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Colgate-Palmolive Keeps the World Smiling

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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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