Mg 495 Week 3 Case Study Essay

4347 Words Apr 1st, 2012 18 Pages
Case 35 – Church & Dwight: Time to Rethink the Portfolio?

A case report prepared for MG 495 Business Policy

(Spring II Term)

Michael XXXXXXXXXX April 8, 2012

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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
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2. Operations (including technology). Church & Dwight have peacefully existed over the past 60 years with sustained growth and profitability because it virtually held the market in the palm of its hands as other searched for ways to enter the household and personal care product lines. As a result of the constant forces in emerging markets, Church & Dwight have come to the realization that they have major challenges to overcome if they are to compete with other giants in the industry and continue to thrive. As the company gains a stronger market share in the international consumer products, the growth and profitability standard will continue well into the future. However, Church & Dwight also recognize they must remain vigilant to quickly and adequately deal with Porter's Five Forces: Bargaining power of suppliers; Threat of new

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entrants; Threat of substitute products or services; Bargaining power of buyers (customers); and Rivalry among existing firms (competitors) (Wheelen & Hunger, p 110113, 2012). When considering the force, Bargaining Power of Suppliers, the force rating could be considered MEDIUM as management must be constantly aware of any potential market shocks or trends. If an affiliate retailer is affected by unforeseen supply chain issues, like increased fuel

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