Challenges experienced by Colgate-Palmolive Company

Nowadays business is like a warfare that has every things seem good, but as a individual we need to kept in mind that the ethical and moral issues that pertain to all or any the stake holders. Issues and problems are the component of every business and life, however the only successful business man will be the true fighter of all internal and external forces those create obstacle / hindrance in the success ladder.

This record contain all the aspect of challenges experienced by the modern business man in operating his or her business, and those issues that he / she must face in his / her day to day routine. This record contain four part in the first part we've discussed the stock portfolio of the business enterprise, secondly PEST research, third we discussed the current issues of business and in the last we've conclude all the above explained issue and previously recommendation.


Colgate-Palmolive Company (NYSE: CL)

This can be an American firm that has the focused on the distribution, creation, personal products, provision of household and health care such as detergents, soaps, toothpaste and toothbrushes (oral hygiene products).


William Colgate, a candle and soap maker opened up a starch, soap, and candle factory situated on Dutch Block with the name of William Colgate & Company in New York City in 1806. The company in the initial years began to sell individual bars but later on in 1857, following the loss of life of William the business started out reorganized as "Colgate & Company" controlled by his son. Inside the starting of the year 1872, company presented a perfumed soap with name of Cashmere Bouquet. Colgate sold the first toothpaste in 1896 with the brand of Colgate Ribbon Dental care Cream but following the success of the brand, company started out mass retailing in 1908 (Wikipedia 2010).

Colgate people have built a reputation as a successful company that gets the highest ethical criteria. Through living the prices of Global Teamwork, Nurturing, Ongoing Improvement, and adhering to the principles of honor, integrity and matter for the environment, as the business seeks to:

  • Provide quality products of value to customers
  • Opportunities for professional development to all company people
  • Fulfill CSR as an associate of the international community
  • Increase shareholder value (Wikipedia 2010)

Factors affecting the business enterprise:

Government Factors:

Government does not have much effect on the FMCG industry in terms of regulations. There are consumer protection regulations but they are not implemented as they must be. There are not much regulations involved in this industry (Krutz 2004).

(P)olitical factors:

Political factors are influencing this industry because the recent and order conditions have affected the whole market which in turn afflicted the industry. Many of the factories of the top companies were burnt following the assassination of Benazir (Krutz 2004).

(E)conomic factors:

The overall economy of the united states is showing a well balanced progress. Therefore this industry is also showing a growth of 10%. However the inflation keeps growing swiftly which is not a good indication for the new entrants. Change in the interest rate also impacts the industry. Hence the new entrants are also threatened by the increasing rates of interest (Wikipedia 2010).

(S)ocial trends:

The social styles are in favor of this industry. Mass recognition is created through multimedia. So people are moving off their traditional methods of washing clothes, skincare etc to the modern methods. This is a good sign for the new entrants. Folks have become more educated and health conscious. High population development is another chance for the new entrants (Muravchik 2004).

(T)echnological change:

The technology can support this industry well. If the complete system can be automated from the import of raw materials to the done goods then it could save money and time. That is a good indication for the new entrants. However in this industry technology does not play a significant role because the original formulae of soap or toothpaste aren't very much complicated (Louviere 2001).

Colgate-Palmolive's Mission Statement

Company mission statement focusing on the next factors

  • Caring

Every Company has cases cares about people but the Colgate Company has original care for its business lovers, people, shareholders and customers. Colgate is focused on action with empathy, integrity and candor in every circumstances, to pay attention to customer in line with the value differences as well as others. Similarly the Company is focused on defend the widespread environment and augment the neighborhoods where Colgate people are alive and work (Wikipedia 2010).

  • Global Teamwork

All Colgate employees are part of a worldwide squad, devoted to working together across countries and all through the entire world. Only by allocation ideas, solutions and skills can the Company accomplish and maintain profitable expansion.

  • Continuous Improvement

Colgate is focused on getting advanced every day in all it does, as persons so when groups. By better sympathetic consumers' potential and incessantly working to improve and creativity in services, operations and products Colgate can be the best. (Wikipedia 2010)


Every management has to face difficulties in every step of business development and Effective management is the primary elements for the establishment / progress and success of the business enterprise. The success of the management is to look at the marketplace, background and create career. To make profit opportunities that give the financial viability and potential growth for the business. Beside that the value of management is usually misinterpreted and wrongly interprets because people are presenting more concentrate on the result somewhat than the course of management (Laroche, Michel, Zhou and Kim 1996).

Concurrently with the upsurge in demand about quality, business man captivated the interest of customers. An abrupt wave of successful internet marketers looks as if to render preceding management concepts obsolete while disregarding the marketing / managing abilities of the success full business man / businessperson (Griffin and Pustay 2009).

Planning is crucial for developing a firm's potential. This view tended to short-term enhances gains, however created along term dysfunctional business environment. However, many smaller businesses do not distinguish the necessity for long-term strategies, for the reason that the small no of individuals worried in working the business enterprise involves equivalent conscientiousness in your choice making and planning processes (Gauzente and Ranchhod 2002).

Critical concern/problem for today business:

Every new day bring the task for any business person, because to remain alive in the market you need to fight successfully and smartly, as the earth moving; complexity atlanta divorce attorneys facet of life is increase though technology has improved along but as much we participate in technology we get more depended. Following will be the hot switches for today business, and every business men pretty much facing and struggling

Political instability and participation:

Every government is eager to impose taxes to earn much more and more earnings, due to recent surprise of recession most of the sectors are move toward personal bankruptcy or liquidate because of high taxes and less gain given by the federal government. It is common these day small company or large business owners to be unacquainted with current legal issues that can struck them because ongoing changes available procedures and implication by the government authorities put them in trouble. The web that legal trouble can cost them. It could even cost your business. After 9/11 money laundering and other compliance issues are usually more dealt in the organization standard operating process (Wikipedia 2010)

Poverty and inequality of income:

Due to high inflation and high unemployment rate continuously striking the poverty level to increase, and that all because of inequality of income, in contrast as the inflation raise the cost of business will also increase that thing put the strain on the business man to reduce the costs because consumer start looking for alternate. In Pakistan micro funding gets importance as an efficient tool for cultural mobilization & poverty alleviation. Currently in Pakistan, a variety of organization including micro money banks & Others which range from NGO's to private & Federal sponsored ruler support programs are delivering services to the indegent, who don't have access to or neglected by the commercial banking companies. Micro finance is aimed at empowering individuals to earn a reasonable income through micro credits. Micro money caters the needs of borrowers and usually targets the segment of the population whose economic status falls below poverty level (Krutz 2004)

Ethical issues running a business:

Ethics and moral compulsion are something that we all come across at onetime or another. All people have to do something in a way that would support the society in a skillful setting. In every business there are own insurance policy of individuals and ethics within this business have adhere the compliance of the code conduct most of the business investing lot of resource to be able to keep the ethic and code of conduct within the organization, even though regulatory systems also penalized the business if in case of non - conformity (Krutz 2004)

Constantly Changing Economic Environment:

Dynamic monetary environment is a nights mare for the Contemporary business, because already exist large in the market is a serious threat for them, because the majority of them have made cartel and create obstacle for the new business men to enter in the marketplace or survival.

Economical changes like inflation, Balance of payment, unemployment and poverty is also hindrance for the expansion of business, for the fighting with each other against all these indicators, entrepreneur need specific skill and knowledge, because without that they cannot be in a position to run the business efficiently (Griffin and Pustay 2009)

Risk Management:

Every organization is vulnerable of low chances situations which could have a possibly appalling effect. Every single step has creating question for the business success, and company has to battle not only with external factor but must manage the inner factor of the business. All over we find a lot of people / object / substances that are working against the business and the complete factor is consist of those indicators that require to be monitored.

  • Theft of property
  • Breach of laws
  • Computer crimes
  • Fraud
  • Weather related damage

In order to look for the variance between the expected and attaining results company must determine the specific road map and checklist of the indicator which has are major role in the indicator (Cateora and Graham 2007).

Developing and Mentoring Employees:

Managing the employees / labor is the critical concern for the business men in these days because as the vibrant environment is coming around, for contending with that we need to keep our staff in the period of learning, and continuous training is required to make them up to date. .

The actual problem comes when the staff / labor are unwilling to change and create hindrance in the manner, so preventing with this problem is the key issue for the enterprisers.

Negotiating and Controlling Critical Human relationships with stake holders:

Developing / preserving the relationship with all the current stake holders is the important thing for the enterprisers because each and every one has its own importance, and without making good connection with them survival is difficult, for all your building relationship internet marketers have to have the negotiation and communication skills (Wikipedia 2010).

Every day we have noticed that tons of business people were lost their businesses just because they are absence with these skills and for understanding the critical relation with the stakeholders we must need to understand the value, if we neglect the clients, so we lose business, if we disregard the good provider so we lose the product quality, if we overlook the distributor so we lose the efficiency is services, and finally if we disregard the federal government so we have to ready for the sanctions and implication / charges / penalties.

Managing global operation:

While organizations become global they frequently conclude paying a powerful price in requisites of controlling complex issues and issues.

  • Host Country Norms and Customs.
  • Workforce management
  • Host country languages
  • Unfamiliar laws and regulations.
  • Unexpected Cost mixture.

Globalization has exaggerated almost all of business greatly. Multinational Organizations are functioning and operating in nearly every part of the world. It is significant to expend amount of time in considerate how globalization formulates it important and essential for a MNC to scatter and multiply its capacity and interpretation of Operation. It would be correct if try to know the school of thought of Multinational Companies aren't operating in any certain parts or countries. In the same way, the european worlds express these shortcomings of Globalization, if a business chooses to close up its business and depart from a bunch company. The overall disadvantages which direct to a Multi National Company forgoing globalization include (Gauzente and Ranchhod 2002).

  • Proprietary Technology to number countries.
  • Poor Employee skills.
  • Political hazards.
  • Customer response time is gradual.
  • Effective communication

Common reasons why organization Fail:

We can identify certain familiar reasons why Organizations neglect to achieve a competitive advantage and end up losing out with their opponents. These reasons are common in nature and discover the same footing in Pakistan as well as any other place in the planet. http://smallbiztrends. com/category/current-issues

  1. Too much emphasis on short-term financial performance. Frequently, cost cutting, earnings maximizing at the expense of cultural responsibility or employee determination is a failed strategy pursued by organizations, which just hastens their position to oblivion.
  2. Failing to adopt advantage of talents and opportunities. That is in reality failing to hold on to proven successful strategies or main competencies. Sometimes a big change in leadership contributes to change in strategy, where just for the sake of glory and high revenue, organizations ignore their main competence and opt for strategies and tactic which cause their downfall.
  3. Failing to identify competitive dangers. This reason is the exact opposite of failure to make use of the organizations talents. Quite often organizations opt to pursue status quo and ends up delivering no new service or product or even no innovation in its existing product or service line leading to lack of client satisfaction, decline in earnings and lastly being declared a failure.
  4. Neglecting operations strategy. This is unquestionably the most crucial reason of failing; organizations often finish up employing non fruitful techniques which lead to inconsistent and failed procedures.
  5. Too much emphasis in product and service design rather than enough on improvement. Differentiation in terms of service and product, American companies in 1980s does that they never launched incremental refinements rather travelled for big changes and so lost to Japanese competition.
  6. Neglecting assets in capital and human resources: A total disregard to work with the best source of information. Capital and human resources in the long run make or break a business.


Successful management is founded on the mastery of a multitude of details and the success of the business is depended on the productive management from the available resources and decision making for best goal. While management show the significance of concentrating attention on main issues have an effect on the business, professionals realize the main issues will be the variety form the business enterprise. The small fault to the business is unrecoverable personal bankruptcy, in a progressively more controlled society, inattentiveness to one slight details cans consequence in appreciable commotion of the business enterprise. Previously listed problems is not the only problem encountered by the entereprenurers but also every day they faced some kind of problem and threat in conducting operations and getting together with the standards, inside and external players of the market are the main indicator that require to be monitored and effectively arranged.

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