managers to concentrate on the successful

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