Black & Decker International
Mr. Grunewald, the vice president of Black & Decker Company reviewed his presentation, which highlighted profit growth to be realized in the recently acquired Emhart Corporation and the need to venture into the global market with the major line of items the company produced (Black & Decker International, 1989). The proposal needed additional personnel, which would automatically overhead the costs at the time when the finances of the company were focused towards expansion of the Emhart acquisition. This was a remarkable idea for the company that was growing at a high rate. However, the risk involved in the global expansion at this time was great, despite Mr. Grunewald’s perception of the advertisements and development.
With the diversity of the business, the complications continued to increase at the operational level. Instead of risking with a single type of lock, the company can try out the market with the three types to ascertain profit margin. The company prides of acquiring strong distributor relationships and great favor in advertisements (Black & Decker International, 1989). This move needs to measure in terms of profits and high market stability, which would later transform into huge volumes and growth. Just as he perceives, the proposal may be rebuffed due to present low legacy of the brand, limited market knowledge and marketing inefficiencies. Communication opportunities are an additional factor to consider before accepting and recommending the proposal (Black & Decker International, 1989). Grunewald perceived the importance of broadening their production but failed to analyze related risks and expenses the company would accrue in addition to the already cost of acquiring Emhart. Grunewald additionally needs to do a critical market analysis in international markets other than in Japan where the company would focus on. This analysis will offer the company additional alternative in case this costly venture meets a market drawback.
Black & Decker International. The New Power in Black Decker: Globalization of the
Architectural Hardware Line. Fortune. 1989, 2nd January: pp 89-92