Pride and Prosper, Inc. take pride in being a pioneer in the manufacture of soaps. These soaps have become household names, thus, makes the company one of the more successful companies today. This company made its first ever beauty soap, Mild in the early ‘30s. Mild has become a successful brand, thanks to the housewives who have become hooked to daytime dramas on national television, which were then sponsored by Mild beauty soap. The success of Mild prompted the Pride and Prosper to manufacture detergents, toothpaste, lotions and shampoos. The company gave importance to brand management and new product research and development, which the company failed to do. Last few years the company’s annual sales growth has decline ranges from 2.6%-5% in the last 5 years.
Another three years of decline would mean cutting off at least 30% of its 7,000 of its workforce. It also means a complete reorganization and alignment of jobs and positions. Because of their problem, they hired a third party consultants and the finding is that the company’s culture is conservative, slow-moving, and bureaucratic. The recommendation is to change the present corporate culture into, fast-moving, modern, more fast-paced Internet-savvy organization. The management is also considering a joint venture with a manufacturing company, Gilligan’s Gum Company, because of its massive distribution structure. Introduction
Target Market Identification
Analysis of Case
The company has not been very successful recently. Annual sales growth has declined. This decline started over the last few years. The decreases ranges from 2.6%-5% in the last 5 years. This prompted its CEO, Dick Harrigan to meet its management team and find out the cause of the steady decline sales.
Another three years of decline would mean cutting off at least 30% of its 7,000 of its workforce. It also means a complete reorganization and alignment of jobs and positions. The declining of the annual sales growth of Pride and Prosper, Inc. is because of their present corporate culture. Their present corporate culture is conservative, slow-moving, and bureaucratic. The company is favoring older, known traditions and resisting any changes and staying on what they do always and they don’t have any changes at all. Also, they does not progress or sell at a fast pace. They don’t come into new ideas on how to do be better in their business. Through third party consultants hired six months ago, the consultants concluded that Pride and Prosper’s culture is conservative, slow-moving, and bureaucratic.
The management team led by Harrigan has all reasons to believe that on of the culprits is its present corporate culture. They’ve put up recommendations to change the present corporate culture into a fast-moving, modern, more fast-paced internet-savy organization.
Management also wants to do away with too much confidentiality of information and red tape. Sales goals were also not aggressive. Pride and Prosper needs to do these ambitious restructuring plans right away. For joint venture, they believe they can give the company a boost in distribution of its products. Soon, the market will have a combined product from Gilligan’s breath freshener and Pride Prosper’s toothpaste, Fresh. Recommendations
In order to achieve Prosper & Pride Inc. 10% increase sale for the year 2015, we recommend ACA #1 it is to pursue the joint venture of Pride & Prosper Inc. with the Gilligan’s Gum Company. Action Plan
1. Have an appointment with the Gilligan’s Gum Company.
2. Make an agreement to make a joint venture with their company.
3. Establish Vision Mission Goal that will incorporate both companies.
4. Awareness to the employees. Action Plan
5. Train Employees
6. Develop strategy that will incorporate the products of both companies
7. Product Development
8. Promotions and advertisements
The Pride and Prosper, Inc. is a pioneer in the manufacturing of soaps and were very popular to housewives. It is well known that they already established their stand in the market.
The company’s present corporate culture is conservative, slow-moving and bureaucratic that made their annual sales growth to decline.
The possible joint venture of the company with the Gilligan’s Gum Company is an opportunity for the Pride and Prosper, Inc. because of its massive distribution structure. It may widen their market.
If the declining of the sales of the Pride and Prosper, Inc. continues, the company would have to cut off 30% of its 7,000 of its workforce. Also, many new manufacturing companies are being established in the market. Assumptions
Based on our SWOT Analysis, our expectation for the company is to pursue the joint venture with the Gilligan’s Gum Company. It may help them because of its massive distribution structure. It will be a great help for the company not only for their products to be distributed widely but it can also give them the access to new markets and distribution networks. The joint venture can also give the company a much greater resources, including specialized staff, technology and finance. The risks and cost can also be reducing because the company will have a partner to shoulder them.
As the contingency plan, Pride and Prosper, Inc. may do the changing of their present corporate culture to fast-moving, modern, more fast-paced Internet-savvy organization. Because, no matter what they do, if they didn’t accept the fact that there is something wrong in the way they do their business, nothing will change. Innovation is a primary element of entrepreneurship. The company should try new and modernized strategies and they also need to make thorough search of possible aspects of the product that needs innovation. After the changes, the company should monitor the implementation of the strategy and should receive feedback.
Alternative Course of Action
The Pride and Prosper, Inc. may do a joint venture with the Gilligan’s Gum Company because it would give the company a boost in the distribution of its product because of the Gilligan’s massive distribution structure. It can also increase the company’s market share because of the Gilligan’s present consumer. And the joint venture may give them more access in greater resources. Set up a sales incentive program
The company may give incentives to sales staff that can sell their products greater than the others. It can motivate their people to do their job with extra effort and can result in the increase of their sales.