Term
Reason's for Acquisitions
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Definition
- Increased market power
- Overcoming entry barriers
- Cost of new product development and increased speed to market
- Lower risk compared to developing new products
- Increased diversification
- Reshaping the firm's competitive scope
- Learning and developing new capabilities
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Term
| Problems in Achieving Succes in Acqusitions |
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Definition
- Integration difficulties
- Inadequate evaluation of target
- Large or extraordinary debt
- Inability to achieve synergy
- Too much diversification
- Managers overly focused on acquisitions
- Too large
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Term
| What is Strategy Article Applied to Case |
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Definition
- Strategy: variety-based positioning
- Tradeoffs: occur in the face of different configurations (ie knitting patterns)
- Fit: second-order - activities are reinforcing
- Overcoming Fear:
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- global growth leverages strategy in new markets
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Term
| Application of Strategic Intent Article to Case |
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Definition
Top management's goal is to make the whole more valuable than the sum of its parts: - "Sell Newell"
- Protect company's shelf space
- Give edge when product comes up for review
- Organizational Effectiveness
- Sets targets for individual businesses
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Term
| Application of Blue Ocean Strategy to Case |
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Definition
- Global expansion has been the only manifestation of blue ocean strategy.
- If pursued could generate decades of lastin brand equity and barriers to entry.
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Term
| Application of the Why Business Models Matter Article to Case |
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Definition
Business Model: - Aiming and performing at specific price points
Strategy: - Brand Name
- Customer Service
- Operational Efficiency
- NEW: Broader Access to Customers
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Term
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Definition
- Relationships with Customers (reach, richness, affiliation)
- Solid Reputation for Service (timeliness, accuracy, convenience, consistency)
- Operational Effectiveness > 15%
- Brand Recognition
- Global Trajectory
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Term
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Definition
Related Linked: Central Admin, Legal, and Treasury. |
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Term
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Definition
Value Creating - Market Power - Blocking competitors through multipoint competition
- Some virtical integration
Value Creating - Financial Economies |
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Term
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Definition
- Differentiation
- Strong relationship with customers
- Home and hardware products market
- Value-creating strategy
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Term
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Definition
- Suppliers - ?
- Buyers - High power volume retailers
- Competitive Rivalry - Meyer's actions, Rubbermaid's failure, sick competitor
- Substitutes - Brand Name
- Entrants - Extra power from retailers
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Term
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Definition
Opportunities - Globalization Threats - Globalization Industry Competition - Smaller, Lower Price Competitor Analysis - meh... |
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Term
| Strategic Management Process |
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Definition
- Internal and External Environment
- Opportunities and Threats
- Core Competencies
- Strategic Intent (business, strategy)
- Implementation (structure, controls)
- Feedback
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Term
| Application of the Core Competence of the Corporation article to Case |
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Definition
- Newell is able to have each business make a significant contribution to its benefits through shelf space.
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- Each business also gives them access to different markets.
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- These capabilities end up being difficult to imitate.
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Term
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Definition
It appears as though Newell is attempting a transnational strategy with their acquisition of companies based abroad. |
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Term
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Definition
Competitive Form Comes from strategy but also influences it (ie not allowed to expand core product focus) Monthly budget and strategic planning meetings |
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