"This merger is going to create the greatest consumer-products company
in the world … It's a dream deal." Warren Buffett
"This was two companies with great products, strong management and
terrific business models coming together to create arguably the best
consumer product company in the world" Michael Barbaro, Washington
Post[1]
Introduction:
The merger between Gillette and Procter and Gamble is indeed a
strategic move on the part of both parties. It is a corporate
marriage creating a union between male and female product lines; a
contract valued at more than $55 billion dollars. [2] Commanding
virtually the entire market, Gillette has been the world leader in the
production of razors and other shaving products. In 2004, their
global share of the razor market was 71.5%, nearly five times that of
their nearest competitor. However, Gillette’s depth runs much deeper
than simply shaving accessories; oral care products, cosmetics, and
domestic appliances are a significant party of their sales arsenal.
With the acquisition of Duracell Batteries in 1995, Gillette then
became a major sales force in the battery market. In fiscal year
2004, their net sales were $10.47 million, a 13% increase from the
2003 figure.
Meanwhile, Procter and Gamble is the biggest manufacturer of domestic
products, with over 270 brands that are categorized in 6 different
marketing sectors: laundry and cleaning (detergents), paper goods
(toilet paper), beauty care (cosmetics, shampoos), food and beverages
(coffee and snacks), feminine care (personal hygiene products) and
healthcare (toothpaste, medicine). Like Gillette, P&G also exceeded
their 2004 financial expectations exceeding their sales target by
19.6%.[3] Both companies share a culture of innovation and a
history of cooperation and is a marriage that will most likely lead to
prosperous financial returns in the years to come.
Background:
The history of the Gillette Company is incredibly interesting, dating
back to 1894 when it founder, King Camp Gillette, invented the safety
razor. Gillette developed the idea of a disposable razor while
working as a salesman. In his travels and interaction with males of
all walks of life, Gillette stumbled upon the idea of the ‘disposable
safety razor’ that men shaving on their own would find much more
convenient and user friendly. Before the adve...
... middle of paper ...
...tivity Drove Deal,” The
Washington Post, January 29, 2005.
[2] Editor, “The Latest Mergers: Why some will fly and others
won’t,” Knowledge Wharton, March 30, 2005 [online]:
http://www.findarticles.com/p/articles/mi_m0EIN/is_2005_March_1/ai_n11835282
[3] P&G 2004 proxy report:
http://www.pg.com/annualreports/2004/pdf/PG2004AnnualReport_Online.pdf
[4] “William Nickerson: Inventor of the Week,”
http://web.mit.edu/invent/iow/gillette.html
[5] ICFAI Knowledge center
[6] Ibid.
[7] www.pg.com/company/who_we_are/ourhistory.jhtm
[8] Ibid.
[9] www.mind-advertising.com/us/pg_us.htm
[10] “The Rise of the Superbrands,” The Economist, Feb5th, 205, p.63.
[11] http://www.agribusinessaccountability.org/pdfs/140_Procter%20Gamble.pdf
[12] http://www.fumento.com/bomis21.html “Procter & Gamble's Non-
Neither Satan Nor (Sigh) Savior’.”
[13] Environmental Research Foundation, http://www.ejnet.org/rachel/rhwn349.htm
[14] http://www.pandgkills.com/shareholder.html
[15] http://knowledge.wharton.upenn.edu/
[16] Batchelor, Charles, “Dealmakers eye repatriated funds,” The
Financial Times, Tuesday, March 29th, 19.
[17] Ibid.
This essay is an analysis of two advertising posters, one of being a modern piece of media, the other being aimed at the previous generation. I will be reviewing posters from Coca Cola and Benetton, the latter being the modern piece of media in this comparison.
Johnson & Johnson, a healthcare company that has dominated its industry for several decades, is currently undergoing managerial upheaval in light of recent blunders amongst its top-tier managers. It has spent years priding itself on appeasing stakeholders and being a safe provider of various pharmaceuticals, but product recalls and subsequent revenue drops have plagued the company as of late. Alex Gorsky spearheads Johnson & Johnson’s revival after previous CEO William Weldon resigned due to missteps. The cause of which stems from misinterpretation of common business ethics through poor leadership and social responsibility that damage the stakeholders.
On August 15, Google declared its intentions on procuring Motorola Mobility (MMI), centered in Libertyville, Illinois, for $40 per share or a collective sum of about $12.5 billion. The business deal gave a premium of 63% to the closing price of Motorola Mobility shares on Friday, August 12, 2011. The transaction was approved unanimously by the boards of directors of both companies.
Fortune 500 Ranking. Johnson & Johnson is a “Go Green” corporation. They have goals to keep their culturing compa...
After conducting a basic 10 year financial analysis of the company, it has become evident that even with a highly competitive market structure they are able to improve on their performance. Ranging from 2004 to 2013 financial information, the company has shown a significant increase in their sales revenue roughly $3865 million sales in 2004 to almost four time that valuing $12970 million in 2013, which was an “increase of 10.4% over the 53 week prior year” The company’s growth strategy has been to diversify its product market and make them...
The Procter and Gamble Company. (2013, November 17). Company Strategy. Retrieved March 22, 2014, from http://www.pginvestor.com: http://www.pginvestor.com/GenPage.aspx?IID=4004124&GKP=208821
Noda, Tomo. “Sharp Corporation: Technology Strategy.” Harvard Business School Boston: Harvard Business School Publishing, 1993. Print.
Upon review, Ben & Jerry’s Homemade should approve the offer from Unilever for $36.00 (cash) per share. In reviewing the offers two questions were presented. The two questions included: the social mission of Ben & Jerry’s surviving a takeover, and maintaining the best interests of the shareholders. To follow, will be the justification for the Unilever offer, alternative offers, and the risks that are involved with a possible takeover.
McTigue Pierce, L. (2005, July). Pfizer: Growth amid adversity. Food & Drug Packaging, 69, p. 60.
Colgate is a high ranked oral hygiene company that produces toothpastes, mouthwashes, toothbrushes and dental floss that was founded in 1807 by William Colgate in New York City. In 1820, Colgate built their first starch factory in New Jersey. Years later, in 1857, the founder William Colgate death resulted in the company being passed down to his son Samuel Colgate. In 1864, Colgate collaborated with B.J. Johnson who founded the Palmolive Company. The Colgate-Palmolive Company began having much success in the late 1800’s with all of their new products such as hand soaps and the many different appearances of toothpaste from glass jars to collapsible tubes. In 1900, Colgate won top honors in Paris at the World’s Fair for their soaps and perfumes. Colgate was very successful internationally that they came established in Europe, Canada, Asia, Latin America, and Africa. After so many accomplishments internationally and locally, “Colgate-Palmolive Company” was officially the company’s name in 1953. By the late 1900’s, Colgate sold over 1.6 million toothbrushes annually and was serving over 56 countries and hits the $5 billion mark in sales. The company began initiating an Oral Care program after collaborating up Kolynos in Latin America. The oral care program, which is called Bright Smiles, Bright Futures that is established to 50 countries and serves over 50 million children a year. Today, the CEO of Colgate is Ian M. Cook & Colgate’s focuses are Oral Care, Personal Care, Pet Nutrition, and Home Care and provides in over 200 countries and have numerous awards including 2013 World’s Most Ethical Companies from Ethisphere Magazine. In my research, based on preliminary information, I will find evidence that will attempt to pro...
Jonson & Jonson is one of the largest worlds well known company in health care, operates in three different segments through more than 275 operating companies located in more than 60 countries and employs approximately 128,300 people worldwide. Johnson & Johnson was organized in the State of New Jersey in 1886 and specialized in three main segments first pharmaceutical such as hematology drugs or anti-fungal drugs, second consumer products such as products for skin care, wound care, as well as baby and child care, and third segment is medical devices and diagnostics that’s includes wide range of surgical products to disposable contact lenses. (Johnson, 2014) .Jonson & Jonson now considered one of the world leading companies in health care (world’s eighth-largest pharmaceuticals company) and succeed to compete other health manufacturing organization such as Pfizer Inc. (United States) and Covidien plc. (Ireland) they also had so many world awards and recognition from different organizations such as Most Admired Pharmaceutical Company for 2013 form Med Ad News magazine (Top 50 Pharmaceutical companys, 2013) and the best products for Working Mothers in 2013 from Working Mother Magazine.
Walmart was created by a man named Sam Walton in 1962. Walmart was founded on the belief to offer reasonable prices and great service in one place. The employees are nicknamed “Walmartians” which makes them stands apart from any other company. This culture is accountable for a company of this magnitude to be able to endure an innovative spirit decade after decade. Walmart has been connected with the achievement of other companies over the years. They also have many lawsuits, overtime policies violations, and been held accountable for thrashing other companies.
ABC and High Technology: A Story with a Moral." Management Accounting, March 1996, pp. 37-40. 17. Smith, R.B. "Competitiveness in the '90s."
Unilever is a multinational company which ranks third globally in fast moving consumer goods. They have an excellent value chain which is one of the factors that has resulted in them to be among top consumer goods company globally. Their merger and acquisitions have led them to expand their company in different sectors of the consumer goods. They have 400 brands and sell their products across 190 countries. They have to work on some areas of the value chain to work even better than how they are working now. Also, there are many opportunities that will help Unilever to overcome their shortcomings and make them a successful Consumer goods
6. Nestle focused more on customization instead of the then resounding and domineering globalization. They believed in customizing a product to suit a local niche one market at a time. That way new product failure rate remained minimal and New product Development grew significantly. This process is referred to as local adaptation by the writer.