History Of The William Colgate Company

History Of The William Colgate CompanyWilliam Colgate Company was started in 1806. William Colgate was a maker of whip and put updle by himself. The firm began selling bars in ameliorateness weights in the 1840s. The come with was well-run as Colgate Company under the managing of his son, Samuel Colgate after the death of William Colgate. His son Colgate introduced a odourise soap in 1872, by the name of Cashmere Bouquet and thus in 1873 the firm introduced toothpaste, aromatic toothpaste inter swap in jars. In 1908 they initiated mass selling of toothpaste in tubes.In 1898, In Milwaukee, Wisconsin, the B.J. tushson Company was manuf meeturing a soap wholly of do by and olive oil color, the technique of which was urbanized by B.J. Johnson. The soap was well-liked a sufficient amount to rename their corporation after it Palmolive. At the go round of the century Palmolive, which enclosed both palm and olive oils, was the worlds best-selling soap. A Kansas found soap man ufacturer known as the Peet Brothers merged with Palmolive to effect Palmolive-Peet. In 1928, Palmolive-Peet bought the Colgate Company to generate the Colgate-Palmolive-Peet Company. In 1953 Peet was dropped from the label, send-off only if Colgate-Palmolive Company, the existing name.Colgate-Palmolive has extended been in vehement opposition with Procter Gamble, the worlds largest soap and detergent maker. PG introduced its Tide laundry detergent shortly after World contend II, and thousands of consumers turned from Colgates soaps. When PG started putting fluoride in its toothpaste after that the Colgate lost its figure one place in the toothpaste trade. In the commencement of television, Colgate-Palmolive wished to compete with Procter Gamble as a sponsor of soap operas. The go with sponsored many events in part they were for the most part famous for being the full sponsor of the entertainment in inst alto exactherments The Doctors.George hydrogen Leach was pre spatial r elationnt, CEO, and chairman of the board of Colgate-Palmolive in the 1960s and 1970s, and during that time transformed it into a modern company with study 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 frequent subsidiary organizations with a leg on each side of 200 countries, but it is publicly scheduled in only two, the United States and India.The company built a status around the world as a successful company with the lastest moral abide bys. alone the modality by means of alive our values of Caring, orbicular Teamwork, and around-the-clock perfection, and adhering to the uppermost principles of honesty, admiration, and concern for the environment, we seek tomake operable safe and whole tone crossings of value to consumersraise sh beholder valueOffer opportunities for personal and professional evolut ion to either Colgate slewFulfill our corporate social responsibilities as a member of the global confederationProductsAround the world, tribe like you trust our family of brands to sympathize with for the ones they love. Tooth encounteres and toothpastes to bar soap, ho recitationhold cleaners, every day our products ascertain better the quality of life for consumers global.ToothpastesSparkleTooth BrushesNew Palmolive NaturalsAzadi Carbolic SoapProtex pocket vetoAzadi Dish BarMax ScourersMax LiquidMax AntibacterialBrite TotalExpress PowerBonusColgate-Palmolives bursting charge StatementOur three fundamental values-Caring, Global Teamwork and Continuous Improvement-are part of everything we do.CaringThe Company cathexiss ab extinct people Colgate people, guests, shareholders and business partners. Colgate is committed to act with compassion, integrity and honesty in all situations, to listen with respect to others and to value differences. The Company is likewise committe d to protect the global environment and to enhance the communities where Colgate people live and work.Global TeamworkAll Colgate people are part of a global squad, committed to working together cross dashs countries and throughout the world. Only by sharing ideas, technologies and talents potful the Company achieve and sustain profitable growth.Continuous ImprovementColgate is committed to getting better every day in all it does, as unmarrieds and as teams. By better understanding consumers and customers expectations and continuously working to innovate and improve products, services and processes, Colgate leave alone make up the best.EXTERNAL FACTORS EFFECTIVE CHANGEThe weighted score of the EFE matrix comes out to be 2.67 which show that Colgate git take advantage of the profitable opportunities that the grocery is offering, to overcome the external terrors.The highest weights in the external opportunities are abandoned to sore-fangled product development and the imple mentation of ERP which means alterd system for submit chain focussing. Colgate is non yet into a large variety of personal care products and since people are becoming more than fashion and hygienics conscious these days Colgate can enter into a much profitable market of products categories like shampoo, face deaden, body wash, liquid hand wash, shower gel and so forth Its major rivals in the personal care category namely Unilever and Lux are already manufacturing these products but Colgate with its large crownwork base can enter these markets easily and can increase the length of their Personal Care product line and become more profitable.The other major opportunity is that Colgate can fully automate their supply chain. Colgate is in fact objectning to take advantage of this opportunity and is pursuing a strategy by the name of ERP (SAP) which give make whole supply chain automated. All local anesthetic and foreign suppliers of Colgate impart require their systems integr ated with the Companys MIS (Management Information System) where they can take orders, check inventory levels, bargain prices.Awareness among the boorish population has too increased over the past decade and some part of the population is displacement from miswak and home-make cleaning soaps to tooth pastes liquid and powdered soaps. There is also a large gap in the tooth brush market which means that Colgate Palmolive is far ahead in the tooth brush market as compared to its major rivals and can further increase this gap with more innovations.The major threat to the company is the change magnitude prices of raw material and energy which is mainly due to the inflation in the country. The suppliers are constantly demanding price increases and the company has to perform prices with them on a regular basis. Moreover the energy and fuel prices are also rising, as a result of which Colgate has to bear high cost of operations. Being a pathetic-cost producer, it is a major threat t o the company.Apart from this, the political situations are also causing major threats to the company. Post December 27, 2008 80% of Colgate factor inies in Kotri were burnt out which caused huge losses to the company.INERNAL FACTOR FOR EFFECTIVE CHANGEThe weighted score from the IFE comes out to be 2.96 which shows that the company has enormous strengthens to overcome its failinges.The highest weightage is given to the biggest strength that Colgate has, which is, that it is the market leader in come to the fore care category with 90% market share. anyhow that it has cooling crystallization patent in its tooth pastes as no other brand has cooling crystal ingredients in its tooth pastes. This particular strength gives it a warring advantage over its close rivals like Medicam and English toothpaste (Filicetti, John).Another major strength of Colgate Palmolive is its good lead that has been contributing to the companys success. The strategic objectives of the company are clearly defined and communicated throughout the company. Employees commitment is also a major contributing factor, there are no layoffs and people are committed to working overweight consistently. Moreover, with high profits they pay their employees good salaries too and also carry out training programs at contrasting managerial levels. Despite the current scotch threats Colgate has managed to keep its share price at an above average level in the industry. Currently its share is trading in the market at Rs. 850.The major helplessness of Colgate is that it is not utilizing IT Systems to the optimum level. In this fast moving world, with cut-throat competition it is a major weakness of a company which does not put up straight-laced MIS systems installed. It doesnt restrain a separate IT department either. Besides that there are no e-commerce facilities available to customers who buy in bulk.Another weakness is that Colgate Palmolive is not exporting its products to other countries. Colgate has subsidiaries in many countries but they are more profitable than CP because they export to other countries. If CP overcomes this weakness and start exporting to even in just a few countries it can earn high margins (Filicetti, John).PRIMARY ACTIVITIES COSTINBOUND LOGISTICSCP has efficient MIS systems that link their suppliers raw material with the firm production processes (Moore, E.R).operationsCP has efficient countersinks installed that reduce manufacturing costs.Previously they had machines that used to take one day to switch from the manufacturing of one flesh of product to the other. scarcely currently the plants and machines that they father are much more cost effective and efficient. It takes only 30 minutes to switch from one product ma manufacturing to the other (Moore, E.R).DISTRIBUTION AND OUTBOUND LOGISTICSCP has unblemished and responsive order processing procedures. The delivery of raw material to the manufacturers and the delivery of final products to the various departmental stores like Aghas, Makro, Naheed etc is made on time (Moore, E.R).SALES AND MARKETINGCP has a highly trained sales force. They carry out various awareness programs in which they visit different localities with their sales team along with doctors who make people and especially children ( incase of Oral care products ), aware of the importance of hygiene. In this way CP has always strive to improve the quality of life.There products are not priced very high. Products are priced in a way that generates sales volume. CP spends a parcel out on advertising and television commercials (Sergiovanni, T.J).SERVICESCP provides a help desk to its customers. They can write their comments and complaints directly to the colgate Palmolive. Colgate usually offers a free medical checkup for all at various schools, exhibitions and hospitals. CP is thus performing corporate socially responsibility (Moore, E.R)support activities and cost trusty INFRASTRUCTURECP has a profess ional and brawny infrastructure. Every manager in various department has to key to the GM of his department and the GM then report to the director. M.D is the person who is the head of the colgate Palmolive. The firm processes are made in such a way that it has helped the company to reduce its cost. Employee commitement has always been there. The culture is adaptive and professional. CP has a strong relationship with its suppliers (Moore, E.R).HUMAN RESOURCE MANAGEMENTCP value their employees commitment. Thats why they dont have any layoffs. Their employees are loyal to the company. They carry out training programs that further groom employees.CP also conducts management trainee programs in which they engrave fresh graduates and provide them training in almost all departments so as to make that individual well familiar with the organization (Sergiovanni, T.J).TECHNOLOGICAL DEVELOPMENTCP has investments in technologies but they still need to automate their supply chain in order to become more cost effective.Apart from that they are also not utilizing E-commerce facilities to the optimum level which can give them a huge cost reduction (Moore, E.R). procurementCP has systems and procedures installed through which they contact their local and foreign suppliers who are all CP Approved. They negotiate prices and place orders through these systems (Moore, E.R).COLGATE PALMOLIVES affordable PROVIDER STARTEGYCP has a large and efficient distribution network. Its distribution channels are located all over Pakistan (Moore, E.R)It caters to a broad customer base. It has developed itself in almost all the categories which are associated with customers on the daily basis.Colgate pursues low cost strategy. Its plant is automated. Only one plant is used for the manufacturing of three different detergents like bonus, express, briteThe whole process is repeated for each of the detergent.By automating the plant, CP is able to save a lot of cost. CP value delivery network doe s not have any delays in it which helps CP to save cost.CP targets all segment, it has products for the disgrace class, middle class and the upper class. Its pricing is done accordingly. It has cost leadership in the detergent and the jump care categoryCP forecasting is very accurate which helps them to reduce cost because if estimated are accurate then it helps the company to avail cost advantagesCP is allowed to deviate only 5% from its forecast both upwards and downCP has concentrated more on process efficienciesCP has access to large capital that is required to make large investment. CP never compromises on the development expenditure. It is always ready to improve its production processes.Being a low cost producer it helps CP to better compete to its rivals.Being the low cost producer it has helped CP to insulate themselves from hefty suppliers who nowadays demand increase prices due to rising inflation.Being he low cost producer, it has also helped to attract powerful buye rs whom CP sells directly like MAKRO, DMART, IMITAZ, AGHAS, and NAHEED etc (Moore, E.R). economic FactorThe overall economy of the country is wake 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 saucy entrants. trade in the interest rate also affects the industry. Hence the new entrants are also threatened by the increasing interest rates.Economic factors do influence the negotiate power of buyers as inflation is the major factor that is affecting the consumers wakeless.Economic factors do not affect the availability of substitutes. But since inflation is growing, so it is hard for the poor people to switch to more modern products like wash powder, tooth paste. They would rather prefer oil to clean their clothes and use miswak to brush their teeth.Economic factors do have an affect on the bargaining power of suppliers as inflation is rising fast. Suppliers demand that they would pro vide the necessary raw material at a higher price. Exchange rate fluctuations also affect the cost of raw material.Economic factors do affect the rivalry among the competitors as all the players in the industry want to have cost leadership. The economic factors are favoring intense competition from the last five years. People have more money at their disposal. Also Pakistan is a consumption oriented society (Hiatt, Jeff.).Quantitative Strategic Planning Matrix (QSPM) outline 1STRATEGY 2WeightsASTASASTASSTRENGTHSMarket leader in surface care with 90% market share0.15Good Leadership0.06Employee commitment0.1230.3620.24Cooling crystal patent0.1Accurate forecast with respect to demand0.0740.2820.14High EPS0.0830.2420.16Strong advertisement and promotional campaign0.0820.1630.24WEAKNESSESIT not used optimally0.1340.5220.26No ecommerce0.130.320.26No proper use of forward integration0.0520.130.15They are not exporting their products to other countries0.061OPPORTUNITIESExploring into new ca tegories like shampoo, hand wash , body wash, shower gel0.1420.2840.56Rural population switching from miswak to toothpaste0.06Gap in tooth brush market0.0820.1630.24Implementation of ERP(SAP)0.1440.5620.28People becoming hygiene and beauty conscious0.120.230.3No layoffs0.07THREATS(T)Raw material and energy prices are increasing0.1230.3620.24Inflation in the country0.0730.2120.14Competitors re launching their products0.120.230.3Competitors increasing their marketing budgets0.0620.1230.18Unstable law and order conditions.0.061 numerate4.053.69Rivalry among existing competitorsYes (+)No (-)The industry is growing rapidly.The industry is not cyclical with intermittent overcapacity.The fixed costs of the business are relatively low portion of total costs.There are profound product differences and brand identities between the competitors.The competitors are diversified rather than specialized.It would not be hard to get out of this business because there are no specialized skills and fac ilities or long-term contract commitments etc.My customers would incur significant costs in switching to a competitor.My product is complex and requires a detail understanding on the part of my customer.My competitors are all of approximately the same size as I am.INTERPRETATIONThreat of competitors is high because the product is not unique as there are no product differences. Same products are available with all competitors like Unilever, Procter and Gamble, Shield, Oral B. Therefore rivalry is also increasing as demand in the economy has also increased for the last 5 to years. legal age of the competitors are MNCs which means that they have the necessary resource and skill (Hiatt, Jeff).Government FactorsGovernment regulations do have an affect on the rivalry among the competitors.Political factorsPolitical factors do not affect the rivalry among the competitorsEconomic factorsEconomic factors do affect the rivalry among the competitors as all the players in the industry want to have cost leadership. The economic factors are favoring intense competition from the last five years. People have more money at their disposal. Also Pakistan is a consumption oriented society (Hiatt, Jeff).Social trendsSocial trends have changed, buyer are more aware of their purchases. So the players in the industry are always stressful hard to increase their market share (Hiatt, Jeff).Technological changeTechnology is helping the companies to gain a competitive advantage over their rivals. Also research and development plays an consequential role in this (Hiatt, Jeff). reveal SUCCESS ACTORS FOR COMPETIVE SUCCESSLow cost production efficiency. CP has plants installed that take only 30 minutes for the plant to shift from the production of one product to the other.High quality manufacturing of products with very few defects.A strong network of wholesale distributors.Gaining ample space on retailer shelves. (Examples Naheed, Aghas, Makro and other small shops.)Attractive packaging and styling.Good length of product lines.Attractive commercials and advertising.Good reputation in the industry along with approving reputation with buyers.Market penetrationColgate can do market penetration by increasing its advertising, people always associate Colgate with tooth paste and have no awareness that it produces personal and surface care products as well. They should show their logo on all its products so that people know the producers and this will increase customer loyalty and also when people will come to know that Colgate is the producer then new customers will also buy the product (Hiatt, Jeff).They should also increase their promotion efforts by going to school and doing wellness awareness programs, also they should go to residential areas and make women aware of their surface care and framework care products such as max, bonus and express etcProduct developmentColgate can also do product development by introducing new features in their already existing brands. T hey can improve their tooth brush quality and features by introducing flexi tooth brushes for special oral care. Also they can introduce whitening features in their feature in their tooth paste different colors of tooth paste can also be introduced to attract the kinds market. In their fabric care they can introduce in special features of protecting the color of the cloth while washing and also whitening enhancing surfs to give a good shine to while clothes (Hiatt, Jeff).develop systems to deal appropriate stakeholders in the introduction of changeSIX THINGS REQUIRED TO EFFECTIVELY IMPLEMENTING A STRATEGY match to Porter, to implement a strategy effectively six things should be followedCreate a formal planDistributorQuantity Item Price Negotiation,Inventory Reporting, Stock Details, Payment TermsHR moduleInventory / StoreCreate a multifunctional teamTo effectively implement ERP, Colgate must first prosecute an independent resource firm.Acquire licensing for SAP Implementation.Esta blish an independent IT unit for the monitoring of ERP. This department will coordinate with all the other departments (Robbins S, Mukerji).Communication of strategy inside and outsideAll employees in the company should be made aware of the new automated system. Each employee must be provided a tokenish insight of SAP but those employees who have to work on SAP the most should ofcourse be provided with proper training course of SAP. These includeFactory ManagerManager accountsWarehouse ManagerDistribution teamConsumer insight departmentOutside the company the strategy to implement ERP should be communicated properly to all the local and foreign suppliers of Colgate Palmolive (Hagberg).Consistency over timeAs Information Technology is progressing day by day, new changes in ERP are expected after certain time periods. Therefore it would become very important for Colgate to cope up with the changes in the software. For this purpose it would need to update it employees by providing tra ining whenever any change takes place in SAP (Hagberg).Use proper measurementsOther measures, not just financial measures would be required to test whether the system is working properly. These measures includeWhether the system is accurately forecasting demand, sales, price changesWhether or not there are any deviations in the actual versus projected salesEffectiveness of the intragroup processes after the strategy implementation (Robbins S, Mukerji).Test the strategyAsk employees and senior management in all departments whether they are satisfied with the new system of working. Talk to suppliers and distributors whether they want any more improvements in the new system of working (Hagberg).KEY DRIVING FORCESIndustry growthNow most of the people have knowledge about the different products and its advantages. The intense competition in industry and high demand enables the new entrants to compete in this market (Hagberg).Product innovationInnovation in product, as Colgate has just i ntroduced Max fresh in which the coolant crystals are present which none of the competitors has adopted yet. There is also room in innovation in washing detergents (Hagberg).Changing societal concerns, attitudes and lifestyleSince social issues are really effecting the use of product just like the use of Miswak which is the Islamic mode of cleaning the teeth (Hagberg).Use of E-commerce and profitsUsage of online ordering and maintaining the stock level through e-commerce can be driving force in the industry. By using that they can provide products to customer which is value addition for them (Hagberg).This report is purely based on the move uping from the Colgate expert and the secondary data analysis, and the reason for writing the whole report is to find the obstacle / hindrance a business men face and how the organization can minimize it through implementing the different strategies and analysis.The whole report research draws attention tothe fact that any problem can be elimin ate if proper investigation and consideration can be observed the success is easy to get, Pakistan market is mature market and the competition is tough here because most of the customer is price conscious and act like butterflies, so targeting this kind of customer is quite difficult, but on the other hand it can be managed if the you can understand the market effectively and efficiently (Robbins S, Mukerji).Hiatt, Jeff. HYPERLINK http//www.change-management.com/tutorial-definition-history.htmThe definition and history of change managementHYPERLINK http//www.change-management.com/tutorial-definition-history.htm. http//www.change-management.com/tutorial-definition-history.htm.Filicetti, John (August 20, 2007). HYPERLINK http//www.pmhut.com/pmo-and-project-management-dictionaryProject Management DictionaryHYPERLINK http//www.pmhut.com/pmo-and-project-management-dictionaryMoore, E.R., (accessed 1 April, 2001), Creating organisational Cultures An Ethnographic Study, Eastern Academy of M anagement Virtual Proceedings,Moore, E.R., (accessed 1 April, 2001), Creating Organizational Cultures An Ethnographic Study, Eastern Academy of Management Virtual Proceedings,, R. Ph.D. Heifetz, D.Ph., 2000 (accessed 4 April, 2001), Corporate HagbergCulture/Organisational Culture UnderJerryding and Assessment,Robbins S, Mukerji D (1994). 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(1984) Educational Leadership, Leadership and excellence in schooling, Volume 41, Number 5, United States of America, rogue 4-13Kent State University 2000 (accessed 28thMarch, 2001), Kent State University Cultural Self-StudyInternal Communication of ChangeBy Dagmar ReckliesCircling the Pyramid Building endure Commitment to Change (pdf-file)by Edmond MellinaWhat Makes a Good Change Agent?by Dagmar ReckliesThe Role of the Change Master From Change Agent to HYPERLINK http//www.themanager.org/Strategy/Change Master.htmHYPERLINK http//www.th emanager.org/Strategy/Change Master.htmChange MasterHYPERLINK http//www.themanager.org/Strategy/Change Master.htmBy Ruth TearleManaging Change Definition and Phases in Change Processesby Oliver ReckliesProblems in Managing Changeby Oliver ReckliesAuditNet.org provides a downloadable PDF of change management best practices.Fred Nickols wrote HYPERLINK http//home.att.net/nickols/change.htmHYPERLINK http//home.att.net/nickols/change.htmChange Management 101 A Primer.HYPERLINK http//home.att.net/nickols/change.htmSearchCRM.com provides resources on handling change management following a CRM upgrade.Neglecting your change control process can kill an IT disaster recovery plan.