Church and Dwight Essay

3618 Words Mar 12th, 2013 15 Pages
Church & Dwight:
Time to Rethink the Portfolio

A case report prepared for

MG 495 Business Policy

Spring 1 2013

3 February 2013

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 three - five percent per year, the company has expanded uses of sodium bicarbonate products so that it is no
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These actions allowed the board of directors and management to amend the company’s charter and allowed shareholders four votes per share. The board of directors was also re-structured into classes, in which each class serves staggered three-year terms (Wheelen & Hunger).
In addition to staggering the tenure of the directors, the company initiated employee severance agreements with key officials, providing a severance package agreement to provide a “safety net” should any of the board member positions be terminated by a hostile takeover or leveraged buy-out by an unwanted suitor. By providing these lucrative packages for senior management, many were able to stay with Church & Dwight. This allowed for continuity of leadership styles, vision and mission focus. Because of this steadfast devotion to principles, steady growth over the years has occurred, identifying Church & Dwight as a Cash Cow, using the Boston Consulting Group (BCG) Growth-Share Matrix. However, as the company focuses more on international markets and enters other potential avenues of growing product lines, it will surely find itself labeled as a Star.
2. Operations – 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 companies searched for ways to enter the household and personal care product lines. As a result of the constant forces
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