Reckitt Benckiser plc

Reckitt Benckiser plcHistoryIn 1814 Jeremiah Colman begins milling flour and mustard in Norwich, UK. Jeremiah then diversifies in the mid-century into starch, wheat flour and laundry blue. Johann A. Benckiser founded Benckiser in 1823 from industrial chemicals. Isaac Reckitt rented and then later bought a starch mill in hull in 1848. He diversified into other ho procedurehold products and became the owner of starch, washing blue and black lead for polishing. After his death his four sons took his place. Then in 1888 Reckitt Sons was inaugural launched on the capital of the United Kingdom Stock Exchange.Reckitt Sons merged with J J Colman to become Reckitt Colman Ltd in 1938 and then finally in 1999 Reckitt Colman plc and Benckiser N.V. merged to become Reckitt Benckiser plc The worlds no. 1 in house hold cleaning.IntroductionReckitt Benckiser plc is a United Kingdom based high society which was formed with the merger of Reckitt Colman, plc. and Benckiser N.V. Reckitt Bencki ser Inc. manufactures securities industrys and sells household, cleaning and specialty food products in North America. These products include LYSOL cleaners and disinfectants, RESOLVE cleaners, SPRAYNWASH laundry stain removers and FRENCHS mustard.Reckitt Benckiser plc is one of the worlds leading manufacturers of cleaning products and a member of the FTSE 100 index of the largest companies traded on the London Stock Exchange. It is headquartered in the town of Slough just to the west of Greater London.Reckitt Benckiser has operations in much than sixty countries and sells its products in more than 180 countries. perturbation for the class to 31 December 2004 was 3,871 million. Profits before tax were 770 million, and net profits were 586 million. The company focuses on high margin products and has shown strong growth in earnings per shargon in recent years. At 31 August 2005, it had a market capitalisation of 12.4 billion.Vision and Future StrategyAccording to Reckitt Benckise r, We atomic number 18 a truly global company with a consumer- oriented vision, with operations in 60 countries, sales in 180 countries and et revenues in excess of 4 billion The vision is to passionately deliver better solutions in household cleaning and health, personal care of the ultimate purpose of creating shareholders value. Reckitt Benckiser has an exciting future where the tidy sum and the companys brands quite a little continue to deliver profitable growth to the benefit of employees and shareholders. The main schema is to focus on household cleaning, to maintain a clear strategy for profitable top line growth, plan and define the program for improved financial returns and to develop a strong focused team. The organisations vision is also to extend delivering better products to consumers that improve their lives at crucial moments and specially to drive sales growth by means of focus and constant innovation while optimising costs to enlarge margins and profits. Way of working in Reckitt Benckiser is open and direct. Nothing is sacred. Thats the way they have built market leading brands across the world. They challenge each other in an open and direct way, sharing ideas, solutions and best practice. They hire people who recognize the need to beat the controversy e real time but who understand that the competition doesnt include their colleagues. They look for diverse characters that spark off each other, are creative and generate fresh thinking.Environmental AnalysisReckitt Benckiser is dedicated to running its military control in a responsible, environmentally sound and sustainable manner. It is recognized that Reckitts processes and products have both direct and indirect environmental impacts.v Political and Legal crinkle decisions are also influenced by political and legal forces, which determine the rules by which business is behavioured. Political forces play a major role in foreign markets, where decisions by government can often have profound implications for companies. David Jobber 2nd Edition Political action, then, in the form of legislation and less formal directives, can have a profound influence on business conduct. Reckitt and Benckiser perhaps more than any organisation reacts to the political and legal situations. Spread in 60 countries Reckitt and Benckiser has to take care of different policies and government laws in each of the different country. Policy Reports 2006 The household and health personal care industry is heavily regulated by, cloak alia, the European Union, the United States government and individual country governments elsewhere. Ingredients, manufacturing standards, labour standards, product safety, marketing and advertising claims are all subject to detailed and developing regulation.Reckitt and Benckiser anesthetise its annual financial statements in sterling but conducts business in many foreign currencies. As a result, it is subject to foreign currency re-sentencing risk due t o the effects that sub rate movements have on the translation of the results and the underlying net assets of its foreign subsidiaries.v EcologicalReckitt and Benckiser has a authentic commitment of running their business in a responsible, environmentally sound and sustainable manner. The strategy is to realise the opportunities and manage the risks that arise from the environmental impacts of the business in order to achieve continuous improvement in our environmental performance and progress towards environmental sustainability.Its is a new project of the business to plant more than two million trees in over 15 square kilometres of new forests and to make more than 8 billion products which will be produces globally from ampere-second neutral. Simeon Goldstien 2007v TechnologicalReckitt and Benckiser is increasingly building a business that they can be proud of. The products and the business are a force for good in the world. This includes powerful and developing track record on sustainability through initiatives such as the Trees for Change programme on carbon reduction, or the reduce zippo and water programme on automatic dishwashing.The business is planning to get more of the recent available technologies in order to improve production methods of the company that will later result into higher sale and our brand will be able to compete other brands available in the market. In 2006 our manufactory commissioned the Companys first solar panel which is working alongside the highly efficient Combined Heat and Power energy plant. Another plant was apparatus in South Korea at Reckitt and Benckiser factory iksan. Renewable energy is helping the organization to meet and exceed their target of a 20 % reduction in greenhouse gas emissions from out manufacturing energy use by 2010. Accounts 2006v SocialReckitt Benckiser recognises its accountability to the familiarity in which it operates and seeks to actively support and enrich these communities. Our community involvement policy sets out the broad principles through which we support community work throughout our operations. Our annual newsletter on our community involvement demonstrates how we are turning these principles into action and making in that location should be a positive contribution to the societies in which we live and work. Reckitt Benckiser continues to invest over 1 million per year towards projects that really make a difference to people in the communities in which we operate around the world. As well as the company providing much needful financial support, our people also give unselfishly of their time on a range of projects that assist those who can benefit from some help and support.v EconomicalThe un-audited financial information is prepared in accordance with the Listing Rules of the Financial Services Authority and on the basis of the IFRS accounting policies that the Directors intend to use in the 2006 annual report. This basis is subject to amendment by the Inte rnational account statement Standards Board (IASB). The Directors have chosen not to early adopt International Accounting Standard 34 Interim Financial Reporting (IAS 34). Consequently the financial information in this interim report is not presented in accordance with IAS 34.This fused financial information has been prepared under the historical cost convention, as modified by the revaluation of financial assets and liabilities at fair value through the Group income statement subject to the Groups hedge accounting policies.The results and net assets of the Groups subsidiary in Zimbabwe have been excluded from the consolidated Group results. This is on the basis that the Group does not consider the Zimbabwean business to be a subsidiary due to the loss of power to govern the financial and operating policies of the Zimbabwean business and to the restrictions on remitting funds out of the country. Results for 2005 (half and full year) and 2006 half year, and the balance sheets as at 30 June 2005, 31 December 2005 and 30 June 2006, were insignificant.RisksThe Companys new product pipeline whitethorn not generate consumer- relevant innovation and improvement to fuel growth and build market shares. There are possibilities that management turnover might importantly increase. Another possibility that information technology systems may be disrupted or may fail, despite the companys disaster recovery processes, interfering with the Companys ability to conduct its business. Customers, mainly large retailers, may decide to de-list the Companys brands, or not participate in the active promotion of the brands through in-store programmes.Product Quality Safety is very essential and failures in product quality controls could potentially lead to damage to the reputation of and trust in the Companys brands. Most product and raw material add on chains present a number of potential reputation risks relating to labour standards, raw material sourcing, and the social, ethical and environmental performance of the third party manufacturers and suppliers.There should be effective recruitment process in order to attract the best from the market. They should introduce compensation program to retain the valued employees by market competitive salary, incentives, bonuses and protective programs. Training programs are very essential in all type of business they should carry out training to the employees for continuous increment of employee skills.RecommendationsThe following recommendations have been recommended after a thorough analysis of the EnvironmentDecision making at Reckitt Benckiser should be decentralized. On company platform each subdivision is involved in decisions related to products. For example in case of new product launch, cost department determines the cost of new product, marketing department decides if it can sell the product at the given price. Suppliers are involved if they can provide the raw materials for the new product and distributors are involved to in effect distribute the product. Thus each department is involved but participation of the finance department is fundamental because if the cost calculated for the new product is too high accounting department would give the critical decision of not launching the product no matter how innovative the initial idea was. shoemakers lastBased on the strength of the business they expect net revenue growth for the full year of around 15% at constant exchange (base 4,179m) and are upgrading their targeted adjusted net income growth (base 653m) to 14%, at actual exchange.Net revenues grew 18% (15% constant) to 2,386m.The underlying business (excluding BHI) grew 8% (6% constant). BHI contributed net revenues of 204m. Restructuring costs for the BHI encyclopedism were 57m. Operating profit as reported increased 6% to 367m. Operating profit before restructuring charges increased 23% to 424m. Net income as reported was 3% lower at 261m. Earnings per share for the period were 1 % lower at 35.5 pence. Net income before restructuring increased 13% to 303m. EPS diluted, before restructuring grew 15% to 41.2p. coin generated from operations increased 30% to 616m. Net borrowings at the half year were 795m. The interim dividend will be increased 14% to 20.5 pence per share and the Company is move to its 300m share buyback program this year. Annual Report 2006List of ReferencesAccounts 2006http//www.reckittbenckiser.com/Sites/annual_report_2006/site/alternate/rb_txt_changeit.htmlPolicy Reports 2006http//www.reckittbenckiser.com/RBTemplates/CorporateResponsibilityReports.aspx?pageid=262David Jobber, Principles of Marketing, Second Edition.Business and Human rightshttp//www.business-humanrights.org/Categories/Individualcompanies/R/ReckittBenckiserSimeon Goldstien 2007http//www.packagingnews.co.uk/news/764320/Reckitt-Benckiser-combat-consumer-carbon-use/Word Count 1,911