Running head: Business Model and Strategic Plan

Business Model and Strategic Plan

By

XXXXXXXX

BUS 475

Instructor

December 2, 2014

Business Model and Strategic Plan

Executive Summary
Colgate-Palmolive is a well-established American multinational company with
considerable interest in the household and personal care industry. The company also commands a
presence in the pet nutrition division. It is the companys well-known history in producing
widely used household products that the new division intends to ride on. The new division of the
business is Colgate Baby Care. The new division is aimed at further exploiting the ColgatePalmolive brand acceptance and further deepening our connection with significant component of
our existing customer base.
It is the mission of the new division to develop and deliver innovative consumer products
that become the brand of choice while further contributing to the overall growth of the company
and its different brands.

Business Model and Strategic Plan

Business Model and Strategic Plan

A well detailed business model and a strategic plan is crucial when developing a new
business or a new range of product, a new business venture must be able to establish it mission
and the vision to which those saddled with the responsibility of the new venture can relate with.
A detailed business model and strategic plan will clearly spell out what the new venture aims to
achieve and how it will be achieved while painting a clear picture of what the new business
venture intends to become or where it aims to be in the future. Our new business division has
created a business model and strategic plan that we believe will help achieve our goals and
objectives and transform the division into a major player in the industry in which it operates.
Innovation, consumer satisfaction and growth have long been some of the traits the ColgatePalmolive is known for and our business model is designed to ensure that the new division can
be recognized in this light.
The New Division: Colgate Baby Care
The new business division that has been created is the Colgate Baby Care. Colgate Baby
Care intends to produce quality products specifically designed for babies. The product which will
be produced using carefully selected materials aimed at helping mothers provide essential care
for their babies at such tender stages. The new division is created with the aim of exploiting the
companys large customer base and brand acceptance by producing and distributing innovative
range of consumer products targeted at babies and young kids. The new division will embark on
research and production of products that key into the company's core business of producing
personal care products but also expand it by developing new frontiers specifically aimed at
young ones. Customers buying our new products can be rest assured that they will get good

Business Model and Strategic Plan

value for money, as we are poised to provide high quality range of products at very reasonable
prices.
We believe that the new division can achieve major success considering that ColgatePalmolive has a long history of creating products that compete favorably in the market.
Furthermore, the company has a large customer base as one of the top players in the industry in
which it operates. We believe that the new division can tap into this and benefit from the
customer goodwill and acceptance the company has developed over the years. Customers who
trust the Colgate-Palmolive brand and who fall into the category of young parents are most likely
to patronize the special brand line.
Mission Statement
Colgate Baby Care mission is to provide families; particularly mothers, with a range of
baby care products that help improve the wellbeing of their babies. Our focus is to deliver quality
products that will command respect in the in the baby sub-segment of the American personal
care products market. It is crucial to our continued operation that we generate considerable
returns that will significantly contribute to the companys overall growth while generating
meaningful returns for investors and providing the company with the vital resource needed for
increased innovation which translates to further growth.
Quality, innovation and safety of will be the major consideration in the production of the
range of products planned for the new venture. We have resolved that out operations will be
conducted with the highest ethical standard and respect for the environment through sustainable
use of sourced materials.

Business Model and Strategic Plan

Vision Statement
At Colgate Baby Care, the vision is to become a leading brand name in the production
and distribution of personal care products for babies. Our division will ensure that the product
gains and retains a significant portion of the personal care products market for babies within the
next few years. We will achieve this goal by providing quality innovative products that address
some of the shortcomings of existing products in the market. Our quest for consistent innovation
will also help to ensure that we are able to command top market presence in the future.
To achieve our aim of major growth both in the short-term and long term, we have come
up with clear vision that statement: To maximize returns to the company and to the shareholders,
and ensuring that we have a well-motivated workforce with a great environment to work in,
while building brand/product loyalty among our customers by paying close attention to
feedbacks on our products and insisting on high product quality at all times.
Values
Values are essential to a company, having it in clear detail in a business model will
provide the business with the ability to constantly assess how well it is holding up to these
values. A value as core component of a business unit is vital because it serves as guideposts to
the decisions being made in the daily management of the business.
The division will consistently strive to reflect the following values;

Quality: The company will strive to maintain or improve the quality of its product(s), in
order to ensure consumer satisfaction and loyalty

Business Model and Strategic Plan

Innovativeness: This is one value we hold dear and one the Colgate-Palmolive brand has
been known for; innovation in the development of products, as well as in the
manufacturing and distribution process

Teamwork: Enthronement of a culture that encourages collaboration vital for the

generation of innovative ideas

Respect: The new division will treat other stakeholders with respect and will look to
receive it from others too

Mission and Vision Alignment

There is need for alignment of vision, mission and values in an organization, as it ensures
that all aspects of the organizations business are in tune with the overall goal of the company.
This creates a connection that helps to guide the decisions being taken in the different aspects of
the business. In this regard, decisions made in the new division will not lead to deviation from
the overall aim of the company but rather stick to it, and propel the company towards the
achievement of its stated aims and objectives. The mission statement of the new division clearly
aligns with that of Colgate-Palmolive, which is hinged on producing and delivering quality
innovative products that cements Colgate-Palmolive place as a true global leader in consumer
products (Colgate-Palmolive, n.d.). The new division plans to deliver high quality baby care
products to the market it serves and ultimately become the dominant player in the market.
The vision statement of the new business division clearly aligns with that of the ColgatePalmolive Company and this is vital if the new business division intends to build upon the
successes of the company. The focus on customer satisfaction clearly resonates in the new
business division as proper attention will be given to the quality of products. In addition, the new
business division also keys into Colgate-Palmolive's drive for sustainable growth through quick

Business Model and Strategic Plan

development of innovative product (Colgate-Palmolive, n.d.). Colgate-Palmolive's drive to
ensure that the company has motivated employees that are part of a global team and vital to the
attainment of profit and overall growth, is clearly identified with by the new business division
through its determination to provide its employees with the motivation needed to attain our set
goal, as well as that of the company in general
How our Mission, Vision and Values Guide our Strategic Direction
Colgate Baby Care's strategic direction will be guided by our mission, vision and values,
as these guideposts have been carefully constructed to aid the attainment of our growth
objectives. The vision, mission and values all point to innovation at the core of our operations
and how we strive to ensure we remain an innovative unit. It is through innovation that we can
develop products of high value proportion and an efficient manufacturing system that allows us
to adopt a cost driven approach with low product prices; two strategies that will allow us
compete favorably in the market and attain the growth we desire as a business unit.

Business Model and Strategic Plan

Reference
Colgate-Palmolive. (n.d.). Our Company: Home Page. Retrieved December 2, 2014, from
Colgate.com: http://www.colgate.com/app/Colgate/US/Corp/HomePage.cvsp