Church & Dwight: Time to Rethink the Portfolio A case report prepared for MG 495 Business Policy (Fall II 2012) (Andrew Smith) (11 November 2012) Church & Dwight: Time to Rethink the Portfolio I. INTRODUCTION A. Executive Summary 1. Summary statement of the problem: Church & Dwight was founded over 160 years ago. A decade ago Church & Dwight was pulling in less than $1 Billion in annual sales while remaining a largely household domestic products company with only one iconic brand. Over the past decade Church & Dwight has made many successful changes in their company to create rapid growth fueled by a string of acquisitions and creating a diversified portfolio. …show more content…
A few ways that Church & Dwight was able to do this was 1) maintain majority control of the outstanding common stock 2) the board amended the company’s charter 3) giving current shareholders four votes per share and requiring future shareholders to buy and hold shares for four years before receiving the same privilege 4) “the board of directors was also structured into three classes with four directors in each class serving staggered three-year terms…the objectives of these moves was to “[give] the board control so as to provide the best results for shareholders.” (Church, p.2) and 5) the company entered into an employee severance agreement with key officials. Numerous changes were made in key personnel in order to make a strong push into consumer products outside of sodium bicarbonate-related products and into the international arena in the early 2000’s. (Church, p.3) Many of the new management hires came from well known corporations and brought with them extensive marketing and international experience. 2. Operations – Church & Dwight’s growth strategy relied on finding new uses for sodium bicarbonate. Prior to the acquisitioning spree, this was where all the company’s profits came from. The company soon
CASE 35 – CHURCH & DWIGHT: TIME TO RETHINK THE PORTFOLIO? I. INTRODUCTION A. EXECUTIVE SUMMARY 1. Summary statement of the problem: Church & Dwight, more commonly known by its brand name “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 3-5 percent per year, the company has expanded uses of sodium bicarbonate products so that it
The chief concern is the major change and transformation that needs to take place, a new model that has the potential for new ground, trailblazing ahead. Currently, due to economic, social, and cultural shifts, Seagram recognizes a need for a shift as well in order to meet new demands, attitudes, and perferences. In attempting to increase profits, retain reputability, and influence, Seagram
Upon review of the information provided, it is clear that a vision set forth by Upper management, President and CEO Edgar Bronfman, Jr. had not been implemented and there is much work that needs to be completed to fulfill his legacy. Bronfman’s statement was clear and concise with a vision to be sought after no matter the cost. His vision, according to Jick & Peiperl, 2011 is for Seagram’s to be the “best managed beverage company” (p. 255). Bronfman had an idea/image of how he wanted Seagram’s to be viewed by the world and its employees. His vision offered a baseline for all employees to follow which in turn offers a one company initiative. Offering this baseline for the corporation leaves no chance for deviation from the cause. This company with deep roots in diversity and was losing ground due to changes in the new ideas of sobriety, increases in taxes on liquor, the 1990s recession, increased government regulation and social criticism (Jick & Peiperl, 2011). To define this project is to give direction and purpose to Bronfman’s word by backing them with actual progress towards his vision. This vision for Seagram’s is to not be confused with the need of the newly acquired MCA Corporation. This company should have its own visions and values.
1. Summary statement of the problem: Church & Dwight, more commonly known by its brand name “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
Church & Dwight Co., Inc., founded in 1846, is the world's leading producer of sodium bicarbonate, popularly known as baking soda, a natural product which cleans, deodorizes leavens and buffers. The Company's Arm & Hammer brand is one of the nation's most trusted trademarks for numerous consumer and specialty products. The company has multiple plants in United States and Brazil from where they export their product. Their subsidiary in Brazil also manufactures various inorganic chemicals, such as sodium sulfide, sodium sulfite, sodium metabisulfite, barium carbonate, barium sulfate and barium chloride. Church & Dwight consumer products can be broken into four categories: deodorizing and
With the high interest of adopting a more eco-friendly environment, Spectrum Sunglass Company was challenged to provide a greener product to the largest retail customer Big Mart in a short timeframe. Big Mart suggested that Spectrum to reduce the use of petrochemical raw materials in the manufacturing of the products from 90% to 50% within two years. In the interim, Big Mart requested a detailed implementation plan of action within three months. If action plan is not received, Big Mart will cancel business with Spectrum and will work with competitors willing to incorporate greener products. As the Director of Product Innovation, I was eager to implement the change for numerous reasons. Prior to being presented with this challenge, many customers voiced concerns over the company’s environmental impact. Looking for ways to develop the company economically while setting Spectrum apart from competitors both price and design wise. Although the deadline for the action plan was short, the thought of the company growing by developing a distinctive product was positive. However, being a middle manager, I do not have the authority to put the change in place. Collages and senior management support is highly needed.
Adelphia’s initial board was made up of nine board members and five of the nine were the family of John Rigas, owner and founder of Adelphia. This meant that the Rigases had 100% ownership of class B super voting shares, which gave the family majority voting rights. This is how the family maintained control of the board even after the company went public. Investors did not quickly pick up on this, as this was the era of the “tech” bubble and most were just looking to “get in” on it.
Bath & Body Works (BBW) enjoyed a successful decade after its inception in 1990. However, over time their limited offering of products was sending their customer base to other retail chains - either trading up to better brands or trading down to cheaper prices. As demand for their product seemed to dwindle, they needed a way to increase their customer base. An increase in
n April 1985, the management of Coca-Cola Co. announced its decision to change the flavor of the cotnpany 's flagship brand. The events that followed from this decision, as well as the faetors which led up to it, have been reviewed, discussed, and extensively analyzed in the popular press, the trade press, and in marketing textbooks. Two books and at least two marketing cases have been written on the events surrounding the flavor change decision. Also, a well-known, but somewhat older Harvard Business School marketing case deals with some of the key events which led up to the decision. Despite the extent of this
J.D.B.T.’s overall business strategy was competitive benchmarking on factors such as price, brands, and advertising. After noticing a decline in our profits and market demand, we added a competitive twist to our business strategy. We expanded our sales channels,
Alex Sander is a young and promising product manager in the Toiletries Division of Landon Care Products Inc. Over the past year, he has successfully rebranded two of Landon’s skin care products in the United States. Alex has created a winning enviornment at the Toiletries Division by applying very high standards to everyone, and often pushing his staff to the limits. A recent 360 degree review has revealed that Alex’s strong drive to succeed has come at a cost, as his staff are highly disenchanted by his iron-fisted ways. (Alex has since discounted the importance of the these findings.)
Although not the most exciting product in Stewart Corporation’s portfolio, Reliance Baking Soda (RBS) was a “tried and true” item that the company created in 1915. At the time, the “miracle compound” was used strictly for baked goods. However, as time passed, the company realized its many other uses such as a cleaning/laundry aide, and its ability to disinfect and deodorize. “In 2006, over 85% of U.S. family households with income of $25k+ used the product” (Quelch & Beckham, 2009). In the case study, Reliance Baking Soda: Optimizing Promotional Spending, John Quelch and Sarah Beckham state that “RBS was a clear market leader in the baking soda category, capturing 70% share.” Due to Reliance holding the majority of the market, competitors hesitated to jump in to challenge the product. The few competitors that dared to compete against them were private label brands. As the table
Their strategy was about customer service rather than profit or revenue. The growth was built on creating new products for the existing target market.
Church & Dwight relied on acquisitions and management changes to improve its international footprint and reach. Case 35-7
RPD was successful by targeting the 2% of American families who hold 80% of the country’s assets. This strategy that served the company well through the early 1990s was not faring so well by the mid-1990s. A new layer of wealth was created which in turn created new target audience for RPD and for their competitors.