...Closing Case: Kimberly-Clark Estefania Sanchez Matus Principles of Management 5/27/14 Closing Case: Kimberly-Clark 1. Why would Kimberly-Clark executives restructure the company based on “grow, sustain, fix” categories? What disadvantages might result from such structure? * Kimberly-Clark decided to base the company on “grow, sustain and fix,” because this approach would allow them to pay more attention to the products that would require improvement, over those products that are already guaranteed sellers. Products that are growing the fastest and selling good would be placed in the ‘grow’ category. Products that are generating a solid return would be placed in the ‘sustain’ category, and those products that need improvement and need to be fixed would be placed in the ‘fix’ category. It is essentially a very straight forward approach and very easy to categorize, thus I think that’s one of the main reasons Kimberly-Clark decided to go about and carry out this method. The main disadvantage of this particular approach, is that they don’t focus on customer needs and this is by far one of the most important aspects in any company, because customers is basically the reason why the company is still running. 2. Was the organizational structure presented by Kimberly-Clark executives in 2004 better than the first structure proposed? Why or why not? * The organizational structure presented in 2004, was a much better approach in my opinion. After all, the main reason...
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...Karen- Kimberly-Clark Case Study In 1872 four business men, John Kimberly, Havilah Babcock, Charles Clark and Frank Shattuck created a company called Kimberly, Clark and Company which initially sold manufactured paper goods. They would eventually branch out into personal care items in order to compete in a larger market with companies like Proctor and Gamble. In 1978, Kimberly-Clark introduced Huggies disposable diapers and were an instant success. In the mid 1990’s Kimberly-Clark merged with Scott Paper and found them in an unusual predicament, the merger did not go well, the integration of Scott and Kimberly-Clark was a rocky one that would lead to dissatisfaction on the part of most Scott employees and especially Scott’s senior management.[1] In 2002, Proctor and Gamble released a line of high end Pampers disposable diapers that not only was a substitute for Huggies, but also captured a large portion of Huggies market share. Around 2003, Kimberly-Clark decided to restructure the way that the company focused on business products. They chose to use a system of “grow, sustain and fix”, which split all products in to areas that needed growth, needed to sustain market share or items that needed to be reformulated. This system was a total failure and caused the company to take several steps back in market share in most of their areas.[2] Had Kimberly-Clark gone for a more product related divisional structure, it is possible that they would not have lost so much of its...
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...[pic] Kimberly-Clark Andean Region: Creating a Winning Culture SUMMARY Kimberly Clark has hired Sergio Nacach to be the manager in the Andean Region. Andean region is consisted of five countries that are Peru, Ecuador, Bolivia, Venezuela, and Columbia. Andean region is known much about their bad economic in that time. Kimberly Clark wants to aim at their people. The culture different in Kimberly Clark is somewhat differentiated. They come from many places and they are all different on the individual. Kimberly Clark run by their newly hired from Uniliver’s management, Sergio Nacach, have gone up in the rank in the business. Kimberly Clark have successful not only the business result, despite of the situation of the economic in the Andean region, they also awarded as the Great Place to Work Institute. In Ecuador and Peru 2007, Kimberly-Clark was ranked number one on the best place to work list, and number four in Columbia. Sergio Nacach implements a very attractive way of management style. He closes the gap between the employee and him. He is not the type to go away with the power. Employees of any rank can walk in his office and discuss. He will drop everything he worked on and talk. This type of the management style encourages the employees to come up with the ideas that somehow never showed up in the business world. This method also greatly reduces tension in the work. Getting scolded by the boss is an old scheme...
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...Competitive Analysis of a Publically Held Company: Kimberly-Clark Corporation Mission As stated on the official Kimberly-Clark website, “[their] global team is passionate about providing people with essentials for a better life - by adding convenience to daily routines with some of the world's most recognized products”. Distinctive Competencies Kimberly-Clark has a few distinctive competencies that contribute to the company’s success. The first is the existence of brand recognition within the company ("Kimberly-clark corporation-financial and," 2011). The products produced by the Kimberly-Clark Corporation are well known for their quality; approximately 1.3 million people in over 130 countries use these products due to their competitive brand recognition ("Kimberly-clark corporation-financial and," 2011). The second important strength of the Kimberly-Clark Corporation is that they maintain substantive placement in geographically diverse markets ("Kimberly-clark corporation-financial and," 2011). Their products are distributed in over 150 countries, and Kimberly-Clark has manufacturing facilities in more than 36 of them. Asia, Latin America, and Europe are among the main contributors of revenue aside from North America ("Kimberly-clark corporation-financial and," 2011). The Kimberly-Clark Corporation is in a strong position regarding brand recognition; the company’s existence in diverse markets eliminates the risk and impact of possible economic decline in a single...
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...Kimberly-Clark 1. One challenge Kimberly-Clark faced in the Andean region was the sub-optimization that frequently occurred inside the company as a natural result of different units having different goals and measurements. In many instances, incompatible financial rewards were also a challenge. Another challenge was to get people to set higher aspirations for what they could achieve, both for themselves and the company. The third challenge was to fully tap into all of the employees’ ideas and abilities, to involve them more fully and completely in the company, and by doing so, to build a deeper, more emotional connection with the workforce and increase their degree of engagement instead of focusing on just the numbers. Finally, Nacach had to find a way keep morale and dedication up and to avoid the “Hawthorne Effect,” continuing to maintain the company’s culture and ideals after the novelty wears off, and put in place a strong, consistent, and universal culture. 2. Nacach addressed these challenges by: creating a winning culture, hiring the right people, increasing employee engagement, and learning things through trial and error. He also focused the company on what their dreams were as a whole and not just on budgets and numbers. To combat the communication issues between departments, Nacach and K-C decentralized coordination for a smoother flow of information throughout the company. This had the additional benefit of increasing competitive advantage through...
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...In 2003, Kimberly-Clark, the maker of paper products including Kleenex, Huggies, and Depends, announced it was creating a radical new structure to shore up underperforming parts of its business by restructuring its products into three categories. The categories were “grow,” “sustain,” and “fix” – somewhat unconventional categories. They weren’t devised based on product type, customers, or geographic locations in which they sold, but instead on the perceived strength of the product themselves. Background Kimberly, Clark and Company was established in 1872 by four young businessmen, John A.Kimberly, Havilah Babcock, Charles B.Clark, and Frank C.Shattuck. Based in Neenah, Wisconsin, the company initially manufactured paper, but over the years it began to branch out, broadening into the personal hygiene consumer products area to compete with companies like Procter & Gamble. In 1978, Kimberly-Clark introduced what would become its top seller: Huggies disposable diapers. Huggies were an instant hit and soon became the nation’s number-one brand. In the next two decades, Kimberly-Clark introduced Depends for adults, training pants for toddlers, and merged with Scott Paper, a leading maker of toilet paper and paper towels. Today, the merged company sells its products in over 150 countries around the world. In about 80 of those countries, it holds the number-one or number-two spot in the marketplace. Restructuring Problems Like many corporate mergers, the merger between Kimberly-Clark...
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...explain the value of his relationship with outsourcing and offshoring firm Cognizant, Kimberly-Clark chief information officer Ramon Baez recalls a conversation he had with one of its on-site consultants who rattled off such an impressive string of business metrics that he had to stop her to ask how she knew his business so well. "I remember asking the young lady presenting to me how much she knew about what goes on inside Kimberly-Clark," Baez says. "Because I was thinking, 'Wow, she's really knowledgeable.' And she told me, 'Oh, I've been on the project from the beginning. Yeah, that's how we do things.'" Baez had joined Kimberly-Clark in early 2007, shortly after the engagement with Cognizant started, so he hadn't initially realized the extent to which members of the project team were the same people who had come in to study Kimberly-Clark's operations and put together the vendor's initial proposal. That struck him as remarkable partly because of his experience with other outsourcers at prior jobs. "I've seen these vendors have a fantastic proposal team, and the reason the company wins the proposal is because of the people on that team. But then as soon as they've got it, those people move off to another contract, and you get someone you have no relationship with to run the actual project," he says. Because Cognizant has proven willing to make a serious investment in understanding Kimberly-Clark's business as well as its information technology needs, the $18.3 billion consumer...
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...|[pic] |[pic] |[pic] |[pic] | |[pic] |[pic] |[pic] |[pic] | |[pic] |[pic] |[pic] | |[pic] |[pic] |[pic] |[pic] | |[pic] |[pic] |[pic] |[pic] | |[pic] |[pic] |[pic] | Sanitary pads plays a major role in a woman's life. A lady's intimate friend. The quality of sanitary pads can influence ladies' emotions during period. That is why choosing a suitable sanitary pad is very important. According to research, when blood on used sanitary pads is exposed to the air, approximately 100,000 bacteria will grow on it in a mere 4 minute. This has been a major factor of various female sicknesses such as itchiness, sensitive skin, inflammation, lower back pain, fatique, emotionally unstable and others. Kotex is a brand that plays an undeniably significant role in the female population. With almost 60 years of experience in Malaysia, Kotex is constantly striving to develop innovative campaigns and products to help...
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...Kimberly-Clark Corporation Brief summary of the company Kimberly-Clark Corporation is an American personal care corporation that produces mostly paper-based consumer products. Kimberly-Clark brand name products include Kleenex facial tissue, Kotex feminine hygiene products, Cottonelle, Scott and Andrextoilet paper, Wypall utility wipes, KimWipes scientific cleaning wipes, and Huggies disposable diapers. Furthermore, leading brands sold in more than 175 countries and more than 142 years in business. Based in Irving, Texas, it has approximately 42,500 employees working at manufacturing facilities in 37 countries. Nearly one-quarter of the world's population purchase our products every day. Kimberly-Clark UK holds Royal Warrants from Queen Elizabeth II and from the Prince of Wales in the United Kingdom. Kimberly Clark is also listed among the Fortune 500. Subsidiaries under Kimberly-Clark include Kimberly-Clark Health Care and Kimberly-Clark Professional. Kimberly-Clark Innovations (Discovering new ways to provide essentials for a better life) At Kimberly-Clark, insights gained from our customers, shoppers and users drive us to continuously explore ways to increase our speed to market with new-to-the-world essential solutions. Developing and acquiring new technologies and leveraging strategic partnerships and alliances has enabled us to create innovative product and design solutions across our consumer tissue, personal care, health care and business-to-business segments...
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...Strategy Pays Off For Kimberly-Clark (NYSE:KMB) http://investor.kimberly-clark.com/releasedetail.cfm?releaseid=... February 3, 2009 Innovation Strategy Pays Off For Kimberly-Clark REIGATE,UK - Feb. 3 2009 – Global health and hygiene giant, Kimberly-Clark, today celebrates two victories after winning ‘Product of the Year’ awards in the UK’s largest consumer survey, designed to highlight the biggest product innovations in the FMCG industry. Leading toilet tissue brand Andrex was named Household Paper Product of the Year for its 'Hello Softie' mainline product as well as Kids' Hygiene Product of the Year for Andrex 'Moist for kids'. The awards follow a strategic focus on the customer, shopper and user insights needed to drive real innovation and bring solutions into the market place that make a real difference to people's lives. Kimberly-Clark's ambition to become an indispensible partner to the retail trade by driving category growth, led by innovation is part of this strategic focus. Troy Warfield, Kimberly-Clark Vice President, said: "We have focused on investing in insights to drive our innovation, communication and activation that has seen our consumers recognize this through our share growth and the "Product of the Year" achievements. "This year we will continue to invest in our brands and drive our marketing campaigns that reach people in new and exciting ways deliver innovation and value for our consumers and continue to align Kimberly-Clark with the needs of our...
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...stagnation in customer population and market saturation Western European Toilet paper market is experiencing polarization – strong growth for premium brands, stagnations for standard and economy brands and rapid growth for private labels. 2003-05 Spain premium brands increased 16% and private labels increased 12% and standard/economy increased by 3% - Growth of private labels in Europe is driven by improvements in the quality of marketing of their products AND growing power of retailers which are consolidated and able to impose relentless pressure on every supplier. Renova in western Europe has less than 1% market share Competitors in tissue industry are $57 Bill Proctor and Gamble – Charmin TP and Bounty Kitchen rolls $16 Bill Kimberly Clark – Kleenex TP and facial tissue, Scott TP and Kitchen rolls, Cottonelle $21 Bill GP paper company – Angel Soft, Lotus, etc $13 Bill SCA (Svenska Cellulosa Aktiebolaget)- Velvet and Tempo Retailers that are competitiors AS WELL AS Renovas SOLE customers – * Carrefours – 64 bill sales in europe * Lidl – 40 bill sales in Europe * Tesco - $37 bill sales in europe * Also medium size European paper producers that could get into Portuguese market – mainly Sofidel - $800 mill in sales and 4th largest tissue company in Europe – owns Nicky and Regina brands – strongest in Italy but rapidly expanding to...
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...let’s move to the price In terms of the price strategy in Australian market, competitive low-price strategy should still be implemented. Australian consumers are reported more likely to buy cheaper products due to slow growing disposable income. Place In South Africa, Twinsaver has a close relationship with local major retailers due to its high reputation and huge market influence. It implies that Twinsaver when entering Australian market should first consider two largest retailers Woolworths and Coles. However, there has been a fierce competition between toilet paper. As we can see, the three main leading brands that are Quilton, Sorbent and Kleenex have long cooperations with both two retailers. Besides, Woolworths and Coles also have their private-label toilet paper brands. As a result, it could be quite challenging for such a new brand to compete with existing brands via Woolworths or Coles Therefore, some medium-size supermarkets like ALDI and IGA as well as small convenient stores like Seven Eleven may be more suitable for Twinsaver. Twinsaver should also set up its own online selling distribution channel for Australian market. Online retailing has become increasingly popular in Australia. By 2012 value sales via Internet retailing had reached $4.6 billion, increased by 72% in 2007. Toilet papers as an everyday item should not only present in those online supermarkets. They should also be able to purchase via its official website. Promotion As a new brand to...
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...Kimberly Clark – Lean Logistics June 25, 2012 Executive Summary Organizations in today’s economy often include cost control or reduction in their overall strategies. Logistics is an area of increasing focus where internal and external costs affect the margins and customer demands require excellence of service. In distribution, selective, exclusive and intensive are three primary channels in which an organization must determine the best option in relation to products and customers. The Kimberly Clark Company provides an excellent example for today’s organizations with “a customer-oriented supply chain reorganization begun more than four years ago, K-C is improving distribution efficiencies, reducing transportation costs and shrinking its carbon footprint, while becoming an indispensable partner to retail customers” (Jamison, 2008, para.3). Technology and the Supply Chain Continuous advancements in technology offer new solutions to old problems in supply chain management as well as placing focus on the current needs of distribution in global markets. Real-time locations systems (RTLS) are among emerging technologies where “RFID is no longer considered an emerging technology. It is a proven solution with high value add and an increasingly attractive ROI, said Michael Liard, Director, AutoID for VDC Research Group.” (Zebra Technologies, 2012). Technology plays an important role in distribution where retail customers focus on inventory reduction...
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...Principles Of Management Case 4 Restrukturisasi Struktur Organisasi di Kimberly Clark Pada tahun 2003, kimberly clark, pembuat produk kertas, termasuk tisu, Huggies dan Depends, mengumumkan akan menciptakan struktur baru yang radikal untuk menopang bagian bisnis yang berkinerja buruk oleh restrukturisasi produknya ke dalam tiga kategori. Kategori tersebut '' tumbuh ‘’, '' mempertahankan '', dan '' memperbaiki ''-agak tidak konvensional Kategori. Mereka bukan menyusun berdasarkan jenis produk, pelanggan, atau lokasi geografis di mana Kimberly Clark menjual barang, melainkan pada kekuatan yang dirasakan dari produk itu sendiri. Latar belakang Kimberly Clark dan perusahaan didirikan pada tahun 1872 oleh empat pengusaha muda, John A. Kimberly, Havilah Babcock, Charles B. Clark, dan Frank C. Shattuck. Berbasis di Neenah, Wisconsin, perusahaan awalnya memproduksi kertas, tetapi selama bertahun-tahun itu mulai untuk keluar cabang, memperluas ke daerah produk konsumen kebersihan pribadi untuk bersaing dengan perusahaan-perusahaan seperti Procter and Gamble. Pada tahun 1978, Kimberly Clark memperkenalkan apa yang akan menjadi Penjual atas Nya: Huggies popok sekali pakai. Huggies adalah seorang menggemparkan dan segera menjadi nomor satu merek popok bangsa. Selama dua dekade mendatang, Kimberly Clark memperkenalkan tergantung untuk orang dewasa dan pelatihan celana untuk balita, dan memperoleh pesaing yang scott paper, terkemuka pembuat kertas toilet dan kertas handuk. Hari...
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...Kimberly-Clark Use Sustainable Standards to Operate Sheila Cole Southern New Hampshire University Professor Gaylynn Brenoel March 13, 2016 Introduction Economic growth is defined as the increased capacity of an economy to produce goods and services, compared from one period of time to another. An example of growth is associated with technology like the internet and the way it has brought the U.S. industry as a whole; moreover, improve the quality of life. Kimberly-Clark as a business has not stopped growing as a business so their sustainability continues to grow as the company grows too. They have remain in business by being responsible to the consumer and the government, practice ethical economical practices and protect the environment. Business In Kimberly-Clark’s 2010 Sustainability report, the company’s goal was to organize their activities in the three key pillars: people, planet, and products to reflect their responsibility to all parties involved (employees, governmental and non-governmental organizations, consumers, customers, shareholders, business partners, community members and others with an interest in our approach to corporate citizenship). Now in the company’s new report, the focus remains the same in Kimberly-Clark “Our Sustainability 2015 strategy revolves around the three pillars of sustainability: people, planet and products”. • People—Ensure that our business practices are beneficial to our employees and the communities where we operate...
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