Issues with Colgate

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International MGT Case Study

Colgate's Distasteful Toothpaste

1.)The major strategic and ethical issues faced by Colgate in its partnership took many different forms. Colgate did not have any management rights in agreement with Hawley and Hazel. Another issue was the fact that there was dissatisfaction with the logo and name of the toothpaste created by Hawley and Hazel called “Darkie” toothpaste. Some people had a problem with this because they thought it was racially offensive.

think that Colgate should have dropped their partnership with Hawley and Hazel very quick. Another alternative would be that they could just try to reason with Hawley and Hazel about how it makes the company look so that they would decide to change or stop producing the product themselves.

3.)do think that it is possible to change the product's advertising without sacrificing brand loyalty as long as they do a good job of letting consumers know that it is the same product just with a different name. I also think that having a satisfaction guarantee which offers money back will be good to let consumers know it is the same product. I think that the risk of sacrificing brand loyalty is why Colgate is not responding quickly to complaints. They may think that people will stop buying this product and the company will lose many sales.

4.) I do not think the “no management rights” clause was good for Colgate. This gave Colgate no major control over decisions that were made, which could have been bad for them. When they came to be in a partnership with Hawley and Hazel, they could have negotiated these terms to have more say so in the names of products and other aspects of the company.
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