MGMT20144 Business Case Analysis Report: Comparing Starbucks & Colgate

This report provides a comprehensive business case analysis of two multinational companies: Starbucks and Colgate-Palmolive. The analysis begins with an introduction and company background, followed by a detailed examination of their business and governance structures, highlighting similarities and differences and explaining the reasoning behind them. The report then delves into the environmental factors influencing each company's performance and decision-making, including geo-demographic factors, consumer culture, norms, and lifestyle. Furthermore, it identifies and discusses the risks faced by both companies, such as changing consumer behavior, supply chain disruptions, and rising costs. The report concludes with strategic recommendations for improvements in business practices for both companies, including innovative product development, integration models, partnerships, and the use of predictive scheduling software. The report is based on the assignment brief which requires the student to develop knowledge of management and business contexts and to enhance skills in research, professional responsibility, and written communication. The report adheres to APA referencing style.

Running head: BUSINESS MANAGEMENT
Business Management
Name of the student
Name of the University
Author note

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Table of Contents
Introduction................................................................................................................................2
Company Background................................................................................................................2
Business Management................................................................................................................2
Business and the governance structure..................................................................................2
Influence of environmental factors........................................................................................3
Risks for Colgate Palmolive and H & M...............................................................................4
Suggestions............................................................................................................................4
Conclusion..................................................................................................................................5
References..................................................................................................................................6

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Introduction
Strategic management refers to the developing of the strategic vision and setting the
objectives which can help a company in the attainment of the strategic intent. This essay
discusses about the governance structure within the Colgate Palmolive and the H & M. The
essay elaborates on environmental factors which have an influence on the performance and
the decision-making of the company. This essay discusses about the risks which are faced by
the companies and how they influence the process of the decision-making. The essay also
recommends the business strategies that can help the companies in improving the business
practice.
Company Background
Colgate Palmolive refers to the multinational consumer product organization of
America which lays focus on production along with the distribution of the household along
with the personal care products (Colgatepalmolive.com., 2019). The company is committed
to bring the safe along with the effective products in the market which can help in enriching
communities across the world. The company lays emphasis on the area of the continuous
improvement that has made the company relevant in the modern age. H & M is the clothing-
retail company of Sweden which is popular for the fast-fashion clothing which caters to the
needs of the men, women along with the children (Hm.com., 2019). The company operates
within 62 countries and it has around 4500 stores in the world.
Business Management
Business and the governance structure
Corporate governance structure is indicative of the system that helps in directing and
controlling an organization. It helps in specifying distribution of the rights along with the
responsibilities in between the various kinds of stakeholders of a company. Colgate
Palmolive is guided with the help of the Director Independence Standards which helps in the
promotion of the integrity in the company. The company have the Board of Directors that
consists of a large number of the independent directors that helps in devising the strategies
for the company. The independent director does not have the direct or the indirect material
relationship with that of the Colgate or the officers of the company. Board of the Directors
comprise of the individuals who exhibits the significant achievement in the arena of business
along with the education (Wolf & Floyd, 2017). The board candidates should have the
relevant amount of the leadership experience that helps in understanding complex challenges

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pertaining to the enterprise leadership. The ideal Board candidates gains the leadership
experience in various kinds of sectors which proves to be relevant for the business of the
company. The governance in the company is regulated with the help of Board of Directors,
management along with the workers of Colgate.
The corporate governance of Colgate Palmolive aids the business success of the
company in the long term. The highest decisions are taken in H & M with the help of annual
general meeting which is held in the company. Nomination committee plays an important
role in safeguarding the interests of the shareholders. The company have board of the
directors who are instrumental in managing affairs of company for the sake of shareholders.
The business structure of Colgate Palmolive can be said to be a corporation that helps in
separating the liabilities along with the liabilities which are incurred by the operations of the
company (Aguinis, Edwards & Bradley, 2017). H & M is indicative of a multi-brand matrix
organisation that has various kinds of brands under the banner. The business and the
governance structure of Colgate Palmolive and that of H & M can be said to be similar on
account of the fact that the company have at the helm the Board of the Directors who are
instrumental in taking the important decisions in the company.
Influence of environmental factors
The organizational environment helps in denoting the internal along with the external
environment factors which have an influence on the process of the decision-making along
with the performance of the company. It can be said that the environment of an organization
is dynamic and the organization should act on the basis of the changes that can help them in
succeeding in the present age. The external factors which have an influence on the business
of Colgate Palmolive are the geo-demographic factors along with the consumer culture. The
characteristics of the population have an influence on the kind of the purchases that are made
by the customers (Meyer, Neck & Meeks, 2017). The requirements and the demands of the
people can be said to be an important determinant which has an effect on the purchasing
decision of the customers (Helfat & Martin, 2015). The consumer culture is an important
factor that should be considered in the event of making the products for the customer. It can
aid in the process of identification of the target market that can aid in the process of growth of
a company.
The environmental factors that influence H & M are the norms along with the lifestyle
of the people that has a great impact on the decisions that are made by the company. The

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availability of the resources accounts to be an important factor that has an influence on the
manufacture of the various kinds of products. It is responsible for taking the crucial decisions
within the company. The performance of the employees are affected by various kinds of
internal factors which are prevalent in a company. Colgate Palmolive acts with a great deal of
compassion, integrity along with the honesty that has helped the company in winning the
trust of the employees of company. The company is compliant with the government laws
along with the regulations that is instrumental in influencing the activities of the employees
(Singh & Srivastava, 2016). The people in the management of the company are imbibed with
the entrepreneurial spirit that have made the employees innovative and creative in the
company. The managers believe in the area of the constant improvement that have helped in
redefining the limits of employees of company.
Risks for Colgate Palmolive and H & M
There are various kinds of risks that are faced by Colgate Palmolive and that of H &
M that has an influence on the aspect of the decision-making of the firm. Colgate Palmolive
have to face the risks on account of the fact that the consumer behaviour is dynamic which
can act as a threat for the company. Recent recession that have taken place have been
instrumental in changing the pattern of the consumer spending. Major shift has taken place in
relation to the customer behaviour that can threaten the growth of the company in the market
(Hill, 2017). The companies in the present age use the discount coupons that can act as a
threat for the growth of the company within the market. The sudden change have taken place
in the behaviour of the customers and the company would find it difficult to cope with the
changes. The disruptions taking place in the supply chain of the company can have a
detrimental effect on the sales of the company (Gond et al., 2016). The retailers have to
make the changes in the distribution model so that the supply chain can continue to work in
an efficient manner. The company have to make use of the technological developments that
can help the company in adjusting themselves to the environment. The rising cost of the raw
materials can act as a threatening factor for the growth of Colgate Palmolive within the
United States (Rothaermel, 2017). H & M’s products are bought on the basis of the normal
weather patterns. The deviations taking place in the normal weather conditions would have an
adverse effect on the sales of the company. The apparel industry can be said to be subject to
that of the quick changes as the fashion trends keeps on changing from time to time. The
rising cost of the labour acts as an impediment in the path of growth of H & M that can curb
the growth of the company.

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Suggestions
The companies Colgate- Palmolive along with H & M have to take recourse to
suitable strategies that can help the companies in bringing about improvements in the
business practice. Firstly, Colgate Palmolive can bring the innovative products in the market
that can help the company in addressing the changing demands of customer. Secondly the
company can can take recourse to integration model which works in the real time that can
help in providing the benefits for the company (David & David, 2019). Thirdly, the company
can make use of the logistics programs that can help in the generation of sales for the
company.
H & M can make the partnership with the other companies that can help them in the
area of developing the sustainable products. It can help in attracting the future customers that
can help in bringing benefits for the company (Lasserre, 2017). Secondly, H & M have to
change the way the products are displayed on the online platform that can help in providing
benefits for the company. H & M can make use of the predictive scheduling software that can
help the company in bringing down the costs of the products.
Conclusion
Colgate- Palmolive along with H & M have the Board of the Directors who have been
instrumental in devising the successful strategies for the company. Characteristics pertaining
to the population is an important determinant that helps in influencing the purchasing pattern
of consumers. The demands that the people have in the present age can affect the choice of
the products which are made by the people. The consumer behaviour is undergoing the
changes in the present age that can throw a challenge in the path of Colgate Palmolive. Rising
cost in relation to the labour would impede the growth of H & M that would threaten the
development of company within the ambit of the competitive market.

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References
Aguinis, H., Edwards, J. R., & Bradley, K. J. (2017). Improving our understanding of
moderation and mediation in strategic management research. Organizational
Research Methods, 20(4), 665-685. Doi: https://doi.org/10.1177/1094428115627498
Colgatepalmolive.com. (2019). Colgate-Palmolive – Global Household & Consumer
Products. Retrieved 17 December 2019, from https://www.colgatepalmolive.com/en-
us
David, F. R., & David, F. R. (2019). Strategic management: A competitive advantage
approach, concepts and cases. Pearson.
Gond, J. P., Cabantous, L., Harding, N., & Learmonth, M. (2016). What do we mean by
performativity in organizational and management theory? The uses and abuses of
performativity. International Journal of Management Reviews, 18(4), 440-463. Doi:
https://doi.org/10.1111/ijmr.12074
Helfat, C. E., & Martin, J. A. (2015). Dynamic managerial capabilities: Review and
assessment of managerial impact on strategic change. Journal of management, 41(5),
1281-1312. Doi: https://doi.org/10.1177/0149206314561301
Hill, T. (2017). Manufacturing strategy: the strategic management of the manufacturing
function. Macmillan International Higher Education.
Hm.com. (2019). H&M erbjuder mode och kvalitet till bästa pris | H&M SE. Retrieved 17
December 2019, from https://www2.hm.com/sv_se/index.html
Lasserre, P. (2017). Global strategic management. Macmillan International Higher
Education.
Meyer, G. D., Neck, H. M., & Meeks, M. D. (2017). The entrepreneurship‐strategic
management interface. Strategic entrepreneurship: Creating a new mindset, 17-44.
Rothaermel, F. T. (2017). Strategic management. New York, NY: McGraw-Hill Education.
Singh, U., & Srivastava, K. B. (2016). Organizational trust and organizational citizenship
behaviour. Global Business Review, 17(3), 594-609. Doi:
https://doi.org/10.1177/0972150916630804

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Wolf, C., & Floyd, S. W. (2017). Strategic planning research: Toward a theory-driven
agenda. Journal of Management, 43(6), 1754-1788. Doi:
https://doi.org/10.1177/0149206313478185