Advance strategic management. Consumerism Essay

1. What is consumerism?DEFINITIONConsumerism bottom of the inning be defined in two different expressions1. Consumerism is a theory which states that buying and consuming goods and services in a large amount are more beneficial to the economy. Thus this theory appreciates gradually increased consumption of goods and services.2. Consumerism means consumer justification. It is a bm or policy that protects the interests of consumers via truthful packaging, honest advertisement, betterd safety standards and product guarantees. Consumerism involves policies that regulate methods, products and services, standards, selling and advertising in the interests of the consumers.These protect buyers from defective products, mis surpassing advertising, inequitable practices and so forth Such policies can be mandatory, legislative, institutional or voluntarily accepted by the industry. e.g., consumers interests can be harmed by mispricing, adulteration, artificial demand etc. importanceConsumeri sm encourages economic growth by providing good quality goods and services to the customers.Increased consumption by the customers shows the economic growth level. Increased demand would lead to increased production thus raising the gross domestic production.It helps to make informed closings through truthful advertising, environmental and safety standard laws. Thus consumerism turn ins protection to buyers.Implementation of consumer protection laws shield consumers against exploitation, discourage anti-social activities and unfair trade practices, render complete and latest information to the customer which aids in buyingdecision making process.2. What IS STRATEGY? Why it is important?Choose a caller, study its outline and then make its competitive compendium. DEFINITION1. Strategy is business gritty plan used by management to stake out market position, conduct its operations, attract and please customers, compete successfully and achieve organizational objectives.2. It is a process through which a follow concentrated its resources on optimal opportunities to achieve short term and long term goals and other competitive advantages. IMPORTANCEStrategy answers three central questions or so the ships company (i) where are we now? (ii) where do we want to go? (iii) how will we get there? Strategy tells about the current position of the company, its future plans and the approaches it will follow to achieve its objectives.Strategy encompasses actions to attract customers, actions to deliver value at optimal price and cost equilibrium, actions to react to changing market environment, approaches to pursue available opportunities and plans to gain competitive edge.A powerful system makes a company distinctive and provides sustainable and durable competitive advantage in creating, producing, distributing and marketing the companys products/services.An effective strategy results in best possible business performance in terms of fiscal profitability and marke t position.Strategies are desperately needed to direct the activities of the company in a way that its goals and objectives are achieved in a right way through right approaches and at the right time.An smooth strategy that is excellently implemented is a good measure to evaluate the management competencies and performance.A strategy-focused company has a strong performance, profitable earnings, revenue growth and favourable return on investment.COMPANY COLGATE-PALMOLIVEColgate Palmolive has $17.1 billion consumer products and serves people around the world with renowned brands by offering four types of products/services oral care, personal care, home care and pet nutrition products. This company operates globally and approximately 75 percentage of its gross revenue are from outside the home country while majority of its products are manufactured in its own facilities.Colgate-Palmolive 2011 to 2015 StrategyThe main focus of Colgate-Palmolives five year strategy is on people, perf ormance and planet with measurable goals in accordance with the companys business objectives. 1. Promoting Healthier LivesThe objective was to promote wellness and wellness in order to minimize employee health risks by 15 percent, to achieve 5 percent reduced health costs by better on time diagnosis and treatment of diseases and to focus on safety of employees.2. Contributing to The Communities Where We Live and WorkThis parameter of the strategy aims to increase the impact of company on the community by $300 million. For this purpose five objectives were set which will provide greater focus to the companys contribution towards the community. union is done with dental professions to improve the oral care of the community. A program of Bright Smiles, Bright Futures is scheduled to contact 1 billion children by 2020. To provide hand-washing awareness to over 50 million households. To work with 250 thousand veterinarians to educate pet owners and provide over $100 million pet food. Co ntinue to provide companys products after natural disasters and to invite morevolunteers in this community program.3. Delivering Products That Delight Consumers and Respect Our PlanetThe objective is to increase the sustainability of all the products by (i) ensuring that ingredients continue to meet the standards of safety, health and quality (ii) reducing the impact of environment on the products and packaging. This is achieved by increasing the use of recycled contents and more usage of sustainable visibles.4. Making Every Drop of Water CountThe strategy aims to reduce the consumption of water during manufacturing by 24 percent. The objective also aims to take move to promote access of clean water and water conversation awareness among over two billion consumers.5. Reducing Our Impact on Climate and purlieuThe intention was to reduce energy consumption and carbon emission during the manufacturing process by 20 percent.COMPETITIVE ANALYSISThe stated strategy of the company can b e analysed on the bases of three broad terms. The following stated questions will determine the goodness of the strategy implemented by Colgate-Palmolive i.e. whether the strategy was able to improve the market position and financial performance of the company or not, how good was the company at handling the environmental dynamics and gaining competitive advantage. 1. How well does the strategy fits with the companys situation?The main competitor of Colgate-Palmolive is Procter & Gamble with the same strategy of sustaining products and environmental safety but Colgate-Palmolive has got a competitive advantage in the year 2011 and 2012 by having strong presence in personal care products and emerging markets in different geographical areas. Due to broad operation bases globally thecompany has got the strength to lead the market.2. Is the strategy helping the company achieve a sustainable competitive advantage?Yes the strategy implemented by the company has made it to be a global leade r in oral care. Colgate-Palmolives market is the single largest market by value shares and is insulated from the downturns. The companys strategy focuses to meet market challenges, committed to increase product sustainability and focuses on segmentation by function. Colgate-Palmolive has improved sustainability profile in 24 percent of products.3. Is the strategy helping in better company performance?The strategy has helped the company in attaining better financial and ethical performance. Colgate-Palmolive has shown best environmental performance in past years and is able to sustain its past competitive advantage. The company had $17.1 billion worldwide sales in 2012.Its gross profit margin was 58.4 percent in fourth quarter of 2012. Colgate-Palmolive won 100% Code of Conduct Certification, stood none 1 in beauty and personal care products and was announced No. 1 at Most Admired Companies in 2013 by Fortune World. Colgate-Palmolive had operating profit of $4.02 million in 2012. 35 percent of its packaging material is from the recycled material thus fulfilling its goals of safeguarding the environment and reducing costs.Three different products of Colgate-Palmolive have won designation of Product of the Year 2012 and Ethisphere magazine has given the company title of 2013 Worlds Most Ethical Companies US E.P.A declared the company to be Designed for the Environment for many of its home care products. The above analysis shows the strengths and the competitive advantage earned by the company due to its best performance and leading activities. Surely the above mentioned performance is only attainable because of an excellent strategy and its excellent execution. _________________________________________