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Newell Company Corporate Strategy

How does the corporate office contribute towards Newel's performance or in other
words what value does the corporate office add?

Newell had adopted to develop its product line through key acquisitions rather than
internal growth. All acquisitions are taken care at the corporate level so that the
divisions are not diverted from their core function of generating profit.
Potential target firms undergo an intense screening process. They have to be par
with companys existing performance criteria
They bring up acquired companies by developing them to become cost efficient
through operational strategies and creating profits within a period of 18 months.
Some are done with a period of 6 months of time. Newell also have strict control for
the time the customers pay, this is within 30-45 days
Corporate tightly controls the finances, yet it allows brand and division president
autonomy to guide the performance of the business.
Corporate office does a good job of seamless linking of its structure, system &
processes (SSP) with its businesses and resources.
The company attaches great importance to customer relations frequently inviting
buyers for plant visits.
The companies Newell acquires have potential but undervalued. These companies
are suffering because they do not have major clients and there overhead costs are
Newell focused on good communication within the company and had numerous
meetings throughout the year in order for leadership roles to remain informed about
other aspects of the company. Division leaders convened several times a year for
presidents meetings as well as the ability for regular encounters at trade shows
throughout the year.
Other forms of communication were bracket meetings and the monthly collection of
operating figures. Bracket meetings were implemented if there were too many
variances within the budget.
Salary was based on a uniform system across all divisions, which rewarded
individuals on the basis of their positions and the size of their divisions. All salaries
for managers were equal to the industry average, and bonuses could range from
33% for the most junior manager of a divisions 20-person executive team, to 100%
for division presidents.
The interviewing process was rigorous, once a potential employee was hired they
attended a two-day training program at the so-called Newell University. There
were also frequent opportunities for transfers and promotions in less than 10 years
and all job openings were publicized within the company. This kept the Newell
knowledge within the company and the ability to acquire informed top management
was a much easier process.