MEMO

Executive Summary
This memo analyzes the strategic position of Global Household Brands in the household product market. The current strategies and practices lead us to turn out the right move that management should make in order to gain the market share and largest long term growth for the company. I have evaluated GHB in order to develop useful recommendations and possible strategies in the future. I have gathered information regarding industries, financial statements, internal and external factors in GHB competitive structure. My analysis will be based on a SWOT analysis, Michael Porter’s five forces model and strategic intent in order to achieve the best strategies in the market of household product. Finally, I can assure that GHB will solve this situation, and turn out more stable and efficient company throughout provided good recommendations and possible strategies in the future.

Background of GHB
Before analyzing Global Household Brands, I would like to provide where GHB is now by a brief background. Block drug produced a variety of “niche” products such as Polident, powdered aspirin products, household cleaning products, and other brands. The most of these products were successfully generating high profits in their respective markets. However, they were faced with some trouble when Clorox, S.C. Johnson, Arm and Hammer entered the market. Block chose not to market their products at the level of large competitors, which led to a sharply decrease in sales about 10% to 15% per year from 1995 to 1998. After sales dropped below $75 million, Block hired Goldman Sachs to find a buyer for their brands, which led to a leveraged buyout group. A small venture capital firm invested about $50 million in order to acquire the brands. The new company was named Global Household Brands.

Internal Analysis
To analyze Global Household Brands, Mr. Stone should