Best managed companies from 3 Companies Essay Example for Free

Best managed companies from 3 Companies Essay The industry that has been chosen for this report id the fast moving consumer goods (FMCG) industry in which the household and personal products have been chosen. The three companies that have been chosen for the analysis are Unilever, Procter Gamble and Johnson Johnson. The purpose of the report is to identify the best company out of the three based on various factors which includes the financial factors and other management variables. Unilever was established in 1930 by a British soap maker Lever Brothers and a Dutch Margarine Producer who was Margarine Unie. The company today has around 160 brands around the world in 12 categories and is providing various home care products to people around the world. The company operates in around 100 countries and employs 163,000 people in these 100 locations. The multinational in 2009 had the revenues of around 39. 8 billion Euros. (History, n. d. ) Procter and Gamble was established in 1837 by two partners who started the company by selling candles and soap. Today it has managed to become the fifth most profitable organization of the world and sells around 38 brands all over the world. (Heritage, n. d. ) The third company that will be analyzed is Johnsons and Johnsons which was initially established in 1885 as a ready to use surgical dressings. Later the company transformed into a global pharmaceutical and consumer packaged and manufactured goods. The company includes around 250 subsidiary companies in 57 countries of the world. The company had a profit of around $ 12. 9 billion in 2009. (Our History, n. d. ) Comparison of the companies Financial variables Unilever is ranked 85 on the Forbes 2000 list for 2010. The company’s sales for the previous year were around $57. 05. The net worth of the assets was around $52. 05 while the market value was $91. 33. The profits f or 2009, 2008 and 2007 were $4. 83 billion, $5. 3 billion and $7billion respectively. Procter Gamble is ranked 29 on the Forbes 2000 list for 2010 with its sales touching $76. 78 billion while the assets are around $135. 29 billion. The market valuation for the company for the previous year was approximately $ 184. 47 billion. The profits for the last three years are as follows; 2009 $ 13. 05 billion, 2008 $ 14. 08 billion, 2007 $ 11. 13 billion. Johnson and Johnson is on 47th position on the Forbes 2000 list for 2010. The sales for the company for the previous year were $ 61. 9 billion and the assets of the company worth $94. 68 billion dollars while the market valuation is $174. 9 billion. The profits for the last three years are given in the decreasing order starting from 2009, $12. 27 billion, $12. 95 billion and $ 10. 48 billion. (The Global 2000, 2010) Management Unilever being the one of the top FMCG companies of the world employs the best people around the company. The CEO of the company is Patrick Cescau who is a very renowned and well learned person with extensive professional experience. The company has always been known for its employee leadership where the employees are given full authority to work in their own way. The major decisions are done by senior managers while the junior management is also given freedom in decision making. The overall decision making is centralized in the company where the major decisions are taken by the senior management. The company works very hard for developing good relations with the employees as the company pays special attention towards helping the employees grow the employees professionally. Procter and Gamble is listed among the Canada’s top 100 employers as the company works very hard towards making itself as one of the best employers by helping the employers grow in their professional lives. The company is considered as a leader in the employee- benefit program. The decision making in the company is decentralized where the employees have the autonomy to decide for themselves. The company has a complete strategic unit in place which is responsible for predicting various factors of the company. Johnson and Johnson offer variety of benefits for its employees which includes different long term and short term perks. The employees are given ample opportunities to grow in their careers which give them a job satisfaction. The company has a decentralized management approach and the autonomy for decision making is given to everyone in the company. The employees consider themselves as small entrepreneurs who have full autonomy over their work. The employees are considered as one of the most important assets of the company. Organization Unilever’s philosophy is to implement the highest level of corporate behavior towards all the strategic public of the company. The organization is committed to providing quality products to the consumers. The organization works with integrity and commitment in order to get better and improved products for the consumers. The company fulfills all its responsibilities towards all its stake holders which include the employees, customers, the government and the other strategic public of the company. The company enjoys the benefit of strong brand recognition. The current business strategy adopted by the organization is differentiation strategy where the company differentiates itself by the new product development of the company and the quality of advertisement and branding. The philosophy of Procter and Gamble is to provide quality products to its consumer where the bottom line of the philosophy is to improve the lives of the consumers by providing them with better products. The core strength of the company revolves around understanding the consumers and innovating in order to give them a better living standard. The company is very keen about innovation and thus spend pretty large sum of money. The company has been pretty successful in its mergers and acquisition strategies as it has been very successful in its acquisitions of various companies like Clairol in 2001, Wella in 2003 and Gillette in 2005. These successful acquisitions have lead to the increase in the stakeholder’s value. Johnson and Johnson care for its consumers a lot and are constantly working to get new and better products for the customers. The company emphasizes the most on employee empowerment and decentralization of the employees. The company is managed for long term and the people are considered very important in the organization. The company’s philosophy of taking care of the consumers is what is their differentiation strategies. The company has differentiated its products over the factors which show their caring attitude towards the consumers. (Global Strategy Advisor, 2006) External Unilever believes in creating sustainability throughout the entire value chain of the organization. The company works very closely with its customers and suppliers which benefits them as the company helps in reducing their costs. The company has set a standard which the suppliers are bound to follow. This makes suppliers more efficient in their activities. Unilever is a very responsible organization as it fulfills its social responsibility by working to save the environment and the society. It is also seen working in the field of health and well being of the individuals. The company has its set principles that it tries to follow to work ethically but has been trapped in various controversies lately in various countries. (Customers People, n. d. ) Procter and Gamble proves to be a very responsible organization as it tries to reduce the level of wastage at every step. It collaborates very closely with its suppliers and other partners and provides them with new and improved techniques which help the various partners in reducing wastages and costs. The organization is also very active in fulfilling its social responsibilities towards the society. The company has been very active in providing the unprivileged part of the world with various things like education, safe drinking water and other hygiene factors. Other than that the company also has a complete code of conduct which it strictly follows and makes sure that it works ethically. (Sustainibility, N. D. ) Similar to the other two companies, Johnson Johnson has also built good relations with their suppliers due to which both the company and the suppliers are benefitting. The company is very socially responsible as it is working to save the environment and the society. The organization has previously set various examples which ahs shown their concern about the health of the people. The organization has recalled the stock various times and incurred huge loses in order to save the humanity. (Our caring, n. d. ) Analysis: The data gathered about the three companies is sufficient to analyze all of them and come to a conclusion that which is the better organization. Looking from the financial perspective we can see that Procter and Gamble is a much larger organization than the other two. The company has been ranked 29 on the Forbes list while the rest two are much behind it. The company enjoys more profit and also is very large in terms of market capitalization and worth of the net assets. Moving on to the other perspectives what can be analyzed is that PG is also better in the organization, management and external factors. Though the three companies are all equally working hard to be the best but still PG has an edge as it is also considered as the most aspiring employer. The company is also better when it comes to the philosophy because it can be seen that it is very concerned about the customers and so is spending huge on innovation. Procter and Gamble has been very successful in keeping itself away from major controversies and is working hard to give more to the society. Conclusion From the research it can be concluded that PG is the best managed company out of the three which has been managed in the best manner in terms of the organizational structure and the overall management. This has been done along with fulfilling the financial goals as well as the company enjoys the best financial position out of all the companies. References Customers People. (n. d. ). Retrieved June 4, 2010, from Unilever: http://www. unilever. com/sustainability/? WT. GNAV=Sustainability Global Strategy Advisor. (2006, February 19). Retrieved June 4, 2010, from http://info. umuc. edu/mba/ep/Presentation/EP_Olp/data/GSA. pdf Heritage. (n. d. ). Retrieved June 4, 2010, from Procter Gamble: http://www. pg. com/en_US/company/heritage. shtml History. (n. d. ). Retrieved June 4, 2010, from Unilever: http://www. unilever. com/aboutus/ourhistory/? WT. GNAV=Our_history Our caring. (n. d. ). Retrieved June 4, 2010, from JJ: http://www. jnj. com/connect/caring/? flash=true Our History. (n. d. ). Retrieved June 4, 2010, from Johnsons Johnsons: http://www. jnj. com/connect/about-jnj/publications/? flash=true Sustainibility. (N. D. ). Retrieved June 4, 2010, from PG: http://www. pg. com/en_US/sustainability/index. shtml The Global 2000. (2010, April 4). Retrieved June 4, 2010, from Forbes : http://www. forbes. com/lists/2010/18/global-2000-10_The-Global-2000_Rank. html