Henkel company in egypt Swot Analysis


Egypt’s Henkel affiliate still managed to do well even though the country was in turmoil then. The company managed to maintain not only volume but also margins. The manager of Egypt’s plant was perceived to be a real winner and he was touted to move up the ladder to the next management level in a year’s time. Ashur was indeed entrepreneurial in the heart of exceptional political havoc. He changed routes of distribution, put emphasis on brands with high margins and figured out robust trade allowances to boost volume.

However, the Manager of the Henkel subsidiary in Tunisia was not doing well. Though he was in a solid environment his business was underperforming. By focusing too much on excuses and efforts the Henkel’s Tunisia subsidiary Manager did not get results. Kasper Rorsted was appointed Henkel CEO at the age of 45 he became the company’s youngest CEO and the first one with roots outside Austria or Germany. Born in Denmark, Kasper learned economics at Copenhagen’s International Business School.

Don't use plagiarized sources. Get Your Custom Essay on
Henkel company in egypt Swot Analysis
Just from $9/Page
Order Essay

Henkel’s segments have strong financial positions. The company enjoys global leading positions in Henkel technologies, laundry and home care, craftsmen and consumer adhesives as well as toiletries and cosmetics. In-home care and laundry, the employed return on capital and sales have increased over the years. For instance, in 2006 there was an increase of 15.1% and E4, 116 Million respectively in comparison to 2005. The same period saw the operating income increased by 7.1% while sales were increased by 8.1%. To date, Henkel owns the widest product portfolio in this niche market. A strong financial base in almost all its segments portrays a stable cost foundation and if this continues the company’s future plans will be enhanced.


In 1985 the company raised capital to support its rapid expansion through submitting non-voting shares to the public.  In the year 2008, its sales had increased to four billion dollars across 126 countries. Most of its shareholders stemmed from the EMEA region, closely followed by North America, Asia Pacific and finally Latin America. Even though it is only 20% of its employees that had Germany roots the company managed to safeguard its German family roots. Most executive board members were Germans and the company’s shareholding committee was still widely held by members of the Henkel family.

By 2008 the financial crisis effects and succeeding economic slowdown was already affecting Henkel’s major markets. Its beauty and personal care products were adversely affected since the company’s esteemed customers decided to cut back on spending, focused on critical products and thus traded down on brands that were lower priced through foregoing unrestricted purchases. To deal with the growing costs of materials the company decided to increase the prices of most of its products.

A weak Asian presence: even though Henkel operates in more than 70 countries that span Africa, Europe, Asia Pacific, Middle East, North, and Latin America it derives a paltry 8.1% of its revenues from the Asian markets while gaining 84.5% of its revenues from the other regions. Its weak presence in Asia makes it be disadvantaged against its competitors, for instance, Unilever and P&G. Its decline in margins over the years is an indication of an unbalanced cost base and its continuation could impede the company’s growth plans in the future.


The mergers in the industry in combination with the slowing economy resulted in the fall of the volume of Henkel’s rapid growth in all of its business units in 2008. Faced with corporate complacency and falling demand Kasper Rorsted swore to change Henkel into a leaner more results-driven company. In his assertion, it was no longer an alternative for the company to stay where it was. It was either the company moved up or down, it was either the company makes itself relevant or the circumstances would make it irrelevant.

To appeal to the company employees and indicate his obligation to change Kasper Rorsted called a press conference at the end of 2008 to make known a set of the company’s four-year ambitious plan for EPS, sales growth and EBIT margin. Analysts and business reporters echoed the cynicism of the wall street journal. Listeners in the London evaluation conference did not believe their ears to them 14% was too ambitious.

Kasper Rorsted completely understood that his ambitious financial objectives that were aimed at augmenting profitability and sales growth in declining markets could only be attained by changing the self-satisfied spirit inherent in Henkel into what he termed a winning culture. This notion was to underline three premeditated priorities which included: the attainment of full business potential, the strengthening of its global team and focusing more on customers.

In the year that followed Kasper Rorsted and his management crew worked to time and again correspond the new calculated priorities to Henkel’s employees while transforming them into action for all business units. To obtain Henkel’s complete potential in business Kasper Rorstedv decided in 2008 to dwell on optimizing the company’s portfolio through dedicating extra resources to high potential markets and top-performing brands. In the same year, the company made its largest acquisition by paying 3.8 billion dollars for the electronic materials and adhesives business of the National Chemical and Starch Company thus strengthening its global leadership in adhesives.

The business for consumer products is mainly driven by household income growth, population growth, and household formation. These factors are now compelling strong growth in the company’s emerging markets which include China and India.  China’s GDP is expected to grow at 13% in the year 2013-2014 while India is expected to grow at 10% in this period. Henkel has already enhanced its presence in these markets and could obtain considerable growth through making these high growth areas it’s center of attention.

Henkel’s investment in new projects gives it more opportunities to consolidate its edge against competitors in the market. Its investment of E79 million in its Russian business in 2010 took it a notch hire beyond its rivals in the market. The opening of its E 7.3 million projects to generate construction mixtures in Chelyabinsk was amongst its biggest investment in the last three years. The company is now in the process of boosting the production competence of its perm plant that manufactures synthetic cleaning agents.

Henkel invested E 2 million Euros in its Belarusian plant that produces dry building mixtures in 2009 to increase the plant’s capacity to over 99,000 tonnes per annum. The plant cost Henkel 6.6 million Euros in 2006. Other projects include a new warehouse in Saratov and its new Moscow headquarters. The company’s investment in these projects is likely to assist the company to attain its long term strategic goals.


Competition from private labels and large players: Henkel markets are typified by extreme competition. Henkel has always competed with companies that are well established for instance Unilever and Colgate Palmolive. Colgate Palmolive that purchased 85% of Tom’s Maine is one of its big threats; it also faces competition from more low cost and low manufacturers in emerging countries as well as from rapid private label brands introduced by discounters and large retailers globally. Therefore to retain and maintain its position in the market Henkel’s products must successfully compete with its strong competitor’s products in addition to that of retail chains. The economic crisis in 2007 adversely affected the company, particularly in its European and US subsidiaries. This crisis put a lot of pressure on the company’s revenues. However, realignment after the crisis enabled the company to re-emerge unscathed.

Industry consolidation: the household products and personal care industry has seen a lot of consolidation in the recent past. Gillette was purchased by Procter & Gumble in 2005 at $58 billion this made P&G the top universal household goods manufacturer. This pushed Unilever into second place. P&G-Gillette now has 21 brands each generating yearly sales of more than $1.2 billion. In 2006 Johnson and Johnson won against GlaxoSmithKline and Reckitt to buy Pfizer’s medicine for $17 billion. These consolidations witnessed in the industry have led to the creation of bigger entities that command high negotiating power in the industry. This is likely to augment competition for prices that will in the end lower Henkel’s operating margins.


Adam Bryand (2010, August 28). No need to hit the send key. Just talk to me. New York Times


Get Professional Assignment Help Cheaply

Buy Custom Essay

Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?

Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.

Why Choose Our Academic Writing Service?

  • Plagiarism free papers
  • Timely delivery
  • Any deadline
  • Skilled, Experienced Native English Writers
  • Subject-relevant academic writer
  • Adherence to paper instructions
  • Ability to tackle bulk assignments
  • Reasonable prices
  • 24/7 Customer Support
  • Get superb grades consistently

Online Academic Help With Different Subjects


Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.


Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.

Computer science

Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!


While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.


Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.


In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.


Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.


We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!


We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.


Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.

What discipline/subjects do you deal in?

We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.

Are your writers competent enough to handle my paper?

Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.

What if I don’t like the paper?

There is a very low likelihood that you won’t like the paper.

Reasons being:

  • When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
  • We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.

In the event that you don’t like your paper:

  • The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
  • We will have a different writer write the paper from scratch.
  • Last resort, if the above does not work, we will refund your money.

Will the professor find out I didn’t write the paper myself?

Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.

What if the paper is plagiarized?

We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.

When will I get my paper?

You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.

Will anyone find out that I used your services?

We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.

How our Assignment Help Service Works

1. Place an order

You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.

2. Pay for the order

Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.

3. Track the progress

You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.

4. Download the paper

The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.

smile and order essay GET A PERFECT SCORE!!! smile and order essay Buy Custom Essay

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
error: Content is protected !!
Open chat
Need assignment help? You can contact our live agent via WhatsApp using +1 718 717 2861

Feel free to ask questions, clarifications, or discounts available when placing an order.
  +1 718 717 2861           + 44 161 818 7126           [email protected]
  +1 718 717 2861         [email protected]