How does the corporate office contribute towards Newel's performance or in other words what value does the corporate office add? Newell keeps the brand name of the target firm and discards the existing people and processes.
Newell will need to work with the majority Rubbermaids existing workforce and management team, there are simply too many to replace. Its initial business model had been based on competitive products through high quality and affordable prices, yet it gradually.
This was due to a number of factors such as maintaining internal consistency, efficient use of resources and keeping corporate strategy dynamic relative to the changing environment. The degree to which this acquisition adds value depends on Newells ability to absorb Rubbermaid into its existing corporate structure.
By maintaining a portfolio of products valued by the end user, Newell is providing value to the mass retailer in the form of increased sales and customer traffic.
Newell can leverage its operational and financial systems and synergies of the existing brands to improve Rubbermaid deteriorating position.
Calphalon caters to these end users by deploying a skilled sales force, offering product demonstrations, and conducting product training to the distribution channels. If the Newellization process drags out, Newell will be forced to invest more of its time and resources into integrating Rubbermaid.