Head and Shoulders: Inputs, Factors, and Decisions
Inputs
One fixed input for P&G's Head and Shoulders would be the machines and CAD used to create the packaging of the product and the computer-aided-design (CAD) used to generate the packaging features. Both are aspects of the same fixed cost because the machines and the designs used to steer them in production do not change with rises and falls in production (neither more nor fewer machines are needed -- it is only their use that might change). Furthermore, as for CAD, for a global company like P&G, a generic label or design may need "minor modifications on a country-by-country basis" but for the most part this does not alter, nor does it change with alterations in production levels (Czinkota, Ronkainen, 2006, p. 477).
Two variable inputs would be commodities and distribution. Commodities, such as palm oil and linear alkyl benzene, which are "key inputs for making soaps, shampoo and detergents" (Bhushan, Malviya, 2012), fluctuate as needed in terms of supply and demand levels related to production. Distribution is also a variable input that depends upon production levels: if a product is not yet global but only domestic, obviously distribution costs will alter when it goes global, as has Head and Shoulders over the...
Proctor & Gamble- Milestone Head & Shoulders remain one of the most celebrated and recognized names in the hair care market for over fifty years. This renowned global brand was launched by Proctor & Gamble (P&G). The company is the leading producer of hair care products across the world, with their Head & Shoulders product securing over 20% market share. Recently, P&G's beauty unit made 30% in net sales and 30%
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