Black & Decker Corporation

7/31/2019 Black & Decker Corporation

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Black & Decker Corporation:

A Power Tools Division

Submitted To: Submitted By:

Prof. Ranjan Paul Avneesh Rai

Piyush DhingraRajneesh Yaadav

Sahil Arora

Uttam Bose


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Business Functions

Analyzing the heart of the actual operation.

Decision Making analysis.

Identifying strategies in order to obtain measurable objectives.

Alignment of Systems & Processes.

Analyzing Black & Deckers SWOT.

Recommending a Future Strategy, Marketing and itsImplementations.


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Overview

Global manufacturer and marketer of quality products. Power tools

Hardware products

Home improvement products

Technology-based fastening systems

Products and services marketed in more than 100 countries.

Manufacturing operations in 12 countries.

Company has established a reputation for:

Product innovation

Quality

End user focus

Design and values


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History 1910 Incorporated by Duncan Black and Alonzo Decker.

1917 Company introduce its first power tool.

1919 Company expanded internationally.

1984Black & Decker acquired General Electrics house wares business

for $300 million.

1985Company changed its name from Black & Decker Manufacturing

Company to Black & Decker Corporation.

1985 CEO Nolan D. Archibald hired.

1986Black & Decker listed among Fortune Magazines 10 Most Wanted

Executives.

1988Boosted Black & Deckers profits to $97.1 million.

1984 -1989 Track Records.

1990Black & Deckers household products had established.

1998 Global Track Records.

2000 Company was overall leader in the world power tool industry.


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Vision

Strong brands

Innovation

Global Distribution

End User Focus

Six Sigma


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Strong Brand Names


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Actual Operation

Professional Industrial : Tools sold to larger companies who boughttools for their workers.

Professional Tradesman : Tools sold to independent contractors and

other workers who used their own tools on the job site.

Consumer : Tools sold to household.

Black & Decker tools are One of The Best.


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Decision Making Strategy

Three Strategic Options:

Harvest the division and maximize the profit for the short run.

Sub-Brand current B&D products.

Re-Brand the tools in the Professional Tradesman segment.

Although all three options have their potential benefits & justifications


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Bostons Growth-Share Matrix

The Professional Tradesman Segment Plotted in The Boston Consulting Group-Share Matrix

Note: Relative Market Share represents the relationship between companys market share & its highest competitors


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Alignment of System & Processes

Vision

Winning

CultureValues

Strategies

Goals(Functional &

Individual)

Metrics &Accountability

(BalancedScorecard)


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The New Power in Black & Decker CEO Nolan Archibald & his whiz Kidswere taking the market back from Japanese & were thoroughly enjoying it.

The Recipe: Get a Plan, Get the People, Get tough.


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Demonstrate Unyielding Integrity We address issues objectively and candidly. We do right things the right way. We treat one another with dignity and respect. We hold our business and business partners to the highest of ethical conducts.Result: We built and sustain trust based relationship.

Deliver on Commitment We do what we say we will do. We are customer focused. We set ambitious goals. We act with speed and decisiveness to drive continuous improvement.Result: We achieve strong financial performance for the benefit of all.

Inspire Excellence We demonstrate passion, high energy and a can- do attitude. We value our people, encourage their developments, recognize and reward. We are positive people who celebrate success and learn from mistakes.

We take educated risks to make our business better.Result: We consistently meet or exceed expectations.

Win through Team work We place the success of the company above personal interests. we draw out the best in each other through collaborating. We value diversity of back ground and experience as key strengths. We display the passion for learning, sharing ideas and having fun.Result: We optimize Business performance by working together.


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Diversification (B&D start the maturity of power tools business in 1980s)

Acquisition is unsuccessful, skepticism about the future arises.

Shedding non-strategic business units.

More narrow focus on B&D divests.

B&D competes restructuring, decided to focus on:

Power tools for professional and non-professional use.

Lawn and garden equipments.

Cleaning and lighting products.

Plumbing products. Commercial fastening systems.

B&D used several tactics to add values


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Increase marketing expenditures in developing countries.

Continue the research and development of innovative products andfeatures.

Strengthen the brand image and increase its distribution. Explore using the companys own service centers, thus enhancing the

distribution channel and providing opportunities for incremental sales.

Increase consumer advertising and possible expand the line into thecommercial market.

Special retail and advertising campaigns to be used to closer align thevarious product lines.


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SWOT Analysis

Strengths

A widely recognized market leader in power tools and power accessories.

Strong brand name and company reputation.

Ability to take advantage of economies of scale.

Good customer service reputation.

Well know for high quality products.

Strong distribution capabilities.


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SWOT Analysis

Weakness

Poor common stock performance and financial results.

Troubled acquisitions and failed acquisitions.

Trouble with transferring brand loyalty of acquisitioned companies products.

Gaining respect for products in professional tool segments.

Not clear on strategy direction.

Lack in e-commerce.


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SWOT Analysis

Opportunities

Gain Market shares from GE small appliance segment through acquisition.

Opening opportunities in Eastern Europe and other developing nations.

Expand product lines to meet broader range of customer needs.

Acquisition of companies with attractive business opportunity.

Creating new brand name and line of product.

Expand in e commerce.


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SWOT Analysis Threat

Mature Markets Poor market condition (i.e.) Recessions and poor performance in global market. Strong Competition in power tools segment.

Makita Bosch Hitachi

Atlas/Copco Hilti Electrolux

Competition in a small appliance segment. Rival Hamilton Beach/Proctor Silex Oster/sunbeam West Bend Cuisine HPA/Betty Croker Toastmaster

Growing bargaining power of retailers. New product development, products innovations, and redesign from competitors.


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Black & Decker Corporation