BMF consulting has evaluated the structure of Global Household Brands, in order to give recommendations for possible growth and stability for the future of the company. In this analysis, I have gathered information regarding financial statements, internal and external factors in Global Household Brands competitive structure, and strategic priorities in order for the company to grow in the household product industry.
The analysis of the internal factors shows that Global Household Products have strong distribution throughout the industry and have a core competency for developing quality products. This analysis allows for GHB to expand past their previous four product lines, and possibly develop synergies with other smaller companies like Glad, to differentiate products such as 2000 flushes and Carpet Fresh.
With Global Household Products being in a mature industry, completion and threat of new entrants are low, which would allow GHB to strive on their strong product quality. The need for restructuring inside the supply chain is necessary in order to limit cost and waste that has developed from previous year’s lack of efficiency.
Financially, GHB is financed mostly on debt, making it highly leveraged and with great financial risk. This is a problem because with the decreasing sales and profit margins from previous years, the banks are threatening to call the loans that financed the company. This is a problem that has developed with the previous management team, and requires negotiation for restructuring of the terms of the loans. This will allow newly implemented strategies to incorporate themselves into the company and develop results.
In this analysis, I have com...
... middle of paper ...
...ution channels, and can be found and shelves all across America, but they could grow on that, and possibly expand globally. With the quality being a core competency, expanding globally could be a next step in order to grow profits. Also use the talented R&D director to develop new products and ways to expand on their line of household items.
In order to bring all of these strategies together, Mr. Stone needs to develop strategic intent. This is a way for him to gain the trust and sell a vision of what he wants GHB to become in the future. This will help boost the overall morale of the company, and create a more efficient and solid company.
Pro Forma Statement
If Mr. Stone implements some of the strategies like growing on the 2000 flushes, and expanding products to air fresheners and deodorizers, I believe that the financials will begin to look like this.
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