This website uses cookies to ensure you have the best experience. Learn more

Financial Analysis Proctor And Gamble

1813 words - 8 pages

FINANCIAL ANALYSIS: TEMPLATE

NAME:

EXECUTIVE SUMMARY:

Proctor and Gamble® was founded in 1837 by William Proctor and James Gamble in Cincinnati, Ohio. Today the company is the world’s largest producer of consumer goods with over 300 brands in over 180 countries. The company has a significant advantage over its competitors because of market position and brands that everyone knows such as Tide®, Pampers®, Gillette®, Olay® and many more.

The company’s purpose is to “provide branded products and services of superior quality and value that improve the lives of the world’s consumers now and for generations to come. As a result, consumers will reward us with leadership sales, profit ...view middle of the document...

This company has been going strong for 180 years. Chances are they will keep rocking the consumer goods business for another 180.

SWOT ANALYSIS:

STRENGTHS
• Worldwide brand recognition
• Leading market position
• Diversified product portfolio
• Strong focus on research and development
• High visibility due to marketing and advertising
• Strong financial position

WEAKNESS
• Competition from domestic and international brands
• Slowdown in global economic condition
• No private label products for customers
• Majority of health and beauty products are for women

OPPORTUNITIES
• New markets in third world countries
• More Green Eco friendly products
• Additional mergers and acquisitions
• Increase penetration of urban areas

THREATS
• Competition from unbranded or local products
• Rising energy costs
• New regulations
• Global economic conditions
• Counterfeit goods

RECOMMENDATIONS AND JUSTIFICATIONS:

1. RECOMMENDATION #1: Should the firm increase their capital expenditures to increase competitiveness? This will almost always be true but what segments of the business get the most capital allocated to them and why?

Proctor and Gamble may be the leader in its industry, but in order to maintain their status, they need to stay on top of their game if they are going to maintain this ranking. Their biggest competitors, Johnson & Johnson and Kimberly Clark are constantly looking for ways to improve their products and market share.

Fabric and Home care segment stands for 32% of the company’s sales. This includes laundry products, cleaning supplies, batteries, and pet products. This portion could be considered the company’s “bread and butter”. More capital is allocated to R&D in this segment to continue making the products better than they were.

With improvements on already popular brands, consumers will continue to use. Prior consumers that weren’t happy with the product may also be tempted to try again which will increase customer base as well as increase profits.

Capital should also be invested in locating supply chains closer to major hubs. While this investment may be costly, it could generate large returns because shipping costs would decrease which would allow the company to maintain competitive with the pricing of it’s products.

2. RECOMMENDATION #2: Should the firm increase growth by acquiring other companies for synergies or grow internally? Do they have the infrastructure to grow internally? If they buy a competitor, how will the merger be integrated in regards to culture, overlapping businesses, etc.

The firm should look into acquiring other companies. An acquisition will help expand the firms product line, team, market share as well as the possibility of greater geographic presence depending on where the acquired company has been doing business. Finding young...

Other assignments on Financial Analysis Proctor And Gamble

How Has Marketing At P&G Changed?

286 words - 2 pages How has Marketing at P&G changed from the time of the scope case to now? First of all I just want to say thank you for the opportunity to meet and have lunch with Marc Pritchard. It was an amazing and educational experience. The food was pretty good too. Marketing at Proctor and Gamble has changed significantly since the time of the scope case. They are no longer dealing with what to do with a new product entering the market. Something

Finance Essay

265 words - 2 pages Uttara University Department of Business Administration Program – MBA Semester –Autumn 2013 Course Title: Investment Analysis and portfolio Mgt. Course Teacher: Md. Azizur Rahman (Assistant Professor of Finance) Lesson Plan for Midterm |CHAPTER| |Investment, The Importance of Financial Investments, Investment Management Process, Measures of | |1

Cariboo

2060 words - 9 pages . What can go right? What can go wrong? What can management do to improve the risk/reward ration? Excellent negotiation with the executives of Proctor and Gamble in licensing the product under their brand, will represent a good opportunity. On the other hand is the unrevealed inexpensive electric toothbrush that Crest Division of P&G had been working on, which can take away the market share due to higher brand perception, and destroy Johns product

Energy Drinks, Sports Drink

2629 words - 11 pages established companies. This combined with the already higher costs of alternative beverages – energy drinks costing nearly 400 percent higher by volume than equivalent carbonated soft-drinks – leads to weak competitive pressures from buyer bargaining power. ANALYSIS AND EVALUATION One of the most important factors for success in the alternative beverage industry is innovation. As Gamble mentions in the case, “Product innovation had been among

Sociocultural Aspects Of Business

514 words - 3 pages , religion, economic system and political boundaries. The United States which is the domestic environment for Proctor & Gamble (P&G) is part of the Anglo cluster with countries such as Canada, England, and Ireland, and China is part of the Confucian Asia cluster with countries such as Japan, South Korea, and Singapore. One of the sociocultural factors that could hinder P&G in their global environment is language. The packaging

Scope Case

561 words - 3 pages Professor Pollack Marketing Strategies Scope Case This case has to do with the mouth rinse, Scope, at a time when there was fierce competition in the Canadian and American mouthwash industry. The introduction of Plax, a pre-brush rinse, was one of the most significant products that Proctor & Gamble faced. According to the case, in the past three years, the Canadian mouthwash industry faced quite a few changes. Market share data had

Financial Crisis And Emerging Markets

1730 words - 7 pages Table of Contents Introduction …………………………………………………………………….....1 Analysis of the Financial Crisis and Emerging Markets………………………….1 Conclusions………………………………………………………………………..8 List of Tables and Figures…………………………………………………….......9 References……………………………………………………………………......10 Introduction In the last years we all heard about financial crisis, economic crisis or even strong

Lvmh's Diversification Strategy Into Luxury Goods

5802 words - 24 pages corporate advantage" (Thompson, Strickland & Gamble 2005, p. C509). The rapid portfolio diversification took off when Bernard Arnault became president of LVMH in 1989. He expanded the company and acquired a number of specialty retail department stores in Paris. 3.0 Analysis 3.1 Porters 5 Forces (Model of Competition) Given the range of luxury sectors that LVMH has diversified into, the analysis is centred on the LUXURY industry where the game

Markeing

656 words - 3 pages products on the market. Old Spice will make you smell like the best smelling man in the world. SWOT Analysis Strengths •    A very renowned and successful brand. •    Strong distribution channel (available in more than 20 countries). •    Excellent Product quality. •    Strong financial presence in the market. •    Affordable pricing of products. •    Diversified portfolio of products. •    Sales growth is high. •    Strong image and

Worksheet

365 words - 2 pages Financial Environments Worksheet Michelle Ford HCS/577 June 16, 2014 Robert Adams Financial Environments Worksheet In the first section, identify three specific HEALTHCARE organizations within each of the for-profit, not-for-profit, and government financial environments. For the second and third sections of the worksheet you should focus ONLY on the three environments NOT the specific organizations. In the

Student

3934 words - 16 pages • Organisational value • Perceived industry forces • Belief about competitor’s goals Capabilities • Marketing skills • Ability to service channels • Skills and training to work force • Patents and copyrights • Financial strength • Leadership qualities of CEO 9 Topic Gateway Series Strategic Analysis Tools Many organisations carry out basic SWOT analysis and have an appreciation for their competitor’s strategies. However, motivational factors

Similar Documents

Ratio And Financial Statement Analysis

2513 words - 11 pages FINANCIAL DECISION MAKING FOR MANAGERS: Ratio And Financial Statement Analysis NAME: JAMES B. TAYLOR DATE: 04/09/2015 Table of Content I. Executive Summary.....................................................................................3 II. Introduction..................................................................................................4 III. Financial statements tools and techniques

Financial Management Analysis

4171 words - 17 pages . Tropez, Charles Worthington; Food and Nutrition products like Nunu, Yo!, Bliss; Electrical products like Haier Thermocool. In the global competitive world of fast moveable consumer goods PZ Cussons is second to none and competes with market leader like Proctor and Gamble, Unilever and Reckitt Benckiser and many others. In order to assess PZ Cussons competitive performances, strengths and weakness, its financial ratio analysis will be

Mergers And Aquisitions Essay

1191 words - 5 pages very beginning of its existence. Gamble, began in the large business venture as William Proctor’s protégé, in already existing soap and candle factory owned by Proctor. P&G was then started from that apprenticeship. Today, P&G is an organization based off of growth and innovation. A year after P&G acquired Gillette, they had reportedly met or exceeded all financial commitments. These commitments included free cash flow, organic sales

Financial Restatement Essay

584 words - 3 pages administrative leave. The pending deal where Diamond Foods were to acquire the Pringles brand from Proctor & Gamble is also in jeopardy. This deal was at a value of $1.5 billion which would have given Diamond Foods Pringles potato chips and other products. Diamond Foods remained confident that the financial statements were accurate. the terms The contract between Diamond Foods and Proctor & Gamble, gave Proctor & Gamble an option to