1. Overview of the case study (10 points)—at least half a page.
Black and Decker International were established in 1917 and it deals with accessories, plumbing, locks and hardware, outdoor products and mechanical fastening systems. It started in United States but over the year it has spread across the globe but more particularly in Europe. As part of its growth strategy, the company acquired Emhart Corporation in the year 1989. Following the changes in the globe market the company has focused on changing its strategy into a diversified company. One of the strategy of the company has adopted is the development of worldwide market for its products. In addition, the company has resolved to reduce the number of models for the global market. The vice president for the product and market development has played a vital role in ensuring that the company comes up with changes which will align with the globe market demands. This case study focuses on best re-engineering strategies available for the Black & Decker to restructure its operations.
2. What is the source of Black and Decker’s recent performance improvements? (10 points)
The main source of Black and Decker’s recent performance improvements are the change strategies adopted by the company. First, is the diversification strategy which has seen the company develop a globe view towards the marketing of its products. In addition, is the reduction of the number of the models to meet the global markets. As a result, the company has been able to increase its market share thus improving its revenue performance (Butteriss, 1998).
Nevertheless, the adoption of new cultures in the company through training the employees has played a big role in enhancing the Black and Deckers’s performance. This is because it has ensured production of quality products and delivery of quality services to the market. Finally, the focus on the use of information technology in production, marketing and distribution of the company’s products has helped improve the efficiency of this services thus enhancing better performance.
3. What is driving current performance? (10 points)
There are various factors driving the current performance of Black and Decker’s company. To start with is the integration of information technology in the company’s operation. This has helped improve the production and distribution operations of the company. Secondly is the adoption of quality management skills which have seen the managers improve the decision making process thus fostering an improvement in the company’s performance. Finally, development of diversified market strategy is another driving force to the Black and Decker’s current performance improvements. This has seen the company diversify the market for its products thus fostering a growth in its sales revenue.
4. What are the strengths and weaknesses of Grunewald’s proposal? (10 points)
There are various strengths for the Grunewald’s proposal to create a global lock business and to acquire another company. First, new market segmentation would play a vital role in diversifying the company’s existing combination of the company’s operations. This will be crucial for the company in increasing the market share. Furthermore, this proposal will be good for realizing Economies of the scale, cheaper production costs and Economies of scope for the company. Finally, the proposal may lead to increased finances thus helping the company to complacent its distribution systems all over the world. Also, this will enable the company to offer quality standards which will further assist in the promotion product innovation thus bringing combined force and credibility to the company.
On the other hand, this proposal will have various weaknesses for the company’s progress. First, there may be a big problem in coordinating between the management of the acquired values. This may lead to lose of talent in the company for instance the key managers. As a result the company may experience mismanagement growth which in long run would draw away the core competences of the company. In addition, there may exist a problem in conducting the market research, overpowering regional differences, and rationalizing distribution channels. This implies that it will be very difficult to implement and intellectualize their products in various parts of the world (Butteriss, 1998).
5. How should Grunewald proceed through implementation? (5 points) What changes need to be made and how will he measure success? (5 points)
Grunewald would implement his proposal first by inducting it to the shareholders and all managers heading various departments of the company. After a serious discussion and suggestions from the managers, he would instruct the managers to go back to their respective department and discuss the proposal with the employees. Following the agreement from various departments then the Vice President with the help of all stakeholders would implement the proposal.
Grunewald needs to foster other changes in order to ensure success of the company. First is the integration of effective technology in the organization operating systems. An outstanding example is the management of information systems which would ensure efficiency in the supply chain management. In addition, this will foster better planning, forecasting and coordination of activities among the stakeholders of the company especially the managers.
Furthermore, there is great need for the company to focus on growth of the company in foreign markets. With a focused diversification of its services in the foreign markets will help the company to grow to greater heights. Moreover, differentiated strategy for the company’s business is also another change which Grunewald should encourage in the company. Through the use of this strategy the company will be able to develop its products at low costs. Finally, Grunewald should also encourage the company management to focus on proper understanding and development of the company’s environment. The company should ensure that it meets all demands required by its environment. In addition, there is need to foster training of the employees to enhance the adoption of new cultures in the organization (Butteriss, 1998).
Butteriss, M. (1998). Re-inventing HR: changing roles to create the high-performance organization (3. printing. ed.). Toronto: Wiley.