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Evaluation And Strategic Evaluation Of Colgate Palmolive

Companies wanting to gain a competitive advantage in the current environment, where competition is very rough where scientific improvement have forced major companies forward may need a strategy development process. By using several features like creative imagination and originality, companies can come up with lots of options and opportunities you can use while creating a strong strategic plan. Today, Companies should develop the sense of managing and monitoring of procedures, nothing at all should be still left randomly, because important loss can incurred.

Many thinkers have argued that a strong strategy should consider three important factors (3C): Customers, Competencies and Competition. To start with customers, companies can distinguish between existing customers and customers; in addition, they have to understand customers' needs for a better profitability. Competencies are perhaps the main tool in this string, it can raise the company's stock index or lead it to bankruptcy, and it's really by realizing multi-skilled people trained and ready in a large variety of skills or activities that companies can carry on 'the adventure'. Finally, competition is no longer an idea to be identified or explained, it's becoming a double-edged sword for companies in a world where the quantity of firms is growing exponentially.

Analysis of the areas cited above is interconnected. Who you decide on as your goal group will have repercussions on capabilities you require, which will impact on what your competition policy that may pressure who you choose as your goal group.

Furthermore, a proper structured strategic research will stimulate to brighter more significant goals, and a far more safe future as companies are better aware of possible hazards that you can do. They might be also known as (Exterior Environmental examination), it's may be seen as the bond between going in the right track and making the correct decisions, some sort of trade-off set up by the business.

It's through strategic research that organizations can handle pushing funders for future perspectives. Funders are more likely to go for donations or loans, in case of strategic evaluation environment, to expand the gap between the organization and its competitors. Inside the other side, not considering at least a little amount of proper analysis means burning off opportunities called also (opportunity cost). A 'departed behind' status can be come to in case of ignoring strategic evaluation.

BNET Business Dictionary identifies the strategic evaluation as the way of conducting studies on the exterior environment or business environment where in fact the corporation performs and on the business in the purpose of drawing a strategy. Inside the other hand, Teacher Les Worrall thinks that strategic examination is a fair understanding of company surrounding, it requires into consideration the interrelation between the firm and its environment.

Many studies have been conducted in this field, they may have suggested different explanations of strategic examination but three important characteristics are associated with it:

recognition of important information to sophisticated the strategy.

Recognition of encompassing factors to be looked at.

Multiple tools and techniques can be utilized along the way.

Some types of techniques and tools needed for a strategy elaboration:

Four corner's analysis

Early warning scans

War gaming

SWOT analysis

PEST analysis

Porter's five makes analysis

Value string analysis

Analytical tools are designed to ensure the sustainability and stability of the evaluation suggested. Analytical methods are worldwide used and comprehended, they have reached a mature status where every organization can use them to raised work However, while dealing with the analytical methods, companies should retain in mind some concerns:

The tool or method can answer question that may be raised by the organization.

The benefit coming from using any tool or method should be obviously defined and explained. To ensure a successful analysis, company need to move forward a great understanding of the tool used.

The tools suggested are empowered if there is collaboration as input with other people surrounding the company, in addition, time should be assigned to people concerned so they accommodate the research.

Every member of the organization must be aware that the utilization of any evaluation tool is time and effort consuming, decision-making panel and stockholders, in the implementation stage, should be 'flexible'.

The purpose of using those tools and techniques is to visit deeply in the structure and to provide a better approach more good and methodical. In addition, all analytical tools are employing historical data, they count on past data to raised understand futures desires. Moreover, results coming from the examination should be interpreted with caution or the analysis can lead to an influenced final result, due to pressures, which choose a particular strategy. One of the important competencies associated with an analyst is to comprehend which tool or strategy is most appropriate in the framework.


Colgate-Palmolive is generating benefits from making and providing shampoo and toothpaste, 80% and 15% respectively.

In 1806, Mr. Colgate William opened a shop where he sold candle and soap and multiple makeup in United states which consists of name as a label, because he was famous, he managed to gain large revenue. Then, the company started to sell energetic bars for consistent weights. In 1857, His kid required over, when his father Samuel Colgate passed on; the company was renamed as Colgate & Company».

In Milwaukee, "B. J. Johnson Company" was producing a special and famous soap by mixing only 100 % natural ingredients the method used was developed by a doctor in past due nineties. The cleaning soap was very popular, thanks to the menu originality, and needed the name of Palm-Olive (Palmolive)

Between 1928 and 1953 many changes occurred, these are summarized below:

The merging of "Peet Brothers with Palmolive under the name Palmolive-Peet.

In 1953, the business changed its name to the current name "Colgate-Palmolive Company".

Colgate-Palmolive has been rivalling with the world's major cleaning soap and detergent maker for decades. After the World War II, P&G had decided to a unveiling a diversified selection of products under the name of TIDE, many consumers turned to this services when they used to buy Colgate-Palmolive Products. Moreover, the company encountered another task when P&G made a decision to add Fluoride in the toothpaste an achievement never done before, because of this fact, Colgate-Palmolive lost his first place in the toothpaste market. To contend with Procter and Gamble, CP(Colgate-Palmolive) have used television(new invention at that time)and decided to sponsor some shows to allow them to gain back their market talk about against P&G.

In 2006, Colgate-Palmolive has intended to find the major part of Tom's of Maine, a pioneer in the toothpaste producer. Today, Colgate-Palmolive has lots of plants and subsidiaries surrounding the world, more than 200 countries are using Colgate-Palmolive Products.

Colgate-Palmolive Values:

"Our three fundamental values-Caring, Global Teamwork and Continuous Improvement-are part of everything we do"

"Valuing Colgate People"

"Becoming where to Work"

Organizational Structure

Executive Mother board Organization

Factory Business Chart

Colgate strategic analysis

PEST Research:

Nowadays, to ensure a lasting, competitive and successful company, managers and board of executives must deal and operate within the strenuous "macro-environment" that is formed by affects of different facets. These factors can emerge from many resources: The overall economy, populace, governmental legislations and restrictions, societal principles, new technology.

All of the represent relevant factors that can have a gigantic effect on all the decisions the company makes involving its direction, business model, objectives, strategy and therefore, the capability to impact on the business's overall situation. Given that we have recognized the value and the impact an exterior environment can have on the business's situation, it's compulsory to sort those factors into categories and assess their importance to the business enterprise.

After evaluating their importance, exterior factors can be classified into 4 major assemblies utilizing the Infestations or PESTLE Research.

Political Factors

The first notice in the acronym identifies Political factors and they're issues that impact the way to do business. They can be trading policies enforced by the federal government or the political stability of the united states where business is conducted. Political issues can be related to taxes and labor laws imposed by the federal government and labor unions. They can even be regulations directed to maintain a good competition on honorable basis between competitors in any industry and prevent abusive actions. Additionally, the political factors can also be polices put by the federal government to protect the environment where the company is operating. This sort of rules can for example be linked to pollution issues or standard quality of these products or services which will be directed with their clients.

Economical Factors

The second notice in the acronym refers to Economical factors and they're things related to the overall situation and stage of progress of the economy. These factors need to be taken into consideration for the impact they can have on the procedures of any business. Managers need to assess the home economy situation and movements. Furthermore, they need also to keep an eye on changes in taxation of products & services. In addition they need to check out the driving causes of the economy like the purchasing power of their target market and consumer choices and also to unemployment and wages levels. If the business is involved with foreign trade, professionals have to consider the tariffs and exchange rates as well as the import and export ratios applied in that country.

Socio-Cultural Factors

The third notice of the acronym refers to Socio-Cultural factors that any company has to consider the point of view of everyone. The public's view and frame of mind toward the business's products is also important because it plays a key role in building the image within different constituencies. Companies also have to be in long term contact with the media by writing press releases or opening its doors to build brand image that is known by everybody. Socio-Cultural factors can associate also to issues lifted in promotional initiatives and publicity or by taking part in major events showing their part of cultural responsibility. Sociable factors also include diversity of their work force employed. Companies retain disabled and seniors to have them included within the modern culture. Finally, companies need to respect and consider moral issues no to offend any minority in the world.

Technological Factors

The last letter of the acronym refers to Technological factors. These factors have changed just how businesses operate. By intro of all these technology, companies are able to conduct their functions much easily with an improved performance. Technology participated in the improvement of many aspects since it was created at all levels of the business, from selection process to productivity and research and development. (Jana F. Kuzmicki, 2007)

Business Environment (Infestation)

Porter's Five Analysis

Supplier Power

Porter's five strategy has addressed every component in the organization environment, It's regarded as a robust tool for a proper evaluation. Porter has considered suppliers as being an important string in the development of any company, if the sufficient time and effort is assigned to suppliers they may be a competitive gain, because there is a control over suppliers' electricity. In this circumstance of Colgate-Palmolive, investors are willing to invest in dental and home care companies, since they know how lucrative those companies are. However, most of investors think that Colgate-Palmolive is experiencing a 'lack of recognized differentiation', that impact their willingness to invest and that makes the investment decision-making process poor. Furthermore, Colgate-Palmolive didn't propose any strategy that can identify it from its competition, this is excatly why they have a minimal bargaining supplier electricity, and in other words they are cared for as other major competition are, for their high dependency.

Power of Buyer

Customers represent a real electric power of any business. Customers are able to influence business expansion and sustainability. Colgate-Palmolive products are being used by more than 350 million customers a day worldwide. Customers are loyal to Colgate-Palmolive brand for many reasons like for their progressive products, solidarity jobs they are introducing. CP customers know about the efforts the company are doing to handle the poverty in Africa and Asia. In addition, shareholders and stakeholders are incredibly satisfied from the company's management. In 2007, a research study has confirmed that because of their diversified range of products and the technology implemented that customers like Colgate-Palmolive to P&G. Another research has confirmed that customers are loyal to CP because of its cheap range products, yet with a superior quality and performance basis. This past year, customers, through the study, have argued on the business's good performance, they think that the huge financial property invested have evolved their take on the CP products. Alternatively, CP's management has reduced operating costs and focus on profitability and online profit.

Risk of New Entrants

In the house and oral attention industry, especially in the soap and natural products, the companies functioning in this sector make an effort to reduce the impact of risk over new proven competitors by bringing up effective and standard businesses, companies are working towards building up the relation they have with suppliers and vendors and they improve the view their customers have, because they build the trustful and brightest image ever proposed.

In addition, the speedy expansion of technology has allowed companies to beat any new entrant available. In 2008, technology acquired permitted a differentiation of CP from its competitors. They have come up with an progressive toothpaste product, the creativity was that these were the first company capable of moving from sturdy toothpaste to a semi-solid or gel toothpaste, this development delivers new brushing sensations.

Colgate-Palmolive Company has structured its success on a strong foundation that prevent from new entrants and their potential goodies. CP managers believe in conditioning both tangible and intangible factors, like products, ethics, worth, technology that promotes brand devotion.

Threat of Substitutes

Factors of type internal or external can raise the threats of substitutes, where customers switch from something to another, generally speaking price cost of something is the major reason for any customer to change to other products. In case there is a increase in an expense product, customers have a tendency to think of other line products, this is exactly what we call the Churn rate. Because of social and politics factors, the price tag on any product may tend to increase, it presents a real hazard for the business. But, the effective strategy implemented by Colgate-Palmolive, like raising turning costs, customer surveys to find out about their needs and need, by using techniques theory will definitely decrease the impact which could result from substitute product.

Degree of rivalry

In any market, price signifies a key point in customer retention process, a common rule states the less you price your product, the more customers you can entice. Colgate-Palmolive attempts to avoid the price competition, they think that is a not a powerful way to get market stocks and clients. Managers have a tendency to keep a good communication with rivals to better work in a coherent atmosphere, they aloes use multiple strategies to stay in the most notable three of home and dental care manufacturer. These are discovering a competition as an opportunity that improves the productivity and the quality proposed.

Colgate-Palmolive has a competitive advantages because of all what we've discussed earlier, in addition a very structured financial management and bring Colgate-Palmolive to the most notable manufacturing companies on the planet.


Colgate-Palmolive Company is an extremely experienced company that acquired faced a number of unpredictable occurrences during the last and this century, due to its efficiency and quick response they may have always were able to find solutions so move forward also to stay competitive in the house and oral treatment product market. P&G are also doing well, in fact, it's a one to one battle to gain market share and also to sustain customers. As stated above, many analytical tools can be found, it's up to the management department to see which one suit the most to the framework.

PEST analysis and Porter's five are incredibly useful to observe how the environment encircling any company appears to be. It's very important that for companies to understand the opportunities and risk that may occur at any time, in other words, the business should better understand all the components of its environment to better make decisions and to reach the predefined goals and goals. Another way to analysis the environment of the company is SWOT evaluation it's known to be a simple way to better monitor and control the strengths, weaknesses, opportunities and hazards that may be faced, it commences by arguing over a common objective available activity and then highlights the inner and exterior factors that are from the success or inability of the job. There four basic principles of SOWT research tend to be represented in a 2x2 matrix as below:

SWOT analysis

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