Black & Decker

Past Corporate Diversification Strategy
Black & Decker had a basic strategy approach of unrelated diversification. In other words, Black & Decker made no deliberate effort to seek out businesses having strategic fit with the firm’s other businesses. Black & Decker described itself as a “diversified global manufacturer and marketer of household, commercial, and industrial products.” The company wanted to transform from a power tools manufacturer into a consumer products company. In early 1985, the firm changed its name from Black & Decker Manufacturing Company to Black & Decker Corporation to reflect its new emphasis on “being more marketing driven” rather than being merely in manufacturing.

This unrelated diversification strategy began to evolve in the 1980’s because of the increasing maturity of Black & Decker’s core power tools business. Three acquisitions that started this diversification strategy were:

1. In 1984 the firm acquired General Electric’s...