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
On the 9th of July 2010 the company was trading at $17.40 now three years later is trading at $126.09. That is a positive gain of 556.72% or $106.89 in three years.
PG has a market capitalization of 232,639,407, which is higher than most of the competitors MC’s like Avon, Estee Lauder, Revlon and other personal care companies that fit the description, according to Nasdaq. The annual sales of 2016 was $65,299 million which unimpressively is lower than the year of 2015, $70,499. The net income of 2016 was $10,508 which is around the same range of 2012. The EPS, $3.49, has been the highest it’s been in a couple of years. It could be because of the new ownership and it’s advertising strategies. However, the total revenue of 2016 is $16,856 which is quite impressive for a cosmetic company. When it comes to competitors, Maybelline Inc. (owned by L’Oreal) isn’t even close to surpassing Proctor & Gamble’s sales with an adequate common stock as $37.72. According to ScottTrade, It remains unchanged, not decreasing nor increasing. In the marketing section, PG has made it to the lists of Best Performing Stocks of All Time, thanks to it’s everyday usage products, domestic, and personal care products. With headlines like that, it has been made known to the public that the company has soaring rates and high quality dividends. PG has been in business for over 100 years, with a dividend increasing anually for the past 60 years and has raised $63.6 billion in sales, it’s beginnings stretching back to the 19th century proves it is a top performing
From the year 2008 to 2010, the P/E ratio is around 13 which mean the share will have paid for itself in 13 years. It really a long term for the investment to pay for itself. But in the year 2007, the ratio is too high that means most shares are hopelessly overpaid. Normally, an average P/E ratio is around 10. However, the ratio in the year 2011 is appeared to be negative 162.8!!! That is caused by the falling profit. [pic]
From this chart, we can see that the company’s growth rate is not only exceeding analysts expectations but also shows an increasing trend. Their PEG is 0.79 for the trailing twelve months meaning that for this kind of growth the company may be undervalued especially for the kind of EPS it is generating. It is not a good rule of thumb to only look at present growth but how the present growth rate will map out a picture for the future growth rate.
Proctor & Gamble are very comparable to each other when it comes to their profit margins. P&G’s operating and net profit margins are lower than Gillette’s however they still have similar rate patterns over time. Impressively categorized as “cash cows”, P&G and Gillette have increased yearly profitability from 2000 to 2005. On the other hand, Proctor & Gambles Debt to Assets ratio s are higher when compared to Gillette’s, but has dropped steadily over the years indicating they were a financially stable company that could support its spending big spending habits. Gillette, also financially stable, had a lower Debt to Assets % in 2000 – 2001, followed by a spike in 2002 which tells us that they invested some money into expansion in order to promote growth. 2002 – 2004 Debt to Asset ratio diminishing shows Gillette recovering from the investment in 2002, so they were on the right track to recovery and growth.
On the earnings side, the company posted operating profit growth of almost 9% on the back of mid-single digit growth in sales and by enhancing productivity and lowering manufacturing costs. Thus, the company successfully achieved its target making double digit growth in earnings per share. Few other factors like buyback program and tax
The leading market position along with the well-diversified product portfolio enables the company to gain excess profits. At first glance, the company is in a healthy financial
They set a Financial Shared Service which operated their accounting and financial reporting functions for around 50 business units. It processes over 200,000 invoices per annum for all their suppliers. They manage the payroll for 20,000 employees. When the Financial Shared Service progresses they decided that they wanted to move onto one Enterprise Resource Planning software package. So they chose to use SAP (Systems, Applications & Products in Data Processing).
Powered by inquisitive minds, we leverage our global talent and innovative blend of services and technology to deliver customer delight." Mphasis's expertise in attaining and maintaining IT systems and the unique value proposition comprises all segments of IT including designing, development, implementation, infrastructure and support (both voice and non-voice). It gives the necessary insight that help customers embark on an important strategic advantage. The role of IT has changed from a mere enabler of business to a key driver of business. Information Technology has ushered new avenues for business growth. Growth brings in new applications and accumulation of IT baggage. It is important that it must be aligned to business in order to maximize an organization's
In the early 1990’s, the toothbrush industry was experiencing major growth; in fact, “in 1992 dollar sales increased by 21% in value and 18% in volume” (Quelch & Laidler, 2000, p. 48). The increase in sales was greatly due to a huge influx of new products, advertising, new technologies, and an increase in consumer concern for oral health. During this time, the Colgate-Palmolive (CP) company was not only a major player in the oral care industry, but also “CP was a global leader in household and personal care products” (Quelch & Laidler, 2000, p. 47). Management at CP understood consumer concerns and the need for advances in technology, and because of this, the Oral Care Division at CP was assigned for three years to
Each of the retailer guests had received an exclusive, golden, three dimensional pyramid invitation to the launch, and expectations were high. The retailers were
Systems Applications & Products (SAP) is a database propelled business incorporation software that integrates all prospects of operating enterprise and that is why SAP software is also known as business integration and predictive software (Bennett, 2013). Business integration simplifies collaboration from one area or industry level to another, improving data stream within an enterprise and makes sure that its stream has a straight, progressive influence on business 's productivity (Beyleveld, & Schurink, 2005). It also makes better consumer amenity and product excellence, reduces product time to marketplace and generate more effective supply levels. SAP improves usual application products for concurrent processing, and the use of this package builds it likely to trace and direct real time practices, deals, human resources, manufacture, and finance accounting in a business. SAP has been generally comprised in helping consumers improve the back office processes by incorporating business developments (Bennett, 2013).
The SAP ERP application helped increase standardization, lowered costly gratuitous of effort as well as enormous inventory levels and order cycle times. The SAP software, above all, was able to integrate a wide array of processes across different sections and regions of the company. Colgate therefore, gained a consolidated platform to respond to global customer requirements, analyze sourcing options and determine competitive strategies. Additionally, SAP was committed to partnering with Colgate’s customers to research and develop strong industry-specific solutions.
When Cisco’s legacy system was corrupted, Solvik (CIO) and Redfield (SVP manufacturing) realized the importance of partnership with a vendor who has extreme technical and industry knowledge and would do research, evaluate and select the right ERP system. Cisco chose, KPMG as their partner, as KPMG has built strong experience people in the industry and this partnership has widened the competencies and capabilities of the team. This behavior clear exhibits the Information age behavior when compared to the Industrial age company which would focus on the internal experts for their technology improvements.