Top 3 problems Black & Decker is facing.?

It's for a project. Any help is greatly apreciated.

1 Answer

  • 1 decade ago
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    Here are some ideas with the sources underneath. I looked under "Black-and-Decker"-Strategic-issues

    Weaknesses: Unfortunately for Black & Decker, net income has remained meager at best (Exhibit 2). Net profit margin has been extremely volatile with an average of only .2% over the past 10 years (Exhibit 1). The company’s stock price has not realized the performance that would otherwise be expected from a company of such size and reputation. The company has seen a continuous decline in many of its core products (Exhibit 5). The company has made some purchases over the years in order to broaden it’s portfolio. These purchases and acquisitions (GE’s household appliances and the Emhart acquisition) have proven to lack the synergy required to make such purchases profitable. Also the company has been able to reduce its amount of debt (primarily from the purchase of Emhart) over the past 10 years (Exhibit 4) the company has had many struggles and continues to have difficulty associated with this debt.

    Opportunities: Black & Decker has a few opportunities that will provide the means by which to continue its ability to create value for its shareholders. The international market has great potential for exploitation, specifically in Asian and Latin countries where power tool sales have been low and maturation / saturation is not yet present (Exhibit 6). While power tool growth in the U.S. has slowed, growth internationally is expected to continue at a high growth rate. There is also opportunity for diversification into other areas where Black & Decker’s expertise and brand name will add value to the process.



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