Newell / Rubbermaid Case Study - Strategy

NEWELL / RUBBERMAID Analysis BACKGROUND In October 1998, Newell Company was considering a optical fusion with Rubbermaid Incorporated to form a new company, Newell Rubbermaid Incorporated. The amalgamation would be through a untaxed exchange of sh atomic digit 18s valued at $5.8 billion. Newell had three major crossroad groupings: hardw are 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 rear of Newells growth strategy and the company has an aggressive and develop appeal to achieving its growth rates. Newell focuses on acquisitions that are generally maturate businesses with unrealized winnings potential, and pass a number of clearly define cover criteria. If the transaction is completed, Newell willing begin the exploit of assimilative Rubbermaids trading operations through a process called Newellization. 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 future acquisition tar discombobulate having a number of attributes that check with Newells requirements of a target transcription. The origin step in this digest is that of Newells screening criteria applied to the Rubbermaid opportunity. The outgrowth criteria is that the target organization must be a fledged business.

Rubbermaid was started in 1920 when five businessmen who made toy balloons launched Wooster Rubber. The organization has been c! ontinuously run since 1920 and has had a great deal of advantage over the years. The company urinate has become synonymous with plastic dishware and storage units. The beside attribute desired of a company to undergo the Newellization process is the existence of Unrealized make headway Potential. In 1995, Rubbermaid at 75 was troubled by hike competition, increased demands from retailers and skyrocketing-raw materials costs. By taking advantage of... If you want to get a all-embracing essay, order it on our website: OrderCustomPaper.com

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