15.1 Case in Point: Newell Rubbermaid Leverages Cost Controls to GrowNewell Company grew to be a diversified manufacturer and marketer of simple household items, cookware, and hardware. In the early 1950s, Newell Company’s business consisted solely of manufactured curtain rods that were sold through hardware stores and retailers like Sears. Since the 1960s, however, the company has diversified extensively through acquisitions of businesses for paintbrushes, writing pens, pots and pans, hairbrushes, and the like. Over 90% of its growth can be attributed to these many small acquisitions, whose performance Newell improved tremendously through aggressive restructuring and its corporate emphasis on cost cutting and cost controls. Usually within a year of the acquisition, Newell would bring in new leadership and install its own financial controller in the acquired unit. Then, three standard sets of controls were introduced: an integrated financial accounting system, a sales and order processing and tracking system, and a flexible manufacturing system. Once these systems were in place, managers were able to control costs by limiting expenses to those previously budgeted. Administration, accounting, and customer-related financial accounting aspects of the acquired business were also consolidated into Newell’s corporate headquarters to further reduce and control costs.While Newell Company’s 16 different lines of business may appear quite different, they all share the common characteristics of being staple manufactured items sold primarily through volume retail channels like Wal-Mart, Target, and Kmart. Because Newell operates each line of business autonomously (separate manufacturing, research and development [R&D], and selling responsibilities for each), it is perhaps best described as pursuing a related, linked diversification strategy. The common linkages are both internal (accounting systems, product merchandising skills, and acquisition competency) and external (distribution channel of volume retailers). Beyond its internal systems and processes, Newell was also able to control costs through outcome controls. That is, business managers were paid a bonus based on the profitability of their particular unit—in fact, the firm’s strategy is to achieve profits, not simply growth at the expense of profits. Newell managers could expect a base salary equal to the industry average but could earn bonuses ranging from 35% to 100% based on their rank and unit profitability.In 1999, Newell acquired Rubbermaid, a U.S.-based manufacturer of flexible plastic products like trash cans, reheatable and freezable food containers, and a broad range of other plastic storage containers designed for home and office use. While Rubbermaid was highly innovative (over 80% of its growth has come from internal new product development), it had difficulty controlling costs and was losing ground against powerful customers like Wal-Mart. Newell believed that the market power it wielded with retailers like Wal-Mart would help it turn Rubbermaid’s prospects around. The acquisition deal between these two companies resulted in a single company that was twice as big and became known as Newell Rubbermaid Inc. (NYSE: NWL). In 2010, Fortune named Newell Rubbermaid the number 7 “Most Admired Company” in the home equipment and furnishings category.Case written by [citation redacted per publisher request]. Based on information retrieved April 3, 2010, from http://www.bain.com/masteringthemerger/case_example_new_rbbmd_trans.asp and from the Newell Rubbermaid Web site: http://www.newellrubbermaid.com/public/Our-Company/Our-History.aspx.Discussion Questions1.The controlling facet of the P-O-L-C framework introduces you to a variety of controls. What do other organizations you are familiar with do with regard to control that is similar to or different from what we see in the case of Newell? 2. What types of controls does Newell use? 3. Does Newell use behavioral controls? What are some examples? 4. Does Newell use outcome controls? What are some examples? 5. How do the controls Newell uses fit its strategy? 6. At the end of the case, how has Newell adjusted its strategy? What changes in controls has it made as a result?
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https://www.coursehero.com/tutors-problems/Business/9274455 9274455 Jong-Kyun Shin (Samsung CEO), Tim Cook (Apple CEO), and John S. Jong-Kyun Shin (Samsung CEO), Tim Cook (Apple CEO), and John S. Chen (Blackberry CEO)Influence ProcessesYou have been encouraged by a colleague to write a brief article about "CEOs and presidents" for a management journal. You have decided to compare the leadership styles of three leaders. Using the Library, the Internet, and your course materials, write a 4-5 page document via Word that elaborates on the following:In your article, provide the following:An introduction to the concept of influence processes A summary of the various types of influence processes and the factors that can affect them An analysis of the processes used by the three leaders. Identify the processes that the leaders and top management team (TMT) are using to impact the organization. Use the table below to organize your answers (you can copy the table from this browser window and paste it into your Word document). Please enter into each cell in the table how that leader is using that particular influence method (if applicable). Direct decisions Allocation of resources Reward system Selection and promotion of other leaders Role modeling Use the Library or other Web resources to support your argument. Be sure to cite your sources using APA Style 6th edition guidelines.Your report MUST include a reference list. All research should be cited in the body of the paper. Discussion Board essays and Individual Projects without references and citations may not earn any higher grade than a 'C' letter grade. Your report should contain an abstract, a short introduction, and conclusion in addition to the body of the paper. Please note that if you have a source in your reference section, you need to cite it in the body of the paper per APA guidelines and vice-versa.Please submit your assignment as a Word document in APA Style 6th edition format.Objective: The Objective of the Unit 5 IP Assignment will involve the following the Course Outcomes and Grading Criteria with their respective percentages for the Grading Rubric.This assignment will be assessed using additional criteria provided here.Please submit your assignment.For assistance with your assignment, please use your text, Web resources, and all course materials.Grading Rubric: Grading Criteria Percentage Deliverable requirements addressed; understanding of material and writer's message and intent are clear 35% Scholarly research which supports writer's position properly acknowledged and cited direct quotations may not exceed 10% of the word count of the body of the assignment deliverable (excluded title page, abstract or table of contents if used, tables, exhibits, appendices, and reference page(s). Inclusion of plagiarized content will not be tolerated and may result in adverse academic consequences. 20% Critical thinking: position is well justified; logical flow; examples 20% Structure: includes introduction and conclusion; proper paragraph format and reads as a polished, academic paper or professional presentation, as appropriate for the required assignment deliverable 10% Mechanical - no spelling, grammatical or punctuation errors 10% APA - deliverable is cited properly according to the APA Publication Manual (6th Ed.) 5%