Newell Company: Corporate Strategy Essay

Words: 1096
Pages: 5

Newell's corporate strategy was mainly focused on high volume and low cost product to large mass retailer. The goal of the company was to increase its sales and profitability by offering a complete and complementary range of products and reliable service to the mass retail stores. Newell's initial focus was on home and hardware products which later on expended to other markets. The company strategy was to grow and expand its product line through acquisitions, rather than internal growth. Before 1998 Newell acquired different companies in the basic home and hardware products industry and started diversifying into unrelated field such as children products, widow covering, writing instruments and others. The company was also looking to …show more content…
Also, corporate office did a good job of seamless linking of its structure and processes. A good example for this can be the use of formal training process in order to tie corporate vision to the values and needs of each department at a division level. The company also recruits and made sure that only the best candidates are selected using a careful selection process. In addition, the company provides Newell University to implement the company values and strategies in employees. This HR management results in performance and managing expectations of both employees and top management, while focusing on the main company goal to increase sales and profitability. Also, acquisitions were made only in corporate level, in order to make sure all divisions are stay focus with their goals for productivity, good service and profitability.

The acquisition of both Calphalon and Rubbermaid are unusual for Newell. Calphalon selection does not perfectly alien with the corporate strategy for mass retails sales and Rubbermaid is slightly unusual in the size of the acquired target. However, Calphalon should create some benefit and value for Newell by extending its product into the non-mass market in the house-wares division. This acquisition can allows Newell to offer premium products with strong brand equity without cannibalized existing products as cookware to the mass retailers. While most of Newell’s product offerings are