Black and Decker

I. Introduction

A. Company Name: Black and Decker

B. Team members and their respective functions

1. Sal Salvino – Management

2. Carl Ruffier – Management

3. Kevin Stephen – Marketing

4. Dan Howells – Marketing

5. Ryan Alexander – Marketing

6. Candis Robison – Economics

C. View our group is taking according to business function

1. Entrepreneurial

a. Analyzing “the heart” of the actual operation

b. Decision Making analysis

c. Analyzing Black and Decker’s SWOT

d. Identifying strategies in order to obtain measurable objectives

e. E-Commerce considerations

f. Recommending a future strategy and it’s implementation considerations

II. Overview of Black and Decker

A. Global manufacturer and marketer of quality products

1. Power tools

2. Hardware products

3. Home improvement products

4. Technology-based fastening systems

B. Products and services marketed in more than 100 countries

C. Manufacturing operations in 11 countries

D. Company has established a reputation for:

1. Product innovation

2. Quality

3. End user focus

4. Design and value

E. History of Black and Decker

1. 1910 – Incorporated by Duncan Black and Alonzo Decker

2. 1916 – Company introduced its first power tool

3. 1919 – Company expanded internationally

4. 1984 – Black and Decker acquired General Electric’s house wares business for $300 million

5. 1985 – Company changed it’s name from Black and Decker Manufacturing Company to Black and Decker Corporation

a. Wanted to reflect it’s new emphasis on being more “marketing driven”

6. 1985 – CEO Nolan D. Archibald hired

a. Corporate headhunters rated him as a:

i. Good strategic thinker

ii. Personable

iii. Versatile

iv. Sensitive to people

b. Within 3 months of taking over he implemented a “reconstructing plan”

i. Closed older inefficient plants

ii. Boosted factory utilization rates by consolidating production

iii. Emphasized quality control measures

7. 1986 – Black and Decker was listed among Fortune Magazine’s “10 Most Wanted Executives”

a. Named one of the 6 best managers by Business Week

8. 1988 – Boosted Black and Decker’s profits to $97.1 million

a. Up impressively from the loss of ($158.4) million posted in 1985

9. 1984 – 1989 Track record

a. 7 plants closed

b. Approximately 3,000 employees were let go

c. Archibald put additional resources into:

i. New product development

ii. Redesign of company’s power tools

iii. Small appliance lines

iv. Creating panels of dealers to suggest new products and features that consumers desired

10. 1990 – Black and Decker’s household products business had established as:

a. Worldwide leader in products used for:

i. Home cleaning

ii. Garment care

iii. Cooking, food and beverage preparation

11. 1995 – 1997 Track record

a. Company launched a designer line

i. Small kitchen appliances

ii. Kitchen Tools

b. Company had completely overhauled it’s supply chain management

i. Reduced it’s finished goods inventory

ii. Improved customer service and production planning

12. 1998 – Global Track Record

a. Black and Decker’s True Temper sports business unit was the leading global designer, manufacturer, and marketer of steel golf club shafts

b. Black and Decker’s Emhart Glass-Container forming machinery division was considered

i. Global leader

ii. Offered the world’s most complete line of glass container making equipment

13. 2000 – Company was the overall leader in the world power tool industry

III. Black and Decker’s Vision

A. To establish itself as the preeminent global manufacturer and marketer of power tools and accessories, hardware and home improvement products, and technology based fastening system

1. Strong brands

2. Innovation

3. Global Distribution

4. End-User Focus

5. Six Sigma

IV. E-Commerce considerations

A. May want to consider planning and implementing this new concept

1. Black and Decker could have the a greater opportunity to reach further beyond the border

a. May find better:

i. Suppliers

ii. Gains in efficiency

iii. Cost Savings

References:

Thompson, Strickland: Strategic Management “Cases and Concepts 12th Edition

John E. Gamble, Arthur A. Thompson “The Black and Decker Corporation”

http://www.bdk.com/02report/content.htm

http://www.bdk.com/vision_statement.htm

VI. Competition and Competitive Environment:

A. Major Competitors:

1. The Small Appliance Market:

a. Hamilton Beach/ Proctor Silex

Holds 24% market value in can openers, coffeemakers, and hand mixers, 40% market value in food processors, 38% market value in irons and 37% in toasters.

b. Oster/Sunbeam

Holds a 13% market share in hand mixers, 17% in irons, and 13% in can openers

c. Toastmaster

Holds a 17% market share in toaster ovens

d. Betty Crocker

Holds a 6% market share in toaster ovens and 5% in toasters

e. Rival

Holds 24% market share in can openers, and 17% in toasters

2. Power Tools:

-The North American market for power tools was estimated at 3.5 billion and 4 billion for Europe in 1999.

a. Makita

- a strong leader in Japan

- 9.4 % market share

b. Bosch

- strongest in brand name in Europe

c. Milwaukee

holds 17% share in the professional tools market

focuses primarly on contactor

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