The merging of Colgate and Palmolive

The merging of Colgate and PalmoliveCOMPANY BACKGROUNDColgate-Palmolive CompanyCP is an American alter multinational corporation focused on the production, distribution and provision of household, wellness c be and personal products, such as exclusives, detergents, and oral hygiene products (including toothpaste and toothbrushes). at a lower place its Hills brand, it is to a fault a manufacturer of veterinary products.HistoryIn 1806, William Colgate, himself a muck and candle acceptr, opened up a starch, soap, and candle grinder on Dutch Street in New York City nether the name of William Colgate Company. In the 1840s, the firm began change individual bars in uniform weights. In 1857, William Colgate died and the solelyiance was reorganized as Colgate Company under the centering of Samuel Colgate, his son. In 1872, Colgate introduced Cashmere Bouquet, a perfumed soap. In 1873, the firm introduced its maiden toothpaste, aromatic toothpaste sold in jars. His company sold the first toothpaste in a tube, Colgate Ribbon Dental 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 tout ensemble of palm and olive oil, the formula of which was developed by B.J. Johnson in 1898. The soap was popular enough to rename their company after(prenominal) it Palmolive. At the work out of the century Palmolive, which contained both palm and olive oils, was the worlds outgo-selling soap. A Kansas establish soap manufacturer known as the Peet Brothers merged with Palmolive to bend Palmolive-Peet. In 1928, Palmolive-Peet bought the Colgate Company to create the Colgate-Palmolive-Peet Company. In 1953 Peet was dropped from the title, leaving only Colgate-Palmolive Company, the current name.Colgate-Palmolive has longsighted been in fierce controversy with Procter Gamble, the worlds puffyst soap and detergent chip inr. PG introduced its Tide wash drawing detergent shortly after World War II, and thousands of consumers turned from Colgates soaps to the upstartistic product. Colgate lost its proceeds champion place in the toothpaste commercialize when PG started set fluoride in its toothpaste. In the beginning of television, Colgate-Palmolive wished to compete with Procter Gamble as a sponsor of soap operas. Although the company sponsored many shows in part, they were most historied for being the full sponsor of the serial The Doctors.George Henry Lesch was president, CEO, and chairman of the dining table of Colgate-Palmolive in the 1960s and 1970s, and during that quantify transformed it into a modern company with major restructuring.In 2006, Colgate-Palmolive announced the think acquisition of Toms of Maine, a principal appointr of natural toothpaste, for US $100M. Toms of Maine was founded by Tom Chappell in 1970.To sidereal day, Colgate has many subsidiary schemes spanning 200 countries, but it is publicly listed in only two, the l inked States and India.In June 2007, phony Colgate toothpaste merchandiseed from China was found to be contaminate with diethylene glycol, and several nation in eastern U.S. reported experiencing headaches and pain after using the product. The tainted products can be identified by the postulate to be manufactured 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/packaging 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 humiliateder mom and pop stores, sawhorse stores and discount stores in at least four states.Colgate people just about the world live built a reputation as a successful company with the mellowedest ethical standards. Th rough living our values of Caring, globular Teamwork, and Continuous Improvement, and adhering to the highest principles of integrity, honor, and concern for the environment and others, we seek toProvide safe and prime(a) products of value to consumersIncrease sh arholder valueOffer opportunities for personal and master key issue to in on the whole Colgate peopleFulfill our corporate social responsibilities as a member of the global communityFactors affecting the Business disposal FactorsGovernment does not have ofttimes influence on the FMCG sedulousness in terms of regulations. There are consumer protection laws but they are not implemented as they should be. There are not much regulations involved in this indus audition. Only the companies which are listed on the stock supplant have to follow the regulations under the Companies Ordinance 1984. So the rising entrants policy-making factorspolitical factors are influencing this industry because the recent and order condi tions have unnatural the whole economy which in turn affected the industry. Many of the factories of the voluminous companies were burnt after the assassination of Benazir.Economic factorsThe overall economy of the outlandish is wake a stable growth. Therefore this industry is as well showing a growth of 10%. But the pretentiousness is growing quickly which is not a good sign for the new entrants. Change in the interest rate also affects the industry. Hence the new entrants are also terrorened by the increasing interest rates.Social trendsThe social trends are in favor of this industry. Mass 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 be know more(prenominal) educated and health conscious. High population growth is some other opportunity for the new entrants.Technological changeThe applied science can back off this i ndustry well. If the whole system can be automated from the import of raw material to the finished goods then it would save time and gold. This is a good sign for the new entrants. But in this industry technology does not play a major role because the traditional formulae of soap or toothpaste are not that much complicatedINTRODUCTION rough-and-ready oversight is the key to the establishment and growth of the blood line. The key to successful heed is to examine the marketplace environment and create employment and profit opportunities that go out the voltage growth and financial viability of the bloodline. Despite the importance of management, this area is lots misunderstood and poorly implemented, primarily because people focus on the railroad siding rather than the process of management.Toward the end of the 1980s, backing sector managers became absorbed in up(a) product quality, sometimes ignoring their role vis-a-vis personnel. The focus was on cut back appeals and increasing output, while ignoring the long-term benefits of motivating personnel. This shortsighted overhear tended to increase profits in the short term, but created a dysfunctional long-term military control environment.Simultaneously with the increase in concern about quality, entrepreneurship attracted the attention of billet. A sudden wave of successful entrepreneurs seemed to render primarily management concepts obsolete. The popular press focused on the new fury heroes Steve Jobs and Steve Wozniack (creators and developers of the apple computing machine) while ignoring the marketing and organizing talents of Mike Markula, the executive responsible 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 organizational genius that enabled Apple to develop, market and ship its products while rapidly becoming a major corporation.In large businesses, planning is essential for devel op a firms potential. However, many venial businesses do not recognize the select for long-range plans, because the small number of people involved in operating the business implies equal responsibleness in the planning and decision-making processes. Neverthe slight, the need for planning is as essential 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 intragroup environments. It can provide a basis for confronting the repugns of the 1990s.3.0 Critical issue / paradox for today businessevery new day bring the challenge for any business person, because to stay alive in the market you need to fight goodly and smartly, as the world moving mazyity in every aspect of life is increase though technology has better along but as much we belong to technology we proceed more depended. Following are the hot buttons for today business, and ev ery business men more or less facing and struggling.Political unbalance and involvementEvery government is eager to impose taxes to earn more and more profit, due to recent shock of recession most of the industries are move 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 organization owners to be unaware of current heavy 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 tear down 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 poverty level to increase, and that all because of inequality of income, contrary as the inflation increase the cost of busi ness will also increase that thing put the pressure on the business man to reduce the prices because consumer start searching for alternative. estimable issues in businessEthics and moral compulsion are something that we all come across at one time or another. Contractual accord not to exhibit unethical behavior. Releasing products with defects should be informed to the customers. flush in a professional setting, all persons should act in a manner that would uphold the good of society. Every businesses have their own engrave of ethics and the individuals within that business have adhere the compliance of the cipher 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 consistent with the principles, norms, and standards of business practice that have been agreed upon by societ y.Constantly Changing Economic Environment alive(p) economic environment is a night mare for the Contemporary business, because already exist giant in the market is a serious threat for them, because most of them have made cartel and create obstacle for the new business men to enter in the market or survival. economic changes want inflation , Balance of payment, unemployment and poverty is also hindrance for the growth of business, for the battle 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 easy 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 province of management. Als o 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.Theft of propertyBr from each one of lawsComputer crimesFraudWeather related damageDetermine how vulnerable your business is to these and other such risks by assessing their probability and impact. Consider actions that you can get to to lower the probability of their occurring, i.e. ways to control your risk. Review the checklist each class to ensure the future of your firm is not imperiled through throw.Developing and Mentoring EmployeesManaging the employees / wear upon 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. as yet though you may discover that certain events are affect ing your business, be careful not to change the organizational structure of your firm without discussing it with your management team. Employees generally can accomplish 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 s scoot holdersDeveloping / maintaining the family 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 edifice relationship entrepreneurs need to have the negotiation and communication skills.Every day we have noticed that lots of entrepreneurs wer e lost their businesses just because they are neediness with these skills and for understanding the critical relation with the stakeholders we must need to understand the importance, if we leave out the customers, so we tolerate business, if we neglect the good supplier so we lose the quality, if we neglect the distributor so we lose the perfection is wait ons, 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 paying a heavy price in terms of managing complex managerial issues and challenges.Host body politic languagesHost Country Norms and Customs.Workforce managementUnfamiliar laws and regulations.Unexpected Cost mix.Globalization has affected most of country business tremendously. A number of Multi National Corporations are operating and mathematical operation in most part of the world. It is important to spend so me time in understanding how globalization makes it necessary and pertinent for a MNC to interpenetrate and spread its scope and function of Operation. It would be more correct if try to understand the philosophy of MNCs not operating in certain regions or certain particular countries. The western worlds call these the dis proceedss 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 amongst 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 a re not that pervasive, yet businesses try to avoid perfect competition and separate out 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 general 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. spirit 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 eternally offered free of cost, we will discuss this when we study in details Quality Management and Total Quality Management.3. Product note equals to special features that make the pro duct 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 ability 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 wrongdoingCommon 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 constitution and find the same footing in Pakistan as well as any other place in the world.1. Too much furiousness on short-term financial performance. Quite often, cost cutting, profit maximizing at the cost of social responsibility or employee motivation is a failed strateg y pursued by organizations, which just hastens their status to oblivion.2. weakness to take advantage of strengths and opportunities. This is in reality failing to hold on to be successful strategies or core competencies. Sometimes a change in leadership leads to change in strategy, where just for the sake of glory and high profits, organizations forget 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 innovation in its existing product or service line leading to lack of customer satisfaction, decline in profits and finally being declared a failure.4. Neglecting operations strategy. This is decidedly the most important reason of failure organizations often end up employing non productive techniques which l ead 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 did 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 victory 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. magic spell management schools teach 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 losings or bankruptcy, In an increasingly structured society, inattention to even one minor detail can result in significant suspension of the business or even its failure.