Sustainable Solutions Paper

Sustainable Solution Paper Franklin Komla Atadja
Sustainable Solutions Paper
Franklin Komla Atadja
DBA Strategy
October 20th, 2012
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The proposal for the sustainable solutions paper was to choose three competitive
organizations in an industry. The two best organizations in the industry should be named and at
least founded more than five years ago. These organizations should run profit and loss financial
statements. Some convincing information was to be presented for the need for the sustainable
solutions to the chosen organization.
The selected organizations are in the personal and home care products industry. The best
competitor in the industry is the Procter & Gamble and was founded in 1837 headquartered in
Cincinnati, Ohio. This company has 126,000 employees and operates in five segments; beauty,
grooming, health care, fabric care and home care. Procter & Gamble markets its products
through mass merchandisers, grocery stores, membership clubs, and drugs stores in 180
countries. Its net incomes for 2010, 2011 and 2012 were as follows; $12, 736, 000, $11,797,000
and $10,756,000. The second best organization is Church & Dwight Company Incorporated
which was founded in 1846 and headquartered in Princeton, New Jersey. The company has 3,500
employees and operates in three segments namely consumer domestic, consumer international,
and specialty products. The Church & Dwight Company sells its products through supers-
markets, mass merchandiser, wholesale clubs, drugstores, convenience stores, pet specialty
stores , and dollar stores. The company’s net income for 2009, 2010, and 2011 were as
follows;$243,500,00,$270,700,000, and $309,600,000.The third organization is Colgate
Palmolive Company which was founded in 1806 and headquartered in New York City, New
York. The company has 38,000 employees and operates in the oral, personal and home care
segments. The Colgate Palmolive Company products are sold worldwide. The company’s net
income in 2009, 2010, and 2011 were as follows; S2, 291,000, $2,203,000, and $2, 431, 00. All
the dollar values were in thousands.
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The selected organization for the sustainable solution paper is Colgate Palmolive
Company. This company falls within the personal and home care products industry. Colgate is
rated the third competitor in the industry and has marketing and manufacturing facilities all over
the world. Colgate Palmolive Company is an organization that uses large amount of energy and
water in its manufacturing processes. The by-products of these manufacturing activities are large
amount of wastes, contaminated water and Carbon dioxide (C02) emission. The first importance
of the paper is to help Colgate Palmolive Company reduce the large amount of wastes to save
cost in manufacturing products. Second to reduce amount of water used and contaminated. Third
to slash the amount of Carbon dioxide generated and emitted into the atmosphere. Commenting
on the CO2 emission the importance is due to climate changes or global warming. Organizations
should start contemplating and implementing measures to help protect the Earth from further
deterioration by human beings.
The preview of the sustainable solution paper includes: the purpose section, executive
summary, introduction, stakeholder identification & value analysis, general force analysis,
demographic segmentation, Porter’s five forces analysis, detailed value chain analysis, detailed
SWOT & SCOT analysis, integrating the analysis, alignment & goals analysis, complexity
analysis, life cycle assessment and references.
Executive Summary
Colgate Palmolive Company was founded in the 1806 and has a headquarters in New
York. It has 38,000 employees who helped to manufacture pet nutrition food, personal, oral, and
home care products. The company has successfully made a net profit for the past three years.
General Force Analysis
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The economic changes, terrorist activities and political unrest have affected businesses
worldwide with slow growths and less profit. Prices of raw materials have sky rocketed and
organizations have no choice than purchasing these materials. These prices are gradually passed
on to the final consumers. Some consumers may have decided not to patronize the highly priced
personal and home care products. This action will make organizations to visualized low profits.
Slow growth, government regulatory pressures and environmental awareness have also
challenged organizations to search for new innovations for growth and sustainability.
Stakeholders Identification and Value Analysis
Due to the advent of globalization much greater problems have arose for stakeholders in
organizations to address with strategic business management approach. Colgate Palmolive
Company has addressed some of these issues through the building of an organizational culture
where customers, employees, investors and business partners work together to create
sustainability and continuous growth.
Demographic Market Segmentation
This concept is applied by Colgate Palmolive Company in marketing variety of products
to various age groups. For example women and girls are inclined purchasing facial, hair, and nail
products. Special whitening toothpaste is also sold to the population with tooth sensitivity and
gum diseases.
Porter’s Five Forces Analysis
Normally firms in industries with differentiated products do not compete head on with
each other. However, firms in the personal and home care products industry have a different
story, because their products are almost the same. Therefore, these organizations compete on
pricing of their products, branding and customer satisfactions.
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The Detailed Value Chain Analysis
Colgate Palmolive Company has its planners and management trained to use and reduce
the total costs in the value chain activities. The reduction costs accord Colgate Palmolive
Company the chance of reducing the prices of their products to the final consumers. In this wise
larger Colgate Palmolive Company products are daily purchased from the market stocks, thus
greater profit for the company.
SWOT/SCOT Analysis
Colgate Palmolive Company uses the SWOT and SCOT analysis to find a quick review
of its strategic strengths, weaknesses, threats, and opportunities. Both analyses helped Colgate to
invest appropriately into product innovation, differentiation, cost reduction, marketing, and
technology to enhance its competition and growth in the personal and home care industry.
Summary Focus
Stockholders value creation is the key to Colgate’s business sustainability and
profitability because shareholders are playing major role in seeing that, the business is being
operated profitably. Colgate Palmolive Company has additionally a sustainable organizational
culture where there are reorganization of synergies between the firm and its stakeholders to
create maximum value economically, socially, and ecologically.
Human resources recruiting qualified and skillful employees helped Colgate Palmolive
Company to be competitive and sustainable. The first time hires are experienced and
knowledgeable to adequately fit into Colgate’s workforce and teams. Finance and procurement
departments also purchased raw materials in bulk and at discounted prices per unit of materials.
Operations and management are constantly training employees to produce quality and non-
conformance products. The three top threats for Colgate Palmolive Company are faked products
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entering the market in Colgate Palmolive Company’s name, the global economic problems, and
changes in the retail scenario. The three top opportunities for Colgate are also restructuring
initiatives, products target to the rural areas, and the general intensive planning initiatives within
and outside Colgate Palmolive Company.
Key Takeaways
The company has 38,000 employees and operates in the oral, personal and home care
products segment. The Colgate Palmolive Company products are sold worldwide. The
company’s net income in 2009, 2010, and 2011 were as follows; S2, 291,000, $2,203,000, and
$2, 431, 00. All the dollar values were in thousands.
Colgate Palmolive Company has initial public offerings and therefore prudent for Colgate
Palmolive Company executives to work closely with shareholders for their support in sustainable
management ventures. Employees understanding their values and taking charge of their
responsibilities in Colgate Palmolive Company will add financial values to the company to be
sustainable.
Colgate Palmolive Company adopted shoppers’ sight because of the frequent changings
in consumers want and need. These are important in driving new products development and led
to the introduction of soft-soap ensembles, liquid hand soap and an environmentally friendly
dishwashing liquid soaps.
“Market shares in toothpaste, mouthwash, manual toothbrush, bar soaps, body wash,
shampoos, household cleaners and fabric conditioners are increased”(2012). With all these
pronouncements from Colgate Palmolive Company personnel, it meant the company was doing
alright in terms of sales and profits.
Integration of Concepts
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Stakeholder Identification and Value Analysis
In the era of globalization and international security problems businesses need to address
these issues; corporate social responsibility (CSR), sustainable development and the stakeholder
approach to strategic management. Wheeler advocated that, “new technologies and economic
globalization have prompted changes in the way businesses are operated worldwide” (2003).
More importantly, large numbers of customers, employees, investors and business partners are
dependently ushered to associate and work together. Stockholders value creation is the key to
Colgate’s business operation, profitability, growth and sustainability.
“In December 2004, Colgate Palmolive Company initiated a four year restructuring
program for accelerating growth and generating additionally revenues “(Colgate Palmolive
Company, 2012). Consumers growing desire for environmentally friendly cleaning products led
to the development of Palmolive pure and clear which phosphate free is, contains biodegradable
cleaning ingredients and packaged and with 25%- 75% post-consumer recycled plastic. These
values created are mostly for both short and long term goals. Thompson argued that, “the year of
our renewed efforts to reduce our costs, and that focus continues and is succeeding. Organic
sales throughout the year 2011 are encouraging and have balanced volume, price and have met
the challenge. Market stores are strong and growing. Market shares in toothpaste, mouthwash,
manual toothbrush, bar soaps, body wash, shampoos, household cleaners and fabric conditioners
are increased”(2012). With all these pronouncements from Colgate personnel, it meant the
company was well aligned for greater sales and profits.
Evidence and Implications
The global economy has adversely affected the personal care products industry among
others. Low per capital income and rising cost of raw materials, labor, foreign exchange and
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interest rates have also crippled the growth and profitability firms in this industry. Economic
changes, terrorist activities and political unrests have also brought in unprecedented slow growth
in businesses, inflation, and deflation for personal care products. To continue, globalization and
international security concerns have challenged businesses to address corporate social
responsibility (CSR), and sustainable development issues. These factors promoted large number
of consumers, employees, investors and business partners dependently working together as teams
for success. Colgate Palmolive Company has an organization culture where efforts are made to
associate the firm and its stakeholders to maximize economic, social and ecological values.
Colgate Palmolive Company has a value of that nature enhanced through linkages in outbound
logistics, operations, inbound logistics, marketing & sales, and services offering. Colgate’s
ability to address the total costs in these chains of activities made the company to achieve more
profit margins. In the marketing and sales sector Colgate Palmolive Company has an excellent
work being done. Marketers are able to identify customers’ needs and also helping to generate
more sales. There are support channels for customers after they have purchased products.
Frequent Colgate employees in- store visits are made to see how products look on the store
shelves and also to notice any defect in the manufacturing processes. Human resources
management is trained to hire only competent employees to join the Colgate workforce.
Technological advancement and procurement of raw materials are also well advanced. Modern
manufacturing equipment have been purchased and installed at the various facilities to boost
production.
In the PCP industry low cost leadership is a requirement for firms to remain competitive and
have edge against their competitors. Colgate can purchase its raw materials from developing
countries and also move some of its production facilities to those countries. The goal is to
8
manufacture products with less variable cost. The reason is that, the profit made by Colgate is the
direct result emanating from the difference in what customers are willing to pay for the product
and the cost of the company’s production.
Gaining a market beachhead by Colgate over its competitors will be laudable. Since
Colgate has presence in more than 200 countries it can relocate some of its production facilities
to Africa, Asia and South America where prices of commodities, power and labor are cheaper
comparatively to those in the developed countries. Economics of scale concepts can then be
implemented to produce larger units of products which are then shipped to developed countries
to be sold for more money. Colgate will then have a competitive edge over its rivals in the
industry because of lower cost of its products.
Market entry through process innovation is a strategy Colgate Palmolive Company can
apply. For instance, Colgate can invest more money in its research and development to work on
using only natural, plants or herbs as the main ingredients in its products. The product innovation
can be expensive initially, but it would pay off in the future. In addition, due to petroleum
product causing irritations, skin diseases and cancers to consumers, it is more likely these natural
products will be patronized.
After the SWOT analysis, it is noticed product recalls as an internal weakness which
Colgate Palmolive Company can address through carefully and consistently following standard
operating procedures in their manufacture processes. Second the imitated or faked products
being sold under Colgate Palmolive Company brand name should be stopped with rigid legal
issues being addressed to the perpetrators of these offences. In the Porters Five Forces analysis it
was noticed that, there were rivalry among existing firms. This can be reduced through
collaboration, alliances, mergers and acquisitions.
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Colgate Palmolive Company product differentiation can be achieved by the company
investing more into research and development. The goal is to find new materials and ingredients
to manufacture differentiated products from the other firms within the personal care products
industry.
General Force Analysis- Remote Environment
The General Force Analysis is a tool used in assessing organizations stands and
performances in relation to economic problems, political unrests, terrorist attacks and threats to
developed countries.
General Force Analysis
Economic changes, terrorist activities and political unrests have resulted in businesses
slow growth, inflation, and decreased demand for personal care products. The Global economy
has also suffered depression that led to low per capital incomes rising costs of raw materials,
labor, foreign exchange and interest rates for manufacturers within the personal and home care
industry. Firm’s purchasing raw materials at higher prices to manufacture products have no
choices than sifting that cost to the final consumers. High prices of personal care products will
force consumer to opt out purchasing these products. The final outcome is the firms are
downsized in profits and growth. The personal care products industry include a variety of
products like fragrances, make up, hair care, sunscreens, tooth paste, products of bathing, nail
care, and shaving. But unfortunately these personal care products contain raw materials such as
propylene glycol which comes from petroleum. By analyzing the risks- associated with toxic
materials in personal care products, companies have to invest in research and development to
render product safety to explore raw materials like natural and herbal products. (Report linker,
2012). Innovation in the personal care industry had strengthened enabling soap and cleaning
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compound manufactures to maintain growth. In the U.S. slow growth has driven innovation due
the population environmental awareness and increase regulatory pressure (Rehtmeyer, J., 2010).
The environmental friendly green products which are continuing to expand in popularity called
for higher prices.
Demographic segmentation is market segmentation executed by taking various
demographic factors, such as age, gender, and social class into consideration. On demographic
bases certain personal care products like old spice, axe, etc. are mostly used by the younger
generations. Women and girls are also inclined to facial, hair, and nail care. Colgate-Palmolive
markets their products to a variety of different age groups. They sell both adult and kids
products. For the adults, they have a variety of different products that consumers can buy
depending on their needs. For example, they sell whitening toothpaste, toothpaste for people with
tooth sensitivity, and toothpaste for people with gum issues. The profitability and demand of
these personal care products will be based on the percentage of the population purchasing or
using them.
Economics
Procurement of raw materials and equipment are carried out by qualified procurement
officers, thus Colgate Palmolive Company purchased items on discounted and on bulk prices.
This helps the company to save costs in the variable factors which eventually brings the cost of
unit’s price low.
Technology
Modern manufacturing equipment have been purchased and installed at the various
facilities to boost production.
Demographics/Social/Culture
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Consumers of personal and home care products range from various ages. To name a few,
there are teens, women, men and elderly people. These age groups in different cultures are
identified with the type of personal care products they need. As such organizations manufactured
products to suit to their needs and purchases.
Government/legal/Military
Government bye-laws and regulations in different countries are putting pressure on
companies about the way they operate. Toxicity of nutrients in the products and taxes to pay to
the home government are putting much toil on companies all over the world. Some governments,
lobbyist, Non- Governmental Organizations (NGO’s) and consumers are demanding for
environmental friendly products to purchase. In a nutshell these groups are canvassing for
products which help to protect the environment and the Earth.
Physical environment
In the personal and home care industry, there are large numbers of companies
manufacturing products for the consumers. Therefore, there is much higher bidding for raw and
component materials. Prices of these materials are therefore relatively high for the companies.
Implications of General Forces (Threats and Opportunities)
Global economic crises coupled with high prices of raw materials and changes in the
retail scenes are the biggest threats to Colgate Palmolive Company. However, restructuring
initiatives, growing of notable products to various markets, and targeting new market sectors are
some opportunities Colgate Palmolive Company can tap on to be ahead of its competitors.
Porter’s Five Forces Industry Analysis: External- Industry Environment
Firms in any industrial sector have the ability not to compete head on with other firms if
only their products are differentiated. However, in the personal product care industry all their
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products look the same, and it is really difficult to avoid head on competition. It meant that most
of the business activities follow the same concepts of manufacturing. Firms in the personal care
industry can only compete on pricing, customer satisfaction and brand image. Therefore all these
firms need to invest a substantial amount of money in research and development to find suitable
way of reducing the variable costs on their production.
Porter’s Five Forces Analysis
Personal, home, oral care product industry
Rivalry among existing firms 0-3
Threat of new entrants 7-10
Threat of substitute products 0-3
Bargaining power of buyers 0-3
Exit barriers and excess capacity 7-10
Bargaining power of suppliers 7-0
Degree of differentiation 0-3
Scale to learning economics 0-3
Bargaining power of buyers
In this industry consumers or buyers have the ability to purchase one brand from the
other based on prices. Due to this fact, it is absolutely very important for firms in the industry to
reduce production cost of their products to enable consumers to purchase more. More purchases
will economically help the firms to make more profits.
Scale to learning economics
The personal care product industry is enormous with a wide range of product offers to
consumers. But due to rivalry these firms have engaged in price wars and increase brand image
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building in other to gain more market shares. According to Colgate Palmolive Company’s 10-
K’s “the company has gained additional market shares for the past three years”.
Exit barriers
In the personal and home care products industry exit barriers are high because the
products of the firms are specific and the regulations in the industry are strong. Contracts with
suppliers are difficult to be canceled.
Threat of new entrants
It is normally difficult for new firms to get a foothold in the personal industry because the
first mover firms have already established. They have been able to set the industry’s regulations
and have also acquired the government licenses to manufacture these personal care products.
Bargaining power of suppliers
In the personal care products industry customer relationship and limited shelves capacity
of participating distribution chains are crucial. For example, there is competition between Procter
& Gamble, Church & Dwight, and Colgate Palmolive Company for shelve spaces in the stores.
Enough shelve space will give the firm room to stock more products for consumers to buy. The
shelve space condition can also become a barrier to entering for new entrants.
Detailed Value Chain Analysis: Internal Environment
Colgate Palmolive Company have planners and management personnel who used the
value chain analysis to link in-bound logistics, operations, out-bound logistics, marketing &
sales, and services offering. Through this the company reduces much cost in rendering the value
chain activities to increase profitability, growth and sustainability.
Customized Value Chain Activities
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Colgate Capabilities Range
In-bound logistics 0 -3
Out-bound logistics 7-10
Operations 7-10
Marketing and Sales 4-6
Services 7-10
Infrastructure 0-6
H/R management 7-10
Technological development 0-3
Procurement 7-10
Cost Advantage 0-3
Differentiation 7-10
Colgate Palmolive Company Skill/Capabilities & Implications of Competitive Analysis
1. In-bound logistics: The receiving and warehousing of raw and component materials are
mostly fast and on time.
2. Operations: The processing of inputs into finished goods with high asset utilization is
paramount and picking up.
3. Out-bound: The warehousing and distribution of finished products are immediately

carried out with fleet of hired trucks. This alleviates the fewer inventories for the finished
products, thus a cost saver.
4. Marketing & Sales: The identification of customer needs and the generation of sales are
well architected by skillful marketers within Colgate Palmolive Company.
5. Services: The support for customers after products are sold to them is done through
customer complaint department. The consumer insight officers and regular Colgate Palmolive
Company employees do frequent store visits to acquaint themselves with products defects and
aesthetic nature of products on store shelves.
6. Infrastructure: Control systems, buildings and equipment have been installed to increase
production.
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7. H/R management: The personnel in this department are well trained and skillful to recruit
qualified employees.
8. Technological Development: There are available technologies to support value creating

activities. For example new modern equipment’s were purchased, and the old machines
frequently serviced.
9. Procurement: Raw materials, equipment and other supplies are purchase in bulk and
discounted prices to save money.
10. Differentiating: R & D focusing on the activities to differentiate products has led to
increase in Colgate’s core competencies and capabilities to outperform the some competitors in
the industry.
Detailed SWOT Analysis
Colgate Palmolive Company is among the first movers into the personal care products
industry. The SWOT analysis concepts have been applied to find a quick overview of Colgate
Palmolive Company’s strategic situation.
SWOT Factor Matrix
Location of factor Type of factor
Favorable Unfavorable
Internal Strengths Weaknesses
Focus on innovation Product recalls
Market leadership
Diversified operations
External Opportunities Threats
Restructuring initiatives Threats of faked products
Intense planning initiatives Changes in retail scenario
Grow oral market Global economic issues
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Target rural markets
SO strategies
Colgate Palmolive Company has one of the biggest brands in the personal care product
industry. It is one of the market leaders globally with excellent research and development, thus
focused on innovation and new product development. Colgate Palmolive Company has
diversified its business into oral care, personal care, home care and pet & nutrition. In addition it
has an excellent advertising methods and brand visibility of products in over 200 countries.
ST strategies
Faked and imitated products being sold under Colgate Palmolive Company’s brand could
hurt the company losing some of its loyal customers. Intense and increasing competition among
the firms in the industry can see Colgate losing some of its market shares. The changes in retail
scenario of unbranded and local products globally are of a challenge to Colgate’s business. The
global economic condition of increasing prices of commodities and low consumer purchasing
power can hurt Colgate’s products being purchased from the shelves.
WO strategies
Colgate Palmolive Company’s market share is limited due to the presence of other help
strengthen the company’s market shares and brand.
SCOT Factor Matrix
SCOT Analysis
Factors Important scale range Fit Rating

Score
Degree of differentiation 7 – 10 -3 to -5
Rivalry among firms 4–7 0 to 3

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Scale to learning economics 7 – 10 -3 to -5
Threat of substitutes 4–7 -2 to -3
Marketing & sales 4–7 0 to 3
Services 7 – 10 -3 to -5
Technology 7 – 10 5 to 8
Cost advantage 7 – 10 -3 to -5
SO, ST, CO, & CT strategies
After reviewing the SCOT analysis scores, Colgate Palmolive Company need to invest
largely into product differentiation, product cost reduction, marketing & sales, and technology
development in other to grow and be competitive in the personal care industry.
Culture Type
Colgate Palmolive Company has a sustainable organizational culture where there are
reorganization of synergies between the firm and its stakeholders to create maximum value
economically, socially, and ecologically .Colgate Palmolive Company offers consumer products
like oral, personal, household, fabric care and pet nutrition items in over 220 countries. It owns
more than 80 brands across various product categories. “Colgate Palmolive Company’s desire to
attract more customers uses integrated marketing communication which comprises of a mix of
traditional, new media and promotion activities “(Colgate Palmolive Company 2008 Annual
Report).
Analyzing the Company Strategy Type- Part 11
Strategy Type
The personal care product industry (PCP) has a competitive market, therefore firms
within have to ensure they are implementing strategies to ensure success and growth.
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Supporting Argument
On that note Colgate Palmolive Company uses the differentiation and low cost strategies
to survive in the market. Some low cost strategies Colgate employs are continuous improvement
in its operating efficiencies. Modern machinery and equipment are frequently installed and were
being operated on higher asset utilization (AU). Experience curve concepts have been applied to
train production line operators to change over and run batches in the possible shortest time to
save money.
Analyzing the Company Strategy Moves
Customer relationship management has been promoted in Colgate’s facilities whereby
employees use a technique of better understanding and servicing their loyal customers. Suppliers
on the other hand affects Colgate’s value, therefore they do business with suppliers who give
them lowest prices and best quality commodities. This will not only reduce raw materials costs,
but also keep them highly competitive due the low costs of products.
Relevant Strategy Moves
The cost reduction can become a barrier to competitors in the industry who cannot reduce
costs. According to Colgate’s 10-k, product quality, innovation, brand recognition and marketing
capabilities will determine the success of the company. It is believed that, the new product
development and quality is a must in the PCP industry in order to be competitive.
The product differentiation has some influence on investment in brand, research and
development and innovations. With these strategies carefully and successfully implemented
Colgate will able to compete and maintain an edge over existing and new entrants to the PCP
industry. “On economics of scale Colgate utilized its machineries and employees to produce
more units of products on a larger scale.” (www.investopedia.com). In the case of the PCP
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industry being highly competitive, economics of scale is the bona-fide competitive requirement
to use to succeed against other rivals.
Supporting Argument
In the PCP industry low cost leadership is a requirement for firms to remain
competitive and have edge against their competitors. Colgate can purchase its raw materials from
developing countries and also move some of its production facilities to those countries. The goal
is to manufacture products with less variable cost. Because the profit made by Colgate is the
direct result emanating from the difference in what customers are willing to pay for the products
and the cost of the company’s production.
Gaining a market beachhead by Colgate over its competitors will be laudable. Since
Colgate has presence in more than 200 countries it can relocate some of its production facilities
to Africa, Asia and South America where prices of commodities, power and labor cheaper
comparatively to prices in the developed countries. Economics of scale concepts can then be
implemented to produce larger units of products which are then shipped to developed countries
to be sold for more money. Colgate will then have a competitive edge over its rivals in the
industry because of lower cost of its products.
Market entry through process innovation is a strategy Colgate can apply. For instance,
Colgate can invest more money in its research and development to work on using only natural,
plants or herbs as the main ingredients in its products. The product innovation can be expensive
initially, but it would pay off in the future. In addition, due to petroleum product causing
irritations, skin diseases and cancers to consumers, it is more likely these natural products will be
patronized.
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Colgate Palmolive Company can also employ the strategic acquisitions, mergers and joint
venture partnership with bigger firms like Unilever in Africa, Asia and South America to firmly
enter these new markets.
Enterprise Level Strategy
Human resources recruiting qualified and skillful employees will help Colgate Palmolive
Company to be competitive and sustainable because money will not be used in retraining the
hired employees. Finance and procurement purchasing raw materials in bulk will reduce the
price per unit of the material, thus saving cost. Operations and management training employees
to produce quality and non- conformance products will help save cost. Also producing products
that are ordered and needed will reduce the cost of inventory. In nutshell, Colgate Palmolive
Company has to initially draw up a strategy of how to recruit skillful employees who will work
together in teams to help the company to be sustainable to the future. Freeman said “Strategies
management actively plots a new direction for the firm and to consider how the firm can affect
the environment as well as the environment affecting the firm” (1984). Colgate uses a great
amount of electricity and water, therefore the reduction in energy and water usage will save cash
for other investments. Material wastes and environmental pollution will save the company
money and the earth from degradation. Since the company has initial public offerings it will be
prudent for Colgate Palmolive Company executives to also work closely with shareholders for
their support in sustainable management ventures. All employees understanding their values and
taking charge of their responsibilities in Colgate Palmolive Company will add financial values to
the company to be sustainable.
Threats
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Colgate Palmolive Company has some threats from its competitors and private labeled
companies. Frequent product recalls are a concern to Colgate’s business growth and profits.
Opportunities
Colgate Palmolive Company can restructure and plan to tap into the rural markets in Asia,
Africa and South America. Initiatives like mergers, acquisitions and Joint ventures can
strengthened the company for leadership in the personal and home care products industry.
Integrating the analysis
The global economy has adversely affected the personal care products industry among
others. Low per capital income and rising cost, raw materials, labor, foreign exchange and
interest rates have crippled the growth and profitability firms in the industry. Economic changes,
terrorist activities and political unrests have also brought in unprecedented slow growth in
businesses, inflation, and deflation for personal care products. To continue, globalization and
international security concerns have challenged businesses to address corporate social
responsibility (CSR), and sustainable development issues. These factors promoted large number
of consumers, employees, investors and business partners dependently working together as teams
for success. Colgate Palmolive Company has an organization culture where efforts are made to
associate the firm and its stake holders to maximize economic, social and ecological values.
Colgate Palmolive Company has a value of that nature enhanced through linkages in outbound
logistics, operations, inbound logistics, marketing & sales, and services offering. Colgate’s
ability to address the total costs in these chains of activities made the company to achieve more
profit margins. In the marketing and sales sector Colgate Palmolive Company has an excellent
work being done. Marketers are able to identify customers’ needs and also generate more sales.
There are support channels for customers after they have purchased products. Frequent Colgate
22
employees in-store visits are made to see how products look on the store shelves and also to
notice any defect in the manufacturing processes. Human resources management is trained to
hire only competent employees to join the Colgate workforce. Technological advancement and
procurement of raw materials are also well advanced.
Procurement of raw materials and equipment are carried out by qualified procurement
officers, thus Colgate Palmolive Company purchased items on discount and on bulk bases. This
helps the company to save costs in the variable factors which eventually brings the cost of unit’s
price low. After the SWOT analysis, it is noticed product recalls are internal weakness which
Colgate Palmolive Company can address through carefully and consistently following standard
operating procedures in their manufacture processes. Second the imitated or faked products
being sold under Colgate Palmolive Company brand name should be challenged and stopped.
Intensive brand patenting and legal issues against the perpetrators of these offences should be
elevated to save Colgate Palmolive Company’s brand image. In the Porters Five Forces analysis
it was noticed that, there were rivalry among existing firms. This can be reduced through
collaboration, alliances, mergers and acquisitions.
Colgate Palmolive Company product differentiation can be achieved by the company
investing more into research and development. The goal is to find new material and ingredients
to manufacture differentiated products from the other firms within the personal and home care
products industry.
Analyzing the strategy type
The personal care product industry (PCP) has a competitive market, therefore firms
within have to ensure they are implementing strategies to ensure success and growth. On that
note Colgate Palmolive Company uses the differentiation and low cost strategies to survive in the
23
market. Some low cost strategies Colgate employs are continuous improvement in its operating
efficiencies. Modern machinery and equipment are frequently installed and were being operated
on higher asset utilization (AU). Experience curve concepts have been applied to train
production line operators to change over and run batches in the possible shortest time to save
money.
Customer relationship management has been promoted in Colgate’s facilities whereby
employees use a technique of better understanding and servicing their loyal customers. Suppliers
on the other hand affects Colgate’s value, therefore they do business with suppliers who give
them lowest prices and best quality commodities. This will not only reduce raw materials costs,
but also keep them highly competitive due the low costs of products. This cost reduction can
become a barrier to competitors in the industry who cannot reduce costs. According to Colgate’s
10-k, product quality, innovation, brand recognition and marketing capabilities will determine
the success of the company. It is believed that, the new product development and quality is a
must in the PCP industry in order to be competitive.
The product differentiation has some influence on investment in brand, research and
development and innovations. With these strategies carefully and successfully implemented
Colgate will able to compete and maintain an edge over existing and new entrants to the PCP
industry. “On economics of scale Colgate utilized its machineries and employees to produce
more units of products on a larger scale.” (www.investopedia.com). The case in the PCP industry
being highly competitive, economics of scale is the bona-fide competitive requirement to use to
succeed against other rivals.
24
Alignment and Goals Analysis
Successful organizational strategy implementation calls for structural, personnel and
resources alignment. Strategies are normally formed around a set of supporting structures and
practices which are called alignment. In order for the alignment to be successful, organization
structures, human skills, resources, support systems and incentives should support the goals set.
Alignment Checklist and Unit Goals

Alignment Check list Yes No
People Our people have the necessary skills to make the yes
strategy work.
They support the strategy yes
Their attitude s are aligned with the strategy no
They have resources they need to be successful yes
Incentives Our rewards system is aligned with the strategy yes

Everyone has performance goals aligned with the no
strategy
Structure Units are optimally organized to support the strategy yes
Supportive The many things we do around here- pricing, the way yes
Activities we handle customers, fulfill orders, etc. –support the
strategy
Culture Our culture and strategy are well matched. no
Supporting Argument
The elements of Colgate Palmolive Company strategy alignment involving people,
incentives, supportive activities, organizational structure, culture and leadership are well aligned.
The only lapses and deviation is the Colgate employees’ attitude towards the strategy alignment.
The first reason of the employee’s failure is because Colgate has workers from diverse cultures
and the way strategies are aligned is different from theirs. Therefore, these employees might not
support all strategies brought up. So time and effort are needed to persuade these employees to
change to support strategies and their alignments. Second, the employees’ failure to support
25
strategies is pronounced because Colgate always draws strategies from the top management to
the bottom employees. In business set up’s where employees are not given the chance to
contribute in strategy formations, they are fully bound not to support them during their
implementation. The remedy to employees not supporting Colgate’s strategies can be corrected
to include all ranks of employees in the initial strategies planning, formation, implementation
and alignment.
Action Plan Analysis Diagram
Colgate Pamolive
Strategic Goals
R&D
Sale and Manufacturing
markenting
innovation and $429m net profit

new natural from sales of economies of
productis newly developed scale production
development by natural products of natural
2016 by 2020 products by 2017
Look new
employ full time markerts for
scientists and natural products purchase and
engineers by 2014 in Asia, Africa and instal new
South America machinery to
facilities to
manufacture new
Marketing and sales natural produces
make requistion employees start by 2015
for $200M from advertizing and find
corporate toward cost price /unit
R&D work by 2013 product. searching for
buyers to the natural hire and train old
products at production
U.S.Eroupe and operators on
Canada by 2015 natural products
26 and machinary by
2015
Action Plan Analysis
Since the strategies of Colgate Palmolive Company is to enter new markets in Asia,
Africa and South America with new products made from only natural ingredients. Research and
development will make a requisition of $200M from the corporate headquarters by 2013. Full
time scientists and engineers will be hired by 2014 to start research work on the natural product
innovation. Marketing and sales representatives will start campaigning and advertising for the
new natural products by 2015 in the U.S., Europe and Canada. At the same look for new
markets in Asia, Africa, and South America. Manufacturing department will start hiring and
training line operators on the new natural products and the new machinery. In the same year
purchasing and installment of new machinery will be done at selected facilities. Research and
development will launch the new natural products by 2016. By 2017, mass production of the
natural products will commence. By 2020 it is estimated that Colgate will make a net profit of
$429M from the sales of the new natural products.
Relevant Action Plan
GOALS: Develop new natural ingredients to use in the manufacturing of Colgate products.
. Meet forecast demand from 2016-2020
. Accommodate innovation, trials and the manufacture of the new products
. Achieve improvement in asset utilization of machines, quality, customer services and cost.
PERFORMANCE METRICS:
. Year 2013: Research and development will make a requisition for $420m from the corporate
headquarters.
27
. Year 2014: Research and development hire full time scientists and engineers to carry out the
natural product development processes.
. Year 2015: Marketing and sales will start to campaign, advertise for the new products in the
United States, Europe and Canada, and also pegging the cost price/unit of the new products. At
the same time search for new market segments in Asia, Africa, and South America.
Manufacturing is to purchase, install new machinery, hire and train line production operators on
the new natural products and on the new machinery.
.Year 2016: Research and development produce the initial sets of the natural products for trial
through the pilot plant.
.Year 2017: Manufacturing starts large scale production of the all-natural ingredients products
for sales.
Year 2020: Achieve an estimated $429M net profit from the sales of the natural products.
ACTION STEPS
Year 2013
What Who When
Requisition for $429M R &D January 2013
Year 2014
Hire Scientists/Engineers R &D January 2014
Year 2015
Campaign; advertise for new products Marketing & Sales January 2015
and estimate cost unit/price for product
Search for new markets in Africa, Marketing & Sales June 2015
Asia and South America
Purchase and install new machinery, Manufacturing September 2015
Hire and train production operators
on products and machines
Year 2016
Pilot plant to produce new products R&D January 2016
for trials
Year 2017
Start of the large scale production Manufacturing January 2017
Year 2020
Achieved $429M net profit from sales Marketing/ Sales/Finance January 2020
28
MANUFACTURING UNITS WORKS WITH……. TO WHEN

Construction and machinery Manage entire construction/ Start Sept.2015
Installation process
Installation unit
&
Legal Handle all licenses pertaining Start June 2015
Production of new products
Customers Form customer services Start May 2015

Ordering system, shipment
And complaint department
FINANCIAL IMPACT ESTIMATE
Cost:
Expense Capital = $40 million
Capital = 100 million
Equipment = 60 million
Total investment = 200 million
29
30
There is rivalry and intense competition among the first movers namely Procter & Gamble,
Church & Dwight Company Incorporated and Colgate Palmolive Company. The only way firms
Year2017 Year2018 Year2019 Year2020
Revenue Price/Unit $0.305 $0.305 $0.270 $0.120
Cost/Unit $0.225 $0.193 $0.150 $0.095
Units $415m $724m $840m $2071m
Revenue $145m $220m $226m $248m
Net Profit $52m $81m $100m $196m
Total Net Profit = $429million
Supporting
Argument
in this industry can be profitable is through differentiation and low cost leadership. Colgate
Palmolive Company has invested funds to research and development to formulate different
products. Colgate Palmolive Company has always purchased equipment, machineries, raw and
component materials from cheap sources and on discounted prices. Colgate Palmolive Company
has decided to strategically gain a market beachhead, make market entry through process
innovations and through product differentiation. Basically, Colgate Palmolive Company is going
to develop new natural products from 2017, and it is going to target rural markets in Asia, Africa
and South America. Colgate Palmolive Company has drawn an action plan from 2015 to 2020 on
the natural products development to scale of economies production in some identified facilities
worldwide. The action plan consists of goals, performance, metrics, action steps, manufacturing
units and the financial impact estimate. Colgate Palmolive Company is going to make a
requisition for $200million from its corporate headquarters in 2013. In 2014 research and
31
development (R&D) will hire some full time Scientists and Engineers to carry out the natural
product development and innovation processes. In 2015 couple of things will be done, marketing
and sales will start to campaign, advertise and find the cost price per unit of the new natural
products. At the same time, they will start searching for new markets in Asia, Africa, and South
Africa. Manufacturing department will purchase and install a set of new machinery towards the
natural products production. In 2016 R&D will produce the natural products through the pilot
plant for trials. In 2017 manufacturing will start the large scale production of the natural products
for sales. The period from 2017 to 2020 it is estimated that Colgate Palmolive Company will
make a net profit of $429 million from the sale of these new products. The company will start
selling new products in the rural markets in Africa, Asia and South America with the goal of
being profitable, competitive and finding new markets.
Fitness Landscape Analysis
Colgate Palmolive Company continued to develop innovated new products as the key
driver of its profitable growth. Colgate Palmolive Company has established global consumer
innovation centers which focuses on the development of insight driven innovation providing
value added new products across all price points. Marketing personnel are working closely with
scientists, researchers, external organizations, and academia to ensure technology is in place to
meet both short and long term consumer’s needs and goals (Colgate Palmolive Company 2011
Annual report).
Description of Fitness Landscape and Analysis
Traditionally manufacturing assembly lines were continuously loaded with large amount
of products on the conveying belts. Where employees hand reached and single packed them into
boxes for shipment. Presently due to business process engineering (BPR) modern automation
32
and mechanization machines have been purchased and installed in most of the Colgate’s
facilities. The newer machines operate at 190 revolutions per minute (RPM) and above. In this
wise larger quantities of products are manufactured within a short period of time. Also traditional
packaging was manually done by hand. But with the advent of technologies modern packaging
robots are currently packing at Colgate Palmolive Company’s manufacturing facilities
worldwide as a cost saving measure. Scientific management has also played a dominant part
through the development where complex tasks are broken into simpler tasks which are timed
exactly and given to the front line manufacturing operators to follow to achieve more
productivity and efficiency (Colgate Palmolive Company, 2012).
The automation, mechanization, scientific management, and innovations have accorded
impetus to Colgate Palmolive Company to produce enough products to meet the global demand
of its customers. This has made it possible for Colgate Palmolive Company to maintain its new
and return customers and also be competitive in the personal care industry with new products.
It is clear from the foregoing discussion that, Colgate Palmolive Company has
evolutionary agendas which has helped the company scored much higher goals in providing new
and useful products to consumers worldwide. In business terms this sounds very positive for
Colgate, because the more useful and new products a company supplies to the market, the more
likely are those products to be purchased. With large purchases from Colgate’s brand the more
profit margins will the company gain.
Boid Analysis
Colgate Palmolive Company has always shown a commitment to their deeply held values
and the principals of conducting business with integrity, honesty, and respect. Colgate’s
employees are viewed as ambassadors of the company working together for a common good. All
33
Colgate employees are part of the global team members who are committed to working together
by sharing ideas, technologies, and talent to sustain a profitable growth (Colgate Palmolive
Company, 2012).
“Boid Analysis” Systems Description and Analysis
Colgate led with respect to create an environment where people genuinely care about
each other to reach their potential full. Colgate Palmolive Company has diverse employees from
all over the world. These employs are from different cultures and have variable educational
backgrounds. All employees from these different cultures are successfully worked together to
help coordinate Colgate’s growth. For example, Colgate Palmolive Company was named one of
the “100 Best Companies for working mothers” in 2004 by working mothers’ magazines. In
2012 the human right report card on America business awarded an “A” for Colgate Palmolive
Company’s support of diversity in its workplace.
Colgate has ethically unpowered its employees with a policy and practice to maintain the
highest ethical standards by creating a workplace devoid of inappropriate or unlawful behavior.
Employees are encouraged to share their concerns with the company without fear of any
retaliation on any circumstances. Colgate Palmolive Company has equally privileged its
employees to take charge in the way they work, thus controlling their working environments,
manufacturing facilities to render excellent products to consumers.
However, some companies within the Personal care industry restrict and defined rules to guide
their employees in day to day activities without any flexibility. The freedom and flexibility
accorded to Colgate Palmolive Company employees has the impacted way employees control
their working styles to benefit customers, the employees, Stakeholders and the company in
general.
34
Industry Evolution Modeling
Colgate Palmolive Company has a survival strategy by following the personal home care
industry’s tread in competing. New products are being researched on and produced. Once the
new products are manufactured the older non-profitable products are dropped from the Colgate
brand. Comparing this action to the leaves in a tree, the older ones become: matured, yellowed,
and dropped out, whiles the new ones emerge on the branch to replace them for sustaining the
purpose of food manufacturing and growth.
Industry Evolution Modeling Description and Analysis
All companies in the personal care industry use a counter strategy where employees in
the Research and development (R&D) are on the lookout for new products development from
other rival companies. Since the products in the industry are not so much different, companies
copy each other to produce exactly the same products offering to the market. Colgate Palmolive
Company managers and employees are constantly trying to identify problems, and proposing a
rational solution to them. These rational solutions are paramount to the eminence, existence and
progress of Colgate Palmolive Company. Fish booms in reference to sustainable models were to
conserve fishes and only catching appropriate amount to the market for sales and profit. Through
the above effort the fishing industry can be sustained into the future. Equally, Colgate Palmolive
Company learns from all errors cropping out in its manufacturing processes and finds new
solutions preventing them from future occurrences. Anytime an error occurs investigations were
carried out and corrective measures implemented. For instance in preventing manufacturing
errors employees have been encouraged to cross check each other’s work. Inputs into computers,
batches formulation and change overs are carefully supervised by Lead technicians and Team
Advisors to prevent errors or faults. Colgate employees are cross transferred and trained in others
35
departments to acquaint themselves with the way things are done. With time this important
learning concepts of manufacturing are spread to the entire facilities. New strategies are formed
and emerged to help guide Colgate Palmolive Company employees to innovate on new products
desired by customers and those being produced by competing rival companies. Environmentally,
Colgate Palmolive Company has initiated recycling programs in its manufacturing facilities,
where cardboards, waste papers, bottles and plastics are individually separated for recycling.
Large amount of cardboard boxes shipped to Colgate’s facilities are reused before being
recycled.
36
LIFE CYCLE ASSESSMENT
contaminated underground water & watershed

Polluted air & gasses
Contaminated soil.
Natural Nutrients. Technical nutrients

carbon dioxide,
smoke and
contaminated
waste water Plastic bottles,
barrels,
Domes, cup
Harvesting
Natural resources Deodorants & Liquid body
eg. water, air washes productions
Extracting Deodorants & liquid
body washes empty
containers from
Waste from consumers
Plastic bottles, manufacturing
cups, barrels deodorants and
Domes body washes Empty Plastic
bottles, barrels,
cups, domes
Acumulating waste
Life Cycle Assessment
As companies try to meet the demand for environmental accountability they are finding
newer tools that require a significant amount of time to learn and implement in their
organizations. Colgate Palmolive Company in 2009 made a decision to develop a tool that would
customized and relevant to its needs on global basis. “For Colgate it was essential to have the
ability for users to set up their own life cycle scenarios according to regional packaging end of
37
life schemes and regional energy grids”(Hamilton, M., & Millon, J., 2009). The testing phase at
Colgate is underway and hopefully the performance of the current tool version will be a
sufficient start for promoting LCA thinking throughout the packaging and the designing
community. Colgate Palmolive Company has implemented the lean manufacturing methods in
most of its facilities to help reduce the amount of waste generated from production. Component
materials such as barrels, cups, domes, bases, plastics, cardboard boxes are reuse to cut cost in
recycling. Colgate has the goals of reducing energy use per ton of production by 25%, carbon
dioxide emission by 25%, water use by 40% and waste water contaminate by 30%
(Colgate.Com, 2010). Colgate has started purchasing renewable energy and using energy
reduction bulbs in its facilities. Planting of trees and shrubs around Colgate facilities for
afforestation with the aim of supporting the climate changing goal is in progress. Since Colgate
Palmolive Company uses a large amount of energy and water in its production activities, the
likely prototype projects will be in solar and wind power. Newer water harnessing methods like
dugout bore holes and water recycling processes will be looked into and addressed.
Conclusion
Colgate Palmolive Company is in the personal and home care products industry and rated
the third competitor in the industry .Colgate Palmolive Company is an organization that uses
large amount of energy and water in its manufacturing processes. The by-products of these
manufacturing activities are largely in wastes, contaminated water and Carbon dioxide (C02)
emission.
The costs reduction programs of Colgate Palmolive Company will accord the chance of
reducing the prices of their products to the final consumers. In this wise larger Colgate Palmolive
Company products will be purchased from the market stocks and shelves, thus giving greater
38
profit margins for the company. Colgate Palmolive Company will be relocating some of its
production facilities to Africa, Asia and South America where prices of commodities, power and
labor are cheaper comparatively to those in the developed countries. Mass production of products
in these locations will be enhanced and then these products are shipped to developed countries to
be sold for more money. Colgate will then have a competitive edge over its rivals in the industry
because of the lower cost of its products.
The new strategies of Colgate Palmolive Company are to enter new markets in Asia,
Africa and South America with new products made from only natural ingredients. Research and
development will launch the new natural products by 2016 and anticipated that by 2020 the
company will make a net profit of $429M from the sales of these new natural products
Colgate Palmolive Company has initiated recycling programs in its manufacturing
facilities, where cardboards, waste papers, bottles and plastics are individually separated for
recycling. Large amount of cardboard boxes shipped to Colgate’s facilities are reused before
being recycled. Colgate has also started purchasing green renewable energy and using energy
reduction bulbs in its facilities. Trees and shrubs are being planted around Colgate facilities for
afforestation with the aim of supporting the Earth sustainability initiatives.
Colgate Palmolive Company adhering to the environmentally protection goals has
decided to annually reduce energy use per ton of production by 25%, carbon dioxide emission by
25%, water use by 40% and waste water contaminate by 30% (Colgate.Com, 2010). Since
Colgate Palmolive Company uses a large amount of energy and water in its production activities.
Newer wind, solar and water harnessing methods like dugout bore holes and water recycling
processes will be looked into in the future and addressed. All the above efforts will help Colgate
39
Palmolive Company to be sustainable as an organization and also protect the Earth from further
deteriorating.
40
References
Colgate Palmolive Company (SWOT Analysis). Retrieved from
http://www.yousigma.com/comparative analysis/colgate palmolivecompany.html.
..9/18/2012
Colgate Palmolive Company 2008 Annual report. Retrieved from
http://www.colgate.com/app/colgate/us/Annual-Reports/ 2008/Building-on-Global
Strength/Succeeding- with Consumers.cvsp
Colgate Palmolive Company 2010 10-K
Harvard business review (2005). Strategy, Harvard Business school publishing, MA:
More on Competitive Positioning Course 206. Retrieved from http;//news.morningstar.com/
classroom2/printlesson.asp?docId=145087&CN=COM
Rehtmeyer, J., (2010). The Procter & Gamble Company. Retrieved from http://
www.neeley.tcu.edu/workArea/linkit.aspx?linkidentifier%3Did%26ItemID%3d9773...9/
24/2012
Report linker (2012). Personal Care Industry Market Research Reports Statistics and Analysis.
Retrieved from http://www.reportlinker.com/ci02134/personal-care.html
Sharma,S., (2011). Colgate Palmolive Company. Retrieved from
http://www.slideshare.net/shweta90/colgate-palmolive-8957748.@---9/25/2012.
The Porter’s Generic Value Chain Analysis. Retrieved from
http;//www.netmba.com/Strategy/value-chain…9/26/2012
Thompson, B., (2012). Colgate-Palmolive’s CEO Discusses Q4 2011 Results-earnings call
transcripts. Retrieved from http://seeking galpa.com/article/322429-colgate-palmolive-s-
ceo-discusses-q4- 2011-results-earnings-call-transcript.
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Wheeler (2003). Focusing on value: Reconciling Corporate Social Responsibility. Sustainability
and a stakeholder approach in a network work. Journal of General Management vol.28
NO. 3 spring 2003.
CHD Profile/Church & Dwight Company Inc. C Stock Yahoo finance. Retrieved from
http://finance yahoo.com/q/pr?s=CHD.
CL Profile/Colgate Palmolive Company Common Stock-Yahoo! Finance. Retrieved from http://
finance. Yahoo.com/q/pr?s=CL+profile.
Freeman, R., E., (1984). Strategic Management: Stakeholder Approach. Boston, Pitman.
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Finance - yahoo. Com/q/pr? s=PG+ Profile.
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Http; //www.colgate.com/app/colgate/us/LivingOurValues/sustainability/Respect for our
Planet. Cvsp…10/09/2012
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Sustainable Solution Paper Franklin Komla Atadja

Sustainable Solutions Paper

Franklin Komla Atadja

October 20th, 2012

solutions to the chosen organization.

follows;$243,500,00,$270,700,000, and $309,600,000.The third organization is Colgate

the dollar values were in thousands.

deterioration by human beings.

analysis, life cycle assessment and references.

General Force Analysis

Stakeholders Identification and Value Analysis

organizations to address with strategic business management approach. Colgate Palmolive

sustainability and continuous growth.

Demographic Market Segmentation

This concept is applied by Colgate Palmolive Company in marketing variety of products

Porter’s Five Forces Analysis

pricing of their products, branding and customer satisfactions.

The Detailed Value Chain Analysis

greater profit for the company.

Stockholders value creation is the key to Colgate’s business sustainability and

operated profitably. Colgate Palmolive Company has additionally a sustainable organizational

create maximum value economically, socially, and ecologically.

and outside Colgate Palmolive Company.

$2, 431, 00. All the dollar values were in thousands.

dishwashing liquid soaps.

alright in terms of sales and profits.

Stakeholder Identification and Value Analysis

Colgate’s business operation, profitability, growth and sustainability.

company was well aligned for greater sales and profits.

Evidence and Implications

international security concerns have challenged businesses to address corporate social

and the cost of the company’s production.

industry because of lower cost of its products.

products will be patronized.

collaboration, alliances, mergers and acquisitions.

Colgate Palmolive Company product differentiation can be achieved by the company

General Force Analysis- Remote Environment

General Force Analysis

for higher prices.

Demographic segmentation is market segmentation executed by taking various

unit’s price low.

facilities to boost production.

products to suit to their needs and purchases.

Government bye-laws and regulations in different countries are putting pressure on

products which help to protect the environment and the Earth.

Implications of General Forces (Threats and Opportunities)

Porter’s Five Forces Industry Analysis: External- Industry Environment

way of reducing the variable costs on their production.

Porter’s Five Forces Analysis

Personal, home, oral care product industry

Rivalry among existing firms 0-3

Threat of new entrants 7-10

Threat of substitute products 0-3

Bargaining power of buyers 0-3

Exit barriers and excess capacity 7-10

Bargaining power of suppliers 7-0

Degree of differentiation 0-3

Scale to learning economics 0-3

Bargaining power of buyers

will economically help the firms to make more profits.

Scale to learning economics

suppliers are difficult to be canceled.

Threat of new entrants