Henkel Case Study Final Paper 
By:
Julia Battaglia, Ryan Crane, Michael Gunderson, Beau Jones, Jay Lupas, Nikolay
Savov, Lindsay Sperin
Table of Contents:
Recommendations
Strategy
SWOT Analysis
Competitive Landscape
Porter’s Five Force Analysis
Financial Analysis
Appendix
p. 3 4
p.
p.
p.
p.
p.
p.
Recommendations:
After thoroughly analyzing your company, we have come up with several recommendations for you to consider. To begin, we believe that Henkel should continue with the lowcost reduction strategy across the board. In doing so, this will ensure that you do not spend money in areas that money does not need to be spent. We also believe that there is great possibility for acquisitions within the company; primarily in the cosmetic toiletry business segment. If the aforementioned segment were to be acquired, there would be potential for
Henkel’s global market to increase from its current two percent. Additionally, we also feel as though divestment may be a worthwhile strategy for you to consider, particularly in regards to the brands from the slowgrowth laundry detergent segment. We suggest this because of
Henkel’s operation expansion in nonChinese emerging markets; such as Latin America, Russia,
India and the Middle East. In shedding your lowgrowth brands, Henkel has the opportunity to redirect the cash from underperforming operations and reinvest into these new emerging, fastergrowing, higher margin segments; specifically the cosmetics and adhesive segments.
It is important to note that emerging markets currently offer the highest profit margins due to the demand for manufacturing using adhesive technologies and also the most favorable demographics for expansion for your cosmetic toiletries segment. We recommend that Henkel will do it’s best to oversee productivity at its overseas plants and thereby try to minimize the
Julia Battaglia, Ryan Crane, Michael Gunderson, Beau Jones, Jay Lupas, Nikolay
Savov, Lindsay Sperin
Table of Contents:
Recommendations
Strategy
SWOT Analysis
Competitive Landscape
Porter’s Five Force Analysis
Financial Analysis
Appendix
p. 3 4
p.
p.
p.
p.
p.
p.
Recommendations:
After thoroughly analyzing your company, we have come up with several recommendations for you to consider. To begin, we believe that Henkel should continue with the lowcost reduction strategy across the board. In doing so, this will ensure that you do not spend money in areas that money does not need to be spent. We also believe that there is great possibility for acquisitions within the company; primarily in the cosmetic toiletry business segment. If the aforementioned segment were to be acquired, there would be potential for
Henkel’s global market to increase from its current two percent. Additionally, we also feel as though divestment may be a worthwhile strategy for you to consider, particularly in regards to the brands from the slowgrowth laundry detergent segment. We suggest this because of
Henkel’s operation expansion in nonChinese emerging markets; such as Latin America, Russia,
India and the Middle East. In shedding your lowgrowth brands, Henkel has the opportunity to redirect the cash from underperforming operations and reinvest into these new emerging, fastergrowing, higher margin segments; specifically the cosmetics and adhesive segments.
It is important to note that emerging markets currently offer the highest profit margins due to the demand for manufacturing using adhesive technologies and also the most favorable demographics for expansion for your cosmetic toiletries segment. We recommend that Henkel will do it’s best to oversee productivity at its overseas plants and thereby try to minimize the