Wooster Rubbermaid Case Study

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In May 1942, Wooster Rubber Company hit their first major setback, the outbreak of World War II. The federal government put a halt to the production of rubber goods for domestic use. Wooster Rubber Company was forced to shut down its production and lay off all but sixteen workers. Six months into the freeze, James Caldwell found a solution to the company’s financial crisis, he had secured a contract with the military. For three years, the company stopped its production of household products and dustpans and was allowed to produce rubber parts for bomber airplanes. From there the company also manufactured life jackets and rubber tourniquets. The manufacturing factory was so busy during this timeframe, that all previous employees were rehired. By 1944 the company was busting at its seams and grew to 500 employees.
When World War II ended, the company however did
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At this point in time, Rubbermaid was selling 240 different products, but only about one-tenth of them had been brand new and introduced that year. Trying to overcome this slump, the company regrouped and tried to focus back on the original objective and placed a, “strong emphasis on innovation and the introduction of new products… This staff built prototypes to be used and critiqued by thousands of consumers, resulting in an eight-month process from drawing board to store” (Rubbermaid Incorporated). Just when Rubbermaid was starting to regain its momentum, another setback was about to ensue. In 1976, at United Rubber Workers, Rubbermaid’s only unionized plant, 1,100 members went on strike. The strike lasted a total of 141 days due to disagreement in a new contract. Although the strike was settled, the company started to build plants outside of union strongholds to minimize union activity. It wasn’t until 1985 that Rubbermaid and the union came to a mutual