Company: The Clorox Company
Product name: Cleaning and Disinfecting Products
Section 1) Competitive Priorities and OM Strategy [goal: around 600 words]
1a) A competitive priority that The Clorox Company has is its quality of products. Clorox started as a one product company for over 50 years as they just sold bleach. Now, they have a very wide variety of quality cleaning and disinfecting products that can be found in 69% of US homes (Statista.com). The ability for Clorox to have a very wide variety of products has allowed them to own a majority in sales in the US and around the world for the go to cleaning supply company. According to Simply Safe Dividends, “Clorox has more than 20% market share in its addressable markets and is around three times the size of its next largest branded competitor”. When a company has that much of the market share they are the clear go to brand for all of these supplies. Another competitive priority and advantage Clorox has taken pride in is their use of technology to continue in innovating new products to make the cleaning process easier. Using technology they have been able to reach customers and find what they want and need. As Clorox continues to expand as a company and acquire different brands they still focus on their largest products which have created the most revenue. Having these priorities has created a sense of focus for Clorox as they have been around for over 100 years and always focus on their quality to ensure their customers are satisfied with the “face of cleaning products”. Clorox will continue their operation to a global scale to increase revenue especially as they diversify and expand their product line.
The Clorox Company focuses a lot of Sustainability within their facilities to make sure they are not wasting and also creating very high quality products. According to Clorox, “As we pursue these goals, we will continue to drive efficiency improvements that minimize our use of energy and water and generation of waste in our global operations.” They have made these commitments to better our world as they are reducing emissions as well as waste. This creates a very healthy brand name that customers can trust and support. The Clorox company has made tremendous strides during the COVID-19 pandemic as they were ranked the second most essential company in the US as well as the number one company for integrity. This was according to the Harris Poll Essential 100 and asked Americans about how companies have responded to the pandemic. Having very good business operations has translated to a loyal customer base around the world that use their products. Clorox continues to test new products to try and kill the virus in the air and on surfaces but making sure it is not harmful and is approved by the EPA. Their ability to work very quickly in trying to create new products to make places safer for all is just the start of how great Clorox has been during this pandemic and as a company overall. Clorox has also merged with companies like Burt’s Bees, Brita, Kingsford, and Hidden Valley. This has allowed them to expand their customer base and brands through different operations.
Section 2) Supply Chain [goal: around 600 words]
· Your product’s supply chain, and key suppliers: [Add discussion here]
· Sourcing strategy and justification (for key suppliers): [Add discussion here]
· Efficiency or Responsiveness supply chain focus and why? [Add discussion here]
· Type of supply chain used: [Add discussion here]
· Relationship to the complex problem: [Add discussion here]
Section 3) Process Mapping [goal: around 400 words]
· Process flow diagram or service design flow diagram (SDFD): [Add your diagram here]
· Relationship to the complex problem: [Add discussion here]
Section 4) Performance Measures [goal: around 600 words]
The Clorox Company values itself in trying to provide the best working environment for their employees. They pride themselves in being recognized as a great place to work as their focus is to “put people at the center of everything we do to make us a stronger, more resilient company.” (Glassdoor company news) To differentiate itself from other companies, they have always attracted value-driven people that strive to make a positive impact, with continuous improvements on their products. Additionally, in terms of providing a positive working environment for their employees, they recognize the importance of work-life balance. According to the company’s ratings on Glassdoor, they score a 4.0 out of 5.0 for employee satisfaction. Through the reviews, we can see that the company provides amazing work life balance, strong compensations and benefits, potential to grow and great people to work with. From reviewing the company’s employee satisfaction, we can use this as a measure of effectiveness. Furthermore, The Clorox Company was awarded rank 47 in the list of best places to work in 2019. For the year of 2021, they were also placed among the top tie companies on America’s Best Large Employers list by Forbes. It is evident that the company makes the best efforts in trying to provide the best for their employees, proving the effectiveness of the company. Another measure of effectiveness is customer satisfaction. Customer satisfaction can be measured through customer retention and loss, as well as through complaints. According to CosumerAffairs, the overall satisfaction rating of Clorox is a 4.0 out of 5.0. Customers have left reviews based on the company’s products and customer service ranging from a 1.0 to 5.0. From the 1.0 reviews we see that customers have found their products to be faulty. For example, a customer left a review stating that the Clorox bottles are horrible. They stated that “The new pop-off lids are such a bad design.” However in terms of 5.0 reviews, we see that customers have been satisfied with products as they have become a necessity during the time of COVID-19. Through these ratings and reviews, we are able to measure customer satisfaction, as customers have left complaints to see how the company can do better or provide better service for the consumers.
To measure efficiency, it is important to look at the company’s cost and capacity utilization. To measure a company’s cost in terms of efficiency we can look at the company’s profit margin. According to The Clorox Company’s income statement for the fiscal year 2020, they had a profit margin of 0.16. This shows that the company generates about 16 cents in profit for every dollar in sales. This means that the company has generated a profit for the fiscal year 2020. It shows that the company is also efficiently capable in terms of generating sales as well as being aware of their expenses. They are aware of their costs and operating cash flows. Furthermore, we can look at Clorox’s efficiency through their capacity utilization, which is a measure of how much available capacity is being used. According to CSIMARKET, they have a capacity utilization of 75.10%. Because their value is under 100 percent, they may not be fully efficient in comparison to a company over 100% would be very efficient.
In terms of The Clorox Company’s relationship to the complex problem of COVID-19, they have been seen to be one of the leading providers of supplies when it comes to the pandemic. During this time, their supplies have become a necessity. Additionally, according to an EHS Today article, it was mentioned that “Clorox Co. reported August 3 they had made $310 million in earnings during their fourth financial quarter.” Increases in sales had also increased in multiple locations. For example, the Oakland-California location saw increases in sales of 22% overall. From these measures, we can see that Clorox has played a major role in providing for consumers during the problem of COVID-19.
Section 5) Overall Discussion and Recommendations [goal: around 600 words]
· Specific actions relating to the complex problem of your company and of competitors / industry [Add discussion here]
· Specific actions and relationship to business strategy and/or operations strategy [Add discussion here]
· Innovative solutions [Add discussion here]
· Overall recommendations [Add discussion here]
