Colgate Palmolive "Colgate- Palmolive (Cp) Is a Essay

Colgate Palmolive

"Colgate- Palmolive (CP) is a consumer products company whose products are marketed in over 200 countries and territories worldwide" (CNBC. January 25, 2011). The company in fiscal year 2009 generated 15.3 billion dollars in revenue and net income of 2.3 billion (CNBC. January 25, 2011). CP's broad product offerings are managed under two distinct lines of business "Oral, Personal and Home Care; and Pet Nutrition" (CNBC. January 25, 2011). As one of the industry leaders in consumer products the company focuses on growth opportunities in the U.S., but more critically important to shareholder earnings; the company "operates on a global basis with approximately 75% of net sales coming from markets outside the U.S." (Colgate- Palmolive Annual Report 2009). In this environment top line revenue growth can only occur amidst a backdrop of sound international finance management. To this end the corporate executive team of CP entrusts a host of talented personnel to operate and manage their global operations.Overseeing the financial operations of the multinational firm falls on two individuals; Stephen Patrick the outgoing Chief Financial Officer and Dennis Hickey, formerly the corporate controller, and the incoming successor to the CFO position (Colgate- Palmolive 2009 Annual Report: Your Management Team. 2009).

For global companies such as CP an underlying determinant of consistent revenue growth is the management of risk. "While geographic diversity helps to reduce the Company's exposure to risks in any one country or part of the world, it also means that we are subject to the full range of risks associated with significant international operations" (Colgate- Palmolive Annual Report 2009). Specifically, these international risks include: changes in exchange rates for foreign currencies, political or economic instability, changing macroeconomic conditions in major markets, and foreign legal and….....