Report on henkel


Published on

Published in: Business
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Report on henkel

  1. 1. Acknowledgment Letter At first I wish to express all my devotion and reverence to Almighty ALLAH, most merciful beneficent creator who has enabled us to complete the term paper. We would like to thank our course teacher Hasan, Prof.Dr.M.Mahmudul for skillfully elucidating the inner working on this concept. 25th November, 2013 1. Rashid Md. Rifat 2. Tarun Nahidul Hasan 3. Tarque Minhad Ahmed 4. 5. 1
  2. 2. Executive Summary Henkel operates worldwide with leading brands and technologies in three business areas: Laundry & Home Care, Beauty Care and Adhesive Technologies. Founded in 1876, Henkel holds globally leading market positions both in the consumer and industrial businesses with well-known brands. Consumer goods industry operates successfully in virtually every part of the economic market place in globally. This study draws on the experience and expertise of consumer and industrial businesses sectors and observers the economic activities how the industry operates and where its future lies. Consumer and industrial businesses helps the country’s economic growth. Mostly, it draws the relationship among Capital Market, Investment Banking & Economic Development of a country. Developing a strong equity market as well as corporate bond market is very essential for economic development. This paper highlights various functions and activities of consumer and industrial businesses. This paper also explains the strategy that HENKEL apply and also do some analysis to find out the situation. Finally, this paper contains some findings and recommendations, which may be helpful. 2
  3. 3. Definition of Strategy: Strategic management can be defined as the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objectives. If we know where are and something about how we got there, we might see where we are trending- and if the outcomes which lies naturally in our course are unacceptable, to make timely change (ABRAHAM LINCOLN). Henry Mintzberg from McGill University defined strategy as "a pattern in a stream of decisions" to contrast with a view of strategy as planning while Max McKeown (2011) argues that "strategy is about shaping the future" and is the human attempt to get to "desirable ends with available means". In military theory, strategy is "the utilization during both peace and war, of all of the nation's forces, through large scale, long-range planning and development, to ensure security and victory" (Random House Dictionary). 3
  4. 4. Strategic priorities of Henkel: 1. Outperform: leverage potential in categories: Henkel will leverage its full potential in categories by actively managing its portfolio, strengthening top brands, launching powerful innovations and focusing on customers and consumers. 2. Globalize: focus on regions with high potential: In mature markets, Henkel will leverage its strengths and generate profitable growth by increased brand investments and continued cost focus. By 2016, the company aims to gain more top positions while increasing profitability. In emerging markets, Henkel will expand its existing category positions and accelerate growth in countries where the company has already a strong presence. In addition, Henkel will selectively enter new countries. By 2016, 12 out of Henkel’s Top 20 countries are expected to be in emerging markets. 4
  5. 5. 3. Simplify: drive operational excellence: Henkel will continuously improve its operational excellence by making its processes faster, more standardized and more digital, driving cost-efficiency and reducing administration cost. To expand the global coverage of its Shared Services Centers, Henkel will make significant investments and plans to open new hubs for the Arabic speaking region and Greater China/North East Asia in addition to its existing four Centers. A stronger IT focus will be critical to increase the efficiency of business processes. Henkel will leverage an integrated global IT platform supported by incremental IT investments of 140 million Euros until 2016. Henkel will also increase efficiency by sourcing via global hubs, expanding e-sourcing and reducing the number of suppliers globally by around 40 percent by 2016. 4. Inspire: strengthen our global team: To strengthen its global team Henkel will focus on three areas Leadership, Talents & Performance and Diversity. As part of its focus on developing strong leaders, Henkel will expand its training and development programs, such as the Executive Resource Program at Harvard Business School. To attract and retain talents globally, Henkel will strengthen its employer brand and offer competitive compensation linked to performance. Its revised Long-Term-Incentive Plan is fully aligned with the new financial targets for 2016. 5
  6. 6. Strategy: Laundry & Home Care The Laundry & Home Care business sector is globally active in the laundry and home care Branded Consumer Goods business. Henkel aim is to continue generating profitable growth through expansion of their continuing operations. Based on their leading positions in the profitable mature markets of Western Europe and North America, they plan to further expand the share of sales from emerging markets, particularly Eastern Europe, Africa/ Middle East and Latin America. They intend to leverage the dynamics of these regions in order to accelerate the growth of their portfolio. Henkel therefore intend to pursue both sustainable market share gains and further margin improvements. By prioritizing categories and centrally steering their global brand portfolio, Henkel are able to direct their investments toward those segments that offer growth and profitability, enabling them to generate disproportionately strong growth with their most important brands and market segments. By adopting this approach, they are able to generate high synergies in their marketing mix. 6
  7. 7. Strategy: Beauty Care The Beauty Care business sector is active in the Branded Consumer Goods business with Hair Cosmetics, Body Care, Skin Care and Oral Care, as well as the professional Hair Salon business. In the Branded Consumer Goods business, Henkel want to continue expanding their innovation leadership in the mature markets in order to further grow their market shares. To this end, Henkel pursue a consistent, pro-active innovation strategy accompanied by strict cost management to allow them to step up their market investments and increase profitability. Henkel are driving business development in their emerging markets by expanding their portfolio. The aim in their Hair Salon business is to continue pursuing their strategy of globalization. In Henkel Branded Consumer Goods business, their focus is on the international expansion of their core businesses of Hair Cosmetics, Body Care, Oral Care and Skin Care. Through targeted portfolio management and the associated marketing activities aimed at strengthening their top brands, Henkel were able to further develop their ten biggest brands in 2012. 7
  8. 8. Strategy: Adhesive Technologies In the Adhesives for Consumers, Craftsmen and Building business, Henkel market a wide range of brand name products for private and professional users. Based on their four international brand platforms, namely Loctite, Pritt, Pattex and Ceresit, they offer target group-aligned system solutions for applications in the household, schools and offices, for do-it-yourselfers and craftsmen, and also for the building industry. Henkel Transport and Metal business serves major international customers in the automotive and metal-processing industries, offering tailored system solutions and specialized technical services that cover the entire value chain from steel strip coating to final vehicle assembly. In the General Industry business, their customers comprise manufacturers from a multitude of industries, ranging from household appliance producers to the wind power industry. 8
  9. 9. Sustainability : Strategy 2030 triple efficiency At the beginning of 2012, Henkel already announced its long-term sustainability strategy with the target to triple its resource efficiency by 2030 and defined specific intermediate targets for five-year intervals. 1. Our corporate values as the foundation: Commitment to leadership in sustainability is one of Henkel core corporate values. Maintaining a balance between economic success, protection of the environment, and social responsibility has been fundamental to their corporate culture for decades. 2. Achieving more with less: Henkel are facing immense challenges, the global human footprint is already greater today than the planet’s resources can bear. By the year 2050, the world’s population is expected to grow to 9 billion. The accompanying increase in global economic output will lead to rising consumption and resource needs. The pressure on available resources will thus intensify in the coming decades. This is why the idea at the heart of Henkel’s new sustainability strategy is to achieve more with less resource. 9
  10. 10. Most Strategic Model: Red Ocean vs. Blue Ocean Red Ocean Strategy Blue Ocean Strategy Compete in existing Market space Create uncontested Market Space Beat the competition Make the competition irrelevant Exploit existing demand Create and capture untapped demand Make the value-cost-trade-off Break the value-cost-trade-off Align the whole system of firm’s Align the whole system of firm’s activities with its strategic choices of activities in pursuit of differentiations differentiations of low cost. of low cost. Focuses on adapting to external trends Participate in shaping external trends as they occur. over time. 10
  11. 11. Resources Tangible Resources Intangible Resources Tangible Resources Financial  No data available Technological  External Thermal Insulation Composite System. Organizational  Each product manager built on sub-brands with their own marketing strategy.  Sales channels: do it yourself stores, specialist shops, drugstore and food retailing shops. Physical  Relocated the company Dusseldorf to make advantages of logistics and better sales opportunities.  Took over Adhesive & Electronic material business from Akzo Nobel. 11
  12. 12. Intangible Resources Human Innovation  Preserve the tradition of an open family company.  Produced “low dust” & “light weight” tile adhesive.  Adding new features to improve the product.  Reputation  Direct contract between the producer and client for support product enhancement, technical advice, addressing complaint, warranty support.  Brand image. 12
  13. 13. Henkel’s Profile: Henkel operates worldwide with leading brands and technologies in three business areas: Laundry & Home Care, Beauty Care and Adhesive Technologies. Henkel’s Logo Founded in 1876, Henkel holds globally leading market positions both in the consumer and industrial businesses with well-known brands such as Persil, Schwarzkopf and Loctite. Home and hearth are at the heart of Henkel. The company makes branded products for laundry and homecare (Persil, Purex, Pril), cosmetics and toiletries (Schwarzkopf, Dial, Syoss) and many adhesives (Loctite, Ceresit, UniBond). Henkel's business is centered in Europe, with a growing presence in developing economies, such as Asia, Africa and the Middle East, and Latin America. It owns The Dial Corporation, anchoring its US market. Henkel owns subsidiaries in some 75 countries with offices located nearly everywhere. Started in 1876, the company is owned by descendants of the founding Henkel family. 13
  14. 14. Three Business Sectors Henkel is organized into three globally operating business sectors. Laundry & Home Care has always played an important role for Henkel: The Company’s success story started with a product from this business sector. Henkel operates in the laundry care and household cleaner segments. The laundry products comprise heavy-duty detergents and special detergents. In fiscal 2012, the Laundry & Home Care business sector generated sales of 4,556 million Euros, which equals 28 % of total company sales. Product line of Henkel 14
  15. 15. Products from the Beauty Care business sector are available worldwide. Schwarzkopf & Henkel stands for brand-name products in the fields of hair colorants, hair styling hair care and form, toiletries, skin care and oral hygiene. Schwarzkopf Professional is one of the world’s leading suppliers of hair salon products. In fiscal 2012, the business sector generated sales of 3,542 million euros, which equals 21 % of total company sales. The Adhesive Technologies business sector is the world market leader in adhesives, sealants and functional coatings for consumers, craftsmen and industrial applications. Henkel offers a multitude of applications to satisfy the needs of different target groups – consumers as well as craftsmen and industrial businesses. In fiscal 2012, the business sector generated sales of 8,256 million euros, which equals 50 % of total company sales. At A Glance:  Over 55,000 employees  Sales is more than 125 countries  Global supplier of brands and technologies  102 years of brand success  Competence in three business sector:  Laundry and home care  Cosmetic/ Toiletries  Adhensive technologies:  World market leader for adhesive, sealants and surface treatment  Worldwide presence is more than 125 countries  Approx 6.7 billion EUR sales in 2008 ( 47% of Henkel’s sales) Vision : A global leader in brands and technologies. Mission: Is to be the most respected and attractive company in our industry, creating value for our entire stakeholder. 15
  16. 16. PEST Analysis: PEST analysis (Political, Economic, Social and Technological analysis) describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. Now Henkel’s PEST analysis is given below in a table: Political Factor • The economic philosophy of the Saudi Arabian royal family has not changed but the economic role of the government has grown tremendously. Te Saudi rulers wanted to improve the economic conditions of the country's citizens while retaining the society's Islamic values. Economical Factor • In K.S.A the interest rate is continuously increasing which affects their business. And they face a lot of difficulties. • The fluctuation in price cause many problems. As there is no stable rate so their average sales income decreases. Socio-Cultural Factor • The dominant religion in K.S.A is Islam. A mixture of Islamic and Arab culture prevails. • As Muslims are against western companies Henkel faced problems in setting its reputation Technological Factor • In K.S.A, HENKEL company could avail good and advanced technology as well as cheap skilled labor. This results in low production cost but better quality standard. • Henkel company could also provide the facility of Toll free numbers to get connected with their customers at all times. 16
  17. 17. SWOT Analysis: SWOT analysis (alternatively SWOT Matrix) is a structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. Henkels SWOT analysis is presented below: • Very good Image • Brand awareness • High quality product Strength • Distribution based, no dealer- possible financial risk • Margin erosion due to price war in the market Weekness • The National Program for building insulation with EU funding • Headhunting easier to find right candidate in the market • Changing customers taste • Volumes impacted by crisis Opprtunitues Threat 17
  18. 18. Porters Five Forces Model: Porter five forces analysis is a framework for industry analysis and business strategy development. It draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Henkel according to Porters Five Forces Model Is Presented Below: Supplier Power Lots of products are already established with high brand awareness and generating customer loyalty so competition focus to cost advantage, distribution channel economic of scale Threat Of New Entrants The few suppliers make it on powerful position that impact to higher cost for the company. Means lowering industry profitability Rivalry Except innovation, many company in this industry compete in seeking the way to reduce cost to give the lowest price to the customer Threat Of Substitutes Brands that compete offer almost the same benefit and almost the same price. However it`s a price sensitive Buyer Power Rapid change in ICT (Information Communication and Technology), make differentiation in the industry narrower. Customer can shift to multi tasking product. 18
  19. 19. Value Chain Analysis: Value chain described the sequence activities within an organization that design, produce, sell, deliver and support its products or service (Ireland, Hoskisson and Hitt, 2011). Therefore to be effective, value chain analysis needs to recognize and understand the relationship between primary and support activities. Primary value chain Demand fulfillment Inbound Logistic Cut of to suppliers Material handling Warehousing Inventory control Outbound Logistic Operation . • • • • Demand generation . • • • • Marketing and sales . coversion Assembly Packaging Maintainence • • • • • Warehousing Order processing Picking Shipment Delivery Service . • Channel to market • Product, pricing, advetising, promo tion, distribution • Customer value, cost to customer • Sales force effectiveness . • Installation • Repair • Training Support activities Procuremental • Purchasing raw material, suppliers, fixed asset Technological development • Process design • Product design • R&D Human Resources • Recruiting, hiring, training, develop ment, compenesating all personnel Infrastructure • • • • General management Finance Accounting IT Above is Henkel`s value chain activities. The primary activities are:(1) Research &Development (2) Product safety 19
  20. 20. (3) Raw Materials (4) Production (5) Logistics (6) Use: fostering sustainable consumption (7) Usage: Industrial business, and (8) Packages &disposal. The support activities are procurement, human resources, infrastructure and general support. Primary activities and support activities are linked to each other. Henkel has to see that the activities not just a cost, but also a step that has to add some increment value to the finished product or service. With the sorting activities in the value chain, in order to reduce operating costs to do the pattern of out sourcing. However, out sourcing can only be done in areas that do not create value or areas at a substantial disadvantage compared to competitors. Therefore the selective strategy has to be done as competitive advantage arises from the activities in a company`s value chain. In order to perform different from competitor, Henkel has to meet different needs and/or same needs at lower cost as its value. Thus it has advantage to sustainable higher process and/or lower costs to compete on strategy. ViSA and SMARTER Model: Henkel’s ViSA model is given blow: Vi (Vision) = A global leader in brands and technologies. S (Strategy) = Advance through sustainable developments A (Action Plan) = Market penetration and new market developments. 20
  21. 21. Henkel’s SMARTER Model can be shown as below:  S (Specific): Henkel focuses on specific objectives for market developments in upcoming years.  M (Measurable): Henkel’s objectives to get market share of 60% is measured accurately.  A (Achievable): Henkel emphasizes on achieving market share of 60% objectives.  R (Realistic): Henkel’s objectives are analyzed in the R&D department accurately whether they are realistic or not.  T (Time): Henkel’s global objective the Sustainable Development achieved before the scheduled time.  E (Encompassing): Henkel evaluates their strategies time to time.  R (Reviewed): Henkel’s strategies are reviewed according to the market conditions. 21
  22. 22. The BCG Chart: The BCG (Boston Consulting Group) Matrix is a chart that helps the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis. Now according to our analysis Henkel is placed in the BCG Matrix which is shown below: BCG Matrix of Henkel 22
  23. 23. Market Analysis and market Segmentation of Henkel: On the basis of 4P’s Henkel’s market analysis is given as below: Product: Henkel produces consumer goods. These are final products such as detergents, shampoos, soaps, etc. which can directly be used by the consumers. Price: Henkel is charging premium price of thei products in accordance to sustain in the market. Place: Henkel is a multinational company which is operating directly in more than 50 countries. Promotion: In accordance to the competitors activities Henkel has emphasized on promoting their company through sustainable development programs. Henkel’s market segmentation is based on the Demographic, Geographic and Psychological factors. In Geographic Segmentation, the market is divided by locations. The theory behind this strategy is that people who live in the same area share some similar needs and wants and that these needs and wants differ from those of people living in other areas. And Henkel is considering this factor very seriously. In Demographic Segmentation, age, gender, marital status, income, occupation, and education is analyzed in accordance of the geographic locations. Henkel’s R&D department is very efficient on analyzing this factor as it is considered the vital factor in the market. In Psychological Segmentation consumers can be segmented in terms of their needs and motivation, personality, perceptions, learning, level of involvement, and attitudes. Henkel’s R&D department is conducting various market research to gather information on these factors and to analyze them for future applications. 23
  24. 24. EFE (External Factors Evaluation) Matrix of Henkel: Matrix method is a strategic-management tool often used for assessment of current business conditions. The EFE matrix is a good tool to visualize and prioritize the opportunities and threats that a business is facing. Now Henkel’s EFE matrix is shown in below: External Factors Weight Rating Weighted Score Opportunities Web Marketing 0.15 2 0.30 Removal of Trade Restrictions 0.15 3 0.45 Easy Access to Skilled Workforce 0.10 3 0.30 Expansion of Product Range 0.10 3 0.30 Greater Price Wars 0.15 3 0.45 Exchange Rate & Interest Rate Mobilization 0.10 3 0.30 Frequent New Product by Competitor’s 0.15 2 0.30 Diverted Customer Taste 0.10 2 0.20 Threats 4= the response is Superior 3= the response is Above Average 2= the response is Average 1= the response is Poor Total Rating 1 2.60 Rating: Here, Henkel lies in the average position as it has scored 2.60. The total weighted score of 2.10 indicating that the firm is in its effort to pursue strategies that capitalize on external opportunities and avoid threats. Currently, huge market competition as well as external forces fluctuation influenced the rating as such. Since it has strong competitors like Unilever, Loreal, Avon etc. in the marketplace, they should be more cautious regarding the external forces. 24
  25. 25. CPM (Competitive Profile Matrix) of Henkel: A Competitive Profile Matrix is an analysis tool that helps you establish your company's competitive advantage. It provides a portrait of your competitive landscape and your position in the marketplace. The weights and total weighted scores in both a CPM and EFE have the same meanin g. However, the Factors in a CPM include both internal and external issues. Therefore, the ratings refer to strengths and Weaknesses. CPM Analysis of Henkel, P&G, and Loreal Henkel Loreal P&G Weight Rating Score Rating Score Rating Score 0.20 1 0.20 4 0.80 3 0.60 Product Quality 0.10 4 0.40 4 0.40 3 0.30 Price Competitiveness 0.10 3 0.30 3 0.30 4 0.40 0.10 4 0.40 3 0.30 3 0.30 Financial Position 0.15 4 0.60 3 0.45 3 0.45 Customer Loyalty 0.10 4 0.40 4 0.40 2 0.20 Global Expansion 0.20 4 0.80 2 0.40 2 0.40 0.05 1 0.05 4 0.20 3 0.15 Critical Success Factors Advertising Management Market Share Total 1.00 3.15 3.25 2.65 4= Major Strength, 3= Minor Strength, 2= Minor Weakness, 1= Major Weakness According to the above study, Henkel is in a moderate position than its major rivals. It is some moderate strength which may help to grow in future. Here, advertising and global expansion are the most important critical success factors, as indicated by a weight of 0.20. Henkel's and L'Oreal's product quality is superior, as evidenced by a rating of 4 L'Oreal's "financial position" is good, as indicated by a rating of 3 Procter & Gamble is the weakest firm overall, as indicated by a total weighted score of 2.80. 25
  26. 26. QSPM (Quantitative Strategic Planning Matrix) of Henkel: The Quantitative strategic planning Matrix or a QSPM approach attempts to objectively select the best strategy using inputs from other management techniques and some easy computations. In other words, the QSPM methods uses inputs from stage 1 analyses, matches them with results from stage 2 analyses , and then decides objectively among alternative strategies. QSPM (Qualitative Strategic Planning Matrix) for Henkel Alternative-1 (Global Expansion) Key Factors Weight Alternative-2 (Emphasis on Innovation) Attractiveness Score Total Attractivenes s Score Weight Attractive ness Score Total Attractiven s Score Strengths Brand Image & Awareness 0.10 3 0.3 0.08 3 0.24 High Quality Product 0.15 3 0.45 0.12 3 0.36 Aggressive Marketing Campaign 0.10 2 0.2 0.10 2 0.2 Customer Loyalty Weaknesses Low Profit Margin Due to Price War 0.15 3 0.45 0.15 3 0.45 0.15 3 0.45 0.10 2 0.2 Low Access to Cheap Resources Slow Resolution of Customer Complain 0.15 3 0.45 0.15 2 0.3 0.12 2 0.24 0.15 2 0.3 0.08 100% 2 0.16 0.15 100% 2 0.3 Web Marketing 0.18 2 0.36 0.15 2 0.3 Removal of Trade Restrictions 0.12 3 0.36 0.13 2 0.26 Easy Access to Skilled Workforce 0.1 3 0.3 0.12 3 0.36 Expansion of Product Range 0.13 2 0.26 0.10 2 0.2 Lack of control on Some Areas Sum Weights Opportunities Threats Greater Price Wars Exchange Rate & Interest Rate Mobilization Frequent New Product by Competitor’s 0.15 2 0.3 0.15 2 0.3 0.12 3 0.36 0.10 2 0.2 0.12 2 0.24 0.12 2 0.24 Diverted Customer Taste 0.08 2 0.16 0.13 2 0.26 Sum Weights 100% Sum Total Attractiveness Score 100% 5.04 4.47 26
  27. 27. Attractiveness Score: • 1 = not acceptable; • 2 = possibly acceptable; • 3 = probably acceptable; • 4 = most acceptable; • 0 = not relevant. Interpretation: We would select global expansion strategy. Since it has lots of quality product but these are not available in some part of the world. In addition, recent technological advancement and workforce diversity is indicating positive sign if Henkel decides to go more international. Therefore, it has got high chance of market development though there are lots of related products. Financial Analysis: EPS (Earning Per Share): Earnings Per Share (EPS) 2012 2011 2010 2009 2008 2007 3.49 2.9 2.59 1.4 2.83 2.14 Net Income After Tax: Net Income After Tax 2012 (in millions) 1556 2011 (in millions) 1263 2010 (in millions) 1143 2009 (in millions) 628 2008 (in millions) 1233 2007 (in millions) 941 27
  28. 28. Break-Even Point: Henkel’s 5 years Break-Even Point is shown throughout the calculation and a table below: 2012 (in millions) 3302 2010 (in millions) 3112 2009 (in millions) 2799 2008 (in millions) 3007 11927 Unit Sales 2011 (in millions) 3204 11848 11590 11162 11360 2.66 2.66 2.60 2.65 2.46 5 4.87 4.85 4.85 4.7 5097.01 5361.09 5151.11 5073.64 5071.43 26,108.49 24,982.89 24,607.14 23,835.71 Total Fixed Cost Variable Cost per Unit Sales Price per Unit Break-even point (units): Break-even point (total sales) 25,485.04 According to the Calculation Henkel’s 5 years Break-Evan Points are shown in graphs below: 2012 2011 28
  29. 29. 2010 2009 2008 Key Success Factors Of Henkel: 1. Technology-related KSFs: • Expertise in Standard Chemical Products • Ability to improve production processes through latest technology • Henkel acquired the American cosmetics company Advanced Research Laboratories (ARL). 29
  30. 30. 2. Manufacturing-related KSFs: • Quality Control Know-How • Low-cost product design and engineering • Since establishment Henkel is been successful to keep skilled employees. 3. Distribution-related KSFs: • Henkel maintains a strong network of wholesale/dealers throughout the world • Henkel enables customer to buy through internet. 4. Marketing-related KSFs • Henkel is considered one of the leading brands in cosmetic products • Henkel assuring customer service very strictly • Henkel is advertising them via sustainable development. 5. Skills & Capability-related KSFs • A talented workforce • Short-delivery-time capability • Supply Chain Management Capabilities • Strong e-commerce 6. Other types of KSFs • Henkel possesses a strong financial position • It has strong patent protection 30
  31. 31. Recommendations: We recommend the following ways: Henkel research and development was laboratory driven rather than customer driven, it has to be change. Need to emphasis on web marketing. Expansion of product range to capture the market share. Need fast move on resolution of Customer Complain. Utilize the cheap resources for decreasing the cost. There must not be any communication gap between the employee and the management so that they can discuss their problems among themselves. Emphasis on every business areas & take control. To use latest technology for satisfy customer need. 31
  32. 32. Conclusion: Henkel Investment focus on Leading brands and successful innovations, Strong and growing foothold in Emerging Markets, Maintain strong focus on cost, Solid financial position. Henkel faced several serious issues. For instance, while reporting solid sales, it was less profitable than its industry peers. Henkel is truly unique in the spread of their business units and their international locations, products, brands, people, and job roles. Henkel is a company that serves consumers and business customers alike. This variety opens up a wide range of options as well as the chance to work in several different fields. Henkel has been active in the field of detergents and household cleaning products for over 100 years now. It has been recognized as a chemical industry leader with its outstanding environmental policy communication process. Henkel's performance in sustainability and corporate social responsibility impressed external experts. It occupied the second place in sustainability ranking of the companies in Germany. Henkel is looking forward to maximize the shareholder value along with sustainable development and social responsibility in view. 32
  33. 33. Reference: 1. 2. 3. 4. 5. 6. 33