Grin logo
en de es fr
Shop
GRIN Website
Publish your texts - enjoy our full service for authors
Go to shop › Business economics - Offline Marketing and Online Marketing

Black&Decker Business Case Study

Title: Black&Decker Business Case Study

Research Paper (undergraduate) , 2006 , 10 Pages , Grade: 1.0

Autor:in: M.B.A. Nihat Canak (Author)

Business economics - Offline Marketing and Online Marketing
Excerpt & Details   Look inside the ebook
Summary Excerpt Details

During the 1984-1992 period Black and Decker had established themselves as a leader in the power tool industry. It was their feeling however, that the market for such tools was maturing to the point where expansion within the industry would provide little or no additional revenues so they decided to diversify. Black and Decker began their expansion operation by acquiring General Electric’s small household appliance segment, the leader in the industry. The success of the GE deal, and the reorganization efforts of their new CEO Nolan Archibald, led Black and Decker to continue on this path of acquisitions and diversification in other areas 1 . By diversifying, Black and Decker lost focus of its core products (power tools). Customers began to think that Black and Decker tools were losing quality because of their lack of specialization. When they decided to divest the other business ventures, the customers’ view of Black and Decker tools was positively affected as they regained market share. However its image could be better, so by advertising and sponsoring home improvement television shows, Black and Decker could have a better image and gain more market share. Black and Decker has divested much of its broad enterprises including its household and recreational outdoor products in favor of a more focused business model in the power and professional tools market. They also need to regain their reputation of quality by advertising and sponsoring home improvement television shows 2 . However, Black & Decker has now a diversified product line that competes in the consumer and professional power tools markets. The company also has a fastening business and a home and hardware business that provide diversification from tools. Such diversification helps mitigate the volatility associated with cyclical swings in any particular market. Black & Decker is known for its innovation, which would help the company to continue to develop new products for these and other markets. The company has come up with numerous "firsts". For instance, it introduced the portable drill, cordless power tools, and laser levelers. This high degree of innovation has resulted in a reasonably high vitality index, which measures the portion of total sales derived from products introduced in the last three years [...]

Excerpt


Inhaltsverzeichnis (Table of Contents)

  • Black & Decker's Diversification Strategy.
    • Acquisition of General Electric's Houseware Division
  • Acquisition of Emhart.
  • Black & Decker's Business Portfolio 2000......
  • Nolan Archibald
  • Divested Business Units
  • Strategic Recommendations........

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This document examines the diversification strategy employed by Black & Decker during the 1980s and 1990s, analyzing the impact of significant acquisitions such as the purchase of General Electric's housewares division and Emhart Corporation. It also explores the company's subsequent divestment of non-core businesses and the resulting effects on its market position and reputation.

  • Diversification strategy and its impact on Black & Decker's core business.
  • Acquisition of General Electric's Housewares Division and its influence on market share and brand perception.
  • Acquisition of Emhart Corporation, its challenges, and the company's response in managing the integration and debt.
  • Divestment of non-core businesses and the strategic realignment of Black & Decker's focus.
  • The role of innovation and new product development in Black & Decker's success.

Zusammenfassung der Kapitel (Chapter Summaries)

  • Black & Decker's Diversification Strategy: This chapter explores the company's decision to diversify beyond its core power tool business, driven by a perceived market maturity and the desire for growth. The acquisition of General Electric's small household appliance segment is highlighted as a key milestone in this strategy.
  • Acquisition of General Electric's Houseware Division: This chapter delves into the details of Black & Decker's purchase of GE Housewares in 1984. It examines the initial impact on the company's revenue and brand perception in the housewares market. The acquisition is seen as a significant move in Black & Decker's diversification strategy, expanding its product portfolio and market reach.
  • Acquisition of Emhart: This chapter discusses the acquisition of Emhart Corporation in 1989, which significantly expanded Black & Decker's size and global presence. It analyzes the challenges associated with this acquisition, including the initial stock price drop and the need to manage a substantial debt burden. The chapter also explores the subsequent divestiture of certain Emhart business units that did not align with Black & Decker's core strategy.

Schlüsselwörter (Keywords)

The key terms and concepts explored in this document include diversification strategy, acquisition, divestment, market share, brand perception, innovation, product development, and corporate strategy. The analysis focuses on the impact of strategic decisions on Black & Decker's financial performance, brand image, and market position.

Excerpt out of 10 pages  - scroll top

Details

Title
Black&Decker Business Case Study
College
Western Carolina University
Course
Marketing Management & Mature Consumers
Grade
1.0
Author
M.B.A. Nihat Canak (Author)
Publication Year
2006
Pages
10
Catalog Number
V64768
ISBN (eBook)
9783638574990
ISBN (Book)
9783656807087
Language
English
Tags
Black&Decker Business Case Study Marketing Management Mature Consumers
Product Safety
GRIN Publishing GmbH
Quote paper
M.B.A. Nihat Canak (Author), 2006, Black&Decker Business Case Study, Munich, GRIN Verlag, https://www.grin.com/document/64768
Look inside the ebook
  • Depending on your browser, you might see this message in place of the failed image.
  • https://cdn.openpublishing.com/images/brand/1/preview_popup_advertising.jpg
  • Depending on your browser, you might see this message in place of the failed image.
  • Depending on your browser, you might see this message in place of the failed image.
  • Depending on your browser, you might see this message in place of the failed image.
  • Depending on your browser, you might see this message in place of the failed image.
  • Depending on your browser, you might see this message in place of the failed image.
Excerpt from  10  pages
Grin logo
  • Grin.com
  • Payment & Shipping
  • Contact
  • Privacy
  • Terms
  • Imprint