Description
Okay, I kind of messed up and forgot to submit the first part which is 6 A below: For this assignment, you will begin Assignment 7a: Final Project which I’ve attached!
To make it clear, for this here is just the start of the project, attached is the ACTUAL assignment which is very important!
1. Complete the assigned readings for this unit. Review the directions for Assignment 7a: Final Project.
2. Begin your final presentation as listed in Unit 7. Read the guidelines on presenting a case study and read the final outline as listed in the assessment of Unit 7.
3. You are to begin your paper and provide a rough draft of slides 1, 2, 3, 4, 5, and 6 namely:
Company Overview
Key Dynamics from External Analysis
Key dynamics from Internal Analysis
SWOT Analysis
Key Strategic Implications of Analysis
Conclusion
You may change these in your final paper/presentation, but it is to be your best analysis to this point in your research. Spend appropriate time and effort and provide your preliminary slide for this assignment
The ACTUAL Assignment is the continuous of ^the above assignment: Attached!
Unformatted Attachment Preview
Francis Marion University
BUSI – 458: Strategic Management
Dr. Fred R. David
Students:
Rabea Graessner
Michael Ward
Company: Colgate-Palmolive
“The small soap and candle business that William Colgate began in New York City early in the
19th century is now, more than 200 years later, a truly global company serving hundreds of millions
of consumers worldwide. Throughout this history, Colgate people and Colgate values have been at
the heart of [their] success.”
(https://www.colgatepalmolive.com/en-us/about/history, 08/28/2018; 08:24 pm)
Table of Content
Introduction……………………………………………………………………………………………………………….. 4
1.
Old Vision Statement……………………………………………………………………………………………. 4
2.
Revised Vision Statement……………………………………………………………………………………… 4
3.
Old Mission Statement …………………………………………………………………………………………. 5
4.
Proposed Mission Statement ………………………………………………………………………………… 7
5.
External Factor Evaluation Matrix (EFE Matrix, EFEM) ……………………………………………… 7
6.
The Competitive ………………………………………………………………………………………………….. 9
6.1 The Competitors ………………………………………………………………………………………………… 9
6.1.1 The Unilever company …………………………………………………………………………………. 9
6.1.2 The P & G company ……………………………………………………………………………………… 9
6.2 Competitive Profile Matrix (CPM) ………………………………………………………………………. 10
7.
The Financial Statement ……………………………………………………………………………………… 11
7.1 Income Statement ……………………………………………………………………………………………. 11
7.2 Balance Sheet ………………………………………………………………………………………………….. 11
8.
Historical Ratios …………………………………………………………………………………………………. 12
9.
Internal Factor Evaluation Matrix (IFE Matrix, IFEM) ……………………………………………… 14
10. Strategy Analysis ……………………………………………………………………………………………….. 16
10.1. Strengths-Weaknesses-Opportunities-Threats Matrix (SWOT) ……………………………. 16
10.2 Boston Consulting Group Matrix (BCG)……………………………………………………………… 17
10.3 Internal-External Matrix (IE)…………………………………………………………………………….. 18
10.3.1 Internal-External Matrix by product segments …………………………………………….. 18
10.3.2 Internal-External Matrix by region ……………………………………………………………… 19
10.4 Strategic Position and Action Evaluation Matrix (SPACE) …………………………………….. 20
10.5 Grand Strategy Matrix (GRAND) ………………………………………………………………………. 22
10.6 Quantitative Strategic Planning Matrix (QSPM) …………………………………………………. 23
10.7 Strategy conclusion ………………………………………………………………………………………… 26
11. Recommendations …………………………………………………………………………………………….. 27
12. Organizational Structure …………………………………………………………………………………….. 28
12.1 Old organizational structure ……………………………………………………………………………. 28
12.2 Improved organizational structure …………………………………………………………………… 29
13. Perceptual Map …………………………………………………………………………………………………. 30
13.1 Soap industry …………………………………………………………………………………………………. 30
13.2 Toothpaste industry ……………………………………………………………………………………….. 31
13. EPS/EBIT Analysis ………………………………………………………………………………………………. 32
14. Company Valuation ……………………………………………………………………………………………. 34
15. The Projected Financial Statements……………………………………………………………………… 34
16.1 Projected Income Statement …………………………………………………………………………… 34
16.2 Projected Balance Sheet …………………………………………………………………………………. 35
16. Projected Financial Ratios …………………………………………………………………………………… 36
17. Retained Earnings Table ……………………………………………………………………………………… 37
18. Executive Summary ……………………………………………………………………………………………. 38
Sources ……………………………………………………………………………………………………………………. 40
Introduction
In 1806, William Colgate established a starch, soap and candle business on Dutch Street in Manhattan, New York City. The first advertisement for the business appeared in a newspaper in 1817
and in 1820 the company later established a starch factory in New Jersey City. In 1857, William
Colgate died, but the company was reorganized as Colgate & Company under his son, Samuel
Colgate, who became the new manager. Since then the company has grown drastically. Today,
the company takes the name Colgate Palmolive and now operates globally in Africa, Asia Pacific,
Eurasia, Europe, Latin America, North America with over 38,000 individuals employed around the
globe recently. The company has also expanded is product line tremendously with 31 brands now
and with a focus in other product categories too such as tooth paste.
1. Old Vision Statement
“Taking our sustainability goals and turning them into actionable policies that keeps us, and our
global team of innovators, accountable.”
Source: https://www.colgatepalmolive.com/en-us/core-values/our-policies; 08/28/2018, 01:44
pm
•
“As a leading consumer products company, we are also deeply committed to advancing
technology that can address changing consumer needs throughout the world. In fact, our
goal is to use our technology to create products that will continue to improve the quality
of life for our consumers where they live.”
Source: https://www.colgatepalmolive.com/en-us/about; 08/28/2018, 01:53 pm
• “As a successful business, we are focused on achieving the consistent growth required to
continue our global success and to make us an even stronger company. We believe this is
the best way to benefit our consumers, our people and our shareholders.”
Source: https://www.colgatepalmolive.com/en-us/about; 08/28/2018, 01:53 pm
Source: https://www.colgatepalmolive.com/en-us/core-values 08/28/2018, 04:52 pm
2. Revised Vision Statement
We strive to be the best global household and personal care products company that takes our
values of care, global teamwork and continuous improvement and turning them into actionable
policies that keeps us, and our global team of innovators, accountable.
3. Old Mission Statement
Colgate Palmolive provides numerous information on their corporate website on its goals of sustainability but does not provide a written mission statement.
1. Customers: everybody around the global should be costumer
2. Products or services: toothpastes, soap, shampoo, shower gel, deodorant, nutrients for
pets, detergents, dish soap, after shaves, degreasers, cleaners, cleansers, bathroom cleaners, disinfectants, dish detergent (source: https://www.colgatepalmolive.com/enus/brands; 08/28/2018, 01:58 pm)
3. Markets: Africa, Asia Pacific, Eurasia, Europe, Latin America, North America
4. Technology: “Science is at the core of Colgate-Palmolive’s commitment to making safe
and effective products that improve the health and well-being of people around the
world.” (source: https://www.colgatepalmolive.com/en-us/core-values/science-innovation; 08/28/2018, 02:16 pm), Colgate is one of the World’s Most Innovative Companies
•
i.e. Commitment to safety, innovation
5. Concern for survival, growth and profitability: “Colgate-Palmolive continues to be recognized for efforts in sustainability, social responsibility, diversity, innovation and workplace
balance.” (source: https://www.colgatepalmolive.com/en-us/about/awards; 08/28/2018,
02:11 pm)
“We’re committed to grow the business with innovative, more sustainable products that
make the lives of consumers healthier and more enjoyable.” (source: https://www.colgatepalmolive.com/en-us/core-values/sustainability, performance; 08/28/2018, 02:08
pm)
•
i.e. new products, product updates, $250 million for process innovation, increasing
recyclability of packaging
6. Philosophy: Values: Caring, Global Teamwork, Continuous Improvement (source:
https://www.colgatepalmolive.com/en-us/core-values; 08/28/2018, 01:48 pm)
“As part of our initiative to make Colgate-Palmolive a leader in sustainability and innovation, we’ve designed a set of policies that ensures we stick to our promise. From the people we serve, to the performance of our products, and the impact we have on our environment, we are dedicated to doing the right thing, while making the lives of our consumers healthier.” (source: https://www.colgatepalmolive.com/en-us/core-values/our-policies; 08/28/2018, 02:18 pm)
•
i.e. Ethics Line, Code of Conduct
7. Distinctive Competence: Colgate is listed as one of the 50 Best US Manufacturers (source:
https://www.colgatepalmolive.com/en-us/core-values/science-innovation; 08/28/2018,
02:18 pm)
The company cares about people: “Colgate-Palmolive people, customers, shareholders
and business partners. Colgate-Palmolive is committed to act with compassion, integrity,
honesty and high ethics in all situations, to listen with respect to others and to value differences. The Company is also committed to protect the global environment, to enhance
the communities where Colgate-Palmolive people live and work, and to be compliant with
government laws and regulations.” (source: https://www.colgatepalmolive.com/enus/core-values, caring; 08/28/2018, 02:34 pm)
All Colgate people are part of a global team, committed to working together across countries and throughout the world. Only by sharing ideas, technologies and talents can the
Company achieve and sustain profitable growth. (source: https://www.colgatepalmolive.com/en-us/core-values, global teamwork; 08/28/2018; 02:31 pm)
Colgate-Palmolive is committed to getting better every day in all it does, as individuals and
as teams. By better understanding consumers’ and customers’ expectations and continuously working to innovate and improve products, services, and processes, Colgate-Palmolive will become the best. (source: https://www.colgatepalmolive.com/en-us/core-values,
continuous improvement; 08/28/2018, 02:29 pm)
8. Concern for public image: “A cleaner, healthy environment is important to Colgate not
only because it’s the right thing to do, but also because it makes good business sense.”
(source: https://www.colgatepalmolive.com/en-us/core-values/sustainability, planet;
08/28/2018, 02:02 pm)
•
i.e. reducing manufacturing water, taking care for water around the world, taking
care for forests, promote using of renewable energy, reducing manufacturing energy, partner with key suppliers, customers and consumers to reduce energy,
greenhouse gas emissions and waste
•
i.e. reaching children with $1.3 billion, investing in the improvement of health, education and environment for people around the globe, partner with animal shelters, handwashing education for 60 million people annually
•
different community programs around the global
9. Concern for employees: “Colgate people, consumers, communities, business partners,
shareholders and other stakeholders are vital to Colgate’s success and future growth.”
(source: https://www.colgatepalmolive.com/en-us/core-values/sustainability, people;
08/28/2018, 02:04 pm)
•
i.e. improving employee health, reducing health risk, encourage healthier living for
Colgate people and their families, ensuring a safe and healthy work environment,
providing education and tools to Colgate people to elevate financial awareness and
planning
4. Proposed Mission Statement
Colgate Palmolive is a global (3) household and personal care products company (2) that is shaped
by a firm commitment to integrity and sustainability (5) due to its core values (6, 7) of care, global
teamwork and continuous improvement. Colgate cherishes its stakeholders, (1, 8, 9), works globally as team to share ideas, technologies (4) and talents, and constantly improves everything that
it does. (64 words)
(1) Customers
(2) Product or services
(3) Markets
(4) Technology
(5) Survival, growth and profitability
(6) Philosophy
(7) Self-Concept
(8) Public image
(9) Employees
5. External Factor Evaluation Matrix (EFE Matrix, EFEM)
Primary Implications from EFEM (Opportunities)
The EFEM for Colgate-Palmolive presents major opportunities for the company going into the
future. The brand value of Colgate is currently 2nd in the world and tooth paste, soap and cleaning
industries are growing immensely with even a huge expected increase of dentists in the dental
industry. Also, with over half of the rural Indian population without a dentist, this puts another
great opportunity at the forefront along with the expected massive growth of IP data for 2018 to
2021.
Primary Implications from EFEM (Threats)
The EFEM for Colgate-Palmolive also reveals major threats the company will soon face. One is
increased consumer awareness of dangerous chemicals in products, which poses a threat to the
company because some of its products contain a harmful chemical to the human body known as
triclosan. The company will even experience some heavy financial hits in the future due to the
rising cost of raw materials such as oil. Also, with difficult trading policies and politics with countries such as China, Europe and Russia with developing and emerging markets, Colgate-Palmolive’s expansion will be hindered greatly.
6. The Competitive
6.1 The Competitors
6.1.1 The Unilever company
The Unilever company originated in 1872 when Dutch merchant and industrialist, Antoon Jurgens,
founded the first margarine factory in Oss, Netherlands. Later in 1888, soap and margarine manufacturer, Samuel van den Bergh opened another margarine factory in Kleve, Germany. Both companies later merged in 1927 and became the “Margarine Unie”. However, in 1929 the company
later merged with soap company Lever & Co and became officially established as Unilever in 1930.
The company is headquartered in Rotterdam, Netherlands and focuses on selling products such
as food, beverages, and cleaning and personal care products in 190 countries with over 400
brands. Unilever values integrity, responsibility, respect and pioneering and has a mission to make
sustainable living commonplace.
Source: https://www.unilever.com/about/who-we-are/our-vision/; 09/03/2018, 11:25 pm
6.1.2 The P & G company
The Procter and Gamble Company was founded in 1837 in Cincinnati, Ohio by established English
candle maker, William Procter, and James Gamble, a soap maker from Ireland. The company focuses on selling house, cleaning and personal care products and operates in nearly 70 countries
around the globe with 65 brands intact. Procter and Gamble values integrity, leadership, ownership and a passion for winning and trust. The company also hopes to be recognized as the best
consumer products and services company in the world and strive to provide brands that make
everyday life easier by being sustainable and showing social responsibility for the environment,
population and animals.
Source: https://www.pg.com/translations/pvp_pdf/english_PVP.pdf ; 09/03/2018, 11:26pm
6.2 Competitive Profile Matrix (CPM)
P&G
Unilever
Colgate-Palmolive
Critical Success Factors
Product Variety
Weight
Rating
Score
Rating
Score
Rating
Score
0.17
2
0.34
3
0.51
4
0.68
Top Management
0.12
3
0.36
2
0.24
4
0.48
Advertising
0.10
3
0.30
2
0.20
4
0.40
Product Quality
0.10
2
0.20
4
0.40
3
0.30
Employee Dedication
0.09
4
0.36
3
0.27
2
0.18
Price Competitiveness
0.09
4
0.36
2
0.18
3
0.27
Domestic Market Penetration
0.08
4
0.32
2
0.16
3
0.24
Financial Profit
0.08
2
0.16
3
0.24
4
0.32
Customer Service
0.05
4
0.20
3
0.15
2
0.10
Market Share
International Market
Penetration
Customer Loyalty
0.05
2
0.10
3
0.15
4
0.20
0.04
2
0.08
4
0.16
3
0.12
0.03
3
0.09
2
0.06
4
0.12
Totals
1.00
2.87
2.72
3.41
Primary Implications from CPM
From viewing the competitive profile matrix, Colgate-Palmolive ranks the lowest out of its two
main competitors Unilever, and Proctor & Gamble in its total critical success factors. The company’s low-ranking stems from falling behind in penetrating the international market, weaker financial profit and lower product quality and variety. However, Colgate-Palmolive still dominates
its two competitors over market penetration domestically, customer service, employee dedication, and price competitiveness. The company even ranks evenly with its competitors in areas
such as top management, customer loyalty and market share.
7. The Financial Statement
7.1 Income Statement
Income Statement overview
From viewing Colgate Palmolive’s income statement, net income dropped by over $400 million
from 2016 to 2017. Revenues for the company increased but the cost of goods, operating, interest
and tax expenses went up along with it.
Note: The net income attributable to non-controlling interests is the difference between net income including non-controlling interests and the net income attributable to Colgate-Palmolive.
The attributable income is in the table above as “net income” designated.
Income Statement
Revenues
Cost of Goods Sold
Gross Profit
Operating Expenses
EBIT
Interest Expense
EBT
Tax
Non-Recurring Events
Net Income
31.12.2016
$15,195,000,000
6,072,000,000
9,123,000,000
5,286,000,000
3,837,000,000
99,000,000
3,738,000,000
1,152,000,000
(145,000,000)
2,441,000,000
31.12.2017
$15,454,000,000
6,174,000,000
9,280,000,000
5,691,000,000
3,589,000,000
102,000,000
3,487,000,000
1,313,000,000
(150,000,000)
2,024,000,000
Percent Change
2%
2%
2%
8%
-6%
3%
-7%
14%
3%
-17%
7.2 Balance Sheet
Balance sheet overview
Colgate Palmolive’s total assets experience major increase by over $500 million from 2016 to
2017. Every asset category seemed to grow expect for the company’s current assets and longterm assets which took a drop. As for the company’s liabilities, it also experienced an increase of
over $300 million during the time period with accounts payable, current liabilities, long term debt
and other long-term liabilities contributing to the increase. Last is Colgate Palmolive’s equity
which increased by over $200 million due to the rise in retained earnings, larger purchases of
treasury stock and smaller purchases of capital.
Balance Sheet
31.12.2016
Assets
Cash and Short Term Investments $1,315,000,000
Accounts Receivable
1,411,000,000
Inventory
1,171,000,000
Other Current Assets
441,000,000
Total Current Assets
4,338,000,000
Property Plant & Equipment
3,840,000,000
Goodwill
2,107,000,000
Intangibles
1,313,000,000
Other Long-Term Assets
525,000,000
Total Assets
12,123,000,000
31.12.2017
Percent Change
$1,535,000,000
1,480,000,000
1,221,000,000
403,000,000
4,639,000,000
4,072,000,000
2,218,000,000
1,341,000,000
406,000,000
12,676,000,000
17%
5%
4%
-9%
7%
6%
5%
2%
-23%
5%
Liabilities
Accounts Payable
Other Current Liabilities
Total Current Liabilities
Long-Term Debt
Other Long-Term Liabilities
Total Liabilities
1,124,000,000
2,181,000,000
3,305,000,000
6,520,000,000
2,281,000,000
12,106,000,000
1,212,000,000
2,196,000,000
3,408,000,000
6,566,000,000
2,459,000,000
12,433,000,000
8%
1%
3%
1%
8%
3%
Equity
Common Stock
Retained Earnings
Treasury Stock
Paid in Capital & Other
Total Equity
1,466,000,000
19,922,000,000
(19,135,000,000)
(2,236,000,000)
17,000,000
1,466,000,000
20,531,000,000
(20,181,000,000)
(1,573,000,000)
243,000,000
0%
3%
5%
-30%
1329%
Total Liabilities and Equity
12,123,000,000
12,676,000,000
5%
8. Historical Ratios
Historical Ratios overview
Colgate Palmolive seems to be in a good position in paying its current and short-term liabilities
from the growth in its current and quick ratio between 2016 and 2017. The company also had a
decrease in its Total Debt-to-Total-Assets Ratio and Total Debt-to-Equity Ratio between the years
to further prove its ability to meet its obligations since it is using less debt and credit to finance
its assets and growth. However, there should be worry for the company in being able to handle
its interest payments from looking at the decrease of its Times-Interest-Earned Ratio. Not only
that, but the drop in Colgate Palmolive’s assets and receivable turnover, reveals that sales are
dropping, inventory is becoming excess and that the company is taking longer in collecting its
credit, which is also shown by the increase of the company’s average collection period. Gross
profit margin has not changed much although, operating profit margin has decreased quite a bit
along with the company’s return on assets and equity revealing the company has not been doing
a good job of generating profit.
Current Ratio
Quick Ratio
Total Debt-to-Total-Assets Ratio
Total Debt-to-Equity Ratio
Times-Interest-Earned Ratio
Inventory Turnover
Fixed Assets Turnover
Total Assets Turnover
Accounts Receivable Turnover
Average Collection Period
Gross Profit Margin %
Operating Profit Margin %
ROA %
ROE %
Historical Ratios
31.12.2016
31.12.2017
1.31
1.36
0.96
1.00
1.00
0.98
712.12
51.16
39
35
5.19
5.06
3.96
3.80
1.25
1.22
10.76895819
10
33.89
34.96
60%
60%
25%
23%
20%
16%
14359%
833%
9. Internal Factor Evaluation Matrix (IFE Matrix, IFEM)
Strengths
Weight
Rating
Weighted Score
1 Cash and cash equivalents at end of the year increased between
2015 and 2017 by 58%.
0.10
4
0.40
2 The total goodwill of the company grew from 2016 to 2017 by
$111 million.
0.07
4
0.28
3 Since its inception in 1991, the Colgate “Bright Smiles, Bright
Futures®” oral health education program has reached over 950
million children in 80 countries, thereof over 50 million in 2017.
0.07
4
0.28
4 Colgate-Palmolive won many awards for sustainability, social
responsibility, diversity, innovation and workplace balance in
2018.
0.06
4
0.24
5 Net sales increased in Latin America between 2016 and 2017 by
6.5%.
0.06
4
0.24
6 2017: Colgate reduced their water consumption by 47% and its
green gas emission by approximately 28% compared to 2002.
0.04
3
0.12
7 78% of packages from Colgate is recyclable and 41% come from
recycled materials.
0.03
2
0.06
8 In the last five years over 60% of the Colgate employees have
participated at the company’s Global Healthy Activity Challenge.
0.03
2
0.06
9 The worldwide net sales volume increased between 2016 and
2017 by approximately 0.5%.
0.03
2
0.06
0.01
1
0.01
10 Since 2002, Hill’s Pet Nutrition has helped over nine million
animals find a forever home.
Primary Implications from IFEM (Strengths)
Major internal strengths for Colgate Palmolive has been its increase in liquidity by its cash and
cash equivalents going up 58% and the increase of its goodwill by $111 million, which has raised
its value greatly. The company has even received a major increase in its net sales by 6.8% in Latin
America. Also, from seeing how Colgate has been gaining public recognition with awards for activities similar to establishing successful programs like its “Bright Smiles, Bright Futures”, taking
care of the environment by reducing its water consumptions and its green gas emission, increasing employee participation, it provides evidence that Colgate has been enforcing its cultural values which presents another internal strength for the company.
Weaknesses
Weight
Rating
Weighted Score
0.08
4
0.32
0.06
4
0.24
0.06
3
0.18
4 Net cash used in investing activities decreased from 2015 to 2017
by approximately 31%.
0.07
3
0.21
5 Net sales in North America decreased between 2016 and 2017 by
2.0%.
0.05
3
0.15
6 Operating profit in Asia Pacific decreased by $887 million to
$841 million from 2016 to 2017.
0.04
3
0.12
7 The organic sales for Europe decreased in the second quarter of
2018 by 1.0%.
0.04
1
0.04
8 The operating profit of Hill’s Pet Nutrition decreased in the
second quarter of 2018 by 2.0% to $165 million.
0.04
2
0.08
9 For the last five years, there was no change in the global sales
distribution for oral care, personal care, home care and pet
nutrition.
0.03
1
0.03
0.03
1
0.03
1 Net cash provided by operations fell by $87 million from 2016 to
2017.
2 Number of employees fell from 2010 to 2017 by 3300 employees.
3 The value of the treasury stock fell from -$18102 million in
December 2015 to -$20181 million in December 2017.
10 In Asia Pacific, the unit volume decreased by 1.0% in the second
quarter of 2018.
Total IFE Score
1.00
3.15
Primary Implications from IFEM (Weaknesses)
Internal weaknesses for Colgate Palmolive have been major fall offs in net cash being provided
from operations by $87 million and fewer net cash being used for investing activities with a decrease of 31%. The company’s treasury stock has also dropped by $19 million and the company
has had a 3,300 decrease in employees from 2010-2017. Not only that, but sales and operating
profits in North America, Asia Pacific and Europe have been decreasing with North America experiencing a drop-in net sale by 2.0% and Asia Pacific having a fall of in operating profit by $46 million
from 2016-2017. Even the sales for Europe and its profit of the Hill’s Pet Nutrition brand decreased in the second quarter of 2018 by 1.0% and 2.0%.
10.
Strategy Analysis
10.1. Strengths-Weaknesses-Opportunities-Threats Matrix (SWOT)
This matrix shows possible strategies for the company. Condition was a comprehensive analysis
of internal and external factors and their influence on the company.
SO Strategies
1 Partner with Indian Oral Care organizations such as Indian Dental Association and
HealthyMouth, HealthyBody to spread awareness of oral health and care in rural
Indian markets. (S1, O4)
2 Maintain the project “Bright Smiles, Bright Futures®” in 80 countries and expand it to
20 other countries by 2020 to raise social intelligence as well as oral health
behavior. (S3, O8)
3 Hire a Chief Data Officer (CDO) to assist in managing company data. (S4, O6)
ST Strategies
1 Invest $15M in research and development for elimination of Triclosan from the
Colgate toothpaste. (S4, T1)
2 Continue implementing programs for reduction in oil consumption, reducing oil
consumption by 10% by 2024. (S4, S6, T2)
3 Continue to enforce the Supplier diversity program to maintain long lasting relations
with suppliers. (S4, T8)
4 Maintain and drive customer loyalty by continuing the use of combined marketing
communication tools across mixed media such as informative websites, promotional
events, and media containing consumer testimonials to connect with customers. (S3,
S4, S10, T5)
WO Strategies
1 Offer training courses for employees to keep them in the topic of digitalization
updated. (W2, O6)
2 Increase research and development spending of soap and cleaning products by $35M
and also increase marketing and sales by 3%. (W9, O5, O7)
3 Increase marketing and sales of pet food by 10% each in the United States. (W8, O9)
4 Create an incentive plan in the employee retention program that offers employees
pay bonuses for completing quarterly goals. (W2, O4, O7)
WT Strategies
1 Negotiate with Chinese dental service organizations such as Arrail Dental, Bybo
Dental Group, or TC medical to form a partnership in order to penetrate the Chinese
dental market. (W6, W10, T3, T10)
2 Invest 10% into marketing and sales for emerging markets (China, India, Central and
Eastern Europe). (W9, T10)
3 Increase marketing for organic products in Europe by 3%. (W7, T4)
10.2 Boston Consulting Group Matrix (BCG)
Relative Market Share Position
High 1.0
Low 0.0
Question Marks
Stars
Industry Sales Growth Rate
High 0.20
2
1
4
5
3
Low -0.20
Cash Cows
Legend:
1 Orange:
2 Red:
3 Green:
4 Purple:
5 Blue:
Dogs
Oral, Personal and Home Care North America (OPHC NA)
Oral, Personal and Home Care Latin America (OPHC LA)
Oral, Personal and Home Care Europe (OPHC EU)
Oral, Personal and Home Care Asia Pacific, Africa, Eurasia (OPHC APAEA)
Hill’s Pet Nutrition (HPN)
Data Table:
Division
Oral, Personal and Home Care North America
Oral, Personal and Home Care Latin America
Oral, Personal and Home Care Europe
Oral, Personal and Home Care Asia Pacific, Africa, Eurasia
Hill’s Pet Nutrition
Your Firm’s
Division
Revenues
Top Firm in
Industry
Division
Revenues
$3,117,000,000 $29,392,000,000
$3,887,000,000 $4,676,000,000
$2,394,000,000 $16,032,000,000
$3,764,000,000 $16,700,000,000
$2,292,000,000 $17,224,400,000
Industry
Sales
Growth
Rate
Relative
Market
Share
Position
2%
4%
1%
5%
5%
0.10604927
0.83126604
0.14932635
0.22538922
0.13306704
Note:
Main competitor in all regions, except Hill’s Pet Nutrition, is Procter & Gamble with more brands
and therefore, higher sales. Hill’s Pet Nutrition is also just a small part of Colgate-Palmolive and
not as much developed as pet nutrition at Mars Petcare, Inc. Therefore, Colgate-Palmolive should
concentrate more on market penetration, especially in Latin America and maintain a strong market position there. However, for the regions North America, Europe, Asia Pacific, Africa and Eurasia as well as for Hill’s Pet Nutrition Colgate-Palmolive has to decide if they want to strengthen
their presence in these regions or retreat from there.
10.3 Internal-External Matrix (IE)
10.3.1 Internal-External Matrix by product segments
THE IFE TOTAL WEIGHTED SCORES
Strong
4.0
Weak
1.0
THE EFE WEIGHTED SCORES
High
4.0
4
1
2
3
Low
1.0
Legend:
1 Red:
2 Green:
3 Purple:
4 Blue:
Oral Care
Personal Care
Home Care
Hill’s Pet Nutrition
Data Table:
Division
Percent of
Estimated Estimated
Firm’s Division
IFE Score EFE Score
Revenues
Oral Care $6,317,760,000
Personal Care $2,500,780,000
Home Care $2,369,160,000
Hill’s Pet Nutrition $2,292,000,000
3.7
3.1
2.8
2.3
2.5
2.3
2.4
3.5
Note:
Oral Care, Personal Care, Hill’s Pet Nutrition in region 1: The strategy is to grow and build in an
intensive and integrative way, using market penetration, market development, product development as well as backward, forward, and horizontal integration. So, Colgate-Palmolive should concentrate in getting a higher market share in these product segments as well as being more present
on the market and improving their current products. However, for horizontal integration, ColgatePalmolive should expand to more international markets, buy new production plants to increase
its capacity and also begin to produce products without the use of its brand name. An example of
this is from the company Aldi, which has its own house brand, but products such as its toothpaste
have to be produced and Colgate-Palmolive could be the producer for the company.
Home Care in region 2: Colgate-Palmolive should use hold and maintain strategies like market
penetration and product development. Thus, the Home Care products of Colgate-Palmolive
should be more present on the market.
10.3.2 Internal-External Matrix by region
THE IFE TOTAL WEIGHTED SCORES
Strong
4.0
Weak
1.0
THE EFE WEIGHTED SCORES
High
4.0
5
4
3
1
2
Low
1.0
Legend:
1 Red:
2 Green:
3 Purple:
4 Blue:
5 Orange:
Oral, Personal and Home Care North America (OPHC NA)
Oral, Personal and Home Care Latin America (OPHC LA)
Oral, Personal and Home Care Europe (OPHC EU)
Oral, Personal and Home Care Asia Pacific, Africa, Eurasia (OPHC APAEA)
Hill’s Pet Nutrition (HPN)
Data Table:
Percent of
Estimated Estimated
Firm’s Division
IFE Score EFE Score
Revenues
Division
OPHC NA $3,117,000,000
OPHC LA $3,887,000,000
OPHC EU $2,394,000,000
OPHC A
