Church and Dwight Essay Example for Free

Church and Dwight Essay A. Executive Summary 1. Summary statement of the problem: Church Dwight, more commonly known by its brand name â€Å"Arm Hammer,† has held a commanding lead in the sodium bicarbonate product market for over 160 years with virtually 99 percent of all consumer products in households within the United States. However, in order to promote growth and diversity while maintaining a steady profitability rate of three five percent per year, the company has expanded uses of sodium bicarbonate products so that it is no longer the only focus. The acquisition of a diverse group of consumer products in international markets has been viewed as a viable option to sustain the profitability margins well into the 21st century (Wheelen Hunger). 2. Summary statement of the recommended solution: Since Church and Dwight is a relatively small company, when compared to competitors in household and personal care product markets they must recognize the challenges of growing sales through acquisitions to promote growth and competitiveness within those markets. Church Dwight must incorporate additional acquisitions of solid brands and products in order to grow market share through an expansion of product lines into a variety of â€Å"personal care, deodorizing and cleaning, and laundry products† as well as â€Å"specialty chemicals, animal nutrition, and specialty cleaners† (Wheelen Hunger). In addition, to maintain its position in the world market place, Church Dwight must expand into international markets and gain footholds in product markets through acquisition of manufacturing assets. Simply shipping domestic product lines overseas is cost prohibitive. Foreign manufacturing assets will allow product recognition by local consumers in foreign countries and markets. B. The Situation After 160 years, Church Dwight is a giant in the household domestic product market with brand name recognition more commonly associated with â€Å"Arm Hammer† products. However, this achievement in the market only nets $2.5 billion in annual sales worldwide. The company’s brand portfolio includes over 80 popular brands and competes for market share with other giants including Colgate-Palmolive, Clorox, and Proctor Gamble, which have combined sales of over $100 billion. The company has also expanded over the past decade into other household product lines through acquisitions of consumer brands including Mentadent, Pepsodent, Aim, and Close-up, as well as Trojan. Church Dwight has a core of specialty products primarily based on its successful sodium bicarbonate line of products. It currently holds 75% of the sodium bicarbonate market share. Expansion in the domestic markets has proven successful because of the â€Å"company’s pristine balance sheet†. Gro wth into the foreign markets has proven more challenging than domestic markets. Foreign market net sales in 2009 were only $393 million compared to domestic net sales of $1.8 billion (Cook). II. ANALYSIS A. Analysis of the Situation 1.Management – The Church Dwight Company has continued a tradition of slow and steady leadership with a solid focus on long-term goals. The steadiness of the company’s leadership can be primarily attributed to the fact that 25 percent of outstanding common stock is owned by descendants of the company’s original cofounders, a tradition that continues today. In addition, the management of the company over the past 160 years has been handed down from generation-to-generation until recently when Dwight C. Minton passed on the position of Chief Executive Officer in 1995 to an outsider, Mr. Robert A. Davies, III (Wheelen Hunger). This focused leadership style has enabled Church Dwight to overcome potential leveraged buy-outs and hostile takeovers with a series of calculated actions and savvy business decisions. These actions allowed the board of directors and management to amend the company’s charter and allowed shareholders four votes per share. The board of directors was also re-structured into classes, in which each class serves staggered three-year terms (Wheelen Hunger). In addition to staggering the tenure of the directors, the company initiated employee severance agreements with key officials, providing a severance package agreement to provide a â€Å"safety net† should any of the board member positions be terminated by a hostile takeover or leveraged buy-out by an unwanted suitor. By providing these lucrative packages for senior management, many were able to stay with Church Dwight. This allowed for continuity of leadership styles, vision and mission focus. Because of this steadfast devotion to principles, steady growth over the years has occurred, identifying Church Dwight as a Cash Cow, using the Boston Consulting Group (BCG) Growth-Share Matrix. However, as the company focuses more on international markets and enters other potential avenues of growing product lines, it will surely find itself labeled as a Star. 2.Operations – Church Dwight have peacefully existed over the past 60 years with sustained growth and profitability because it virtually held the market in the palm of its hands as other companies searched for ways to enter the household and personal care product lines. As a result of the constant forces in emerging markets, Church Dwight has come to the realization that they have major challenges to overcome if they are to compete with other giants in the industry and continue to thrive. As the company gains a stronger market share in the international consumer products, the growth and profitability standard will continue well into the future. However, Church Dwight also recognize they must remain vigilant to quickly and adequately deal with Porters Five Forces: Bargaining power of suppliers; Threat of new entrants; Threat of substitute products or services; Bargaining power of buyers (customers); and Rivalry among existing firms (competitors) (Wheelen Hunger). When considering Bargaining Power of Suppliers, the force rating could be considered Medium as management must be constantly aware of any potential market shocks or trends. If an affiliate retailer is affected by unforeseen supply chain issues, like increased fuel prices, then those costs throughout the company may be affected to remain competitive. In addition, Church Dwight are well aware of the economic situations that may affect their trade customers who may reduce distribution of products in which sales may decline, or adversely affect the financial performance of the company (Craigie). There was never historically a threat of new entrants into the sodium bicarbonate market prior to 1970. However, since the company has developed new product offerings and other established consumer brands, they now face the same competition threats of mature and domestic and international markets for consumer products. This threat of new entrants has emerged over the past decades and may now be rated high. The threat of substitute products or services is always considered high, as well, because consumers might choose a substitute item, if it is cheaper. This is a problem for any company. Bargaining power of buyers (customers) is generally a medium concern as consumer satisfaction is evaluated in a variety of ways. Otherwise, dissatisfaction can drive prices up or down based on demand, or the lack of. Quality is a hallmark of Church Dwight and the perception by consumers of any potential lowering of standards to decrease prices will typically drive loyal customers away. Finally, rivalry among existing firms (competitors) is high as competitors try to achieve greater market shares to grow potential profit shares. â€Å"Church Dwight has in an enviable position to profit from its dominant niche in the sodium bicarbonate products market since it controlled the primary raw material used in its production† (Wheelen Hunger). 3.Marketing – The Church Dwight marketing strategy has been fairly simplistic since its focus has been on the sodium bicarbonate product lines for over a century. However, with additional acquisitions over the past 20 years, and the expansion into other household products, the brand recognition has become even more important. As a result, â€Å"marketing expenses for 2009 were $353.6 million, an increase of $59.5 million or 20% as compared to 2008† (Craigie). In addition, Church Dwight caters to people of all ages and backgrounds. This wide range of customers allows them to develop more and more organic products and services with large scale agreements to satisfy those demographics. As the company expands globally, markets for one region could also be satisfied by other regions as production opportunities allowed greater cost-effectiveness. Unfortunately, â€Å"attempts to enter international markets have met with limited success, probably for two reasons: (1) lack of name recognition and (2) transportation costs† (Wheelen Hunger). Finally, the company began a ground-breaking marketing campaign by airing commercials for condoms on prime-time television. This â€Å"shock† strategy increased its marketing strength and enabled the partnership with Quidel Corporation, â€Å"a provider of point-of-care diagnostic test, to meet women’s health and wellness needs† (Wheelen Hunger). There are potential problems if va rious brand names fall into â€Å"the precarious line-extension snare† (Wheelen Hunger). As the company expands and acquires more product lines bearing the â€Å"Arm Hammer† trademark, the potential for substandard quality or customer satisfaction could cause a back-lash resulting in reduced sales around the world. Therefore, product marketing is essential to reinforce brand name recognition so consumers never forget the value and quality of a company’s name and its product lines. 4.Finance – Initially, the company’s domestic markets have proven successful. However, in keeping pace with competition in expanding product line markets, acquisition of assets has taken place, which could negatively impact the overall financial picture if profitability is not maintained. In 2009, Church Dwight’s performance worldwide achieved an increase in sales of 4 percent; organic sales increased 5 percent, gross profit margin increased 44 percent while global marketing expenses only increased 20 percent; and the Net Cash Flow grew to a record level of $401 million (Craigie). Perhaps even more significant to investors is the report that earnings per share grew 23% and dividends on investments increased by 35 percent (Craigie). In contrast to the growing profits and expenses, the compa ny also jettisoned noncore assets for the first time, including â€Å"five domestic and international consumer product brands acquired during the 2008 Del Laboratories transaction† (Wheelen Hunger). This posturing of assets will enable a financially sound balance sheet in the future. Therefore, the financial status of Church Dwight continues to grow as it has achieved modest gains from year to year, with hopes of even greater revenue and sales. Finally, the CEO remains focused on â€Å"building a portfolio of strong brands with sustainable competitive advantages† and the â€Å"long-term objective is to maintain the company’s track record of delivering outstanding TSR (Total Shareholder Return) relative to that of the SP 500† (Wheelen Hunger). 5.Administration – Church Dwight enjoys a sound management strategy. It incorporates affiliates through agreements to sell its products. In addition, the former CEO, Mr. James R. Cragie, stated â€Å"†¦We have added $1 billion in sales in the past five years, a 72% increase, while reducing our total headcount by 5%, resulting in higher revenue per employee than all of our major competitors† (Wheelen Hunger). While it may appear unsympathetic to the employee perspective, technologic al advancements allow for increased productivity in various aspects of manufacturing and labor allowing for greater productivity without the added expense of additional manpower. Church Dwight also continue to operate with an ethical employment code in keeping with today’s expectations of utmost respect for both consumer and employee. The following is the company’s published Ethical Standards: â€Å"The reputation and integrity of Church Dwight Co., Inc. are valuable corporate assets, vital to the Company’s success. Each Company employee, including each of the Company’s officers and general managers and each Company director, is responsible for conducting the Company’s business in a manner that demonstrates a commitment to the highest standards of integrity. Specifically, we encourage among Company personnel a culture of honesty, accountability and mutual respect. Additionally, we provide guidance to help Company personnel recognize and deal with ethical issues. Finally, we have provided mechanisms for Company personnel to report unethical conduct. Dishonest or unethical conduct or conduct that is illegal will constitute a violation of these Standards and are grounds for disciplinary action† (Church Dwight). 6.SWOT a.Strengths – The Church Dwight Company has many strengths, with brand recognition being their greatest. In fact, Arm Hammer continues to be their greatest asset and strongest product on the market today; the little yellow box is in over 95 percent of all households across the country. The sodium bicarbonate product line has proven itself for over 160 years with uses in baking, cleaning, and deodorizing, and as an added ingredient for things like drain openers and neutralizing agents. While there may be other similar products, Church Dwight have virtually cornered the market by holding 85 percent of it. b.Weaknesses – A potential weakness within the company is the overextension of branding into many other product lines. â€Å"Until 1970, it produced and sold only two consumer products: Arm Hammer Baking Soda and a laundry product marketed under the name Super Washing Soda† (Wheelen Hunger). The company enjoyed success domestically, but â€Å"in the internat ional arena where growth was more product-driven and less marking sensitive, the company was less experienced† (Wheelen Hunger). Therefore, they relied on acquisitions and management changes to improve its international footprint and reach. With ever-expanding product lines, suppliers, and retailers, the potential for an inferior product or service can cause a negative reputation, impacting the overall brand. Therefore, brand recognition should continue to be the focus when researching future products or investment avenues to ensure the quality of the product/service in the name of the company. Entire corporations have gone away because of a negative connotation to its brand name in the eyes of consumers. c.Opportunities – The possibilities are endless as Church Dwight continue to pursue additional product lines in household, personal care, specialty, and international products. Future expansion in acquisitions and assets may prove more advantageous as potential consumer products become even more attractive to increase the profitability as the manufacturing base is expanded around the globe. Perhaps in 20 years, we may have cars manufactured by Church Dwight, as well. d.Threats – The primary threat to Church Dwight is competition. Competitors have an even greater market share and larger marketing campaigns to remain leaders in their respective niche. There are always going to be threats to its business operations, products, services, and reputation. Therefore, ongoing evaluation of partnerships, agreements, consumer satisfaction, quality of production, quality of service, etc. is always continuing. Without a continuous evaluation process, companies may find themselves outsmarted, out-marketed, out-produced, and out of a job. Church Dwight have done a great deal in maintaining a very loyal customer base through evaluations of consumer trends and ensuring affiliates maintain the highest standards to retain the reputation as the leading household product manufacturer 7.Products or Services – Church Dwight continue to produce some of the most widely known household care products. These products are based on differences in the nature of their uses and organized into three reportable segments: Consumer Domestic, Consumer International and Specialty Products (SPD) (Craigie). The company currently produces 80 different product lines, in which eight major brands make up a total of 80 percent of its business (Craigie). The most famous of the company’s products is Arm Hammer Baking Soda. As a company focused on quality and innovation, Church Dwight has â€Å"a discreet marketing team focused solely on new product development† (Church Dwight). In addition, the company is focused on goals to develop differentiated products with new and distinctive features, increased convenience and value, and engaging outside contractors for research and development activities (Church Dwight). B. Problem Definition 1.The Church Dwight case study identified a corporate problem needing to continue expansion in products and services, while presenting a consistent operating profit and increasing market shares of the household product industry. Expenses were continually evaluated and streamlined to reduce inefficiencies; including product research and development to identify â€Å"new uses/markets for an existing product† (Wheelen Hunger). Unfortunately, constant pressure from global competitors seeking to enter domestic and international markets, as well as an overall poor economy, is creating an atmosphere where continued growth must be developed through new opportunities for expansion into new geographical markets, new products/uses, all while striving to control increasing transportation costs. 2.In order for Church Dwight to retain its position as the leading household product manufacturer, it must continue to provide outstanding customer service, excellence in product quality, invest in cutting edge technology to remain a viable resource for consumers, as well as developing new uses for its primary product line to ensure customers remain satisfied with the product, as promised. In addition, expanding its share of other household product opportunities and innovations will be key to any future growth. Yet another opportunity for Church Dwight to grow is in the business-to-business exchange market for suppliers, manufacturers, distributors, and retailers to use. By providing this service to its affiliates and partners, they would be able to achieve greater operational efficiencies in their supply chains. 3.As Church Dwight enjoy a considerably large loyal customer base, competing with Proctor Gamble and other industry giants to get customers to switch competitors is no easy task. However, with any challenge comes greater innovation and new ideas. Relationships with suppliers, manufacturers and other retailers allow for greater efficiencies in costs by consolidating orders, developing greater discounts on shipping costs, or even creating greater financial incentives for affiliates to increase sales and customer satisfaction rates by increasing consumer awareness of the quality and reliability of services and products available to them. III. SYNTHESIS A. Alternative Solutions Brand recognition for ARM HAMMER brand products has already been established within the domestic markets of the United States. International markets continue to challenge emerging companies due to cultural differences in market populations, cultural differences in marketing strategies, and language barriers requiring new brand names more suitable for local languages/cultures. With low population growth rates and households in international markets, increasing transportation costs, and intense competition and higher commodities costs, manufacturers are turning to new and innovative processes to increase their share of the household product markets. For example, rising gas prices are a concern since it directly contributes to increased production costs. In response, household and personal care product companies are making efforts to stimulate sales in varying ways, such as entering new markets, creating new product segments, strengthening strong brand image, acquiring businesses, targeting market audiences, and increasing advertising budgets. Another alternative could be to develop joint-business ventures with suppliers, manufacturers, distributers, and retailers. The benefit to this option would be to streamline production and sales and allow the ease of marketing products and services to its affiliates and partners. This option would also allow greater operational efficiencies and translate into lower costs for Church Dwight and lower prices for consumers. B. Recommendations and Conclusions As Church Dwight look to satisfy competitive pressures while still reeling from the recent economic crisis, the following recommendation and solution is presented in hopes of reducing expenditures and continuing company growth through new product development and market expansion. Expanding into new markets with â€Å"major competitors jockeying for shelf space and retailers seeking to rationalize their breadth of product offerings, more changes may be considered† (Wheelen Hunger). Therefore, the best recommendation for Church Dwight at this point in time would be to implement the first alternative, delving into new product lines both in domestic markets and even greater exploration of international markets. This option would be advantageous because of the limited financial investment required to grow already established footholds in foreign countries to manufacture and transport new product lines. In addition, by improving upon past successes and avoiding past mistakes, a s ound marketing campaign could attract additional consumer traffic to its existing retailers and product outlets. Arm Hammer also has premier brand recognition within the United States, which would look to use its large customer base to compete against Proctor Gamble or Colgate-Palmolive, and Clorox. Finally, to satisfy any shortcomings in this solution, it is further recommended that Church Dwight initiate an aggressive marketing strategy incorporating foreign experts in business and marketing development to identify focus groups to better understand cultural differences and expectations in product innovations. Understanding why a specific culture or race chooses one brand over another is key to identifying potential aspects of a new product line that would be warmly received in another country rather than simply pushing an American-made product brand on a culture that has no experience with the product or whose name may have a derogatory meaning in their language. This option could also allow Church Dwight to market potentially less expensive alternatives to Proctor Gamble or other foreign corporations specializing in household products in another country or region. This recommendation provides a potential solution to increase sales while growing market share and staying ahead of the competition. References Church Dwight, Co. Inc. (web). Churchdwight.com. Retrieved on April 8, 2012 from http://www.churchdwight.com/index.aspx Craigie, J. R. (February 24, 2010). Church Dwight co., inc. 2009 annual report: Churchdwight.com. Retrieved on April 8, 2012 from http://www.churchdwight.com/PDF/AnnualReports/2009-CDH-Annual-Report.pdf Wheelen, T. L., Hunger, J. D. (2012). Strategic management and business policy toward global sustainability. (13th ed., pp. 19-20). New York, NY: Pearson Hall.

Social Networking: Privacy Issues Essay -- Facebook, Twitter, Internet

Is it an invasion of privacy, if we place our private thoughts and photos on social websites and other people besides out friends and family view it? Who really reads the terms of use and conditions in a privacy statement online? We just click the checkbox and keep on going. If we had to read each and every single line, no one would ever sign up on a social networking site. How do users protect themselves through the forest of privacy options so they can get the most out of Facebook, MySpace and Twitter with the least amount of risk? The more information a user gives to the social network the greater risk that someone could misuse or steal information. Most users do not understand how to protect themselves and go through the necessary steps for protection on cyberspace. There are several problems with adding contact information in your profile. If you do not lock out this information to the friends you want to have such information, anyone that views your page can get you contact information such as cell phone, IM screen name, address, city and email address. According to the Web site geek system, Cryptome, a whistleblower site got their hands on Microsoft’s â€Å"Global Criminal Compliance Handbook,† a comprehensive 22 page guide running down surveillance services Microsoft perform for law enforcement agencies on its various online platforms, which includes detailed instructions from IP address extraction (Quigley, 2010). This article published electronic surveillance guides for Facebook, AOL and Skype (Quigley, 2010). According to Facebook search warrant guidelines data retrieval is based upon a Facebook user ID or group id (Facebook, 2008). When the Facebook ID is not available they can locate a user by using their email a... ... top 50 U.S. web properties for June 2010, Retrieved August 08, 2010 from: http://www.comscore.com/Press_Events/Press_Releases/2010/7/comScore_Media_Metrix_Ranks_Top_50_U.S._Web_Properties_for_June_2010/%28language%29/eng-US comScore (2010b, June 2). Social networking ranks fastest growing mobile content category, Fastest growing content catergories via browser access 3 month avg. Retrieved August 8, 2010 from: http://www.comscore.com/Press_Events/Press_Releases/2010/6/Social_Networking_Ranks_as_Fastest-Growing_Mobile_Content_Category/%28language%29/eng-US comScore. (2010c, July 28). Social networking sites reach a higher percentage of women than men worldwide. Reston, VA: Retrieved on August 4, 2010 from: http://www.comscore.com/Press_Events/Press_Releases/2010/7/Social_Networking_Sites_Reach_a_Higher_Percentage_of_Women_than_Men_Worldwide/%28language%29/eng-US

“He Is More Than A Hero” written by Sappho Essay

â€Å"He is a god in my eyes- the man who is allowed to sit beside you† â€Å"If I met you suddenly, I can’t speak- my tongue is broken† The following lines were taken from a poem written by Sappho entitled â€Å"He Is More Than A Hero.† For those who are not familiar with Sappho, she was a resident of a city names Lesbos. She lived from 630 B.C. – 570 B.C. In the city of Lesbos, Sappho was a highly respected poet/teacher by many but mainly the females. It is said that she was constantly surrounded by a circle of women who studied poetry with her. I am using this background information and the quotation from one of her many poems â€Å"He Is More Than A Hero† to support my theory that Sappho was a homosexual. Though the evidence is merely circumstantial, I feel that it is enough to convince one that she is a homosexual. The poem which I extracted my thesis statement is obviously being written to a woman, but it is cleverly masked by the title â€Å"He Is More Than A Hero† and a few other lines in the poem. In the beginning of the poem she is briefly describing someone’s male companion who is apparently a good lover possessing a few qualities that Sappho admires. â€Å"He who listens to the sweet murmur of your voice- the enticing laughter that makes my own heart beat fast.† Though the first few lines serve as a clever disguise, a cultured reader notices that the poem suddenly changes subjects, moving from a description of this man who is a god in Sappho’s eyes to a declaration of love for the female companion of this man-god. The 3-4th lines address an unknown you who is apparently the companion of this striking male. The you is also addressed in line 9 . The rest of the poem following that is a love ballad to this you who was first identified as being the companion of the man god. If one is not a skilled reader he/she may have missed the transition of the poem from one person to another. The first few lines serve as a disguise and a way for the author to express her jealousy of him being next to his female companion. She views him as  being a god because him being in the object of Sappho’s affection makes him that. This is based on the thought that if someone possesses something that you do not then they have a higher position of power than you. This thought accounts for her viewing him as being a God. There are also a few other pieces of evidence that suggest that the poet Sappho was a homosexual. She was a resident of an city known as â€Å"Lesbos†. The name of the city had a striking similarity to a word which is given to homosexual women of modern times â€Å"Lesbian†. It is also said that she was often surrounded by women who were her â€Å"students†. Though this evidence can be seen as being only circumstantial, I feel that the combination of her addressing a female in her poem â€Å"He Is More Than A Hero† as having certain homo-erotic effects on her such as making her feel as â€Å"a thin flame runs under my skin† and making her â€Å"drip with sweat† whenever she sees her is enough to label her as being the â€Å"Greatest Lesbian Poet of Rome†

Eating Disorders in Sports - 1405 Words

Introduction General Background The occurrence of eating disorders are a serious problem worldwide. A major problem with this disease, abnormal eating behaviour that can threaten your health or even your life,(1) is that the mortality prevalence rates are highest among those who are not under professional care: per 100 000 females, 370 die suffering from Anorexia Nervosa and 1500 women with Bulimia die.(2) The worldwide prevalence of eating disorders among athletes, 0-19% for men, and 6-45% for women, is higher than the prevalence within the general population.(3) According to the Trimbos Institute, the presence of an eating disorder at some point in time for Dutch civilians is 0.7%.(4) However no specific prevalence numbers are available†¦show more content†¦Also, in some sports, eating disorder pathology does occur less. What factors in those type of sports might protect an athlete from eating disordered behaviour? Finally, could the intensity level of exercising be determinative for the presence of eati ng disorder pathology? Study aim and design This study focuses on the presence of eating disorder pahtology in a convenient Dutch sample of athletes. By comparing athletes within different fields of sport and a variety in intensity of that sport, a possible relation can be investigated. It is crucial to determine whether someone shows signs of eating disorder pathology. Due to the fact that there is no information yet about the presence of eating disorder pathology among Dutch athletes, this study first aims to give an indication of that presecne. To tackle the (further) development of eating disorders in the future, it is important to know whether different types of sports have different impacts on eating behaviour and body weight of the athletes. Also, it is interesting to know if the intensity of sport practice is related. This study aims to give insights in these questions. 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