Black and Decker Essay

1579 Words 7 Pages
A report of Team D-1’s Analysis
Of The Black & Decker Corporation in 2000

Executive Summary Black & Decker had always been a market leader in the power tools industry. Many changes took place that helped out in the company in the short run, but hurt in the long run. In 2000 Black and Decker Corporation was still reeling from the financial and strategic problems stemming from the company's acquisition of Emhart Corporation in 1989. In late 1998 Black & Decker management celebrated the completion of an almost decade-long effort to divest nonstrategic business gained through its 1989 acquisition of Emhart Corporation and expected the company to enter a long-awaited period of growth as its entire management refocused its attention
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The company soon expanded internationally in 1919 and achieved growth by adding to the company's lineup of power tools and accessories by increasing the awareness of products in foreign markets. They had a growth strategy that consisted of product-line extensions and international expansion until the mid 1980s. Diversification in the 1980s was the main issue for Black & Decker due to the growing maturity of its core power tools business. In 1984 Black & Decker bought General Electric’s housewares business to try and branch out. GE sold this business even though it was number one in the market position, due to the division’s low profitability. Black & Decker should’ve taken this into consideration when buying this division, but it was supposed to transform the company from a power tools manufacturer into a consumer products company, so they ignored the numbers. Diversification was truly in effect in 1985 when the name was changed from Black & Decker Manufacturing Company, to Black & Decker Corporation to seem more “marketing driven.” The new division had proven to be a success early on for Black & Decker. The diversification of Black & Decker was kept

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