Newell / Rubbermaid Case Study - Strategy

NEWELL / RUBBERMAID Analysis BACKGROUND In October 1998, Newell Company was considering a nuclear fusion with Rubbermaid Incorporated to form a new company, Newell Rubbermaid Incorporated. The amalgamation would be through a untaxed exchange of sh atomic repress 18s valued at $5.8 billion. Newell had three major crossroad groupings: computer hardw be and Home Furnishings, Office Products, and Housewares. Rubbermaid is a renowned manufacturing business of a wide range of waxy products ranging from childrens toys through housewares. Acquisitions are the origin of Newells growth strategy and the company has an aggressive and develop nuzzle to achieving its growth rates. Newell focuses on acquisitions that are generally maturate businesses with unrealized pull in potential, and pass a number of clearly define top criteria. If the transaction is completed, Newell leave begin the military operation of assimilative Rubbermaids operations through a process called Newellizati on. The companies expect that the merger will create synergy through the leveraging of Newell Rubbermaid brands. By 2000, these efforts are ANALYSIS The Newellization process The Newellization process is based on the potential acquisition tar discombobulate having a number of attributes that correlated with Newells requirements of a target transcription. The origin step in this psychoanalysis is that of Newells screening criteria applied to the Rubbermaid opportunity. The outgrowth criteria is that the target organization moldiness be a fledged business. Rubbermaid was started in 1920 when five business community who made toy balloons launched Wooster Rubber. The organization has been continuously run since 1920 and has had a great deal of advantage over the years. The company hang has become synonymous with plastic dishware and storage units. The contiguous attribute desired of a company to undergo the Newellization process is the existence of Unrealized make headway P otential. In 1995, Rubbermaid at 75 was trou! bled by hike competition, increased demands from retailers and skyrocketing-raw materials costs. By taking advantage of... If you want to get a full moon essay, order it on our website: OrderCustomPaper.com

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