1-1 Assignment Critical Thinking for Business Decisions PDF

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Running head: KIMBERLY-CLARK BLOG ONE

Kimberly-Clark Blog 1 Student Name Bus/210 5/9/21 Instructor Name

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KIMBERLY-CLARK BLOG ONE

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Kimberly-Clark is an innovative company that has been bringing paper-based consumer goods to the public since 1872. What started as a paper mill making newsprint in Neenah, WI by John A. Kimberly, Havilah Babcock, Charles B. Clark, and Frank C. Shattuck has turned into a multi-billion-dollar international corporation. The way Kimberly-Clark conducts itself socially, environmentally, and ethically business-wise has earned them recognition from Ethisphere three years in a row as one of the World’s Most Ethical Companies. To help them live up to that recognition, Kimberly-Clark’s mission statement of, “We are a global company leading the world in essentials for a better life through product innovation and building our personal care, consumer tissue and K-C Professional brands” (Kimberly-Clark, 2021) gives the employees and stockholders a well-defined goal to achieve. Kimberly- Clark has set a standard for diversifying the company in many different paperbased consumer goods. The company started off making newsprint, and from there, they made wrapping paper. The first diversification came in the 1920s from their invention of Cellucotton; they leaped into the feminine hygiene market with their brand Kotex Sanitary Napkins. In the same decade, they diversified into making disposable tissues with their Kleenex facial tissue brand. During WW2, companies across the U.S. stepped up to help the war effort. One way they did this is by making equipment used in battle. Kimberly-Clark diversified and started to make machine gun mounts which they no longer make. Speaking of war innovations in the 1960s during the Korean war, they developed throw-away surgical gowns. In their diversification plan in the next couple of years, they have set forth the “K-C Strategy 2022” (Kimberly-Clark, 2021) plan. The project will entail them grow their D&E Market, their core business, and online presence. Seeing how the company has diversified itself many times since it has begun proves that they are committed to making the world a cleaner and safer place.

KIMBERLY-CLARK BLOG ONE

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Critical thinking is crucial in any business. According to SOOMO “critical thinking skills help you identify the problem or goal, brainstorm solutions, interpret data correctly, weigh the options logically, and efficiently organize the implementation and revision of your plan” (Soomo Learning, 2020). Being able to see a problem and analyze the situation will help you develop a way to tackle the issue at hand. Kimberly-Clark recently had to use critical thinking to figure out the rising cost of materials in 2021, so they decided that they had to raise the net selling prices in the U.S. “to help offset significant commodity cost inflation” (Kimberly-Clark, 2021). Having to lay off employees is a hard decision for any company to make, but they have to remain profitable to make sure they can pay their employees and investors. In 2018 Kimberly -Clark had to launch a voluntary recall on their U by Kotex Sleek Tampons, Regular Absorbency sold in North America due to manufacturing defects. After receiving complaints from customers that they were having issues with this particular brand, Kimberly-Clark used critical thinking and saw that there was a safety issue with the brand that could cause them finical and image problems if they did not address the defect. As you can see, critical thinking is crucial for any business. If KimberlyClark did not do critical thinking on these issues, they could have caused a negative impact on the company. Kimberly-Clark has used critical thinking and logic to propel itself into a modernizer in paper-based consumer goods products. The company's K-C Strategy 2022 diversification plan to “differentiate product innovations, driving category development and leveraging commercial capabilities in sales and marketing” (Kimberly-Clark, 2021) shows that they have engaged in critical thinking to organize a plan to put into effect. Kimberly-Clark’s press release from 2018 entails that their FORCE program will save them $1.5 billion. Their projections to save money

KIMBERLY-CLARK BLOG ONE will have them shut and consolidate manufacturing plants, reduce labor, and redesign products. Reconstructing the company will allow Kimberly-Clark to diversify its product line and hopefully create new jobs in the future. It is a difficult decision to make when a company has to reorganize because there will be job loss. It is an ethical dilemma to let go of a handful or see profit margins drop and have to let go many. Kimberly-Clark uses logic and critical thinking to ensure that its brand is successful and can continue to employ many people globally. By combing the K-C Strategy 2022 with the Force program Kimberly -Clark can cut costs and elevate its diverse product line. I found evidence that proves that they are seeing success of these programs “FORCE (Focused On Reducing Costs Everywhere) program, which has generated savings of $3.5 billion over the last 10 years” (Kimberly-Clark, 2022) and net sale profits so far this year of $4.7 billion. Being able to save money and still be profitable proves that Kimberly -Clark will be a formidable competitor in the consumer goods industry for years to come.

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KIMBERLY-CLARK BLOG ONE

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Kimberly-Clark 2020 Annual Report. (2021, February 11). Retrieved from https://kimberlyclark.gcs-web.com/static-files/029c0249-a08d-498a-808b-9452f12eb02f Kimberly-Clark Careers. (2021, May 5). Retrieved from http://www.careersatkc.co.za/ourhistory.aspx Kimberly-Clark Fact Sheet 2021. (2021, May 6). Retrieved from https://kimberlyclark.gcsweb.com/static-files/aa10468d-38e6-4f59-b38c-515dc7821ab1 Kimberly-Clark Press Release Kimberly-Clark Announces Price Increases for North American Consumer Products Business. (2021, March 31). Retrieved from https://kimberlyclark.gcs-web.com/news-releases/news-release-details/kimberly-clarkannounces-price-increases-north-american-1 Kimberly-Clark Press Release Kimberly-Clark Announces Voluntary Recall of U by Kotex® Sleek® Tampons, Regular Absorbency, Throughout U.S. and Canada. (2018, December 11). Retrieved from https://investor.kimberly-clark.com/news-releases/news-releasedetails/kimberly-clark-announces-voluntary-recall-u-kotexr-sleekr Kimberly-Clark Press Release Kimberly-Clark Announces Year-End 2020 Results And 2021 Outlook. (2021, January 25). Retrieved from https://investor.kimberly-clark.com/newsreleases/news-release-details/kimberly-clark-announces-year-end-2020-results-and-2021outlook

KIMBERLY-CLARK BLOG ONE Kimberly-Clark Fact Sheet 2021. (2021, May 6). Retrieved from https://kimberlyclark.gcsweb.com/static-files/aa10468d-38e6-4f59-b38c-515dc7821ab1 Soomo Learning. (2020). Critical business skills for success. https://www.webtexts.com

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