We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Procter&Gamble’s Corporate

The whole doc is available only for registered users
  • Pages: 2
  • Word count: 283
  • Category: Cash

A limited time offer! Get a custom sample essay written according to your requirements urgent 3h delivery guaranteed

Order Now

1. What is Procter&Gamble’s corporate strategy? Do the company’s businesses seem to be related or unrelated? Are Gillette’s businesses closely related to P&G’s businesses? How will a merger with Gillette result in a 1 + 1 = 3 effect for P&G?

2. How attractive are the industries/product categories in which P&G competes? What is the competitive strength of each of its business segments? Does Gillette seem to compete in attractive consumer segments? Are its business units strong in their respective markets? What does a 9-cell industry attractiveness/business strength matrix displaying P&G and Gillette’s business units look like?

3. Does Procter & Gamble’s business line-up exhibit good resource fit? How do Gillette’s profit margins compare to the profit margins for P&G’s businesses for the 2000-June 2005 time periods? Do both companies have similar growth rates and debt structures? How do the free cash flow and free cash flow productivity rates compare for the two companies? Does it seem that the addition of Gillette’s business units will boost the P&G’s bottom line?

4. What is your assessment of the $57 billion acquisition price Procter & Gambe paid for Gillette? Does the 20% purchase price premium seem appropriate? Are the sales and EBITDA multiples based on the $57 billion purchase price in line with other mergers in consumer goods industry? Does the 0.975 exchange ratio seem fair to both P&G and Gillette shareholders?

5. What strategic actions should Procter and Gamble executives undertake to ensure the Gillette acquisition ultimately benefits shareholders? What must be done to achieve the expected 1 +1 = 3 benefit? Should the company pursue additional acquisitions? Should certain business units be eliminated from the business lineup?

Related Topics

We can write a custom essay

According to Your Specific Requirements

Order an essay
Materials Daily
100,000+ Subjects
2000+ Topics
Free Plagiarism
All Materials
are Cataloged Well

Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email.

By clicking "SEND", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.
Sorry, but only registered users have full access

How about getting this access

Your Answer Is Very Helpful For Us
Thank You A Lot!


Emma Taylor


Hi there!
Would you like to get such a paper?
How about getting a customized one?

Can't find What you were Looking for?

Get access to our huge, continuously updated knowledge base

The next update will be in:
14 : 59 : 59