Global Household Brands Case
MEMO
To: Mr. Stone, CEO, Global Household Brands
From:, Analyst, BMF Consulting Firm
Executive Summary BMF consulting has evaluated the structure of Global Household Brands, in order to give recommendations for possible growth and stability for the future of the company. In this analysis, I have gathered information regarding financial statements, internal and external factors in Global Household Brands competitive structure, and strategic priorities in order for the company to grow in the household product industry. The analysis of the internal factors shows that Global Household Products have strong distribution throughout the industry and have a core competency for developing quality products. This analysis allows for GHB to expand past their previous four product lines, and possibly develop synergies with other smaller companies like Glad, to differentiate products such as 2000 flushes and Carpet Fresh. With Global Household Products being in a mature industry, completion and threat of new entrants are low, which would allow GHB to strive on their strong product quality. The need for restructuring inside the supply chain is necessary in order to limit cost and waste that has developed from previous year’s lack of efficiency. Financially, GHB is financed mostly on debt, making it highly leveraged and with great financial risk. This is a problem because with the decreasing sales and profit margins from previous years, the banks are threatening to call the loans that financed the company. This is a problem that has developed with the previous management team, and requires negotiation for restructuring of the terms of the loans. This will allow newly implemented strategies to incorporate themselves into the company and develop results. In this analysis, I have come to the conclusion that GHB must begin to create a Research and Development, marketing, and cost strategy. The V.P. of Marketing is well known for his experience and unique
To: Mr. Stone, CEO, Global Household Brands
From:, Analyst, BMF Consulting Firm
Executive Summary BMF consulting has evaluated the structure of Global Household Brands, in order to give recommendations for possible growth and stability for the future of the company. In this analysis, I have gathered information regarding financial statements, internal and external factors in Global Household Brands competitive structure, and strategic priorities in order for the company to grow in the household product industry. The analysis of the internal factors shows that Global Household Products have strong distribution throughout the industry and have a core competency for developing quality products. This analysis allows for GHB to expand past their previous four product lines, and possibly develop synergies with other smaller companies like Glad, to differentiate products such as 2000 flushes and Carpet Fresh. With Global Household Products being in a mature industry, completion and threat of new entrants are low, which would allow GHB to strive on their strong product quality. The need for restructuring inside the supply chain is necessary in order to limit cost and waste that has developed from previous year’s lack of efficiency. Financially, GHB is financed mostly on debt, making it highly leveraged and with great financial risk. This is a problem because with the decreasing sales and profit margins from previous years, the banks are threatening to call the loans that financed the company. This is a problem that has developed with the previous management team, and requires negotiation for restructuring of the terms of the loans. This will allow newly implemented strategies to incorporate themselves into the company and develop results. In this analysis, I have come to the conclusion that GHB must begin to create a Research and Development, marketing, and cost strategy. The V.P. of Marketing is well known for his experience and unique