Discussing Opportunities to Expand in the U.S.Consumer Products Inc. (CPI) is a U.S. regional consumer
products company located in Phoenix, Arizona. The company manufactures and
distributes a small line of consumer products to retailers in major western
cities including Los Angeles, San Francisco, Seattle, Portland, and Phoenix.
The company has an excellent reputation as a good corporate citizen and
producer of some of the highest quality products in the business.CPI’s three major brands are Shades of Youth, a hair care
line that recently has been doing extremely well as the aging baby boomers look
for products to help retain some of their youth; Super Clean, a line of
detergent and bleach products; and Super White, a line of tooth paste that
quickly and safely whitens teeth. Super Clean is the anchor division, and it
was the sole line of products the company had when Javier Lopez founded it in
1951. The company launched Shades of Youth in 1975 and Super White in 1980.You have headed up the Super Clean division for the last 8
years and were recently promoted to Chairperson of the Board and Chief
Executive Officer (CEO). The firm went public ten years ago under the
leadership of your predecessor as CEO, Regina Baker. CPI is well established on
Wall Street and has a reputation of being a good company that is conservative
and a safe investment.With only a U.S. regional presence and $200 million in
revenue, you are clearly aware that the company’s ability to compete with the
industry giants (Procter & Gamble, Unilever, Colgate, and Gillette) is
limited. You believe that the firm must expand to other regions in the U.S. and
begin international expansion if it is going to grow and prosper over the next
decade.The Board has reservations about making such bold moves,
arguing that the company has been a successful regional company for over 50
years and can remain a niche player in the consumer products business. You see
things differently. You see that the market is changing and competitors are
becoming more aggressive by making acquisitions or developing new products that
are extremely competitive with CPI’s brands. More importantly, you believe that
the company will either be crushed by competition or forced into a merger to survive.PROBLEM:You and the company’s chief financial officer (CFO) begin to
discuss opportunities to expand in the U.S.(1)Discuss the opportunities to expand in the U.S., what it
would take, and the potential hurdles the firm would have to overcome.(2).Be sure to identify specific retail companies that could
potentially sell CPI’s products, the markets that would be attractive, and some
of the financial and economic considerations.
**Please list any references used along with websites where
they were found for proper citation**
Discussing Opportunities to Expand in the U.S.Consumer Products Inc. (CPI) is a U.S. regional consumer
products company located in Phoenix, Arizona. The company manufactures and
distributes a small line of consumer products to retailers in major western
cities including Los Angeles, San Francisco, Seattle, Portland, and Phoenix.
The company has an excellent reputation as a good corporate citizen and
producer of some of the highest quality products in the business.CPI’s three major brands are Shades of Youth, a hair care
line that recently has been doing extremely well as the aging baby boomers look
for products to help retain some of their youth; Super Clean, a line of
detergent and bleach products; and Super White, a line of tooth paste that
quickly and safely whitens teeth. Super Clean is the anchor division, and it
was the sole line of products the company had when Javier Lopez founded it in
1951. The company launched Shades of Youth in 1975 and Super White in 1980.You have headed up the Super Clean division for the last 8
years and were recently promoted to Chairperson of the Board and Chief
Executive Officer (CEO). The firm went public ten years ago under the
leadership of your predecessor as CEO, Regina Baker. CPI is well established on
Wall Street and has a reputation of being a good company that is conservative
and a safe investment.With only a U.S. regional presence and $200 million in
revenue, you are clearly aware that the company’s ability to compete with the
industry giants (Procter & Gamble, Unilever, Colgate, and Gillette) is
limited. You believe that the firm must expand to other regions in the U.S. and
begin international expansion if it is going to grow and prosper over the next
decade.The Board has reservations about making such bold moves,
arguing that the company has been a successful regional company for over 50
years and can remain a niche player in the consumer products business. You see
things differently. You see that the market is changing and competitors are
becoming more aggressive by making acquisitions or developing new products that
are extremely competitive with CPI’s brands. More importantly, you believe that
the company will either be crushed by competition or forced into a merger to survive.PROBLEM:You and the company’s chief financial officer (CFO) begin to
discuss opportunities to expand in the U.S.(1)Discuss the opportunities to expand in the U.S., what it
would take, and the potential hurdles the firm would have to overcome.(2).Be sure to identify specific retail companies that could
potentially sell CPI’s products, the markets that would be attractive, and some
of the financial and economic considerations.
**Please list any references used along with websites where
they were found for proper citation**
Discussing Opportunities to Expand in the U.S.Consumer Products Inc. (CPI) is a U.S. regional consumer
products company located in Phoenix, Arizona. The company manufactures and
distributes a small line of consumer products to retailers in major western
cities including Los Angeles, San Francisco, Seattle, Portland, and Phoenix.
The company has an excellent reputation as a good corporate citizen and
producer of some of the highest quality products in the business.CPI’s three major brands are Shades of Youth, a hair care
line that recently has been doing extremely well as the aging baby boomers look
for products to help retain some of their youth; Super Clean, a line of
detergent and bleach products; and Super White, a line of tooth paste that
quickly and safely whitens teeth. Super Clean is the anchor division, and it
was the sole line of products the company had when Javier Lopez founded it in
1951. The company launched Shades of Youth in 1975 and Super White in 1980.You have headed up the Super Clean division for the last 8
years and were recently promoted to Chairperson of the Board and Chief
Executive Officer (CEO). The firm went public ten years ago under the
leadership of your predecessor as CEO, Regina Baker. CPI is well established on
Wall Street and has a reputation of being a good company that is conservative
and a safe investment.With only a U.S. regional presence and $200 million in
revenue, you are clearly aware that the company’s ability to compete with the
industry giants (Procter & Gamble, Unilever, Colgate, and Gillette) is
limited. You believe that the firm must expand to other regions in the U.S. and
begin international expansion if it is going to grow and prosper over the next
decade.The Board has reservations about making such bold moves,
arguing that the company has been a successful regional company for over 50
years and can remain a niche player in the consumer products business. You see
things differently. You see that the market is changing and competitors are
becoming more aggressive by making acquisitions or developing new products that
are extremely competitive with CPI’s brands. More importantly, you believe that
the company will either be crushed by competition or forced into a merger to survive.PROBLEM:You and the company’s chief financial officer (CFO) begin to
discuss opportunities to expand in the U.S.(1)Discuss the opportunities to expand in the U.S., what it
would take, and the potential hurdles the firm would have to overcome.(2).Be sure to identify specific retail companies that could
potentially sell CPI’s products, the markets that would be attractive, and some
of the financial and economic considerations.
**Please list any references used along with websites where
they were found for proper citation**
Discussing Opportunities to Expand in the U.S.Consumer Products Inc. (CPI) is a U.S. regional consumer
products company located in Phoenix, Arizona. The company manufactures and
distributes a small line of consumer products to retailers in major western
cities including Los Angeles, San Francisco, Seattle, Portland, and Phoenix.
The company has an excellent reputation as a good corporate citizen and
producer of some of the highest quality products in the business.CPI’s three major brands are Shades of Youth, a hair care
line that recently has been doing extremely well as the aging baby boomers look
for products to help retain some of their youth; Super Clean, a line of
detergent and bleach products; and Super White, a line of tooth paste that
quickly and safely whitens teeth. Super Clean is the anchor division, and it
was the sole line of products the company had when Javier Lopez founded it in
1951. The company launched Shades of Youth in 1975 and Super White in 1980.You have headed up the Super Clean division for the last 8
years and were recently promoted to Chairperson of the Board and Chief
Executive Officer (CEO). The firm went public ten years ago under the
leadership of your predecessor as CEO, Regina Baker. CPI is well established on
Wall Street and has a reputation of being a good company that is conservative
and a safe investment.With only a U.S. regional presence and $200 million in
revenue, you are clearly aware that the company’s ability to compete with the
industry giants (Procter & Gamble, Unilever, Colgate, and Gillette) is
limited. You believe that the firm must expand to other regions in the U.S. and
begin international expansion if it is going to grow and prosper over the next
decade.The Board has reservations about making such bold moves,
arguing that the company has been a successful regional company for over 50
years and can remain a niche player in the consumer products business. You see
things differently. You see that the market is changing and competitors are
becoming more aggressive by making acquisitions or developing new products that
are extremely competitive with CPI’s brands. More importantly, you believe that
the company will either be crushed by competition or forced into a merger to survive.PROBLEM:You and the company’s chief financial officer (CFO) begin to
discuss opportunities to expand in the U.S.(1)Discuss the opportunities to expand in the U.S., what it
would take, and the potential hurdles the firm would have to overcome.(2).Be sure to identify specific retail companies that could
potentially sell CPI’s products, the markets that would be attractive, and some
of the financial and economic considerations.
**Please list any references used along with websites where
they were found for proper citation**
