Newell Company-Corporate Strategy
...anagers across businesses and from the business to the corporate level. This practice enables Newell to transfer experience and to build skilled in-house labor pool. Newell fully realizes the benefits of such transfers because of the commonalities across its businesses. Other transfers of learning occur when divisional leaders convene several times a year for president’s meetings and when they meet one another at trade shows. Annual management meetings bring together functional vice presidents for sales and marketing, operations, personnel, control, and customer service from all divisions. Each functional group has its own two-day meetings, featuring presentations and programs aimed at transferring best practices across different divisions. Restructuring: Newell is using restructuring approach to manage its business. Thrived by a disciplined and aggressive strategy (Exhibit 2), Newell acquires poorly managed companies that manufacture low technology, non-seasonal, noncyclical, nonfashionable products. These firms were under performing due to high costs, and most had operating margins of less than 10%. Newell created value by putting these companies through “Newellization” process of streamlining, focusing on operational efficiency and profitability. After a new acquisi...