Managing Strategy / Evaluation of Business Strategy - Essay Example

As operators spend little or no time walking and waiting, their productivity is two to four times higher compared to other automated systems. Expansions of e-commerce reach: Reckiit Benckiser Inc. extended its e-commerce reach from one country to 55, in 2Q’10 thus making available Old Navy to clients outside North America for the first time. As a result, online sales of the company for the 2Q’10 increased 15 %to $258 million compared to $224 million for the 2Q’09. The company also plans to start dedicated e-commerce sites in Canada and the United Kingdom.

By the end of 2010, Reckiit Benckiser Inc. hopes to have stores in China, Italy and Australia, which along with its emergent online and franchise operations, will get to customers in a total of about 80 countries. We can clearly see that the company has grown inorganically. Every year it is involved in one acquisition or other. These acquisitions has allowed company to enter into new markets and create new product strategies. In organic acqusition managing the synergy is very critical, hence Reckitt as a company has managed this well.

Reckitt does not have history of large litigation, considering this to be a major criteria company has been environmentally ethical. Hence on ethical front the company has done well. They have a good CSR policy in place which is working well towards the corporate governance policy of the company. Strong Financials: As on July 31, 2010 Cash & cash equivalents and short term investments of Reckiit Benckiser Inc. amounted to $1.7 billion. The company can conveniently cover the year to date capital expenditure of $0.

25B , thus, reflecting a strong position. On July, 31, 2010, the long term debt obligations of the company was nil, further enhanching the liquidity position of the company.The management has repurchased about 38 million shares for $0.80 billion during this quarter, and made