This post covers Investment Cash Flow, as detailed below.
Case 22 -The Procter & Gamble Company: Investment in Crest White Strips Advanced Seal
In May 2008, the Procter & Gamble (P&G) North America Oral Care group was considering the launch of a new Crest White Strips line, Advanced Seal. The product improves existing at-home tooth enamel whitening treatments, providing better adhesion to the teeth and thus better whitening results. The group is concerned about the willingness of customers to adopt the new line and the effect the new line will have on existing P&G whitening products.
Your task is to build a model to forecast the expected incremental cash flow from the initiative, with particular attention paid to the cannibalization of existing whitening business. The case in your textbook provides several alternative scenarios for launching the business. Your research report is expected to comment on the value implications of each scenario. This case provides a good blend of both finance and marketing tools.
Produce a substantial and detailed research report (essay) that addresses the following key questions:
- What is the situation at P&G, and what is the company’s motivation for the Advanced Seal launch?
- Does the project appear economically viable? Why or why not? Provide detailed examples.
- Which strategic proposal do you find most appealing?
- What are the key value drivers of Advanced Seal investment?
- What recommendation would you make to Roman for P&G’s investment in Advanced Seal?
You should use details from the case as presented in the textbook, and the attached spreadsheet will also be valuable for conducting your research and analysis:
Case_22_Procter_and_Gamble_F1670X.xlsx
Note: Do not simply repeat the questions and provide a short answer after the question. Your final product must be a properly formatted, professionally written research report in essay format, with a clear introduction, body, and conclusion. Use descriptive subtitles to organize your report and let the reader know which question you are addressing.
Upload your completed research report in MS Word format only.
You should perform a substantial amount of research for this assignment and be sure to properly document your sources with APA-style citations and a reference list. Paraphrase main points from your sources in your own words and apply the knowledge you have gained. Although there is not a specific page count or word count for this assignment, if your report is less than two pages (double-spaced, Times New Roman, 1-inch margins), you have not done a thorough job. Write as much as you need to address the key questions, but do not add "fluff" or simply repeat what is already stated in the textbook.
Assignment Grading Criteria:
Thoroughly answered all the questions: 60 points possible thoroughly answered
Spelling/Grammar at the college level: 20 points possible
References for course material: 20 points possible
Total: 100 points
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