Newell Company
Newell Company is a broad-range manufacturer of basic home and hardware products. Newell Company traces its roots to the Linton Company, a firm incorporated in 1902, to make brass curtain rods. In 1903 the Linton Company went bankrupt and Edgar A.Newell took control of its operations, renaming the firm Newell Manufacturing Company, Inc.
During this period, Americans had begun moving away from the cities into the suburb and they needed wide windows to let light in and to enjoy good view. Demand was therefore steadily growing for brass extension curtain rods. Newell Company met the increasing demand by selling its products to small hardware stores, industrial builders, and specialty retailers. As the years wore on, Newell Company had begun regularly supplying its products to the growing chain of Woodworth stores. This made it gain reputation and distribution among national chain stores.
In 1921, Leonard Ferguson began his career and became a full partner and owner in 1937.
In 1954 he gained complete operational control and became president of Newell companies.
Leonard Ferguson’s son Daniel Ferguson had his MBA in Stanford and joined the company in 1950. He became CEO in 1965. His first task is to get control of Newell’s drapery rod business which lack differentiation.
After attending a Young President’s Organization meeting and a chance meeting on a plane with Stanford professor, he began to develop a “build on what we do best” philosophy. Later he wrote his strategy, identifying its focus as the market for hardware and do-it-yourself products to volume merchandisers.
Under the leadership of the father and son team, in 1966 all Newell companies were consolidated into one Illinois Corporation, Newell Manufacturing Company, with headquarters in Freeport. Under the guidance of Daniel Ferguson, the $14 million family business turned its focus from its products to its customers and initiated a...
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