Group Project Economics

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  • Group Project Economics

    1. 1. Group Members: Catina Claassen, Tyron Donte Javis, Bryant Filter, Jennifer Gaddy and Harvey Gibson
    2. 2. <ul><li>Introduction: </li></ul><ul><li>An industry which envelops practically every item an individual can purchase </li></ul><ul><li>Encompasses mainly areas of toiletries and cosmetics, appliances, beverages and food, and other household items </li></ul><ul><li>Divided into durable and non-durable products </li></ul><ul><li>Staple and less discretionary products </li></ul>
    3. 3. <ul><li>Contribution: </li></ul><ul><li>Accounts for more than two-thirds of the total volume of trade in the world economy. </li></ul><ul><li>Plays an important role in the growth and development of the global economy. </li></ul><ul><li>Source of a significant portion of the gross domestic product (GDP) of many countries. </li></ul><ul><li>Acts as a driver for other industries, such as advertising and retail. </li></ul><ul><li>Source: globalEDGE. Consumer Products: Background. </li></ul>
    4. 4. <ul><li>Trends </li></ul><ul><li>Modern technology for growth and expansion </li></ul><ul><li>Utilization of interactive qualities of internet for: </li></ul><ul><ul><ul><li>Customer Relationship Management (CRM) </li></ul></ul></ul><ul><ul><ul><li>Radio-Frequency Identification (RFID) </li></ul></ul></ul><ul><ul><li>Mergers, acquisitions and alliances to increase the competitive advantage </li></ul></ul><ul><ul><li>American and European markets becoming increasing competitive </li></ul></ul><ul><ul><li>Manufacturers turning towards emerging markets </li></ul></ul><ul><ul><li>There are risks involved with expanding internationally </li></ul></ul>
    5. 5. <ul><li>Key players: </li></ul><ul><li>Johnson & Johnson, Colgate-Palmolive, Eastman Kodak, Whirlpool, Procter & Gamble, Nike, Gillette and Unilever. </li></ul>
    6. 6. <ul><li>Business sector: Household and personal care products. </li></ul><ul><li>Revenue: $83,503 million </li></ul><ul><li>Profits: $11.13 </li></ul><ul><li>Assets: $144.4 </li></ul><ul><li>Market Value: $203.67 </li></ul><ul><li>Merged with Gillette in 2005. </li></ul><ul><li>Focuses on emerging markets for growth and expansion. </li></ul><ul><li>Source: PG 2008 Annual Report </li></ul>
    7. 7. <ul><li>Major segments: Oral, Personal, Home Care Products; and Pet Nutrition Products. </li></ul><ul><li>Net Sales: 3.7 billion </li></ul><ul><li>Operating Profits: $ 0.8 billion for FY2008 </li></ul><ul><li>Assets: $10.11 </li></ul><ul><li>Market Value: $38.79 </li></ul><ul><li>Has a great business model and better fundamentals than most of its competitors </li></ul><ul><li>Source: Colgate-Palmolive FY 2008 </li></ul>
    8. 8. <ul><li>Business sector: Foods and Home & Personal Care. </li></ul><ul><li>Total Revenue: $58,085.9 M </li></ul><ul><li>Revenue increase: 1.4% </li></ul><ul><li>Operating Profit: $7,189.5 million in FY 2007(3% decrease). </li></ul><ul><li>0.5% profit margin decrease in 2007 due to higher raw materials prices and charges for restructuring. </li></ul><ul><li>Source: UL 2007 Annual Report </li></ul>
    9. 9. Company Revenue in $M Net income $M Operating margin % R&D spending $M R&D as % of total revenue % revenue growth from 2006 P&G 83,503 12,075 20.46 2,226 2.67 9.00 Unilever 58,508 6,022 13.05 1,264 2.16 1.37 Colgate 13,790 1,737 19.24 247 1.79 12.68
    10. 10. <ul><li>Macroeconomic dynamics: </li></ul><ul><ul><li>A flat and declining retail environment </li></ul></ul><ul><ul><li>Changing consumer behavior </li></ul></ul><ul><ul><li>Global economic recession </li></ul></ul><ul><li>Key strategic imperatives: </li></ul><ul><ul><li>Delivering Innovation Driven By Consumer Insight </li></ul></ul><ul><ul><li>Driving Profitable Growth Through Improved Value Chain Collaboration </li></ul></ul><ul><ul><li>Operating Responsibly and Profitably With Full Supply Chain Visibility </li></ul></ul><ul><ul><li>Building Brand Awareness and Loyalty </li></ul></ul><ul><li>Grand strategies:  Low Cost Leadership </li></ul><ul><ul><li>Concentrated Growth and diversification </li></ul></ul><ul><ul><li>Market Development </li></ul></ul><ul><li>Differentiation </li></ul><ul><ul><li>Product Development </li></ul></ul><ul><ul><li>Innovation </li></ul></ul>
    11. 11. <ul><li>Colgate 2007 Annual Report </li></ul><ul><li>Colgate Palmolive: http://www.colgate.com/nonflash.html </li></ul><ul><li>Ezine Articles: A Financial Analysis of Colgate-Palmolive </li></ul><ul><li>globalEDGE. Consumer Products: Background </li></ul><ul><li>globalEDGE. Consumer products Corporations </li></ul><ul><li>PG 2008 Annual Report </li></ul><ul><li>Procter and Gamble: http://www.pg.com/main.jhtml </li></ul><ul><li>UL 2007 Annual Report </li></ul><ul><li>Unilever Homepage: http://www.unilever.com/home </li></ul><ul><li>  </li></ul>

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