Colgate-Palmolive operates two product segments. Using the company’s website, locate segment information for 2008 in the company’s 2008 annual report. Then, look in the financial statement footnotes.
1. What are the two segments (ignore geographical subsets of the one product segment)? Gather data about each segment’s net sales, operating income, and identifiable assets.
2. Calculate ROI for each segment.
3. Which segment has the highest ROI? Explain why.
4. If you were on the top management team and could allocate extra funds to only one division, which division would you choose? Why?