In response to your request, an evaluation of your firm, Black & Decker Corporation, was conducted to determine the strategic issues and problems within and surrounding the firm. This consisted of a review of the external environment, a SWOT (Strengths, Weaknesses, Opportunities and Threat) analysis incorporating identification of factors that drive the business, a determination of the company’s financial condition and performance, and consideration of ethics and social responsibility. Please find attached for your consideration a copy of my Business Report containing discussion of the preceding, as well as numerous conclusions and recommendations with justification for each.
The principal recommendations for your firm are as follows:
1. Black & Decker should focus on core businesses.
Increase and make more effective advertising expenditures on the DeWalt brand.
In the event you have any questions in this regard, please do not hesitate to contact me.
Black & Decker should focus on core businesses.
Increase and make more effective advertising expenditures on the DeWalt brand.
Demand for power tools and accessories are regarded as both mature and cyclical. Volume is influenced by: residential and commercial construction activity, consumer expenditures for home improvement, and overall level of manufacturing activity. Worldwide sales of power tools were estimated at $10 billion in 1999. The North American market for power tools was estimated at $3.5 billion; European sales were estimated at $4.0 billion; Asia/Pacific sales were estimated at $2.0 billion; and Latin American sales of power tools were estimated at approximately $500 million. The global market for power tools failed to grow significantly between 1997 and 1999, but was predicted to grow at low single-digit annual rates between 2000 and 2002. Industry worldwide demand dropped during the late 1990s, attributable in large part to turmoil in Asian...