Essays on Black & Decker Change Management Assignment

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The paper "Black & Decker Change Management" is a perfect example of a management assignment.   Black & Decker has recorded some improved performances of late by being successful in the process of extension and growth into the global markets. This success can be attributed to some of the strategies regarding its orientation that the company is adopting. Nevertheless, despite the current improvements financially, Black & Decker is still experiencing challenges raising the value of shareholders through higher prices of its stocks (Derdak et al. , 1990). Focused differentiation is one of the techniques Black & Decker has currently employed, and its results are seen by the recent improvements by the company.

Most of the current businesses operated by Black and Decker are of high quality regarding service and design, and this has differentiated the company from its competitors. This strategy has been essential to the company, as it has enabled the company to charge their products at higher costs than their competitors thus acquiring higher profit margins symbolized by its current financial rise. With the differentiation strategy, the company has been able to insulate itself be it partially from its competitors (Abrahams & United States, 1992).

Because of the quality of its products, B& D has not been included in price wars with its competitors, and it has therefore allowed the company to form its strategic group in the industry. Because customers are not sensitive to the prices of products, B& D has taken advantage of this and increased the prices of its products, and this means a higher profit margin. Another essential way the company has gained from the differentiation strategy is through increasing the potential of its market share both domestically and globally.

The increase in market share ultimately leads to increased profits. Product quality through differentiation often increases demand and reputation in the market that translates to a larger market share. Another important strategy that B& D has employed is horizontal integration. In the development of global markets especially in South America and Asia, B& D has employed horizontal integration. The company’ s superior system of distribution has been essential in this strategy. The company’ s broad and developed infrastructure has allowed it to distribute its products quicker all over foreign markets than its competitors have.

The quick distribution is also achieved at lower costs due to the company's developed infrastructure, and this has gone a long way in dealing with threats posed by the domestic market in the United States through grabbing the opportunities presented by the global foreign markets (DePamphilis, 2003). Low-cost leadership strategy has also be used by B& D, and this has led to the recent improved performances by the company. The company’ s hardware business employed this strategy in one of its product line known as Kwikset.

The company used its advantages concerning economies of scale, and this allowed the company to sell its hardware products at lower prices compared to their competitors (Parnell, 2014). This scenario has led to the increased dependence on economic cycles that have in turn led to increased market share. Besides, the company has been able to cut and save on costs by reducing expenditures in marketing. The low-cost strategy has however been applied only to the hardware product line, Kwikset because B& D has only been known for high-quality products and many low-cost products can damage the brand.

However, it has been successfully implemented in the hardware product Kwikset, and this has contributed to the recent improvements in performance by B& D.


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