The merging of Colgate and Palmolive

The merging of Colgate and PalmoliveCOMPANY BACKGROUNDColgate-Palmolive CompanyCP is an American diversified multinational corporation focused on the production, distribution and formulation of household, health c be and personal products, such as oozes, detergents, and oral hygiene products (including toothpaste and toothbrushes). Under its Hills brand, it is also a manufacturer of veterinary products.HistoryIn 1806, William Colgate, himself a soap and candle maker, opened up a starch, soap, and candle factory on Dutch Street in New York City under the pertain of William Colgate Company. In the 1840s, the firm began selling individual bars in uniform weights. In 1857, William Colgate died and the company was reorganized as Colgate Company under the concern of Samuel Colgate, his son. In 1872, Colgate introduced Cashmere Bouquet, a perfumed soap. In 1873, the firm introduced its first toothpaste, aromatic toothpaste sold in jars. His company sold the first toothpaste in a tube, Colgate Ribbon alveolar consonant Cream, in 1896. By 1908 they initiated mass selling of toothpaste in tubes.In Milwaukee, Wisconsin, the B.J. Johnson Company was making a soap entirely of palm and olive oil, the formula of which was develop by B.J. Johnson in 1898. The soap was popular enough to rename their company after it Palmolive. At the turn of the century Palmolive, which contained both palm and olive oils, was the knowledge domains vanquish-selling(predicate) soap. A Kansas based soap manufacturer known as the Peet Brothers merged with Palmolive to be accompany Palmolive-Peet. In 1928, Palmolive-Peet bought the Colgate Company to throw the Colgate-Palmolive-Peet Company. In 1953 Peet was dropped from the title, leaving only Colgate-Palmolive Company, the underway name.Colgate-Palmolive has long been in fierce competition with Procter Gamble, the worlds voluminousst soap and detergent maker. PG introduced its Tide laundry detergent inadequately after World War II, and thousands of consumers turned from Colgates soaps to the wise product. Colgate lost its number one place in the toothpaste mart when PG started putting fluoride in its toothpaste. In the beginning of television, Colgate-Palmolive wished to compete with Procter Gamble as a denounce of soap operas. Although the company sponsored many shows in realm, they were most famous for being the full sponsor of the serial The Doctors.George Henry Lesch was president, CEO, and chairman of the board of Colgate-Palmolive in the mid-sixties and 1970s, and during that season transformed it into a modern company with major restructuring.In 2006, Colgate-Palmolive announced the intended acquisition of Toms of Maine, a leading maker of natural toothpaste, for US $100M. Toms of Maine was founded by Tom Chappell in 1970.Today, Colgate has numerous subsidiary schemes spanning 200 countries, but it is publicly listed in only two, the United States and India.In June 2007, phony Colgate toothpaste imported from china was found to be contaminated with diethylene glycol, and several pot in eastern U.S. reported experiencing headaches and pain after using the product. The tainted products can be identify by the claim to be manufacture in South Africa by Colgate-Palmolive South Africa LTD, they ar 5oz/100ml tubes (a size which Colgate does not sell in the United States) and the tubes/ box contains numerous misspellings on their labels. Colgate-Palmolive claims that they do not import their products from South Africa into the United States or Canada and that DEG is never and was never used in any of their products anywhere in the world. The counterfeit products were found in smaller mom and pop stores, dollar stores and discount stores in at least four states.Colgate people around the world have built a reputation as a triple-crown company with the highest value-systemal standards. Through living our values of Caring, Global Teamwork, and Continuous Improvement, and adhering to the highest principles of integrity, honor, and disquiet for the environment and others, we seek toProvide safe and quality products of value to consumersIncrease shargonholder valueOffer opportunities for personal and professional step-up to all Colgate peopleFulfill our corpo localize social responsibilities as a member of the global communityFactors affecting the BusinessGovernment FactorsGovernment does not have often influence on the FMCG industry in terms of regulations. There are consumer protection laws but they are not implemented as they should be. There are not some(prenominal) regulations involved in this industry. Only the companies which are listed on the stock exchange have to follow the regulations under the Companies Ordinance 1984. So the recent entrantsPolitical factorsPolitical factors are influencing this industry because the recent and order conditions have affected the whole economy which in turn affected the industry. Many of the factories of the mac roscopical companies were burnt after the assassination of Benazir.Economic factorsThe overall economy of the country is showing a stable growth. Therefore this industry is also showing a growth of 10%. But the inflation is growing rapidly which is not a good sign for the advanced entrants. Change in the interest rate also affects the industry. Hence the hot entrants are also threatened by the increasing interest rates.Social trendsThe social trends are in favor of this industry. wad awareness is created through media. So people are shifting from their traditional methods of washing clothes, skin care etc to the modern methods. This is a good sign for the new entrants. People have become more educated and health conscious. High population growth is another opportunity for the new entrants.Technological changeThe engineering science can support this industry well. If the whole system can be automated from the import of raw material to the finished goods then it would save time an d money. This is a good sign for the new entrants. But in this industry technology does not play a major subroutine because the traditional formulae of soap or toothpaste are not that much complicatedINTRODUCTIONEffective management is the key to the establishment and growth of the business. The key to successful management is to visualise the marketplace environment and create employment and profit opportunities that provide the potential growth and financial viability of the business. Despite the impressiveness of management, this area is often misunderstood and ill implemented, primarily because people focus on the output rather than the process of management.Toward the end of the eighties, business managers became absorbed in improving product quality, sometimes ignoring their role vis-a-vis personnel. The focus was on reducing costs and increasing output, while ignoring the long-term benefits of motivating personnel. This shortsighted view tended to subjoin profits in the short term, but created a dysfunctional long-term business environment.Simultaneously with the increase in concern about quality, entrepreneurship attracted the attention of business. A sudden wave of successful entrepreneurs seemed to render earlier management concepts obsolete. The popular press focused on the new cult heroes Steve Jobs and Steve Wozniack (creators and developers of the Apple Computer) while ignoring the marketing and organizing talents of Mike Markula, the executive responsible for(p) for Apples business plan.* The story of two guys selling their Volkswagen bus to build the first Apple computer was more romantic than that of the formational genius that enabled Apple to develop, market and ship its products while rapidly becoming a major corporation.In large businesses, proviso is essential for developing a firms potential. However, many small businesses do not recognize the need for long-range plans, because the small number of people involved in operating th e business implies equal responsibility in the planning and decision-making processes. Nevertheless, the need for planning is as important in a small business as it is in a large one.This publication focuses on the importance of good management practices. Specifically, it addresses the responsibilities of managing the external and internal environments. It can provide a basis for confronting the challenges of the 1990s.3.0 Critical issue / difficulty for today businessEvery new day bring the challenge for any business person, because to stay alive in the market you need to fight efficiently and smartly, as the world contemptible complexity in every aspect of life is increase though technology has improved along but as much we belong to technology we get more depended. Following are the hot buttons for today business, and every business men more or less facing and struggling.Political unstableness and involvementEvery government is eager to impose taxes to earn more and more profi t, due to recent shock of recession most of the industries are live toward bankruptcy or liquidate just because of high taxes and less benefit given by the government. It is common these day small business or large composition owners to be unaware of current legal issues that can hit them because continuous changes in the business policies and implication by the governments put them in trouble. The problem is that legal trouble can cost them. It can even cost you your business. After 9/11 money laundering and other compliance issues are more dealt in the organization standard operating procedure.Poverty and inequality of incomeDue to high inflation and high unemployment rate continuously hitting the exiguity level to increase, and that all because of inequality of income, contrary as the inflation increase the cost of business will also increase that occasion put the extort on the business man to reduce the prices because consumer start searching for alternative.Ethical issues i n businessEthics and moral compulsion are something that we all come across at one time or another. Contractual agreement not to exhibit unethical behavior. Releasing products with defects should be informed to the clients. Even in a professional setting, all persons should act in a manner that would uphold the good of society. Every businesses have their own code of ethics and the individuals deep down that business have adhere the compliance of the code conduct most of the organization investing lot of resource in order to maintain the ethic and code of conduct within the organization, even though regulatory bodies also penalized the organization if in case of non compliance. Ethical behavior in business is arranged with the principles, norms, and standards of business practice that have been agreed upon by society.Constantly Changing Economic EnvironmentDynamic economic environment is a night maria for the Contemporary business, because already exist giant in the market is a s erious threat for them, because most of them have made cartel and create obstructer for the new business men to enter in the market or survival.Economical changes uniform inflation , Balance of payment, unemployment and poverty is also hindrance for the growth of business, for the fighting against all these indicators, entrepreneur need specific skill and knowledge, because without that he / she cannot be able to run the business smoothly.Risk ManagementEvery organization is susceptible to low probability events that could have a potentially catastrophic effect. A small or new business is no exception although it is effortless to ignore the probability of such events under the pressures of developing and maintaining a business. Identifying and quickly dealing with such unlikely events is primarily the responsibility of management. Also only management has the ability to assess the full potential impact of these events on the overall organization. Some of the potentially disastrous events that may affect your business are listed below. stealing of propertyBr severally of lawsComputer crimesFraudWeather related damageDetermine how vulnerable your business is to these and other such risks by assessing their probability and impact. accept actions that you can take to lower the probability of their occurring, i.e. ways to control your risk. Review the checklist each year to ensure the future of your firm is not imperiled through shed. evolution and Mentoring EmployeesManaging the employees / labor is the critical issue for the business men in these days because as the dynamic environment is coming around, for competing with that we need to keep our staff in the phase of learning, and continuous training is required to make them up to date. Even though you may discover that certain events are affecting your business, be on the alert not to change the organizational structure of your firm without discussing it with your management team. Employees generally can a ccomplish goals despite organizational structures imposed by management. Because restructuring involves spending a lot of time learning new rules and implementing a new organizational structure is costly.The actual problem comes when the employee / labor are unwilling to change and create hindrance in the way, so fighting with this problem is the main issue for the entrepreneurs.5. Negotiating and Managing Critical Relationships with stake holdersDeveloping / maintaining the relationship with all the stake holders is the important thing for the entrepreneurs because each and every one has its own importance, and without making good relation with them survival is difficult, for all the building relationship entrepreneurs need to have the negotiation and communication skills.Every day we have noticed that lots of entrepreneurs were lost their businesses just because they are lack with these skills and for experienceing the critical relation with the stakeholders we must need to unde rstand the importance, if we neglect the customers, so we lose business, if we neglect the good supplier so we lose the quality, if we neglect the distributor so we lose the perfection is services, and finally if we neglect the Government so we have to ready for the sanctions and implication / charges / penalties / abandon of businessManaging global operationWhen organizations become global they often end up compensable a heavy price in terms of managing complex managerial issues and challenges.Host country languagesHost Country Norms and Customs.Workforce managementUnfamiliar laws and regulations. unhoped Cost mix.Globalization has affected most of country business tremendously. A number of Multi National Corporations are operating and functioning in most part of the world. It is important to spend some time in understanding how globalization makes it necessary and pertinent for a MNC to disperse and spread its scope and function of Operation. It would be more correct if try to un derstand the philosophy of MNCs not operating in certain regions or certain particular countries. The western worlds call these the disadvantages of Globalization, if an organization decides to pack up its business and leave a host company. The common disadvantages which lead to a MNC forgoing globalization includes.Handing over proprietary Technology to host countries.Political risks.Poor Employee (Managers and worker) skills.Slow customer response time.Effective communication between interfaces difficultCompetition with others OrganizationBusinesses since the beginning of time have competed against each other. On the basis of competition, various types of market exist for nearly all lines of products and services. We already know that absolute monopoly and perfect competition type of markets are not that pervasive, yet businesses try to avoid perfect competition and strive to go for absolute monopoly so they can enjoy no competition and exploit the customer sentiments for buying. We can identify the following common and widespread ways in which organizations can compete against other organizations.1. Price In our day to day routine observations, we often see that a lower price would attract more customers provided the product or service fulfils its intended use. Lower price helps an organization to increase its customer base.2. Quality is an important dimension by which superior raw materials as well as high Skillman ship would ensure that product manufactured or service developed is offered to the customer with something extra. That something extra is nothing else but Quality is always offered free of cost, we will discuss this when we study in expatiate Quality Management and Total Quality Management.3. Product Differentiation refers to special features that make the product or service look more suitable to the customers like an automobile manufacturer decides to provide GPS system to selected customer at an additional price etc.4. Flexibility is the abi lity to respond to changes. It may refer to changes in target sales, product feature like adding GPS device to all automobiles5. Time refers to the period required to provide a product or service to a customer from the moment the order is booked to the delivery, also time required to rectify a shortcoming or flawCommon reasons why organization FailWe can identify certain familiar reasons why Organizations fail to achieve a competitive advantage and end up losing out to their competitors. These reasons are universal in nature and find the same footing in Pakistan as well as any other place in the world.1. as well as much emphasis on short-term financial performance. instead often, cost cutting, profit maximizing at the cost of social responsibility or employee want is a failed strategy pursued by organizations, which just hastens their status to oblivion.2. Failing to take advantage of strengths and opportunities. This is in reality failing to hold on to prove successful strateg ies or core competencies. Sometimes a change in leadership leads to change in strategy, where just for the sake of glory and high profits, organizations swallow their core competence and opt for strategies and tactic which cause their downfall.3. Failing to recognize competitive threats. This reason is the exact opposite of failure to make use of the organizations strengths. Quite often organizations decide to pursue status quo and ends up bringing no new product or service or even no intro in its existing product or service line leading to lack of customer satisfaction, decline in profits and finally being state a failure.4. Neglecting operations strategy. This is definitely the most important reason of failure organizations often end up employing non productive techniques which lead to inconsistent and failed operations.5. Too much emphasis in product and service design and not enough on improvement. Differentiation in terms of service and product, American companies in 1980s d id that they never introduced incremental refinements rather went for big changes and thus lost to Japanese competitors.6. Neglecting investments in capital and human resources. A total disregard to use the best resource Capital and human resources in the long run make or break an organization.4.0 ConclusionSuccessful management is founded on the mastery of a myriad of details and the success of the business is depended on the efficient management of all the resources and to make decision for best optimal purpose. While management schools school the importance of focusing attention on major issues affecting the business, practical managers realize the major issues are the variety of small aspects that form the business. The small mistake leas to the business in to unrecoverable losses or bankruptcy, In an increasingly structured society, inattention to even one minor detail can pass on in significant disruption of the business or even its failure.