Essay Black & Decker Case Analysis

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Pages: 4

Case Analysis: The Black & Decker Corporation
Black & Decker Corporation is a corporation based in Towson, Maryland, United States, that designs and imports power tools and accessories, hardware and home improvement products, and technology based fastening systems.
Recent research studies showed that B&D is one of the powerful brand names in the world because of its professional tools that has high quality in the industry.

During the early 1980's; sales started to decline and it posted a restructuring cost; therefore in the period of 4 years the company lost money. Black & Decker went through a very hard time.
In 1985, the company hired Nolan D. Archibald as president and chief operating officer (CEO). Under his leadership
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Copying everything a competitor makes is not always successful; innovating would be the best. Making deals with suppliers with good reputation will also affect the sales.
Since B&D is dealing with 3 different segments; it is important to have an individual department for each segment in order to be focused; especially the Professional tradesmen segment which will need more consideration as it is losing.

2. Develop a better HR department that hires qualified employees. Human Resources specialists with acquisition and merger expertise should be brought in as needed to assist in the transition to a leaner structure. During this restructuring Black & Decker should devote greater attention to its remaining employees in an effort to enhance morale, productivity and commitment.

3. The best solution would be maintaining the same pricing strategy and not use premium pricing. Instead it can attempt to bring economies of scale into play by producing large quantities of goods to make the cost of producing them cheaper then selling them to consumers in the same pricing strategy, this way B&D will gain more income.

The best strategy
Black & Decker should stick with its original vision that includes the consolidation of their portfolio. The company should continue in investing in, and strengthening, its core products within its existing portfolio, so that these products will generate