Kimberly Clark

In: Business and Management

Submitted By corbik
Words 1103
Pages 5
Karen- Kimberly-Clark Case Study

In 1872 four business men, John Kimberly, Havilah Babcock, Charles Clark and Frank Shattuck created a company called Kimberly, Clark and Company which initially sold manufactured paper goods. They would eventually branch out into personal care items in order to compete in a larger market with companies like Proctor and Gamble. In 1978, Kimberly-Clark introduced Huggies disposable diapers and were an instant success. In the mid 1990’s Kimberly-Clark merged with Scott Paper and found them in an unusual predicament, the merger did not go well, the integration of Scott and Kimberly-Clark was a rocky one that would lead to dissatisfaction on the part of most Scott employees and especially Scott’s senior management.[1]
In 2002, Proctor and Gamble released a line of high end Pampers disposable diapers that not only was a substitute for Huggies, but also captured a large portion of Huggies market share. Around 2003, Kimberly-Clark decided to restructure the way that the company focused on business products. They chose to use a system of “grow, sustain and fix”, which split all products in to areas that needed growth, needed to sustain market share or items that needed to be reformulated. This system was a total failure and caused the company to take several steps back in market share in most of their areas.[2]
Had Kimberly-Clark gone for a more product related divisional structure, it is possible that they would not have lost so much of its market share to begin with. By going with a divisional structure they would have been able to bring together related products, for example, baby related, paper products, and personal hygiene, making the flow of the company and the divisions much smoother. This would allow for the employees in each division to be more focused on their specific products, have more flexibility in newer product…...

Similar Documents

Kimberly-Clark Corp.: Shopping for Virtual Product in Virtual Stores Case Study

...1. What are the business benefits derived from the technology implementation described in the case?  Also discuss benefits other than those explicitly mentioned in the case. -Store owners are able to see customer’s actions in the controlled area. It also gives privacy to a company. Competitors wouldn’t see the test. Although the new technology is expensive in to setup it is far less expensive than market tests 2. Are virtual stores like this one just an incremental innovation on the way marketing tests new product designs?  Or do they have the potential to radically reinvent the way these companies work?  Explain your reasons. -They have the potential to radically reinvent the way these companies work. Large companies like Wal Mart and Target have already turned to virtual stores to see how certain products fit in their stores. Brand names such as P&G are using virtual stores to push their products to new consumers. 3. What other industries could benefit from deployments of virtual reality like the one discussed in the case?  Leaving aside the cost of technology, what new products or services could you envision within those industries?  Provide some examples. -Virtual reality systems were mainly used by military for training but soon evolved and have been used by large companies like Kimberly-Clark. In my opinion, businesses like John Deere and other farming companies could benefit from deployments of virtual reality. They could test out machines that...

Words: 427 - Pages: 2

Competitive Analysis of a Publically Held Company: Kimberly-Clark Corporation

...Competitive Analysis of a Publically Held Company: Kimberly-Clark Corporation Mission As stated on the official Kimberly-Clark website, “[their] global team is passionate about providing people with essentials for a better life - by adding convenience to daily routines with some of the world's most recognized products”. Distinctive Competencies Kimberly-Clark has a few distinctive competencies that contribute to the company’s success. The first is the existence of brand recognition within the company ("Kimberly-clark corporation-financial and," 2011). The products produced by the Kimberly-Clark Corporation are well known for their quality; approximately 1.3 million people in over 130 countries use these products due to their competitive brand recognition ("Kimberly-clark corporation-financial and," 2011). The second important strength of the Kimberly-Clark Corporation is that they maintain substantive placement in geographically diverse markets ("Kimberly-clark corporation-financial and," 2011). Their products are distributed in over 150 countries, and Kimberly-Clark has manufacturing facilities in more than 36 of them. Asia, Latin America, and Europe are among the main contributors of revenue aside from North America ("Kimberly-clark corporation-financial and," 2011). The Kimberly-Clark Corporation is in a strong position regarding brand recognition; the company’s existence in diverse markets eliminates the risk and impact of possible economic decline in a...

Words: 1589 - Pages: 7

Kimberly Clark

...Karen- Kimberly-Clark Case Study In 1872 four business men, John Kimberly, Havilah Babcock, Charles Clark and Frank Shattuck created a company called Kimberly, Clark and Company which initially sold manufactured paper goods. They would eventually branch out into personal care items in order to compete in a larger market with companies like Proctor and Gamble. In 1978, Kimberly-Clark introduced Huggies disposable diapers and were an instant success. In the mid 1990’s Kimberly-Clark merged with Scott Paper and found them in an unusual predicament, the merger did not go well, the integration of Scott and Kimberly-Clark was a rocky one that would lead to dissatisfaction on the part of most Scott employees and especially Scott’s senior management.[1] In 2002, Proctor and Gamble released a line of high end Pampers disposable diapers that not only was a substitute for Huggies, but also captured a large portion of Huggies market share. Around 2003, Kimberly-Clark decided to restructure the way that the company focused on business products. They chose to use a system of “grow, sustain and fix”, which split all products in to areas that needed growth, needed to sustain market share or items that needed to be reformulated. This system was a total failure and caused the company to take several steps back in market share in most of their areas.[2] Had Kimberly-Clark gone for a more product related divisional structure, it is possible that they would not have lost so much of...

Words: 1103 - Pages: 5

Kimberly Clark

...Closing Case: Kimberly-Clark Estefania Sanchez Matus Principles of Management 5/27/14 Closing Case: Kimberly-Clark 1. Why would Kimberly-Clark executives restructure the company based on “grow, sustain, fix” categories? What disadvantages might result from such structure? * Kimberly-Clark decided to base the company on “grow, sustain and fix,” because this approach would allow them to pay more attention to the products that would require improvement, over those products that are already guaranteed sellers. Products that are growing the fastest and selling good would be placed in the ‘grow’ category. Products that are generating a solid return would be placed in the ‘sustain’ category, and those products that need improvement and need to be fixed would be placed in the ‘fix’ category. It is essentially a very straight forward approach and very easy to categorize, thus I think that’s one of the main reasons Kimberly-Clark decided to go about and carry out this method. The main disadvantage of this particular approach, is that they don’t focus on customer needs and this is by far one of the most important aspects in any company, because customers is basically the reason why the company is still running. 2. Was the organizational structure presented by Kimberly-Clark executives in 2004 better than the first structure proposed? Why or why not? * The organizational structure presented in 2004, was a much better approach in my opinion. After all, the main...

Words: 528 - Pages: 3

Clark Paints

... Determination and Conclusion Under the net present value method, the present value of a project's cash inflows is compared to the present value of the project's cash outflows. The difference between the present values of these cash flows is called "the net present value". This net present value determines whether or not the project is an acceptable investment. According to this analysis, Clark Paints should purchase the new machine. The present value of the cost savings is $58,351, as compared to a present value of only $33,035 for the required investment (cost of the machine). Deducting the present value of the required investment from the present value of the cost savings leaves a net value of $25,316. Whenever the net present value is zero or greater, an investment project is acceptable. Whenever the net present value is negative an investment project is not acceptable. Clark Paints could spend up to $58,351 for the new machine and still obtain the minimum required rate of return. The net present value of $33,035, therefore, shows the amount of cushion. One way to look at this is that the company could underestimate the cost of the new machine by up to $33,035, or overestimate the net present value of the future cash savings by up to $33,035, and the project would still be financially attractive. Thus, looking at the data, since the machine has a positive NPV and the IRR is more than the cost of capital, I would recommend the acceptance of the proposal....

Words: 521 - Pages: 3

Kimberly-Clark

...Kimberly-Clark 1. One challenge Kimberly-Clark faced in the Andean region was the sub-optimization that frequently occurred inside the company as a natural result of different units having different goals and measurements. In many instances, incompatible financial rewards were also a challenge. Another challenge was to get people to set higher aspirations for what they could achieve, both for themselves and the company. The third challenge was to fully tap into all of the employees’ ideas and abilities, to involve them more fully and completely in the company, and by doing so, to build a deeper, more emotional connection with the workforce and increase their degree of engagement instead of focusing on just the numbers. Finally, Nacach had to find a way keep morale and dedication up and to avoid the “Hawthorne Effect,” continuing to maintain the company’s culture and ideals after the novelty wears off, and put in place a strong, consistent, and universal culture. 2. Nacach addressed these challenges by: creating a winning culture, hiring the right people, increasing employee engagement, and learning things through trial and error. He also focused the company on what their dreams were as a whole and not just on budgets and numbers. To combat the communication issues between departments, Nacach and K-C decentralized coordination for a smoother flow of information throughout the company. This had the additional benefit of increasing competitive advantage...

Words: 690 - Pages: 3

Georgia-Pacific Consumer Products Lp V. Kimberly-Clark Corporation, Et Al., 647 F.3d 723 (2011)

...Case: Georgia-Pacific Consumer Products LP v. Kimberly-Clark Corporation, et al., 647 F.3d 723 (2011) Facts: Georgia-Pacific has been selling its Quilted Northern brand toilet paper with “Quilted Diamond Design” since the early 1990s and has several trademarks, copyrights, and utility and design patents for the Quilted Diamond Design.In 2008, Kimberly-Clark redesigned two of its brands, Cottonelle Ultra and Scott Kimberly-Clark Professional, using a quilted pattern that Georgia-Pacific believes to be very similar to its Quilted Diamond Design. Georgia-Pacific claimed unfair competition and trademark infringement under the Lanham Act, 15 U.S.C. § 1051 et seq. and filed suit in the U.S. District Court for the Northern District of Illinois. Kimberly-Clark filed a Motion for Summary Judgment claiming the design was functional and could not be protected. Virginia M. Kendall, the presiding judge, agreed and granted summary judgment in favor of Kimberly-Clark. Issue: Can Georgia-Pacific hold utility patents, which detail functionality of design, and still have the protection of a registered trademark for its “Quilted Diamond Design”? Rule: Lanham Act, 15 U.S.C. § 1052 (e)(5) - No trademark by which the goods of the applicant may be distinguished from the goods of others shall be refused registration on the principal register on account of its nature unless it consists of a mark which comprises any matter that, as a whole, is functional. Analysis: The court...

Words: 461 - Pages: 2

Kimberly Clerk

...Kimberly-Clark Corporation Brief summary of the company Kimberly-Clark Corporation is an American personal care corporation that produces mostly paper-based consumer products. Kimberly-Clark brand name products include Kleenex facial tissue, Kotex feminine hygiene products, Cottonelle, Scott and Andrextoilet paper, Wypall utility wipes, KimWipes scientific cleaning wipes, and Huggies disposable diapers. Furthermore, leading brands sold in more than 175 countries and more than 142 years in business. Based in Irving, Texas, it has approximately 42,500 employees working at manufacturing facilities in 37 countries. Nearly one-quarter of the world's population purchase our products every day. Kimberly-Clark UK holds Royal Warrants from Queen Elizabeth II and from the Prince of Wales in the United Kingdom. Kimberly Clark is also listed among the Fortune 500. Subsidiaries under Kimberly-Clark include Kimberly-Clark Health Care and Kimberly-Clark Professional. Kimberly-Clark Innovations (Discovering new ways to provide essentials for a better life) At Kimberly-Clark, insights gained from our customers, shoppers and users drive us to continuously explore ways to increase our speed to market with new-to-the-world essential solutions. Developing and acquiring new technologies and leveraging strategic partnerships and alliances has enabled us to create innovative product and design solutions across our consumer tissue, personal care, health care and business-to-business...

Words: 4756 - Pages: 20

Polly Clark

...Polly Clark Elephant Everybody knows what it feels like to get stuck in the same routines. People want to change their lives, but it can be difficult to break free from these routines. This is a theme, which is dealt with in Polly Clark´s Elephant. William, the main character, is an author who writes biographies about female multiple pop artists. His life is nothing but routine. In the following essay we will focus on the effects of this cyclical lifestyle by analyzing the relationship between William and his writing and the use of symbols in the text. The novel takes place inside the protagonists house. His and his wife’s garden symbolises their relationship, they say about the garden: "It looks so flat and unloved.", just like it is with them. They have thought about laying a deck over it, which resembles how they want to hide their problems. The garden is very depressing for the main character, and when he looks out it reminds him of bad things. Therefor he closes the curtains. They dream about new “settings”. They dream about changes in their life, and Ginny has an idea about moving to Australia. Ginny is blind to the problem, and thinks it is the life they live which is wrong, and not them. It is all ordinary boring days, and the unpleasant environment increase the feeling of their bad relationship. The author uses an implicit third person narrator, which gives us an insight in Williams thoughts and the cause of his actions, as in p. 4 l. 152: ” Tears...

Words: 1001 - Pages: 5

Restructuring the Organizational Restructure at Kimberly-Clark

...In 2003, Kimberly-Clark, the maker of paper products including Kleenex, Huggies, and Depends, announced it was creating a radical new structure to shore up underperforming parts of its business by restructuring its products into three categories. The categories were “grow,” “sustain,” and “fix” – somewhat unconventional categories. They weren’t devised based on product type, customers, or geographic locations in which they sold, but instead on the perceived strength of the product themselves. Background Kimberly, Clark and Company was established in 1872 by four young businessmen, John A.Kimberly, Havilah Babcock, Charles B.Clark, and Frank C.Shattuck. Based in Neenah, Wisconsin, the company initially manufactured paper, but over the years it began to branch out, broadening into the personal hygiene consumer products area to compete with companies like Procter & Gamble. In 1978, Kimberly-Clark introduced what would become its top seller: Huggies disposable diapers. Huggies were an instant hit and soon became the nation’s number-one brand. In the next two decades, Kimberly-Clark introduced Depends for adults, training pants for toddlers, and merged with Scott Paper, a leading maker of toilet paper and paper towels. Today, the merged company sells its products in over 150 countries around the world. In about 80 of those countries, it holds the number-one or number-two spot in the marketplace. Restructuring Problems Like many corporate mergers, the merger...

Words: 757 - Pages: 4

Kimbery Clark

...CASE OVERVIEW The company that many of us grew up with that offered disposable diapers and training pants found itself in an ever changing and competitive market. With European markets opening up to more organizations, Kimberly-Clark needed a new strategy to overhaul its business and remain competitive. Some of the factors that brought on the need for restructure as seen in Hitt (2013), was a difficult merger between Kimberly-Clark and Scott Paper, lack of growth in developed countries and loosing market shares to competition. Kimberly-Clark came up with a unique restructuring strategy that would place products into categories based upon their selling strength (Grow, Sustain, or Fix). This strategy was not well received by shareholders and the stock market. Kimberly-Clark then choose to revise this strategy into a more acceptable one. Products would be placed into three categories. Personal care, washroom products, and emerging markets. IDENTIFYING PROBLEMS The obstacle that Kimberly-Clark faced during this restructuring phase would include the reorganization of production equipment and personal. By categorizing products into new categories management and production would have to be reorganized. The original restructuring plan would have products utilizing the same type of equipment being moved elsewhere due to its sales performance. Another disadvantage of this restructuring would be the cost. For example, an article seen in USA Today (2013), Kimberly-Clark...

Words: 537 - Pages: 3

Kimberly-Clark Use Sustainable Standards to Operate

...Kimberly-Clark Use Sustainable Standards to Operate Sheila Cole Southern New Hampshire University Professor Gaylynn Brenoel March 13, 2016 Introduction Economic growth is defined as the increased capacity of an economy to produce goods and services, compared from one period of time to another. An example of growth is associated with technology like the internet and the way it has brought the U.S. industry as a whole; moreover, improve the quality of life. Kimberly-Clark as a business has not stopped growing as a business so their sustainability continues to grow as the company grows too. They have remain in business by being responsible to the consumer and the government, practice ethical economical practices and protect the environment. Business In Kimberly-Clark’s 2010 Sustainability report, the company’s goal was to organize their activities in the three key pillars: people, planet, and products to reflect their responsibility to all parties involved (employees, governmental and non-governmental organizations, consumers, customers, shareholders, business partners, community members and others with an interest in our approach to corporate citizenship). Now in the company’s new report, the focus remains the same in Kimberly-Clark “Our Sustainability 2015 strategy revolves around the three pillars of sustainability: people, planet and products”. • People—Ensure that our business practices are beneficial to our employees and the communities where we...

Words: 719 - Pages: 3

Kimberly Clark

...KIMBERLY CLARK LEVER PRIVATE LTD. Background Kimberly-Clark Corporation (KCC, a Fortune 500 company), incorporated in 1872, is engaged in manufacturing and marketing a range of health and hygiene products around the world. Most of these products are made from natural or synthetic fibres using advanced technologies in fibres, non-wovens and absorbency. Kimberly-Clark Corporation manufactures and markets facial and bathroom tissues, paper towels, wipers and napkins for away-from-home use, healthcare products, respiratory products, other disposable medical products, printing and correspondence papers. It has manufacturing facilities in 42 countries and its products are sold in more than 150 countries. Its products are sold under brands such as Kleenex®, Scott®, Huggies®, Pull-Ups®, Kotex® and Depend®. With over 60,000 employees, it had revenues of US$ 14.3 billion in 2003-04. Kimberly-Clark Lever Ltd. (KCLL) is a 50:50 joint venture formed in September 1994 between Kimberly-Clark Corporation, of USA and Hindustan Lever Ltd. The plant and the registered office of the company are located at Sanaswadi, 30 km from Pune. KCLL markets feminine pads under the brand Kotex® and manufactures and markets diapers under the brand Huggies® in India. A leading baby hygiene product manufacturer The US$ 14.5 million Indian disposable diaper market has exhibited steady growth as manufacturers are correcting the price-value equation and have been offering customers superior technology...

Words: 1121 - Pages: 5

Clark Paints

...AC505 Part B Capital Budgeting problem Clark Paints Data: Cost of new equipment $200,000 Expected life of equipment in years 5 Disposal value in 5 years $40,000 Life production - number of cans 5,500,000 Annual production or purchase needs 1,100,000 Initial training costs Number of workers needed 3 Annual hours to be worked per employee 2000 Earnings per hour for employees $12.00 Annual health benefits per employee $2,500 Other annual benefits per employee-% of wages 18% Cost of raw materials per can $0.25 Other variable production costs per can $0.05 Costs to purchase cans - per can $0.45 Required rate of return 12% Tax rate 35% Make Purchase Cost to produce Annual cost of direct material: Need of 1,100,000 cans per year $275,000 Annual cost of direct labor for new employees: Wages 72,000 Health benefits 7,500 Other benefits 12,960 Total wages and benefits 92,460 Other variable production costs 55,000 Total annual production costs $422,460 Annual cost to purchase cans $495,000 Part 1 Cash flows over the life of the project Before Tax After Tax Item Amount Amount Annual cash savings $72,540 $47,151...

Words: 354 - Pages: 2

Kimberly Clark Case

...[pic] Kimberly-Clark Andean Region: Creating a Winning Culture SUMMARY Kimberly Clark has hired Sergio Nacach to be the manager in the Andean Region. Andean region is consisted of five countries that are Peru, Ecuador, Bolivia, Venezuela, and Columbia. Andean region is known much about their bad economic in that time. Kimberly Clark wants to aim at their people. The culture different in Kimberly Clark is somewhat differentiated. They come from many places and they are all different on the individual. Kimberly Clark run by their newly hired from Uniliver’s management, Sergio Nacach, have gone up in the rank in the business. Kimberly Clark have successful not only the business result, despite of the situation of the economic in the Andean region, they also awarded as the Great Place to Work Institute. In Ecuador and Peru 2007, Kimberly-Clark was ranked number one on the best place to work list, and number four in Columbia. Sergio Nacach implements a very attractive way of management style. He closes the gap between the employee and him. He is not the type to go away with the power. Employees of any rank can walk in his office and discuss. He will drop everything he worked on and talk. This type of the management style encourages the employees to come up with the ideas that somehow never showed up in the business world. This method also greatly reduces tension in the work. Getting scolded by the boss is an old...

Words: 1886 - Pages: 8