BY:
Courtney Rapp
Jenna Saunders
David Richardson
Jeraurd Richardson
Jon Smith
CORPORATE PROFILE
“Black & Decker is a global manufacturer and marketer of quality
power tools and accessories, hardware and home improvement
products, and technology-based fastening systems. Our products and
services are marketed in more than 100 countries, and we have
manufacturing operations in eleven countries. Throughout our
businesses, we have established a reputation for product innovation,
quality, end-user focus, design, and value. Our strong brand names and
new product development capabilities enjoy worldwide recognition, and
our global distribution is unsurpassed in our industries.”
http://video.google.com/videoplay?docid=9115010915088445166&q=black+an
d+decker&hl=en
HISTORY
• Started in the early 1900’s with a small machine shop in Baltimore Maryland owned by two young entrepreneurs S. Duncan Black and
Alonzo G. Decker. They called it The Black and Decker Manufacturing Company
• 1917- Company built first plant
•1922- First foreign subsidiary in Canada
• 1925- International Expansion in London England
• 1929- Established In Sydney Australia
• 1941- Began to Manufacture fuses and gun shells
• 1943- B&D received the Prestigious Army-Navy “E” award for production
• 1946- Company expanded to Sao Brazil
• 1950- Milestone in the Company’s History because the one millionth 1/4th home utility drill came off the assembly line
• 1951 S. Duncan Black died so Alonzo Decker, Sr took over as the President
• 1956 Alonzo died and the brother of S. Duncan took over as President
• 1974- Sales passed the $500 million mark
• 1979- Annual Sales topped $1 billion for the first time
• 1984 Consolidation of management and manufacturing was announced
• 1988 Awarded the Medal of Professional Excellence
• 1992 Launched a new line of products called DEWALT in North America
• 2004 announced the purchase of the Tools Group from Pentair Inc. for about 775
million in cash
CORPORATE AND BUSINESS LEVEL STRATEGY
The Vision Statement:
• “Black & Decker's objective is to establish itself as the preeminent global manufacturer and marketer of power
tools and accessories, hardware and home improvement products, and technology based fastening systems. ”
The Goal of Black & Decker:
• “The goal is to be a diverse and inclusive organization that develops and utilizes the full talents and potential of
our employees.”
• Black & Decker has an established reputation and markets leadership.
Diversification into Household Appliances:
• Black & Decker purchased General Electric’s housewares segment in the mid 1980’s
• B&D’s acquisition of American Standard Inc., in 1987, was unsuccessful.
• B&D also attempted to acquire Oster/Sunbeam’s appliance division, however they failed.
The Emhart Acquisition: (1988)
• The acquisition caused the stock price to drop fifteen points after it was announced.
• B&D agreed to pay for Emhart for the next 48 years.
• B&D sold whole divisions of Emhart to reduce the debt they acquired from buying Emhart.
The Vector Products, Inc. Acquisition: (July 2006)
• This acquisition allowed the Corporation to offer customers a broader range of products
• For $160 million
• Had technology strengths in battery charging and a broad line of innovative charging, lighting and emergencyrelated consumer products.
• Products were distributed at such retailers as Wal-mart, Target, Home Depot and Sam's Club.
BLACK AND DECKER WORLDWIDE
EXPANSION OF BLACK AND DECKER:
http://www.europe-blackanddecker.com/landing/world.html
BUSINESS SEGMENTS
Power Tools and Accessories:
“The Power Tools and Accessories segment manufactures and markets consumer power tools, accessories,
electric lawn and garden tools, and electric cleaning and lighting products under the Black & Decker® brand, and
high-performance power tools, accessories, industrial equipment, laser products and air compressors under the
DEWALT®, Porter-Cable® and Delta® brands. This segment also provides product service and operates factory
outlet stores. Headquartered in Towson, Maryland, this segment accounted for sales in 2005 of more than $4.7
billion. “ ( 74% of sales for 2005 )
Hardware and Home Improvement:
“The Hardware and Home Improvement segment manufactures and markets security hardware products under the
Kwikset®, Baldwin®, and Weiser® brands; general hardware, decorative hardware and other home improvement
products under the Baldwin brand; and plumbing products under the Price Pfister® brand. Headquartered in Lake
Forest, California, this segment accounted for sales in 2005 of over $1.0 billion. “ ( 16% of sales for 2005 )
Fastening and Assembly Systems:
“Serving the global automotive and industrial markets, the Fastening and Assembly Systems segment, known as
Emhart Teknologies, applies advanced technology to the business of product assembly. It is the originator of
several highly recognizable brands, including POP® blind rivets, Parker-Kalon® screws, Gripco® locknuts,
HeliCoil® wire inserts, Dodge® inserts, Tucker® stud welding equipment, and Warren® plastic and metal
fasteners. Headquartered in New Haven, Connecticut, this segment accounted for sales in 2005 of over $600
million. “ ( 10% of sales for 2005 )
PRODUCT CATEGORIES
• Corded and Cordless Electric Power Tools and Equipment: drills, screwdrivers,
impact wrenches and drivers, hammers, wet/dry vacuums, lights, radio/chargers, saws, grinders, band saws,
plate joiners, jointers, lathes, dust management systems, routers, planers, sanders, benchtop and stationary
machinery, air tools, building instruments, air compressors, generators, laser products, jobsite security
systems, and WORKMATE® project centers and related products.
• Lawn and Garden Tools: hedge trimmers, string trimmers, lawn mowers, edgers, pruners,
shears, shrubbers, blower/vacuums, power sprayers, pressure washers, and related accessories.
• Home Products: stick, cannister, and hand-held vacuums, flexible flashlights, and wet scrubbers.
• Accessories and Attachments for Power Tools: drill bits, hammer bits, router bits,
hacksaws and blades, circular saw blades, jig and reciprocating saw blades, screwdriver bits and quickchange systems, bonded and other abrasives, and worksite tool belts and bags.
•Product Service:
provides replacement parts and repair and maintenance of power tools, equipment,
and lawn and garden tools.
BRANDS/TRADEMARKS OF BLACK AND DECKER
POWER TOOLS:
CONSUMER – BLACK & DECKER, POWERFUL SOLUTIONS, FIRESTORM, GELMAX COMFORT GRIP, MOUSE,
BULLSEYE, PIVOT DRIVER, STORMSTATION, WORKMATE, BLACK & DECKER XT, VERSAPAK, SMART DRIVER,
QUANTUM PRO, CYCLONE, NAVIGATOR, DRAGSTER, SANDSTORM, PROJECTMATE, PIVOTPLUS, QUICK CLAMP,
SIGHT-LINE, CROSSFIRE, CROSSHAIR, 360°, QUATTRO, DECORMATE, LASERCROSS, XTEAM, AND SHOPMASTER
BY DELTA.
INDUSTRIAL – DEWALT, PORTER-CABLE, DELTA
LAWN AND GARDEN TOOLS:
BLACK & DECKER, POWERFUL SOLUTIONS, AFS AUTOMATIC FEED SPOOL, GROOM ‘N’ EDGE, HEDGE HOG,
GRASS HOG, EDGE HOG, LEAF HOG, LAWN HOG, STRIMMER, REFLEX, VAC ‘N’ MULCH, EXCELL, ALLIGATOR,
TRIM ‘N’ EDGE, HDL, TOUGH TRUCK, AND FLEX TUBE.
HOME PRODUCTS:
BLACK & DECKER, POWERFUL SOLUTIONS, DUSTBUSTER, SNAKELIGHT, SCUMBUSTER, STEAMBUSTER,
CYCLOPRO, SWEEP & COLLECT, AND CLICK & GO.
ACCESSORIES:
CONSUMER – BLACK & DECKER, POWERFUL SOLUTIONS, B&D, BULLET, MOUSE, SANDSTORM, QUANTUM PRO,
PIRANHA, SCORPION, AND QUICK CONNECT.
INDUSTRIAL – DEWALT, PILOT POINT, RAPID LOAD, ROCK CARBIDE, TOUGH CASE, MAX LIFE, RAZOR, OLDHAM,
AND BIESEMEYER.
PRODUCT SERVICE:
DEWALT SERVICENET, DROP BOX EXPRESS, AND GUARANTEED REPAIR COST (GRC).
PRODUCT LINES
BLACK AND DECKER:
“Black & Decker is a global manufacturer and marketer of quality power tools and accessories, hardware and home
improvement products, and technology based fastening systems. Throughout our businesses, we have established a
reputation for product innovation, quality, end-user focused design, performance and value. “
DEWALT:
“Is the leading manufacturer of industrial power tools including cordless power tools, woodworking tools and many other
quality power tools. DEWALT tools can be found wherever tools are sold, nationally and internationally. With over 1,000
factory owned and authorized locations, DEWALT has one of the most extensive service and repair networks in North
America.”
DELTA MACHINERY:
“After almost 90 years, Delta Machinery has earned its place as a market leader in stationary power tools and equipment.
The company designs and manufactures the world's most complete line of woodworking machinery, stationary equipment,
and related accessories for use in home workshops, building/ construction trades, and more. “
KWIKSET:
“Was acquired by B&D in 1989, when Emhart was purchased. Kwikset is America’s number one selling lockset. We
manufacture and market a complete line of door hardware, including handlesets, knobs, levers, deadbolts, and pocket
door hardware for residential and light commercial applications. For over fifty years, millions of families have relied on
Kwikset for security and peace of mind. “
PRODUCT LINES
WEISER:
Weiser Lock® is a recognized leader in innovation and product development providing high quality Fashion Doorware™ and
offering a variety of solutions for both consumers and dealers.
BALDWIN:
You can see the difference in Baldwin craftsmanship. You can even feel it. Our quality shines in every finish. It is expressed
in the smallest detail. Each piece, an heirloom to be treasured for generations.
PRICE PFISTER:
Became part of the B&D Hardware and Home Improvement in 1999. For over 90 years Price Pfister has been a leader in
the plumbing fixture industry. Produce high-quality kitchen & bar, tub & shower, and lavatory faucets, as well as kitchen and
bath accessories.
EMHART TEKNOLOGIES:
Over the past several years, Emhart has developed into a global leader in the design and creation of unique assembly
technologies.
PORTER CABLE:
Manufacturing a full line of power tools, equipment and accessories, Porter-Cable provides a product for every situation.
From new home construction to building maintenance. From farms to upscale woodworking. Everyone from seasoned
professionals to casual weekenders are putting Porter-Cable tools to work whenever they want the job done right.
TOOLS (B&D, DEWALT, PORTER CABLE, and DELTA)
BLACK AND DECKER HOUSEWARES
ADVERTISEMENTS
DEWALT:
http://video.google.com/videoplay?docid=-2915272836761855194&q=dewalt&hl=en
http://www.youtube.com/watch?v=iBEsF2Fcf1I
http://www.youtube.com/watch?v=MxiZGRCfkKM
http://www.youtube.com/watch?v=vKwS1qoeabA
http://www.youtube.com/watch?v=xdaUU8FIa9c
http://www.youtube.com/watch?v=4etvPwASubI
http://www.youtube.com/watch?v=rLCamQ9zkhA
http://www.youtube.com/watch?v=ejVuzGuEtik
http://www.youtube.com/watch?v=WDvUKu7FVGc
KWIKSET:
http://www.youtube.com/watch?v=48mloAnWs0k
Advertising Strategy: Product placement within TV shows and movies
http://www.1stapproach.com/press gadget_promos_creep_into_tv_shows.html
LAWSUITS AND PRODUCT RECALLS
"Black and Decker Spacemaker Optima Toasters (Model T1000 sold from 1994 through 1996) were recalled because they can
allow food to catch on fire, and when the toaster door automatically opens and the food rack extends beyond the door, flames
from the food can escape the unit and expose kitchen contents and their contents to the fire."
The U.S. Consumer Product Safety Commission in cooperation with B&D recalled 160,000 Black & Decker and Craftsman
Brand Cordless Electric Lawnmowers. There were reports of electrical components overheating; such overheating can pose a
fire hazard. 2006?
On June 6, 2006, the U.S. Consumer Product Safety Commission and B&D recalled about 420,000 Black & Decker® Brand
Thermal Coffeemakers. The coffeemaker had problems turning off as programmed, which caused the unit to overheat and melt,
posing a risk of fire and burn injury.
The US Consumer Product Safety Commission and B&D recalled 272,000 Black & Decker BV4000 Type 1 Blower/Vacs due to
fire hazard. A loose connection between the blower/vac and an extension cord caused overheating, posing a fire hazard. (2006)
Black and Decker sued Robert Bosch Tool Corporation for a patent violation in November of 2006 for Box Radio Chargers.
Black & Decker Corporation sued two companies alleging patent infringement in relation to its laser level tools. The companies
sued were Newell Rubbermaid Inc. and The Stanley Works. B&D alleged that these two companies obtained and violated
patents for popular tools used in DIY tasks. (2005)
University of Texas sued B&D for patent violation for a battery design in September of 2006
COMPETITORS
AMERICAN STANDARD COMPANY INC.:
http://finance.yahoo.com/q?s=ASD
DANAHAR CORPORATION: Landscape division
http://finance.yahoo.com/q?s=DHR
MAKITA CORPORATION:
http://finance.yahoo.com/q?s=MKTAY
NEWELL RUBBERMAID INC: WHIRLPOOL CORPORATION: AKTIEBOLAGETT ELECTROLUX:
THE STANLEY WORKS: SNAP-ON INCORPORATED: JARDEN CORPORATION:
BRIGGS AND STRATTON CORPORATION: TUPPERWARE CORPORATION: ACCO CORPORATION BRANDS:
http://money.cnn.com/quote/competitors/competitors.html?mode=full&symb=BDK
P&F INDUSTRIES INC.:
http://www.gurufocus.com/StockBuy.php?symbol=PFIN
FORTUNE BRANDS INC.:
http://www.gurufocus.com/StockBuy.php?symbol=FO
MASCO CORPORATION:
http://www.gurufocus.com/StockBuy.php?symbol=MAS
PENTAIR INC.:
http://www.gurufocus.com/StockBuy.php?symbol=PNR
SPX CORPORATION:
http://www.gurufocus.com/StockBuy.php?symbol=SPW
SWOT ANALYSIS
Strengths:
- A humble growth in revenue over the last several years
- Customer Loyalty and Brand Recognition
- Efficient and quality products
- Diversity in its product lines
- Strong Foreign Markets
- Dominate Market Share
Weakness:
- Net Income has been down over the past few years
- Price increases have hurt sales
- Reputation for quality has declined
Opportunities:
- Gain market share by taking advantage of the home improvement fans by sponsoring one
- Come up with new innovative equipment in the different product lines
- Keep penetrating into new foreign markets
Threats:
- Global Competition
- Inability to obtain Raw materials at a cost efficient method
- Economic Trends may hurt sales in the global market
- Staying intone with demand and trends
STOCK
Current stock prices
http://quote.morningstar.com/Quote/Quote.aspx?ticker=BDK&SC=Q
Financial ratios
http://quicktake.morningstar.com/stocknet/Profitability10.aspx?Country=USA&Sym
bol=BDK&stocktab=keyratio
Sales
2005
$ 6,523.7
2004
$ 5,398.4
2003
$ 4,482.7
AMOUNTS IN MILLIONS (Year Ended December 31)
COMPANY RECOMMENDATIONS
• The power tool market has become saturated in the United States. There is
a great amount of potential in the international market. Black and Decker
needs to expand internationally and continue to increase international
market share.
• Particular parts of the world have not yet become saturated with power
tools. These areas include Asian and Latin countries.
• The company needs to continue to merge, acquire, or venture jointly with
other companies. International companies that already have a presence
their countries could help Black and Decker. Diversification into other
where Black & Decker’s expertise and brand name are present could
potentially provide huge profits.
SOURCES
http://www.ir.bdk.com/phoenix.zhtml?c=100780&p=irol-sec
http://www.porter-cable.com/index.asp?e=269
http://video.google.com/videoplay?docid=3310198947458290795&q=black+and+decker&hl=en
http://video.google.com/videoplay?docid=9115010915088445166&q=black+and+decker&hl=en
http://video.google.com/videoplay?docid=-291527283676 1855194& q= dew alt&hl=en
http://www.youtube.com/watch?v=iBEsF2Fcf1I
http://www.youtube.com/watch?v=MxiZGRCfkKM
http://www.youtube.com/watch?v=vKwS1qoeabA
http://www.youtube.com/watch?v=xdaUU8FIa9c
http://www.youtube.com/watch?v=4etvPwASubI
http://www.youtube.com/watch?v=rLCamQ9zkhA
http://www.youtube.com/watch?v=ejVuzGuEtik
http://www.youtube.com/watch?v=WDvUKu7FVGc
http://www.youtube.com/watch?v=48mloAnWs0k
http://www.1stapproach.com/press-gadget_promos_creep_into_tv_shows.html
SOURCES
http://www.tylertool.com/blackanddecker.html
http://www.blackanddecker.com/
http://www.bdappliancestore.com/index.asp
http://www.nokey.com/sefidelo.html
http://www.business.com/directory/retail_and_consumer_services/home_and_garden/appliances/black_and_decker_corporatio
n/
http://www.europe-blackanddecker.com/landing/europe.html
http://www.bdksales.com/
http://money.cnn.com/magazines/fortune/fortune500/snapshots/1343.html
http://www.cisco.com/en/US/products/hw/vpndevc/ps2030/products_case_study09186a0080211f98.shtml
http://www.kwikset.com/About/History/default.aspx
http://en.wikipedia.org/wiki/Black_&_Decker
SOURCES
http://www.clickondetroit.com/consumer/10053860/detail.html
http://finance.yahoo.com/q/co?s=BDK
http://www.hoovers.com/Black-&-Decker/--ID__10214,target__company_competitors--/free-co-samplesindex.xhtml?cm_ven=PAID&cm_cat=BUS&cm_pla=LCM&cm_ite=Black_&_Decker
http://www.fool.com/investing/general/2004/05/27/is-this-company-built-to-last.aspx
http://www.associatedcontent.com/article/129090/competition_in_the_power_tool_industry.html
http://money.cnn.com/quote/competitors/competitors.html?mode=full&symb=BDK
http://www.gurufocus.com/StockBuy.php?symbol=BDK
http://www.fundinguniverse.com/company-histories/Price-Pfister-Inc-Company-History.html
http://www.blackanddecker.com/ProductGuide/CategoryOverview.aspx?cPath=1496.1501
SOURCES
http://projects.washingtonpost.com/post200/2006/BDK/
http://www.cpsc.gov/cpscpub/prerel/prhtml98/98097.html
http://www.cpsc.gov/trans/spacemkr.html
http://www.lawyersandsettlements.com/case/lawnmower_fire
http://www.pritzkerlaw.com/black-decker-coffeemaker-recall/
http://www.fr.com/news/2006/Oct/Black_and_Decker.pdf
http://media.www.dailytexanonline.com/media/storage/paper410/news/2006/09/22/TopStories/Ut.Sues.Black.And.Deck
er.For.Battery.Design-2303291.shtml
http://www.lawcore.com/legal-information/11-03-05.html
http://www.lawyersandsettlements.com/case/blowervacs
http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/08-16-2006/0004417323&EDATE=
http://venture2.typepad.com/innovationnet/2006/04/black_deckers_a.html
http://www.toolpartsdirect.com/blackdecker-tool-parts.html?src=adw&adg=BD+ Parts &kwd=black+and+decker +parts
&mt= broad&gclid=CIC3ntHYyIoCFRAYgQodDES7bg
Gamble, John E. and Arthur A. Thompson. “The Black & Decker Corporation in 2000.” Marketing Management;
Knowledge and Skills. New York: McGraw Hill. 7th ed. 2004. pp: 155-177.