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Newell Co.: Corporate Strategy – Case Solution

Newell Co. is a manufacturer of low-tech, high-volume consumer goods. In 1998, the company acquired Calphalon Corp. and Rubbermaid. These two companies are both in the business of consumer goods. This case study seeks to answer the question of whether the company has a successful corporate-level strategy.

​Cynthia A. Montgomery and Elizabeth J. Gordon Harvard Business Review ( 799139-PDF-ENG ) March 26, 1999

Case questions answered:

Case study questions answered in the first solution:

Does Newell have a successful corporate-level strategy? Does the company add value to the businesses within its portfolio?

• What are Newell’s distinctive resources? What was the challenge faced by the company in the 1990s?
• Does the acquisition of Rubbermaid make sense?
• Does the acquisition of Calphalon make sense?

Case study questions answered in the second  solution:

• Does Newell Co. have a successful corporate-level strategy? Does the company add value to the businesses within its portfolio?

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Newell Co.: Corporate Strategy Case Answers

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Executive summary- Newell Co.: Corporate Strategy

Newell Co. used acquisition as its corporate strategy and has acquired more than 20 companies to grow and diversify. The purchase increased the product offerings to the big retailers and also increased the chances of global expansion.

The company has increased its market through such a strategy. It conducts a process called ‘Newellization’ to align the corporate goals of the acquired companies with its own purpose.

Newell Co. has followed the philosophy explained by Dan Ferguson, “build on what we do best.” The acquisition of Calphalon and Rubbermaid has been illustrated in the case.

SWOT Analysis

• The Newellization process
• Diversified product line and Range (Multi-product offering)
• Timely Delivery to Client by Newell Co.
• Decline in Profitability
• Rapid acquisition competitors.
• Healthy private-label competition of Calphalon

Opportunity

• The company has the possibility of growth through acquisitions
• Expansion in International markets

Five Forces Model Analysis

• Competitive Rivalry is high.
• The threat of new entrants is moderate.
• The threat of substitutes is moderate.
• The bargaining Power of Customers of Newell Co. is high.
• Bargaining Power of Suppliers is Low.

The Corporate Strategy Triangle

We may conclude that the corporate strategy of the company has been successful. Newell focused on acquisition as its corporate strategy rather than applying internal growth strategies, the process which they call ‘Course Correction.’

It generally acquires reputed companies that haven’t excavated their profit-making potential. It employed an aggressive two-pronged strategy wherein it acquired 30 significant businesses in 20 years.

It acquired Calphalon and Rubbermaid to increase its product line. Though such steady acquisitions came with their own repercussions and challenges, the challenges outweigh the growth it brought to Newell Co. that probably any internal growth strategy wouldn’t have brought.

The Newellization process adopted by the company was a significant reason for the success of its corporate strategy. It helped them to transfer their skills, technology, and operational measures to the company they acquired and align them with Newell’s corporate strategy to create a synergy that will, in turn, bring cost efficiency.

This also ensures that the products reach the clients on time. Thus, timely delivery gives Newell Co. a competitive edge. Also, it implemented centralization and consolidation strategies to be successful.

The acquisitions were made mainly of low technology, non-seasonal, non-cyclical, nonfashionable products. The products they produced were very generic, like paintbrushes, office utilities, etc., that had nothing to do with the…

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Newell co.: the rubbermaid opportunity description.

The Newell Co., a multibillion dollar company dealing in hardware and home furnishings, office products, and housewares, was contemplating a merger with Rubbermaid, a renowned manufacturer of plastic products. Newell had a remarkable record of success in growth by acquisition. Rubbermaid would mark a quantum step in this program, but equally, would pose a formidable challenge to Newell's capacity to integrate and strengthen acquisitions. Corporate strategy and advantage is studied, particularly through the Collis and Montgomery framework, to determine whether the proposed merger is a step too far.

Case Description Newell Co.: The Rubbermaid Opportunity

Strategic managment tools used in case study analysis of newell co.: the rubbermaid opportunity, step 1. problem identification in newell co.: the rubbermaid opportunity case study, step 2. external environment analysis - pestel / pest / step analysis of newell co.: the rubbermaid opportunity case study, step 3. industry specific / porter five forces analysis of newell co.: the rubbermaid opportunity case study, step 4. evaluating alternatives / swot analysis of newell co.: the rubbermaid opportunity case study, step 5. porter value chain analysis / vrio / vrin analysis newell co.: the rubbermaid opportunity case study, step 6. recommendations newell co.: the rubbermaid opportunity case study, step 7. basis of recommendations for newell co.: the rubbermaid opportunity case study, quality & on time delivery.

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Case Analysis of Newell Co.: The Rubbermaid Opportunity

Newell Co.: The Rubbermaid Opportunity is a Harvard Business (HBR) Case Study on Strategy & Execution , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Newell Co.: The Rubbermaid Opportunity is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Newell Co.: The Rubbermaid Opportunity case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Newell Co.: The Rubbermaid Opportunity will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Newell Co.: The Rubbermaid Opportunity case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Strategy & Execution, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Newell Co.: The Rubbermaid Opportunity, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Newell Co.: The Rubbermaid Opportunity case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Strategy & Execution Solutions

In the Texas Business School, Newell Co.: The Rubbermaid Opportunity case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis. We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Newell Co.: The Rubbermaid Opportunity

Step 1 – Problem Identification of Newell Co.: The Rubbermaid Opportunity - Harvard Business School Case Study

The first step to solve HBR Newell Co.: The Rubbermaid Opportunity case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Rubbermaid Newell is facing right now. Even though the problem statement is essentially – “Strategy & Execution” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Rubbermaid Newell, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Newell Co.: The Rubbermaid Opportunity. The external environment analysis of Newell Co.: The Rubbermaid Opportunity will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Newell Co.: The Rubbermaid Opportunity case study. PESTEL analysis of " Newell Co.: The Rubbermaid Opportunity" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Newell Co.: The Rubbermaid Opportunity macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Newell Co.: The Rubbermaid Opportunity

To do comprehensive PESTEL analysis of case study – Newell Co.: The Rubbermaid Opportunity , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Newell Co.: The Rubbermaid Opportunity

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Government policies have significant impact on the business environment of any country. The firm in “ Newell Co.: The Rubbermaid Opportunity ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Rubbermaid Newell is operating, firms are required to store customer data within the premises of the country. Rubbermaid Newell needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Newell Co.: The Rubbermaid Opportunity has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Rubbermaid Newell in case study Newell Co.: The Rubbermaid Opportunity" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Rubbermaid Newell in case study “ Newell Co.: The Rubbermaid Opportunity ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Rubbermaid Newell in case study “ Newell Co.: The Rubbermaid Opportunity ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Newell Co.: The Rubbermaid Opportunity ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Rubbermaid Newell can compete against other competitors.

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Newell Co.: The Rubbermaid Opportunity case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Rubbermaid Newell needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Newell Co.: The Rubbermaid Opportunity

Social factors that impact newell co.: the rubbermaid opportunity, technological factors that impact newell co.: the rubbermaid opportunity, environmental factors that impact newell co.: the rubbermaid opportunity, legal factors that impact newell co.: the rubbermaid opportunity, step 3 – industry specific analysis, what is porter five forces analysis, step 4 – swot analysis / internal environment analysis, step 5 – porter value chain / vrio / vrin analysis, step 6 – evaluating alternatives & recommendations, step 7 – basis for recommendations, references :: newell co.: the rubbermaid opportunity case study solution.

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NEWELL COMPANY THE RUBBERMAID OPPORTUNITY Case Analysis and Case Solution

Posted by Peter Williams on Aug-09-2018

Introduction of NEWELL COMPANY THE RUBBERMAID OPPORTUNITY Case Solution

The NEWELL COMPANY THE RUBBERMAID OPPORTUNITY case study is a Harvard Business Review case study, which presents a simulated practical experience to the reader allowing them to learn about real life problems in the business world. The NEWELL COMPANY THE RUBBERMAID OPPORTUNITY case consisted of a central issue to the organization, which had to be identified, analysed and creative solutions had to be drawn to tackle the issue. This paper presents the solved NEWELL COMPANY THE RUBBERMAID OPPORTUNITY case analysis and case solution. The method through which the analysis is done is mentioned, followed by the relevant tools used in finding the solution.

The case solution first identifies the central issue to the NEWELL COMPANY THE RUBBERMAID OPPORTUNITY case study, and the relevant stakeholders affected by this issue. This is known as the problem identification stage. After this, the relevant tools and models are used, which help in the case study analysis and case study solution. The tools used in identifying the solution consist of the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis. The solution consists of recommended strategies to overcome this central issue. It is a good idea to also propose alternative case study solutions, because if the main solution is not found feasible, then the alternative solutions could be implemented. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. This shows how through a step-by-step procedure as to how the central issue can be resolved.

Problem Identification of NEWELL COMPANY THE RUBBERMAID OPPORTUNITY Case Solution

Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. In the problem identification stage, the problem faced by NEWELL COMPANY THE RUBBERMAID OPPORTUNITY is identified through reading of the case. This could be mentioned at the start of the reading, the middle or the end. At times in a case analysis, the problem may be clearly evident in the reading of the HBR case. At other times, finding the issue is the job of the person analysing the case. It is also important to understand what stakeholders are affected by the problem and how. The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these.

Analysis of the NEWELL COMPANY THE RUBBERMAID OPPORTUNITY HBR Case Study

The objective of the case should be focused on. This is doing the NEWELL COMPANY THE RUBBERMAID OPPORTUNITY Case Solution. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found.

• In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. These can usually be developed using the company history is provided in the case. Company history is helpful in a Business Case study as it helps one understand what the scope of the solutions will be for the case study.
• The next step is of understanding the company; its people, their priorities and the overall culture. This can be done by using company history. It can also be done by looking at anecdotal instances of managers or employees that are usually included in an HBR case study description to give the reader a real feel of the situation.
• Lastly, a timeline of the issues and events in the case needs to be made. Arranging events in a timeline allows one to predict the next few events that are likely to take place. It also helps one in developing the case study solutions. The timeline also helps in understanding the continuous challenges that are being faced by the organisation.

SWOT analysis of NEWELL COMPANY THE RUBBERMAID OPPORTUNITY

An important tool that helps in addressing the central issue of the case and coming up with NEWELL COMPANY THE RUBBERMAID OPPORTUNITY HBR case solution is the SWOT analysis.

• The SWOT analysis is a strategic management tool that lists down in the form of a matrix, an organisation's internal strengths and weaknesses, and external opportunities and threats. It helps in the strategic analysis of NEWELL COMPANY THE RUBBERMAID OPPORTUNITY.
• Once this listing has been done, a clearer picture can be developed in regards to how strategies will be formed to address the main problem. For example, strengths will be used as an advantage in solving the issue.

Therefore, the SWOT analysis is a helpful tool in coming up with the NEWELL COMPANY THE RUBBERMAID OPPORTUNITY Case Study answers. One does not need to remain restricted to using the traditional SWOT analysis, but the advanced TOWS matrix or weighted average SWOT analysis can also be used.

Porter Five Forces Analysis for NEWELL COMPANY THE RUBBERMAID OPPORTUNITY

Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. This is also a strategic tool that is used to analyse the competitive environment of the industry in which NEWELL COMPANY THE RUBBERMAID OPPORTUNITY operates in. Analysis of the industry is important as businesses do not work in isolation in real life, but are affected by the business environment of the industry that they operate in. Harvard Business case studies represent real-life situations, and therefore, an analysis of the industry's competitive environment needs to be carried out to come up with more holistic case study solutions. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions.

• These are the threats that the industry faces due to new entrants.
• It includes the threat of substitute products.
• It includes the bargaining power of buyers in the industry.
• It includes the bargaining power of suppliers in an industry.
• Lastly, the overall rivalry or competition within the industry is analysed.

This tool helps one understand the relative powers of the major players in the industry and its overall competitive dynamics. Actionable and practical solutions can then be developed by keeping these factors into perspective.

PESTEL Analysis of NEWELL COMPANY THE RUBBERMAID OPPORTUNITY

Another helpful tool that should be used in finding the case study solutions is the PESTEL analysis. This also looks at the external business environment of the organisation helps in finding case study Analysis to real-life business issues as in HBR cases.

• The PESTEL analysis particularly looks at the macro environmental factors that affect the industry. These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry.
• Factors within each of these 6 should be listed down, and analysis should be made as to how these affect the organisation under question.
• These factors are also responsible for the future growth and challenges within the industry. Hence, they should be taken into consideration when coming up with the NEWELL COMPANY THE RUBBERMAID OPPORTUNITY case solution.

VRIO Analysis of NEWELL COMPANY THE RUBBERMAID OPPORTUNITY

This is an analysis carried out to know about the internal strengths and capabilities of NEWELL COMPANY THE RUBBERMAID OPPORTUNITY. Under the VRIO analysis, the following steps are carried out:

• The internal resources of NEWELL COMPANY THE RUBBERMAID OPPORTUNITY are listed down.
• Each of these resources are assessed in terms of the value it brings to the organization.
• Each resource is assessed in terms of how rare it is. A rare resource is one that is not commonly used by competitors.
• Each resource is assessed whether it could be imitated by competition easily or not.
• Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not.

The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. If a resource is high on all of these 4, then it brings long-term competitive advantage. If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. If a resource is only valuable, then it’s a competitive parity. If it’s none, then it can be regarded as a competitive disadvantage.

Value Chain Analysis of NEWELL COMPANY THE RUBBERMAID OPPORTUNITY

The Value chain analysis of NEWELL COMPANY THE RUBBERMAID OPPORTUNITY helps in identifying the activities of an organization, and how these add value in terms of cost reduction and differentiation. This tool is used in the case study analysis as follows:

• The firm’s primary and support activities are listed down.
• Identifying the importance of these activities in the cost of the product and the differentiation they produce.
• Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities.

Recognizing value creating activities and enhancing the value that they create allow NEWELL COMPANY THE RUBBERMAID OPPORTUNITY to increase its competitive advantage.

BCG Matrix of NEWELL COMPANY THE RUBBERMAID OPPORTUNITY

The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. The steps to be followed in this analysis is as follows:

• Identify the relative market share of each strategic business unit.
• Identify the market growth of each strategic business unit.
• Place these strategic business units in one of four categories. Question Marks are those strategic business units with high market share and low market growth rate. Stars are those strategic business units with high market share and high market growth rate. Cash Cows are those strategic business units with high market share and low market growth rate. Dogs are those strategic business units with low market share and low growth rate.
• Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix.

The strategies identified from the NEWELL COMPANY THE RUBBERMAID OPPORTUNITY BCG matrix and included in the case pdf. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting.

Ansoff Matrix of NEWELL COMPANY THE RUBBERMAID OPPORTUNITY

Ansoff Matrix is an important strategic tool to come up with future strategies for NEWELL COMPANY THE RUBBERMAID OPPORTUNITY in the case solution. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products.

• The organization can penetrate into existing markets with its existing products. This is known as market penetration strategy.
• The organization can develop new products for the existing market. This is known as product development strategy.
• The organization can enter new markets with its existing products. This is known as market development strategy.
• The organization can enter into new markets with new products. This is known as a diversification strategy.

The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take.

Marketing Mix of NEWELL COMPANY THE RUBBERMAID OPPORTUNITY

NEWELL COMPANY THE RUBBERMAID OPPORTUNITY needs to bring out certain responses from the market that it targets. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. The 4 elements of the marketing mix are Product, Price, Place and Promotions. The following steps are required to carry out a marketing mix analysis and include this in the case study analysis.

• Analyse the company’s products and devise strategies to improve the product offering of the company.
• Analyse the company’s price points and devise strategies that could be based on competition, value or cost.
• Analyse the company’s promotion mix. This includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. Strategies will be devised which makes use of a few or all of these elements.
• Analyse the company’s distribution and reach. Strategies can be devised to improve the availability of the company’s products.

NEWELL COMPANY THE RUBBERMAID OPPORTUNITY Blue Ocean Strategy

The strategies devised and included in the NEWELL COMPANY THE RUBBERMAID OPPORTUNITY case memo should have a blue ocean strategy. A blue ocean strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. It involves coming up with new and unique products or ideas through innovation. This gives the organization a competitive advantage over other firms, unlike a red ocean strategy.

Competitors analysis of NEWELL COMPANY THE RUBBERMAID OPPORTUNITY

The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. The Competitors analysis of NEWELL COMPANY THE RUBBERMAID OPPORTUNITY looks at the direct and indirect competitors within the industry that it operates in.

• This involves a detailed analysis of their actions and how these would affect the future strategies of NEWELL COMPANY THE RUBBERMAID OPPORTUNITY.
• It involves looking at the current market share of the company and its competitors.
• It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc.
• It also should look at the potential opportunities and threats that these competitors pose on the company.

Organisation of the Analysis into NEWELL COMPANY THE RUBBERMAID OPPORTUNITY Case Study Solution

Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. These solutions will also be the NEWELL COMPANY THE RUBBERMAID OPPORTUNITY case answers. These are usually in the form of strategies that the organisation can adopt. The following step-by-step procedure can be used to organise the Harvard Business case solution and recommendations:

• The first step of the solution is to come up with a corporate level strategy for the organisation. This part consists of solutions that address issues faced by the organisation on a strategic level. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. It can include recommendations on how the organisation can work towards achieving these strategic objectives. Furthermore, it needs to be explained how the stated recommendations will help in solving the main issue mentioned in the case and where the company will stand in the future as a result of these.
• The second step of the solution is to come up with a business level strategy. The HBR case studies may present issues faced by a part of the organisation. For example, the issues may be stated for marketing and the role of a marketing manager needs to be assumed. So, recommendations and suggestions need to address the strategy of the marketing department in this case. Therefore, the strategic objectives of this business unit (Marketing) will be laid down in the solutions and recommendations will be made as to how to achieve these objectives. Similar would be the case for any other business unit or department such as human resources, finance, IT etc. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. For example, if one suggests the organisation to focus on differentiation for competitive advantage as a corporate level strategy, then it can't be recommended for the NEWELL COMPANY THE RUBBERMAID OPPORTUNITY Case Study Solution that the business unit should focus on costs.
• The third step is not compulsory but depends from case to case. In some HBR case studies, one may be required to analyse an issue at a department. This issue may be analysed for a manager or employee as well. In these cases, recommendations need to be made for these people. The solution may state that objectives that these people need to achieve and how these objectives would be achieved.

The case study analysis and solution, and NEWELL COMPANY THE RUBBERMAID OPPORTUNITY case answers should be written down in the NEWELL COMPANY THE RUBBERMAID OPPORTUNITY case memo, clearly identifying which part shows what. The NEWELL COMPANY THE RUBBERMAID OPPORTUNITY case should be in a professional format, presenting points clearly that are well understood by the reader.

Alternate solution to the NEWELL COMPANY THE RUBBERMAID OPPORTUNITY HBR case study

It is important to have more than one solution to the case study. This is the alternate solution that would be implemented if the original proposed solution is found infeasible or impossible due to a change in circumstances. The alternate solution for NEWELL COMPANY THE RUBBERMAID OPPORTUNITY is presented in the same way as the original solution, where it consists of a corporate level strategy, business level strategy and other recommendations.

Implementation of NEWELL COMPANY THE RUBBERMAID OPPORTUNITY Case Solution

The case study does not end at just providing recommendations to the issues at hand. One is also required to provide how these recommendations would be implemented. This is shown through a proper implementation framework. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. A good implementation framework shows the proposed plan and how the organisations' resources would be used to achieve the objectives. It also lays down the changes needed to be made as well as the assumptions in the process.

• A proper implementation framework shows that one has clearly understood the case study and the main issue within it.
• It shows that one has been clarified with the HBR fundamentals on the topic.
• It shows that the details provided in the case have been properly analysed.
• It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented.
• The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. Therefore, the implementation framework ensures that the solution to the NEWELL COMPANY THE RUBBERMAID OPPORTUNITY Harvard case is complete and properly answered.

Recommendations and Action Plan for NEWELL COMPANY THE RUBBERMAID OPPORTUNITY case analysis

For NEWELL COMPANY THE RUBBERMAID OPPORTUNITY, based on the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis, the recommendations and action plan are as follows:

• NEWELL COMPANY THE RUBBERMAID OPPORTUNITY should focus on making use of its strengths identified from the VRIO analysis to make the most of the opportunities identified from the PESTEL.
• NEWELL COMPANY THE RUBBERMAID OPPORTUNITY should enhance the value creating activities within its value chain.
• NEWELL COMPANY THE RUBBERMAID OPPORTUNITY should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis.
• To achieve its overall corporate and business level objectives, it should make use of the marketing mix tools to obtain desired results from its target market.

Baron, E. (2015). How They Teach the Case Method At Harvard Business School. Retrieved from https://poetsandquants.com/2015/09/29/how-they-teach-the-case-method-at-harvard-business-school/

Bartol. K, & Martin, D. (1998). Management, 3rd edition. Boston: Irwin McGrawHill.

Free Management E-Books. (2013a). PESTLE Analysis. Retrieved from http://www.free-management-ebooks.com/dldebk-pdf/fme-pestle-analysis.pdf

Gupta, A. (2013). Environment & PEST analysis: an approach to the external business environment. International Journal of Modern Social Sciences, 2(1), 34-43.

Hambrick, D. C., MacMillan, I. C., & Day, D. L. (1982). Strategic attributes and performance in the BCG matrix—A PIMS-based analysis of industrial product businesses. Academy of Management Journal, 25(3), 510-531.

Hill, C., & Jones, G. (2010). Strategic Management Theory: An Integrated Approach, Ninth Ed. Mason, OH: South-Western, Cengage Learning.

Hussain, S., Khattak, J., Rizwan, A., & Latif, M. A. (2013). ANSOFF matrix, environment, and growth-an interactive triangle. Management and Administrative Sciences Review, 2(2), 196-206.

IIBMS. (2015). 7 Effective Steps to Solve Case Study. Retrieved from http://www.iibms.org/c-7-effective-steps-to-solve-case-study/

Kim, W. C., & Mauborgne, R. (2004). Blue ocean strategy. If you read nothing else on strategy, read thesebest-selling articles., 71.

Kotler, P., & Armstrong, G. (2010). Principles of marketing. Pearson education.

Kulkarni, N. (2018). 8 Tips to Help You Prepare for the Case Method. Retrieved from https://www.hbs.edu/mba/blog/post/8-tips-to-help-you-prepare-for-the-case-method

Lin, C., Tsai, H. L., Wu, Y. J., & Kiang, M. (2012). A fuzzy quantitative VRIO-based framework for evaluating organizational activities. Management Decision, 50(8), 1396-1411.

Nixon, J., & Helms, M. M. (2010). Exploring SWOT analysis – where are we now?: A review of academic research from the last decade. Journal of Strategy and Management, 3(3), 215-251.

Panagiotou, G. (2003). Bringing SWOT into Focus. Business Strategy Review, 14(2), 8-10.

Pickton, D. W., & Wright, S. (1998). What's swot in strategic analysis? Strategic Change, 7(2), 101-109.

Porter, M. E. (2001). The value chain and competitive advantage. Understanding Business Processes, 50-66.

Porter, M. E. (1985). Competitive advantage: creating and sustaining superior performance (Vol. 2). New York: Free Press.

Porter, M.E. (1979, March). Harvard Business Review: Strategic Planning, How Competitive Forces Shape Strategy. Retrieved July 7, 2016, from https://hbr.org/1979/03/how-competitive-forces-shape-strategy

Rastogi, N., & Trivedi, M. K. (2016). PESTLE Technique–a Tool to Identify External Risks in Construction Projects. International Research Journal of Engineering and Technology (IRJET), 3(1), 384-388.

Rauch, P. (2007). SWOT analyses and SWOT strategy formulation for forest owner cooperations in Austria. European Journal of Forest Research, 126(3), 413-420.

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Newell Rubbermaid: Strategy in Transition

• Format: Print
• | Pages: 25

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Cynthia A. Montgomery

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Module 15: Organizational Culture

15.8 optional case study: clash of the cultures at newell rubbermaid.

Over time, Newell Company grew to be a diversified manufacturer and marketer of simple household items. In the early 1950s, Newell Company’s business consisted solely of manufactured curtain rods. Since the 1960s, however, the company diversified through acquisitions of businesses for paintbrushes, writing pens, pots and pans, hairbrushes, and the like. Over 90% of its growth is attributed to many small acquisitions and the subsequent restructuring and cost cutting Newell instituted. Usually within a year of the acquisition, Newell would bring in new leadership and install its own financial controller in the acquired unit. Then, three standard sets of controls were introduced: an integrated financial accounting system, a sales and order processing and tracking system, and a flexible manufacturing system. Once these systems were in place, managers were able to control costs by limiting expenses to those previously budgeted. Administration, accounting, and customer-related financial accounting aspects of the acquired business were also consolidated into Newell’s corporate headquarters to further reduce and control costs. However, Newell compensated business managers well for performance. They were paid a bonus based on the profitability of their particular unit—in fact, the firm’s strategy was to achieve profits, not simply growth at the expense of profits. Newell managers could expect a base salary equal to the industry average but could earn bonuses ranging from 35% to 100% based on their rank and unit profitability.

In 1999, Newell acquired Rubbermaid, a U.S.-based manufacturer of flexible plastic products like trash cans, reheatable and freezable food containers, and a broad range of other plastic storage containers designed for home and office use. While Rubbermaid was highly innovative (over 80% of its growth came from internal new product development), it had experienced difficulty controlling costs and was losing ground against powerful customers like Wal-Mart. Newell believed that the market power it wielded with retailers like Wal-Mart would help it turn Rubbermaid’s prospects around. The acquisition deal between these two companies resulted in a single company that was twice as big and became known as Newell Rubbermaid Inc. (NYSE: NWL).

However, early on it became clear that the two businesses were incompatible in terms of differing strategies and corresponding organizational cultures. Newell was a low-cost, high-volume supplier while Rubbermaid was a consumer-oriented innovator that offered premium products. After careful consideration, Newell decided to redefine the newly merged company culture. After two unsuccessful CEO attempts to turn things around, in 2001 Newell Rubbermaid hired Joseph Galli to run the company. He rethought the strategies of both companies and embraced the idea of changing the culture by hiring new kinds of people for a new kind of company. He cut 3,000 jobs throughout the company and made 141 changes at the executive level (vice presidents and above). He introduced new incentive plans and 6-week leadership boot camps to align employees around the new company culture and goals. Did his drastic changes pay off? Since this time and continuing under the new leadership of CEO Mark Ketchum, both revenues and profits are up, and in 2010, Fortune named Newell Rubbermaid the number 7 “Most Admired Company” in the home equipment and furnishings category. This indicates that while the changes he implemented were painful for employees at the time, they did seem to put them on the right track.

Discussion Questions

• What was Newell’s organizational culture like before acquiring Rubbermaid?
• Is it fair to fire employees to create a new culture? Why or why not?
• How did Newell Rubbermaid change its organizational culture?
• If you were in Joseph Galli’s position in 2001, what would you have done differently or similarly to enact a change in organizational culture? Explain your answer.
• How important is an organization’s strategy in terms of developing an organizational culture? Explain your answer.
• An Introduction to Organizational Behavior. Authored by : Anonymous. Provided by : Anonymous. Located at : http://2012books.lardbucket.org/books/an-introduction-to-organizational-behavior-v1.1/ . License : CC BY-NC-SA: Attribution-NonCommercial-ShareAlike

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• Newell Co.: The Rubbermaid Opportunity
• Strategy & Execution / MBA Resources

Introduction to case study solution

EMBA Pro case study solution for Newell Co.: The Rubbermaid Opportunity case study

At EMBA PRO , we provide corporate level professional case study solution. Newell Co.: The Rubbermaid Opportunity case study is a Harvard Business School (HBR) case study written by Joseph N. Fry. The Newell Co.: The Rubbermaid Opportunity (referred as “Rubbermaid Newell” from here on) case study provides evaluation & decision scenario in field of Strategy & Execution. It also touches upon business topics such as - Value proposition, . Our immersive learning methodology from – case study discussions to simulations tools help MBA and EMBA professionals to - gain new insight, deepen their knowledge of the Strategy & Execution field, and broaden their skill set.

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Case Description of Newell Co.: The Rubbermaid Opportunity Case Study

The Newell Co., a multibillion dollar company dealing in hardware and home furnishings, office products, and housewares, was contemplating a merger with Rubbermaid, a renowned manufacturer of plastic products. Newell had a remarkable record of success in growth by acquisition. Rubbermaid would mark a quantum step in this program, but equally, would pose a formidable challenge to Newell's capacity to integrate and strengthen acquisitions. Corporate strategy and advantage is studied, particularly through the Collis and Montgomery framework, to determine whether the proposed merger is a step too far.

Case Authors : Joseph N. Fry

Topic : strategy & execution, related areas :, what is the case study method how can you use it to write case solution for newell co.: the rubbermaid opportunity case study.

Almost all of the case studies contain well defined situations. MBA and EMBA professional can take advantage of these situations to - apply theoretical framework, recommend new processes, and use quantitative methods to suggest course of action. Awareness of the common situations can help MBA & EMBA professionals read the case study more efficiently, discuss it more effectively among the team members, narrow down the options, and write cogently.

Case Study Solution Approaches

Three Step Approach to Newell Co.: The Rubbermaid Opportunity Case Study Solution

The three step case study solution approach comprises – Conclusions – MBA & EMBA professionals should state their conclusions at the very start. It helps in communicating the points directly and the direction one took. Reasons – At the second stage provide the reasons for the conclusions. Why you choose one course of action over the other. For example why the change effort failed in the case and what can be done to rectify it. Or how the marketing budget can be better spent using social media rather than traditional media. Evidences – Finally you should provide evidences to support your reasons. It has to come from the data provided within the case study rather than data from outside world. Evidences should be both compelling and consistent. In case study method there is ‘no right’ answer, just how effectively you analyzed the situation based on incomplete information and multiple scenarios.

Case Study Solution of Newell Co.: The Rubbermaid Opportunity

We write Newell Co.: The Rubbermaid Opportunity case study solution using Harvard Business Review case writing framework & HBR Strategy & Execution learning notes. We try to cover all the bases in the field of Strategy & Execution, and other related areas.

Objectives of using various frameworks in Newell Co.: The Rubbermaid Opportunity case study solution

By using the above frameworks for Newell Co.: The Rubbermaid Opportunity case study solutions, you can clearly draw conclusions on the following areas – What are the strength and weaknesses of Rubbermaid Newell (SWOT Analysis) What are external factors that are impacting the business environment (PESTEL Analysis) Should Rubbermaid Newell enter new market or launch new product (Opportunities & Threats from SWOT Analysis) What will be the expected profitability of the new products or services (Porter Five Forces Analysis) How it can improve the profitability in a given industry (Porter Value Chain Analysis) What are the resources needed to increase profitability (VRIO Analysis) Finally which business to continue, where to invest further and from which to get out (BCG Growth Share Analysis)

SWOT Analysis of Newell Co.: The Rubbermaid Opportunity

SWOT analysis stands for – Strengths, Weaknesses, Opportunities and Threats. Strengths and Weaknesses are result of Rubbermaid Newell internal factors, while opportunities and threats arise from developments in external environment in which Rubbermaid Newell operates. SWOT analysis will help us in not only getting a better insight into Rubbermaid Newell present competitive advantage but also help us in how things have to evolve to maintain and consolidate the competitive advantage.

- Strong Balance Sheet – The financial statement of Rubbermaid Newell looks strong and will help the company going forward.

- Experienced and successful leadership team – Rubbermaid Newell management team has been a success over last decade by successfully predicting trends in the industry.

- Little experience of international market – Even though it is a major player in local market, Rubbermaid Newell has little experience in international market. According to Joseph N. Fry , Rubbermaid Newell needs international talent to penetrate into developing markets.

- Rubbermaid Newell business model can be easily replicated by competitors – According to Joseph N. Fry , the business model of Rubbermaid Newell can be easily replicated by players in the industry.

Opportunities

- Lucrative Opportunities in International Markets – Globalization has led to opportunities in the international market. Rubbermaid Newell is in prime position to tap on those opportunities and grow the market share.

- E-Commerce and Social Media Oriented Business Models – E-commerce business model can help Rubbermaid Newell to tie up with local suppliers and logistics provider in international market. Social media growth can help Rubbermaid Newell to reduce the cost of entering new market and reaching to customers at a significantly lower marketing budget.

- Growing dominance of digital players such as Amazon, Google, Microsoft etc can reduce the manoeuvring space for Rubbermaid Newell and put upward pressure on marketing budget.

- Age and life-cycle segmentation of Rubbermaid Newell shows that the company still hasn’t able to penetrate the millennial market.

Once all the factors mentioned in the Newell Co.: The Rubbermaid Opportunity case study are organized based on SWOT analysis, just remove the non essential factors. This will help you in building a weighted SWOT analysis which reflects the real importance of factors rather than just tabulation of all the factors mentioned in the case.

What is PESTEL Analysis

PESTEL /PEST / STEP Analysis of Newell Co.: The Rubbermaid Opportunity Case Study

PESTEL stands for – Political, Economic, Social, Technological, Environmental, and Legal factors that impact the macro environment in which Rubbermaid Newell operates in. Joseph N. Fry provides extensive information about PESTEL factors in Newell Co.: The Rubbermaid Opportunity case study.

Political Factors

- Political and Legal Structure – The political system seems stable and there is consistency in both economic policies and foreign policies.

- Political consensus among various parties regarding taxation rate and investment policies. Over the years the country has progressively worked to lower the entry of barrier and streamline the tax structure.

Economic Factors

- According to Joseph N. Fry . Rubbermaid Newell should closely monitor consumer disposable income level, household debt level, and level of efficiency of local financial markets.

- Foreign Exchange movement is also an indicator of economic stability. Rubbermaid Newell should closely consider the forex inflow and outflow. A number of Rubbermaid Newell competitors have lost money in countries such as Brazil, Argentina, and Venezuela due to volatile forex market.

Social Factors

- Leisure activities, social attitudes & power structures in society - are needed to be analyzed by Rubbermaid Newell before launching any new products as they will impact the demand of the products.

- Consumer buying behavior and consumer buying process – Rubbermaid Newell should closely follow the dynamics of why and how the consumers are buying the products both in existing categories and in segments that Rubbermaid Newell wants to enter.

Technological Factors

- 5G has potential to transform the business environment especially in terms of marketing and promotion for Rubbermaid Newell.

- Proliferation of mobile phones has created a generation whose primary tool of entertainment and information consumption is mobile phone. Rubbermaid Newell needs to adjust its marketing strategy accordingly.

Environmental Factors

- Environmental regulations can impact the cost structure of Rubbermaid Newell. It can further impact the cost of doing business in certain markets.

- Consumer activism is significantly impacting Rubbermaid Newell branding, marketing and corporate social responsibility (CSR) initiatives.

Legal Factors

- Health and safety norms in number of markets that Rubbermaid Newell operates in are lax thus impact the competition playing field.

- Property rights are also an area of concern for Rubbermaid Newell as it needs to make significant infrastructure investment just to enter new market.

What are Porter Five Forces

Porter Five Forces Analysis of Newell Co.: The Rubbermaid Opportunity

Competition among existing players, bargaining power of suppliers, bargaining power of buyers, threat of new entrants, and threat of substitutes.

What is VRIO Analysis

VRIO Analysis of Newell Co.: The Rubbermaid Opportunity

VRIO stands for – Value of the resource that Rubbermaid Newell possess, Rareness of those resource, Imitation Risk that competitors pose, and Organizational Competence of Rubbermaid Newell. VRIO and VRIN analysis can help the firm.

What is Porter Value Chain

Porter Value Chain Analysis of Newell Co.: The Rubbermaid Opportunity

As the name suggests Value Chain framework is developed by Michael Porter in 1980’s and it is primarily used for analyzing Rubbermaid Newell relative cost and value structure. Managers can use Porter Value Chain framework to disaggregate various processes and their relative costs in the Rubbermaid Newell. This will help in answering – the related costs and various sources of competitive advantages of Rubbermaid Newell in the markets it operates in. The process can also be done to competitors to understand their competitive advantages and competitive strategies. According to Michael Porter – Competitive Advantage is a relative term and has to be understood in the context of rivalry within an industry. So Value Chain competitive benchmarking should be done based on industry structure and bottlenecks.

What is BCG Growth Share Matrix

BCG Growth Share Matrix of Newell Co.: The Rubbermaid Opportunity

BCG Growth Share Matrix is very valuable tool to analyze Rubbermaid Newell strategic positioning in various sectors that it operates in and strategic options that are available to it. Product Market segmentation in BCG Growth Share matrix should be done with great care as there can be a scenario where Rubbermaid Newell can be market leader in the industry without being a dominant player or segment leader in any of the segment. BCG analysis should comprise not only growth share of industry & Rubbermaid Newell business unit but also Rubbermaid Newell - overall profitability, level of debt, debt paying capacity, growth potential, expansion expertise, dividend requirements from shareholders, and overall competitive strength. Two key considerations while using BCG Growth Share Matrix for Newell Co.: The Rubbermaid Opportunity case study solution - How to calculate Weighted Average Market Share using BCG Growth Share Matrix Relative Weighted Average Market Share Vs Largest Competitor

5C Marketing Analysis of Newell Co.: The Rubbermaid Opportunity

4p marketing analysis of newell co.: the rubbermaid opportunity, porter five forces analysis and solution of newell co.: the rubbermaid opportunity, porter value chain analysis and solution of newell co.: the rubbermaid opportunity, case memo & recommendation memo of newell co.: the rubbermaid opportunity, blue ocean analysis and solution of newell co.: the rubbermaid opportunity, marketing strategy and analysis newell co.: the rubbermaid opportunity, vrio /vrin analysis & solution of newell co.: the rubbermaid opportunity, pestel / step / pest analysis of newell co.: the rubbermaid opportunity, swot analysis and solution of newell co.: the rubbermaid opportunity, references & further readings.

Joseph N. Fry (2018) , "Newell Co.: The Rubbermaid Opportunity Harvard Business Review Case Study. Published by HBR Publications.

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15.7 Clash of the Cultures: The Case of Newell Rubbermaid

Figure 15.13

Steven Taschuk – tupperware – CC BY 2.0.

Over time, Newell Company grew to be a diversified manufacturer and marketer of simple household items. In the early 1950s, Newell Company’s business consisted solely of manufactured curtain rods. Since the 1960s, however, the company diversified through acquisitions of businesses for paintbrushes, writing pens, pots and pans, hairbrushes, and the like. Over 90% of its growth is attributed to many small acquisitions and the subsequent restructuring and cost cutting Newell instituted. Usually within a year of the acquisition, Newell would bring in new leadership and install its own financial controller in the acquired unit. Then, three standard sets of controls were introduced: an integrated financial accounting system, a sales and order processing and tracking system, and a flexible manufacturing system. Once these systems were in place, managers were able to control costs by limiting expenses to those previously budgeted. Administration, accounting, and customer-related financial accounting aspects of the acquired business were also consolidated into Newell’s corporate headquarters to further reduce and control costs. However, Newell compensated business managers well for performance. They were paid a bonus based on the profitability of their particular unit—in fact, the firm’s strategy was to achieve profits, not simply growth at the expense of profits. Newell managers could expect a base salary equal to the industry average but could earn bonuses ranging from 35% to 100% based on their rank and unit profitability.

In 1999, Newell acquired Rubbermaid, a U.S.-based manufacturer of flexible plastic products like trash cans, reheatable and freezable food containers, and a broad range of other plastic storage containers designed for home and office use. While Rubbermaid was highly innovative (over 80% of its growth came from internal new product development), it had experienced difficulty controlling costs and was losing ground against powerful customers like Wal-Mart. Newell believed that the market power it wielded with retailers like Wal-Mart would help it turn Rubbermaid’s prospects around. The acquisition deal between these two companies resulted in a single company that was twice as big and became known as Newell Rubbermaid Inc. (NYSE: NWL).

However, early on it became clear that the two businesses were incompatible in terms of differing strategies and corresponding organizational cultures. Newell was a low-cost, high-volume supplier while Rubbermaid was a consumer-oriented innovator that offered premium products. After careful consideration, Newell decided to redefine the newly merged company culture. After two unsuccessful CEO attempts to turn things around, in 2001 Newell Rubbermaid hired Joseph Galli to run the company. He rethought the strategies of both companies and embraced the idea of changing the culture by hiring new kinds of people for a new kind of company. He cut 3,000 jobs throughout the company and made 141 changes at the executive level (vice presidents and above). He introduced new incentive plans and 6-week leadership boot camps to align employees around the new company culture and goals. Did his drastic changes pay off? Since this time and continuing under the new leadership of CEO Mark Ketchum, both revenues and profits are up, and in 2010, Fortune named Newell Rubbermaid the number 7 “Most Admired Company” in the home equipment and furnishings category. This indicates that while the changes he implemented were painful for employees at the time, they did seem to put them on the right track.

Based on information retrieved April 3, 2010, from http://www.bain.com/masteringthemerger/case_example_new_rbbmd_trans.asp and from the Newell Rubbermaid Web site: http://www.newellrubbermaid .com/public/Our-Company/Our-History.aspx .

Discussion Questions

• What was Newell’s organizational culture like before acquiring Rubbermaid?
• Is it fair to fire employees to create a new culture? Why or why not?
• How did Newell Rubbermaid change its organizational culture?
• If you were in Joseph Galli’s position in 2001, what would you have done differently or similarly to enact a change in organizational culture? Explain your answer.
• How important is an organization’s strategy in terms of developing an organizational culture? Explain your answer.

Organizational Behavior Copyright © 2017 by University of Minnesota is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

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Strategy & Execution Case Study | Authors :: Joseph N. Fry

Case study description.

The Newell Co., a multibillion dollar company dealing in hardware and home furnishings, office products, and housewares, was contemplating a merger with Rubbermaid, a renowned manufacturer of plastic products. Newell had a remarkable record of success in growth by acquisition. Rubbermaid would mark a quantum step in this program, but equally, would pose a formidable challenge to Newell's capacity to integrate and strengthen acquisitions. Corporate strategy and advantage is studied, particularly through the Collis and Montgomery framework, to determine whether the proposed merger is a step too far.

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Step 1 - reading up harvard business review fundamentals on the strategy & execution.

Even before you start reading a business case study just make sure that you have brushed up the Harvard Business Review (HBR) fundamentals on the Strategy & Execution. Brushing up HBR fundamentals will provide a strong base for investigative reading. Often readers scan through the business case study without having a clear map in mind. This leads to unstructured learning process resulting in missed details and at worse wrong conclusions. Reading up the HBR fundamentals helps in sketching out business case study analysis and solution roadmap even before you start reading the case study. It also provides starting ideas as fundamentals often provide insight into some of the aspects that may not be covered in the business case study itself.

Step 2 - Reading the Newell Co.: The Rubbermaid Opportunity HBR Case Study

To write an emphatic case study analysis and provide pragmatic and actionable solutions, you must have a strong grasps of the facts and the central problem of the HBR case study. Begin slowly - underline the details and sketch out the business case study description map. In some cases you will able to find the central problem in the beginning itself while in others it may be in the end in form of questions. Business case study paragraph by paragraph mapping will help you in organizing the information correctly and provide a clear guide to go back to the case study if you need further information. My case study strategy involves -

• Marking out the protagonist and key players in the case study from the very start.
• Drawing a motivation chart of the key players and their priorities from the case study description.
• Refine the central problem the protagonist is facing in the case and how it relates to the HBR fundamentals on the topic.
• Evaluate each detail in the case study in light of the HBR case study analysis core ideas.

Step 3 - Newell Co.: The Rubbermaid Opportunity Case Study Analysis

Once you are comfortable with the details and objective of the business case study proceed forward to put some details into the analysis template. You can do business case study analysis by following Fern Fort University step by step instructions -

• Company history is provided in the first half of the case. You can use this history to draw a growth path and illustrate vision, mission and strategic objectives of the organization. Often history is provided in the case not only to provide a background to the problem but also provide the scope of the solution that you can write for the case study.
• HBR case studies provide anecdotal instances from managers and employees in the organization to give a feel of real situation on the ground. Use these instances and opinions to mark out the organization's culture, its people priorities & inhibitions.
• Make a time line of the events and issues in the case study. Time line can provide the clue for the next step in organization's journey. Time line also provides an insight into the progressive challenges the company is facing in the case study.

Step 4 - SWOT Analysis of Newell Co.: The Rubbermaid Opportunity

Once you finished the case analysis, time line of the events and other critical details. Focus on the following -

• Zero down on the central problem and two to five related problems in the case study.
• Do the SWOT analysis of the Newell Co.: The Rubbermaid Opportunity . SWOT analysis is a strategic tool to map out the strengths, weakness, opportunities and threats that a firm is facing.
• SWOT analysis and SWOT Matrix will help you to clearly mark out - Strengths Weakness Opportunities & Threats that the organization or manager is facing in the Newell Co.: The Rubbermaid Opportunity
• SWOT analysis will also provide a priority list of problem to be solved.
• You can also do a weighted SWOT analysis of Newell Co.: The Rubbermaid Opportunity HBR case study.

Step 5 - Porter 5 Forces / Strategic Analysis of Industry Analysis Newell Co.: The Rubbermaid Opportunity

In our live classes we often come across business managers who pinpoint one problem in the case and build a case study analysis and solution around that singular point. Business environments are often complex and require holistic solutions. You should try to understand not only the organization but also the industry which the business operates in. Porter Five Forces is a strategic analysis tool that will help you in understanding the relative powers of the key players in the business case study and what sort of pragmatic and actionable case study solution is viable in the light of given facts.

Step 6 - PESTEL, PEST / STEP Analysis of Newell Co.: The Rubbermaid Opportunity

Another way of understanding the external environment of the firm in Newell Co.: The Rubbermaid Opportunity is to do a PESTEL - Political, Economic, Social, Technological, Environmental & Legal analysis of the environment the firm operates in. You should make a list of factors that have significant impact on the organization and factors that drive growth in the industry. You can even identify the source of firm's competitive advantage based on PESTEL analysis and Organization's Core Competencies.

Step 7 - Organizing & Prioritizing the Analysis into Newell Co.: The Rubbermaid Opportunity Case Study Solution

Once you have developed multipronged approach and work out various suggestions based on the strategic tools. The next step is organizing the solution based on the requirement of the case. You can use the following strategy to organize the findings and suggestions.

• Build a corporate level strategy - organizing your findings and recommendations in a way to answer the larger strategic objective of the firm. It include using the analysis to answer the company's vision, mission and key objectives , and how your suggestions will take the company to next level in achieving those goals.
• Business Unit Level Solution - The case study may put you in a position of a marketing manager of a small brand. So instead of providing recommendations for overall company you need to specify the marketing objectives of that particular brand. You have to recommend business unit level recommendations. The scope of the recommendations will be limited to the particular unit but you have to take care of the fact that your recommendations are don't directly contradict the company's overall strategy. For example you can recommend a low cost strategy but the company core competency is design differentiation.
• Case study solutions can also provide recommendation for the business manager or leader described in the business case study.

Step 8 -Implementation Framework

The goal of the business case study is not only to identify problems and recommend solutions but also to provide a framework to implement those case study solutions. Implementation framework differentiates good case study solutions from great case study solutions. If you able to provide a detailed implementation framework then you have successfully achieved the following objectives -

• Detailed understanding of the case,
• Clarity of HBR case study fundamentals,
• Analyzed case details based on those fundamentals and
• Developed an ability to prioritize recommendations based on probability of their successful implementation.

Implementation framework helps in weeding out non actionable recommendations, resulting in awesome Newell Co.: The Rubbermaid Opportunity case study solution.

Step 9 - Take a Break

Once you finished the case study implementation framework. Take a small break, grab a cup of coffee or whatever you like, go for a walk or just shoot some hoops.

Step 10 - Critically Examine Newell Co.: The Rubbermaid Opportunity case study solution

After refreshing your mind, read your case study solution critically. When we are writing case study solution we often have details on our screen as well as in our head. This leads to either missing details or poor sentence structures. Once refreshed go through the case solution again - improve sentence structures and grammar, double check the numbers provided in your analysis and question your recommendations. Be very slow with this process as rushing through it leads to missing key details. Once done it is time to hit the attach button.

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Newell Rubbermaid: Strategy in Transition

Subjects Covered Acquisitions Competition Implementing strategy Mergers Strategic planning Strategy formulation

by Cynthia A. Montgomery, Rhonda Kaufman, Carole A. Winkler

Source: Harvard Business School

25 pages. Publication Date: Mar 23, 2004. Prod. #: 704491-PDF-ENG

Newell Rubbermaid: Strategy in Transition Harvard Case Study Solution and HBR and HBS Case Analysis

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Case Study Solutions

Newell Rubbermaid: Strategy in Transition

Subjects Covered Acquisitions Competition Implementing strategy Mergers Strategic planning Strategy formulation

by Cynthia A. Montgomery, Rhonda Kaufman, Carole A. Winkler

Source: Harvard Business School

25 pages. Publication Date: Mar 23, 2004. Prod. #: 704491-PDF-ENG

Newell Rubbermaid: Strategy in Transition Harvard Case Study Solution and HBR and HBS Case Analysis

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Steven Scheyer: Renegotiating the Newell Rubbermaid Relationship With Wal-Mart, Video Harvard Case Solution & Analysis

Home >> Harvard Case Study Analysis Solutions >> Steven Scheyer: Renegotiating the Newell Rubbermaid Relationship With Wal-Mart, Video

Video: Steven Scheyer the former President of Newell Rubbermaid Wal-Mart Office describe the strategy and tactics of renegotiating the Newell Rubbermaid Relationship with Wal-Mart following the merger of the Newell and Rubbermaid.

Steven Scheyer Renegotiating the Newell Rubbermaid Relationship With Wal-Mart, Video case study solution

PUBLICATION DATE: November 01, 2009 PRODUCT #: 910705-VID-ENG

This is just an excerpt. This case is about TECHNOLOGY & OPERATIONS

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