Posted: June 16th, 2022

What competitive forces shaped the business environment in the European household care products industry at the time of the Henkel Iberica case?

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Written Assignment (Please read the case and answer the question below. You may address each question as a separate short essay)
Question 1: What competitive forces shaped the business environment in the European household care products industry at the time of the Henkel Iberica case? Elaborate by explaining the impact on the business environment of each force you identify. (Hint: There are 3 primary forces that shaped the competitive environment in the European household care products industry at the time of the case. Identify and explain at least 2 of the 3. One of the 2 forces that you must identify is driven by the economic characteristics of the household care products industry – be sure to include a description of those characteristics in your response.) (3 points)
Question 2: The case indicates Henkel’s management debated two principal strategies to address its financial performance concerns. One strategy was to continue aggressive sales promotions and associated additions of stock keeping units (SKU) to the laundry detergent product portfolio. Identify the supply chain costs impacted by this approach. For each cost you identify, include a brief description of how or why the cost is impacted. (Hint: Do not try to quantify the costs impacted, simply identify and explain at least 3 types of costs) (3 points)
Question 3: Referring to Question 2, the second strategy considered by Henkel was to simplify the product line, reduce special promotions, and adopt every day low pricing (EDLP). Was Henkel strategically well positioned to adopt an EDLP strategy? Please explain why or why not. (Hint: Consider Henkel’s competitors and their relative marketplace strengths) (2 points)
Question 4: Based on what you learned about CPFR on Cederlund’s “How Motorola Uses CPFR to Improve Performance,” what is CPFR and what are the principal potential benefits of CPFR (list and explain at least 4)? Which of these benefits are likely to be realized directly by Henkel Iberica as opposed to others, such as retail customers, in the supply chain? (5 points)
Question 5: What are the principal barriers to demand collaboration or more extensive CPFR implementations in the supply chain? What risks, concerns, or obstacles does Henkel Iberica face in pursuing CPFR (list at least 3)? Assume Garriga decides to move forward with either demand collaboration or a more extensive CPFR initiative involving Henkel and one or more of its retail customers. What advice, guidance, or recommendations would you provide to Garriga to overcome the implementation challenges/obstacles he is likely to face? (5 points)
Question 6: Do Henkel Iberica and its supply chain possess the key characteristics to succeed at CPFR? What is your final recommendation? Should Henkel implement CPFR, or not? Justify your answer. (2 points)
All papers must be typed with one and a half (1.5) line spacing on standard 8 1/2 x 11 paper. Please leave at least 1″ margins on top, bottom, & sides. All papers must have a cover sheet with your name, course, instructor, date, and name of the case (preferably in that order). Please do not put your name on any pages of the report. Staple your report on the cover sheet.

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