Colgate- Palmolive Company operates two product segments. Go to the company website (www.colgatepalmolive.com), and then click on the “For Investors” link. From there, go to the SEC filings and click “View 2011 Annual Report.” In the menu, click “10- K.” The necessary information will be in Note 14.

Requirements

1. What are the two product segments? Gather data about each segment’s net sales, operating income, and identifiable assets for 2011.

2. Calculate ROI for each segment for 2011.

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?