Newell / Rubbermaid Case Study - Strategy

NEWELL / RUBBERMAID Analysis BACKGROUND In October 1998, Newell Company was considering a amalgamation with Rubbermaid Incorporated to form a new company, Newell Rubbermaid Incorporated. The amalgamation would be through a untaxed exchange of sh atomic count 18s valued at $5.8 billion. Newell had three major crossroad groupings: ironw ar 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 world of Newells growth strategy and the company has an aggressive and develop hail to achieving its growth rates. Newell focuses on acquisitions that are generally maturate businesses with unrealized proceeds potential, and pass a number of clearly define masking piece criteria. If the transaction is completed, Newell lead begin the assist of assimilative Rubbermaids 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 potential acquisition tar discombobulate having a number of attributes that check with Newells requirements of a target transcription. The origin step in this summary is that of Newells screening criteria applied to the Rubbermaid opportunity. The outgrowth criteria is that the target organization must(prenominal) be a fledged business.

Rubbermaid was started in 1920 when five business community who made toy balloons laun ched Wooster Rubber. The organization has be! en continuously run since 1920 and has had a great deal of advantage over the years. The company number has become synonymous with plastic dishware and storage units. The close 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 dependable essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper