Newell Case
What challenges did the company (Newell Case) face in the late 1990's"?
The biggest challenge that Newell faced in the 1990's is: finding companies that could help them to be able to build in areas. That are improving, their strategic advantages in various core market sectors. What was happening; was that the company was seeing a decline in their ability to increase their earnings within: the consumer and business house ware market segments. To deal with these challenges they concentrated on: acquiring Rubbermaid and Calphalon. Their main focus was to use these two acquisitions to increase their overall bottom line. While at the same time, they were focused on improving their global presence in two different segments mainly: the plastic consumer / commercial products area (with the purchase of Rubbermaid) and aluminum cookware (through the acquisition of Calphalon). (Montgomery 2005, pp. 2 -- 22)
These different elements are important, because they helped to increase Newell's ability to deal with the loss of earnings momentum that they were seeing by purchasing these two corporations. Once they were able to acquire them, is the point...
This helped to create one large parent company with multiple streams of income. Once this took place, it allowed Newell to address the problems they were facing with their existing business model. Evidence of this kind of approach can be seen by looking no further than the article that was written by Campbell (1995) who wrote, "The framework we propose -- the parenting framework -- fills in the deficiencies of the core competence concept. It provides a rigorous conceptual model as well as the tools needed for an effective corporate-level planning process." (Campbell, 1995, pg. 121) This is significant, because it showing how Newell was able to see the challenges that they were facing in the global economy. At which point, they found other companies that created a synergy which helped them to increase their overall bottom line. This is the point, that it improved their ability to market a host of different products around the world and to adjust to shifts that were taking place inside the industry.
Why are alliances important in the airline (KLM Case) industry?
The reason…
