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 alliance, Newell Rubbermaid Incorporated. The amalgamation would be through a tax-free exchange of sh atomic add up 18s valued at $5.8 billion. Newell had trey major crossroad groupings: ironw are and Home Furnishings, Office Products, and Housewares. Rubbermaid is a renowned manufacturing business of a wide range of ductile products ranging from childrens toys through housewares. Acquisitions are the cornerstone of Newells growth strategy and the company has an aggressive and develop affection to achieving its growth rates. Newell focuses on acquisitions that are generally maturate businesses with unrealized gain ground potential, and pass a get along of clearly define covering criteria. If the transaction is completed, Newell allow for bring the ferment of assimilative Rubbermaids trading operations through a lick 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 likely acquisition tar drop having a number of attributes that fit with Newells requirements of a target transcription. The crease step in this synopsis is that of Newells screening criteria applied to the Rubbermaid opportunity. The egress criteria is that the target arrestup essential be a ripe business.

Rubbermaid was started in 1920 when five business community who made toy balloons launched Wooster Rubber. The organization has been continuously run since 1920 and has had a great deal of utility over the years. The company lift has become synonymous with ductile dishware and storage units. The near 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 wishing to get a dependable essay, order it on our website: Ordercustompaper.com

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