Colgate-Palmolive Keeps the World Smiling

6844 Words28 Pages
Executive Summary The objective of this RFI is to determine whether or not Colgate-Palmolive (C&P) should remain with SAP for their technology infrastructure, or if they should seek out other or new IT opportunities. C&P needs to determine what is important and whether or not IT supports it. We evaluate the current problem C&P is facing and the future trend of the technology. We reviewed SAP and its competitor, Oracle, to determine whether C&P should stay with their current provider and what advantages would be available to them from their current and other IT providers. C&P must have a very good handle on automation and rationalization. These two items being the two most common forms of organizational change because they are…show more content…
Achievements in this area led to C&P U.S. to being awarded Retail Merchandiser Magazine’s 2001 “Best in Class Category Captain Award” in oral care for merchandising effectiveness, operational efficiency and marketing innovation (Annual Report, 2002, p. 15) . The Company’s investment in technology continues to provide substantial returns. By mid-2002, SAP enterprise-wide software supported 94 percent of C&P’s business (Annual Report, 2001, p. 10) . SAP has already led to significant improvement in supply chain performance and customer service, and that is only the beginning. C&P has a long history of strong performance, which comes from absolute focus on their core global businesses, combined with a successful worldwide financial strategy. Dow Theory Forecasts (Unknown, 2001) reported: The stock trades for 30 times projected 2001 earnings of $1.92, high compared to its long-term profit-growth projection of 13% annually. How can a company, with less than 2% annualized sales growth over the last five years keep that valuation? By boosting profit margins, gobbling market share, and buying back plenty of its stock. Higher margins and a smaller share base will boost both earnings and return on equity. Colgate controls 35% of the U.S. toothpaste market, up from around 31% a year ago (p.4). C&P

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