This report states all the main issues Kimberly Clark faced and benefits they got from the merger with Scott Company. An analysis has been performed about the importance of this merger in consumer care product line and recommendations on how to improve on its decision making process and efficient planning are mentioned
A detail analysis was performed on the external factors which affected this merger. Legal/political, technological and economical factors are a few to mention. These factors played a crucial role in the strategic changes and decision process brought about by Kimberly Clark. This report also highlights internal environment including reduction of staff, closing down of underperforming production unit, restructuring of product classification which affected the company. The internal and external environment in turn affects the performance of the company and plays an integral part in the organisation strategy and decision making process.
Advantages such as increased supply chain, brand equity, expanded production units, assumptions and wrong organisation models implied by Kimberly Clark are also mentioned in the report. Measures taken to improve the performance of the company, strategic approaches, and limitations of the company are mentioned about in this report
Finally, this report gives an overall conclusion of factors leading to the merger of Kimberly Clark along with their assumptions and strategic decision, which hindered the company to gain competitive advantage after its merger with Scott.
➢ Kimberly Clark should give high consideration of external factors for efficient planning. External environment demonstrate crucial understanding of factors to develop a competitive edge. It helps in developing right strategic planning process considering new entrants, existing competitors maintaining position in the market from quality and price and also new technologies.
➢ Kimberly Clark should evaluate internal environment before having an integration process, as it shows company readiness to adapt with change. Lack of internal environment evaluation led to the loss of most of the senior executives from Scott. Integration of the two companies from different regions and culture requires stable support from the management to prevent any negative responses.
➢ Kimberly Clark should have decision making practices which matches the company’s strategic objectives. This will avoid the company from constant restructuring, as constant restructuring develops a negative impact on shareholders. Study of external and internal environment, considering all possible factors will make it easier to implement Global Business Policy and avoid its failure.
➢ Kimberly Clark should maximize their knowledge from experienced Scott managers as this will help in understanding the local market. It also allows the company to understand the organisation work culture and vivid methods of operation from Scott. Kimberly Clark did not have proper knowledge of Scott inventory and the impact of extreme downsizing of the organisation. This hindered them to solve the emerging problem quickly.
Kimberly Clark and company was founded in Neenah, Wisconsin in 1872, in a partnership between John A. Kimberly, Charles B. Clark, Frank .C. Shattuck and Havilah Babcock. The company was initially launched their business as paper mills. Further through various mergers, acquisition and innovation they have become one of the leading brands in paper based products, all over the world (Thomson Corporation, 1997).
The company has established its position by the development of new marketing programmes and technological advances (Glowacki, 1995). They have worked through, to become one of the 100 best companies in USA by focussing on health, hygiene and well being of the consumer introducing popular brands like Kleenex,...
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