PAPER

BLACK & DECKER CORPORATION

Amit

BLACK & DECKER CORPORATION

Background of the Company

Black & Decker was incorporated in 1910. Begun by Duncan Black and Alonzo Decker, Black & Decker's first power tool was an electric drill in 1916. They went on to develop and offer the first portable screwdriver, electric hammer, as well as finishing sanders and jigsaws all the way up to the hugely successful dustbuster in 1978.

Over the next 70 years, the company established itself as dominant name in power tool and accessories, first in the United States and then accros a broad global front but particularly in europe. Growth was achieved by adding to its lineup of power tools and accessories and by increasing its penetration of more and more foreign markets

Here are some milestones of the Black & Decker Corporation:

1910 Black & Decker was founded by Alonzo Decker and Duncan S.Black

Black Swan Lake

Drill2

A Black & Decker SpaceMaker can opener.

1917 Received a patent on the world's first portable power drill with pistol grip and trigger switch

1936 Black & Decker shares began being traded on the New York Stock Exchange

1989 B&D acquisition of Emhart Corporation

Symptons, Issues and Problems

Issues in this case is diversification strategy runned by Black & Decker corporation. As a diversified global manufacturer and marketer of household, commercial, and industrial product, Black & Decker need to develop and choose the right strategy for diversification.

This case particularly discuss diversification of Black & Decker corporation during late 1980's to early 1990's, where Black & Decker which is established as dominant name in power tools and accessories, began to pursue diversification. It is because the continuing maturity of its core power tools business.

During the 1980's Black and Decker had established themselves as a leader in the power tool industry. However, they were feels that the...