Colgate Case Study
Colgate is a consumer product company that is well-known and has its base in New York. Colgate had a strong presence in the international presence traditionally.it was operational in Latin America, Australia, France, Canada, and Germany. Previously Colgate had made detailed analysis of the international markets for demand. Colgate made a decision of buying a 50% partnership in the Hawley and Hazel group worth $50million in August 1985.the main reason for making this decision was the fact that Colgate wanted to gain a strong share in the Asian market .They wanted to achieve this without necessarily having to build their own production plant. Part of the agreement stipulated that Colgate possessed no management prerogative. This meant that Hawley and Hazel were the ones with the right to make any major decisions in the organization. This partnership turned out very lucrative for Colgate with annual sales of double digits millions.
There were several strategic issue involved in this decision first Colgate wanted to enter the market without having to build a plant there and hence they had to come up with a strategy on how they would achieve this. This led to the strategic decision of 50% ownership. However with this partnership Colgate surrendered all the management rights to its partners. This was a very poor strategic decision as it would affect Colgate later when it comes to making important decisions.
The only product of note for Hawley and Hazel was the Darkie toothpaste. The toothpaste featured...
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