Individual Project on OSDB:

Analyzing the Organization,

Colgate Palmolive (I) Ltd.

SUBMITTED BY-

KAUSHIK SARKAR (RB19044)

PGCBM-35, KOLKATA PARK STREET
Introduction
Colgate-Palmolive (India) Limited is a subsidiary of Colgate-Palmolive, USA and a listed
Company in India. The Company was incorporated on September 23, 1937 under the
provisions of The Companies Act. The registered office of the company is located at
Colgate Research enter, Main street, Hiranandani Gardens, Powai, Mumbai – 400076.
Its shares are listed on two recognised stock exchanges BSE NSE in India. The
Company is engaged in manufacturing/trading of toothpaste, tooth powder, toothbrush,
mouth wash and personal care products.

History

William Colgate, a candle and soap maker opened up a starch, soap, and candle factory
located on Dutch Street with the name of William Colgate & Company in New York City
in 1806. The firm in the initial years began to sell individual bars but later on in 1857,
after the death of William the company started reorganized as “Colgate & Company”
operated by his son. In the starting of the year 1872, company introduced a perfumed
soap with name of Cashmere Bouquet. Colgate sold the first toothpaste in 1896 with the
brand name of Colgate Ribbon Dental Cream but after the success of this brand,
company started mass selling in 1908.

Colgate people have built a reputation as a successful company that has the highest
ethical standards. Through living the values of Global Teamwork, Caring, Continuous
Improvement, and adhering to the principles of honor, integrity and concern for the
environment, as the company seeks to:

 Provide quality products of value to customers

 Opportunities for professional growth to all company people
 Fulfill CSR as a member of the international community
 Increase shareholder value

Size & Turnover

Annual turnover of CP India is Rs. 4432 Cr and its growing CAGR 10%. The Company is
tightly focused in the Personal Care business which includes Oral Care. The Oral Care
business accounts for over 95 per cent of the Company’s sales turnover. Within Oral
Care, the Company competes primarily in the toothpaste, toothbrush and mouthwash
categories. For the year ended March 31, 2018, the Company’s volume market shares in
the toothpaste and toothbrush categories were 53.4% and 44.8%, respectively.
Total number of employees: 2,363. Out of that 163 are women employees. The total
number of employees hired on contractual / casual basis is 761

The Company follows a closely defined business strategy to develop and increase
market leadership positions in its key products categories. On an ongoing basis,
management focuses on a variety of key indicators to monitor business health and
performance. These indicators include market share, net sales, and gross profit margin.

Business Challenges:

In India, almost one-third of the population does not have access to modern oral care.
With its market leadership in the Oral Care category, there is an enormous opportunity
for the Company to expand its business as oral care habits improve.

 In recent years, the Company has experienced heightened competitive activity,

particularly within the Naturals segment. Such activity includes aggressive
marketing claims, as well as increased promotional spending and geographic /
distribution expansion.
 Company expects the challenging market conditions and favorable
macroeconomic conditions to continue
 Slow Business Growth, post demonetization
 High inflation and high unemployment rate continuously hitting the poverty level
to increase, and that all because of inequality of income, contrary as the inflation
 increase the cost of business increasing that is putting pressure on the business
to reduce the prices because consumer starts searching for alternative. This is
creating negative impacts on earnings.
 High attrition in Top Level Management
 Constantly changing Economic & Technical Environment
 Maintaining operation excellence

Uniqueness & Competitive Advantage

Company’s key priorities are growing sales through engaging with consumers, delivering
world-class innovation and working with its distributors and retail partners; driving
efficiency on every line of the income statement to increase margins; generating strong
cash flow performance and utilizing that cash effectively to enhance total shareholder
returns; and leading to win by staying true to the Company’s culture and focusing on its
stakeholders.
 Questions for Individual Project

1. Compare two departments or processes in your organization and explain differences in three
stages of value creation and the associated environment

Organizations value creation takes place in three stages, input, conversion and output. Each stage is affected
by the environment in which the organization operates. To explain the same I am considering the two
departments in my organization, Sales & HR.

HR Department:

Organization Inputs Organization’s Conversion Process Organization’s Outputs

Knowledgeable HR Managers
Recruitment & Selection
Training Needs
Individual Development Plan
Field force capability
Development
Standardized Outcome and
Efficient HR Practices effective policy decisions
Colgate Recruitment Process starts with selection Selection of right candidates
of candidates by Campus Recruitment, Lateral and ensure long term carrier
hiring, Internal job posting. The process starts orientation.
with selection of candidate by back ground check
followed by alignment with managers. The
process starts with culture fit followed by
competency check. Every candidate has to go
through the process of multi-level of screening in
order to reduce the selection error. Employee
referral also initiated to encourage pool of right
candidates.
Colgate had internal Employee Website, that is This process encourages
called our colgate, where every employee needs employees to develop on the
to fill there IOs and developmental needs. It also competencies and internally
has software which gives you a clear career path grow along with the system.
and competency requirements. Under which it Resulting Job satisfaction and
also demonstrates the key skills to demonstrate retention of valued
those capabilities. It’s self-help for employees to employees.
get a clear direction on their training needs.
CP also had the Leadership & Functional Many top management
Competency Framework, which helps the grown from ground level, it
employee grow in the top management by includes the VP Sales, 3 out of
assigning cross functional assignments and onsite 4 Branch Managers are from
opportunities to get the global business ground level and many more
environment knowledge.
Depending upon the situational needs, Stronger team in execution
employees were asked for formal training
program to sharpen the negotiation skills,
communication skills, Basic Selling Techniques,
and Value Colgate People
Statutory compliance
Attrition & Exit Feedback
Fund to Growth
Driving Engagement Initiative
Sales Department
Organization Inputs
SAP Installation across
customers
CD Ready App for field force
Efficient Claim Settlement
process through automation
COC, MRTP, and other statutory compliances test Aligned with Organization
is taken every year through online portal, where Values, resulting lesser
every employee had to go through and answer violation of laws and ethical
each and every question correct and there after practices.
certification happens, this process one has to go
through strictly. And HR always ensures the new
joinee is taking these courses and takes feedbacks
on those certifications.
Exit Interview designed to understand the need of Many employees who left the
the hour and improve of bottlenecks. Value company for some up-
created in final settlement, resulting in smooth liftment later on joined
transfer, which is incomparable and this caring colgate, and that created a
attitude resulted in portraying there ethical sense of security in the mind
standpoints. of employees.
Structures are designed keeping in mind the Save money for the
business complexities, which helped to more organization leading to Fund
relevant information flow from ground to Top to growth
management. And a proper reporting initiated by
developing CD Ready app to get access of info of
competition, on the ground execution, resulting
lesser investment on manpower
Internal HR initiatives are taken to keep engage Less attrition of manpower
every employee by encouraging them open dialog
and feedback sessions and other Livewell
initiatives.
Organization’s Conversion Process Organization’s Outputs
SAP installation across 2000+ stockist These added immense insights to the
helped not only to get real time data but organization resulting prompt actions on
also to measure the on ground execution driving sales resulting better coverage,
issues and opportunities which prompts the efficiency, and productivity of employees
management to take control on secondary and stake holders.
sales, closing stocks, slow movement skus,
build up mandate assortments, measure
efficiency and effectiveness of sales team
and also productivity.
This app helped to create buzz among the Resulting higher job satisfaction , and
Sales team, and also a medium to keep information flow to top management
connected with the top management, and
show case there performance
The organization has developed the best in This initiative helped stake holder’s time,
class claim settlements by running and working capital blockage, and helped
capturing data through SAP and settling the earning better ROI.
claims within next 7days. Now there is
almost zero claims to claimed by any stake
holders
 Communication through circular In these highly completive and stressful
Data Analytics
Reward & Compensation
Vast distribution Network
Efficient logistics
business environment, many sales
employees does miss commitments to get
the short term benefits which in other way
creates issues on credibility in the market
place, but CP communicates any
promotions through circulars which stops
the probability of malpractices, resulting
zero pending issues, which major
FMCG/FMCD organization lags.
Real Time data helping the organization to
guide the employees on to do list. It is
reducing the time of employee on data
churning and connecting more with field.
Pay for performance process is the mantra
of CP which gives the performing employee
the chance to earn more. Almost 50% pay
are variable and due to that employees are
more pron to achieve there desired goals.
CP has direct coverage of more than 6milion
outlets with 2000+ direct stockist with more
than 6000+ Salesman. Every SSM use
handheld provided by CP for order taking,
and all stores are tracked with stores. This
mammoth task is done very efficiently every
day.
Each stock points had a VMI(Vendor
managed Inventory system) which helps in
auto generation of orders and supplies are
planned based on FDD (Fixed Day Delivery)
Every stake holders are proud and highly
satisfied with CP Practices, resulting
better engagement with CP..
CP always does the GTM well in advance
quickly and fights competition well by
mean of execution. Sales team had more
time in hand to lead a balanced life
Well paid on achievement helps
employee to earn decent and motivated
to fight the challenging FMCG space with
almost a single category
This on ground connects and technical
advancement helped CP to standout in
competition with majorly one single
category with equally big competitors.
This VMI process helped to reduce the
time and accuracy of order generation,
reducing supply fillrates and FDD helped
the organization to reduce distribution
cost substantially.

2. Identify any recent organizational conflict wherein you have got an undesirable outcome, despite
your effort for an outcome that could have helped the organization. Apply the learnings from
stakeholder theory (coalitions, inducement, contributions etc.) to ensure the desirable outcome that
benefits the organization.