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Black & Decker Corporation: A Power Tools Division

Submitted To: Prof. Ranjan Paul

Submitted By: Avneesh Rai Piyush Dhingra Rajneesh Yaadav Sahil Arora Uttam Bose

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 its Implementations.

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

History

1910 Incorporated by Duncan Black and Alonzo Decker. 1917 Company introduce its first power tool. 1919 Company expanded internationally. 1984 Black & Decker acquired General Electrics house wares business for $300 million. 1985 Company changed its name from Black & Decker Manufacturing Company to Black & Decker Corporation. 1985 CEO Nolan D. Archibald hired. 1986 Black & Decker listed among Fortune Magazines 10 Most Wanted Executives. 1988 Boosted Black & Deckers profits to $97.1 million. 1984 -1989 Track Records. 1990 Black & Deckers household products had established. 1998 Global Track Records. 2000 Company was overall leader in the world power tool industry.

Vision

Strong brands Innovation Global Distribution End User Focus Six Sigma

Strong Brand Names

Actual Operation

Professional Industrial : Tools sold to larger companies who bought tools 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.

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

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

Alignment of System & Processes


Vision

Metrics & Accountability (Balanced Scorecard)

Winning Culture Values

Goals (Functional & Individual)

Strategies

The New Power in Black & Decker CEO Nolan Archibald & his whiz Kids were taking the market back from Japanese & were thoroughly enjoying it. The Recipe: Get a Plan, Get the People, Get tough.

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.

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

Increase marketing expenditures in developing countries. Continue the research and development of innovative products and features. 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 the commercial market. Special retail and advertising campaigns to be used to closer align the various product lines.

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.

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.

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.

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.

THANK YOU FOR YOUR TIME


We Will Now Be Happy To Take Any Questions

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