Procter&Gamble’s Corporate Essay Sample
1. What is Procter & A ; Gamble’s corporate scheme? Do the company’s concerns seem to be related or unrelated? Are Gillette’s concerns closely related to P & A ; G’s concerns? How will a amalgamation with Gillette consequence in a 1 + 1 = 3 consequence for P & A ; G?
2. How attractive are the industries/product classs in which P & A ; G competes? What is the competitory strength of each of its concern sections? Does Gillette look to vie in attractive consumer sections? Are its concern units strong in their respective markets? What does a 9-cell industry attractiveness/business strength matrix exposing P & A ; G and Gillette’s concern units look like?
3. Does Procter & A ; Gamble’s concern line-up exhibit good resource tantrum? How do Gillette’s net income borders compare to the net income borders for P & A ; G’s concerns for the 2000-June 2005 clip periods? Do both companies have similar growing rates and debt constructions? How do the free hard currency flow and free hard currency flow productiveness rates compare for the two companies? Does it look that the add-on of Gillette’s concern units will hike the P & A ; G’s bottom line?
4. What is your appraisal of the $ 57 billion acquisition monetary value Procter & A ; Gambe paid for Gillette? Does the 20 % purchase monetary value premium seem appropriate? Are the gross revenues and EBITDA multiples based on the $ 57 billion purchase monetary value in line with other amalgamations in consumer goods industry? Does the 0. 975 exchange ratio seem carnival to both P & A ; G and Gillette stockholders?
5. What strategic actions should Procter and Gamble executives undertake to guarantee the Gillette acquisition finally benefits stockholders? What must be done to accomplish the expected 1 +1 = 3 benefit? Should the company pursue extra acquisitions? Should certain concern units be eliminated from the concern batting order?
