Emerging Markets Central

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Emerging Markets Central Eastern Europe

• Patrick Morrissey, CB Richard Ellis
• Chris Bennett, DTZ Zadelhoff Tie Leung
• Alan Carswell MCR, Black Decker
• Debra Homic Hoge MCR, General Motors Corporation

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• 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 distribution is unsurpassed
  in our industries.

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Background
Downturn in sales from Q4 2000 on. Significant
reduction in Op Income.
Need to cut costs leads to significant
restructuring, researched options in 2001 and
implemented LCE LCA in 2002. Moved some
capacity to new locations in Europe North
America China
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Expected Issues

• Availability of Existing Bldgs. ( CRE only)
• Cultural Differences.
• Bureaucracy.
• Program
• Market transparency
• Risk management

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What we Moved
Consumer Indoor
Low Cost Europe
Low Cost America
Consumer Outdoor Professional
Czech
Mexico
Where Next?
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FACT FINDING
Czech Republic
Hungary
Number Greenfield Sites Greenfield Sites
Visited Number Existing Bldgs. Existing Bldgs.
Visited C M Sites Visited
32 31
15 12
2 4
2 4
2 7
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Building as it was in February 2002
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The Building as at May 2002
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Other Issues
Changing Viability of Locations. Permits
slow process, inflexible. Language/culture.
Reluctance to reveal bad news. Immobile
workforce. Costs hard work to get current
local costs. Environmental
Overall - Hard work but a success
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Lessons Learnt

• Allocate more lead time?
• Explain BD culture early
• Fast Flexible
• Make it happen
• Achieve targets
• Be Open
• Duties