Clorox, the Way Forward

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THE WAY FORWARD Recommendations for Leveraging Sustainability and Optimizing Existing Green Lines Instructor: Kim Bates Course: Integrative Weekend – W2012 Date: March 4, 2012 Consultants: Deborah Sue Chee Eva von Biehler Mehdi Tahuri Serhiy Rudak S.Mehmood Ul-Hasan Vern Puchoon Executive Summary In the face of consumer changes and current economic conditions, Clorox must make several key decisions regarding resource allocation and strategic focus across its product divisions. Specifically, there has been a strong focus since 2006 on product sustainability and green initiatives. As such, Clorox needs to determine if this is the right strategy to pursue for the long-term and if it needs to be green organization-wide, not just toward…show more content…
If Clorox does not restructure its portfolio mix and increase revenue contribution from the growing markets, it faces the risk of losing sales and its position in those markets. Using its current resources, Clorox needs to determine how to allocate those resources among its current brand portfolio. Equally important is determining whether to invest in new product lines or brands. Clorox also has to decide whether to expand into international markets or focus strictly on expanding its market share across its brands in the primary U.S. market. Asian, South American, and European markets offer potential for growth but the cost of expanding into these markets and the limited availability of financial resources pose concerns with respect to international expansion. Focus on growth versus profitability is another important strategic decision that needs to be addressed. Clorox projects flat sales for 2011, which is not a positive indicator for investors’ 2 interests and the company performance as a whole. Brands like Green Works have not turned profitable yet and are decreasing the bottom line. It is important that Clorox determine a balance between growth and profitability. Since Clorox made the shift toward a socially responsible brand image it needs to sustain the momentum it created with its initial marketing efforts and continue to increase awareness among the public about its environmental, social and financial contributions.

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