ADMS 4900 Chapter Notes - Chapter 8: Duracell, Warren Buffett, Spectrum Brands

• School: York University
• Department: Administrative Studies
• Course: ADMS 4900
• Professor: Jung- Chin Shen

Document Summary

Gillette"s energy drain (a): the acquisition of duracell. Gillette acquired duracell for . 3 billion in stock. The purchase was met with senior management, director warren buffet and wall street analysts. Duracell became a drain on gillette"s earnings and cost michael hawley (ceo) his job after. 18 months in the position for not being able to turn around the financial strain at duracell. Comprised four distinct business segments: personal-grooming products, small appliances, oral care products and portable power. In september 1996, gillette announced the purchase of the duracell corporation for. There"s a perfect fit between the two companies in terms of channels of distribution. Batteries can be divided into two separate categories: primary: not rechargeable, one-time use, secondary: rechargeable multiple times. Duracell and energizer concentrated on the disposable market because they believed that consumers were more apt to want a convenient, no hassle, portable power source. 75% of all alkaline battery sales were a result of impulse purchases.