When one thinks of successful companies, Rubbermaid Inc. is one of them. They have appeared on Fortune magazine’s list of America’s most Admired Companies, multiple times (“Business teams”, 1997, p.1). The challenge the corporation was now having was how to incorporate their team strategy into their global development plans, while also encouraging their teams to “think and act like the entrepreneurs who gave birth to the company so many years ago” (p. 16)
Table of Contents
Problem Statement:
Introduction:
Situation Analysis:
Recommended Plan of Action:
Conclusion:
Objectives and Topics
This case study examines the strategic challenges faced by Rubbermaid Inc. in maintaining a competitive advantage through its business team structure while adapting to a hyper-competitive global environment. It evaluates the effectiveness of cross-functional teams across different divisions and proposes actionable recommendations to foster innovation, improve operational efficiency, and support global expansion.
- Analysis of corporate team strategy and organizational innovation.
- Evaluation of divisional performance (Food Storage, JIS, Sportsmotive, and Waste Systems).
- Identification of operational hurdles including "red tape" and employee turnover.
- Strategic recommendations for global market penetration.
- Assessment of internal reward programs and performance evaluation metrics.
Excerpt from the Case Study
Introduction:
In today’s world, businesses are faced with a quickly changing, hyper-competitive environment. Technology has become so advanced that duplication of a popular product is almost guaranteed, with little barriers to entry. Organizations must focus on continuing innovation, and as such, remain flexible. They are forced to either adapt or be forgotten. Competitive advantages for today’s businesses are often fleeting, due to these factors. Even mature industries, and leaders of those mature industries that once dominated the marketplace, have to continue to innovate ahead of their competition or risk falling like Goliath to David.
This is true of Rubbermaid Inc. as well. Although Rubbermaid is undeniable a leader in their industry, competition is such that obtaining a sustainable competitive advantage, merely by a single product or product line, is impossible. Competitors are able to simply mimic newly released Rubbermaid products a few short months after their introductions. In some instances, these imitators can even offer the products at competitive, if not lower, pricing, despite not having the advantages of economies of scale that Rubbermaid has.
To garner the advantages of the nimbleness of small businesses, Rubbermaid has implemented business teams in each of its divisions. These cross-functional teams are made up of members, in a variety of positions, in the division. One or more members of the division’s operating team then oversee them. The business teams meet with the full operating team monthly to ensure that their progress is inline with the division’s goals.
Summary of Chapters
Problem Statement: Outlines the core challenge of integrating team-based strategies into global operations while maintaining an entrepreneurial spirit.
Introduction: Describes the hyper-competitive nature of modern business and the necessity for Rubbermaid to leverage cross-functional teams to remain innovative.
Situation Analysis: Provides a detailed evaluation of four distinct divisions, highlighting their specific operational strengths, weaknesses, and unique market environments.
Recommended Plan of Action: Proposes specific strategic adjustments for each division, emphasizing autonomy, innovation rewards, and global facility placement.
Conclusion: Summarizes the necessity of sustained innovation to prevent competitors from usurping Rubbermaid's industry-leading position.
Keywords
Rubbermaid Inc., Business teams, Innovation, Competitive advantage, Global development, Cross-functional teams, Organizational efficiency, Market saturation, Corporate strategy, Product development, Operational autonomy, Employee retention.
Frequently Asked Questions
What is the primary focus of this case study?
The study examines how Rubbermaid Inc. utilizes cross-functional business teams to maintain its market leadership and address the challenges of product imitation and competition.
What are the central themes discussed in the document?
The core themes include organizational innovation, the efficacy of divisional team structures, the impact of market competition on pricing, and strategies for global expansion.
What is the main objective of the research?
The objective is to analyze the performance of Rubbermaid's various divisions and provide recommendations to optimize their team-based approaches for better global results.
Which scientific or analytical method is used?
The author uses a qualitative case study analysis method, evaluating the individual performance and operational structures of four key Rubbermaid divisions.
What topics are covered in the main section of the paper?
The main section covers the "Situation Analysis" of the Food Storage, Juvenile/Infant/Sports (JIS), Sportsmotive, and Industrial Waste System teams, exploring their successes and operational inefficiencies.
What keywords best characterize this research?
Key terms include Innovation, Competitive Advantage, Business Teams, Corporate Strategy, and Market Adaptability.
Why does the Food Storage division face significant pressure from competitors?
Because their products are easily mimicked by competitors who offer similar goods at lower prices, causing the industry to become increasingly price-sensitive.
What does the author suggest to solve the turnover issues in the Sportsmotive division?
The author identifies high turnover as "priority number 1," suggesting that retention must be addressed before granting the team more autonomy to ensure productivity.
- Quote paper
- Kimberly Wylie (Author), 2004, Case Study: Rubbermaid Inc., Munich, GRIN Verlag, https://www.grin.com/document/57789
