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Newell

In: Business and Management

Submitted By rsingh0
Words 2697
Pages 11
| Newell |
Memo
To: Alex
From: Morgan Baker
CC: Jimmy Lanigan
Date: November 17, 2008
Re: Newell’s current situation
Recently, the United States based basic home and hardware product company Newell acquired Calphalon, a manufacturer of anodized aluminum cookware and Rubbermaid, a manufacturer of plastic consumer and commercial products. These acquisitions were deemed necessary by CEO John McDonough. Calphalon will give Newell the ability to enter the department and specialty store markets as well as help Newell’s cookware product line reach the top of the market. Rubbermaid allows Newell greater presence globally and increases brand name. Below you will find information about the Newell Company that will help you better understand the current position and the direction to take in the future.

Corporate Level Strategy
The Newell Corporate Level Strategy started as a product line strategy where Newell sold their products of drapery hardware to all channels, but the product lines lacked differentiation. In 1966, Newell bought a small window-shade manufacturer in attempts to conquer the problem of differentiation. It was not until Dan Ferguson met Stanford Professor Bob Katz and spoke about differentiation strategies that Newell really began to develop a “build on what we do best” philosophy. After this discussion, Ferguson realized that Newell’s competitive advantage was the knowledge of how to make a high-volume/low-cost product and relate to and sell to the large mass retailer. In 1967, Ferguson identified a new strategy for Newell, which focused a great deal on how to make Newell a better company both at the time the strategy was written as well as in the future.

The Package Deal was introduced by Ferguson as a new corporate strategy for Newell, based on their current monetary situation of approximately 10 million dollars, no long term...

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