Question

In: Operations Management

Is the Calphalon acquisition a way to enhance Newell's capabilities, or a violation of its strategy?...

Is the Calphalon acquisition a way to enhance Newell's capabilities, or a violation of its strategy? Will the same strategy that worked well in the past work here? The strategy is the cost leadership strategy.

Solutions

Expert Solution

No, I don't think that the acquisition of the Calphalon by Newell is anyhow a violation of its own cost leadership strategy as the company has always used this low cost strategy to earn and stand a $6 Billion Company in the Market. This strategy works in defining the strong influence with the organisation enjoys with the help kf acquisition of the related industries and top brands. With this administrative techniques, effectivity and efficiency is created which reduce the cost to the minimum and using a divisional structure which makes the product and working of the organisation diversified globally.

I believe that the acquisition of Calphalon is a beneficial move for the Newell as it enabled the entry of the firm into a non mass merchandise market. By this, a large amount of products are now can be sold with a brand reputation. By using the strategic forces of specialisation and and skilled forces, training is provided to make the working of the organisation more effective and efficient. This acquisition also resulted in reduce the administrative, selling expenses and general expenses of the organisation by 25% which thus is a strategic move under the cost based strategy of the organisation to achieve the sustainability.


Related Solutions

Can Walmart’s resources and capabilities be easily replicated, and can its strategy be imitated? Analyze the...
Can Walmart’s resources and capabilities be easily replicated, and can its strategy be imitated? Analyze the industry environment of Walmart
You would like to enhance the HR analytics capabilities in your organization by hiring an HR...
You would like to enhance the HR analytics capabilities in your organization by hiring an HR analytics specialist who will help you better collect, analyze, and report on key HR analytics. At the company’s next executive meeting, you need to make the case to the CEO, the CFO, and the CTO about why this is a good investment. Put yourself in the CFO’s role. What questions will you ask to ensure the HR Directors recommendations are sound and focused on...
What is the Postioning strategy Osar insurance uses and what strategy can they use to enhance...
What is the Postioning strategy Osar insurance uses and what strategy can they use to enhance the company
Explain the social marketing process from fan acquisition to sales and the marketing capabilities of social...
Explain the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms.
provide real world examples for the following: Staffing for strategy implementation Key resources/capabilities for strategy implementation...
provide real world examples for the following: Staffing for strategy implementation Key resources/capabilities for strategy implementation Structuring for strategy implementation
is defined as “the culture, capabilities, and practices, integrated with strategy and execution, that organizations rely...
is defined as “the culture, capabilities, and practices, integrated with strategy and execution, that organizations rely on to manage risk in creating, preserving and realizing value.” Control environment Internal control Risk culture Enterprise risk management
The marketing manager at the Magazine Company suggests a new customer acquisition strategy with customer acquisition...
The marketing manager at the Magazine Company suggests a new customer acquisition strategy with customer acquisition cost of $15. The strategy basically is to offer $15 discount to the new customers. This discount is only for the first year, and the fee is going to jump to the regular fee for the following years. Assume that this strategy does not have any effect on retention rate and contribution margin for each customer. Is this strategy worth pursuing? In other words,...
Managing the Global Supply Chain To enhance a firm's global capabilities, logistics management must consider five...
Managing the Global Supply Chain To enhance a firm's global capabilities, logistics management must consider five major differences between domestic and international operations. These include performance cycle structure, transportation, operational considerations, informational systems (IS) integration, and alliances. Performance cycle structure. The length of the performance cycle is a major difference between domestic and international operations. Performance cycles are longer for international operations. While the domestic is measured in days, international is measured in weeks or months (e.g., fashion merchandise takes...
How merger and acquisition enhance the value of company. please provide 6 idea and explain the...
How merger and acquisition enhance the value of company. please provide 6 idea and explain the idea that you provide (25m)
The role of any marketing strategy is to enhance an organization’s competitive effectiveness. In order to...
The role of any marketing strategy is to enhance an organization’s competitive effectiveness. In order to compete effectively, the organization must have a product or service offering that is distinct; something that gives an organization a clear competitive advantage. List and briefly describe three components in which a financial service provider could use to distinguish it from other competitors.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT