Newell Rubbermaid: Strategy in Transition Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Describes the transformation of the corporate level strategy. Begins to document the strategy that brought Newell Co. stunning success for nearly three decades. Highly integrated, internally consistent strategy for production and sale of a particular genre of products for certain types of customers. In the mid-1990s, Newell encountered some changes in its competitive environment and subtle erosion of profits. In 1999, $ 3.5 billion company paid a 49% premium to the acquisition of $ 2.5 billion company Rubbermaid, in particular, for its product development process and strong consumer brands. After the acquisition, the combined entity profit declined at an accelerated pace and CEO was replaced. Less than a year later, a fundamentally new strategy was announced, profits improved, and both Wall Street and major retailers were invited. Some failures that lead to a decrease in revenues and revised expectations. Provides students with the pain and struggle change deep-rooted and long-lived strategy. Also forces them to confront the question of whether the new strategy is appropriate and the markers should seek to prove the point. "Hide
by Cynthia A. Montgomery, Rhonda Kaufman, Carole A. Winkler Source: Harvard Business School 25 pages. Publication Date: March 23, 2004. Prod. #: 704491-PDF-ENG