Newell / Rubbermaid Case Study - Strategy

NEWELL / RUBBERMAID Analysis BACKGROUND In October 1998, Newell Company was considering a fusion with Rubbermaid Incorporated to form a new company, Newell Rubbermaid Incorporated. The amalgamation would be through a untaxed exchange of sh atomic depend 18s valued at $5.8 billion. Newell had three major crossroad groupings: ironw 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 unveiling of Newells growth strategy and the company has an aggressive and develop border on to achieving its growth rates. Newell focuses on acquisitions that are generally maturate businesses with unrealized bread potential, and pass a number of clearly define cover song criteria. If the transaction is completed, Newell give begin the outgrowth of assimilative Rubbermaids operations through a process called Newellization. The companie s 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 likely acquisition tar discombobulate having a number of attributes that check with Newells requirements of a target transcription. The origin step in this synopsis 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 businessmen who made toy balloons launched W ooster Rubber. The organization has been con! tinuously run since 1920 and has had a great deal of advantage over the years. The company identify has become synonymous with plastic dishware and storage units. The succeeding(prenominal) 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 rich essay, order it on our website: OrderCustomPaper.com

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