Arm & Arm - Strategic Analysis
Case 29: Arm & Hammer Summary Church & Dwight is the largest producer and marketer of producer of sodium bicarbonate products. The company originally focused on selling related products in various markets linked by sodium bicarbonate technology. The strategy failed as competitors launched consumer products causing Church & Dwight’s sales to plateau and growth to grind to a halt. Management of the firm still largely rests with descendant of the original founders. Family members own approximately 25% of outstanding stock. Until 1995, a member of the Church family served as CEO. He then became a member of the Board as Chairman Emeritus. A non-family member, Robert A. Davies, assumed the role of CEO. Although, Davies had previously been Vice President and Chief Operating Officer of Church & Dwight, he had left the company in 1984 to serve as CEO of California Home Brands. In addition to a non-family CEO, the Board changed the firm’s charter to give shareholders 4 votes per share and require future shareholders to hold shares for at least fours years before exercising votes. The Board was structured into three classes, of four members each, serving staggered three-year terms. The overall objective was to give the Board more control. Davies strategy for future growth was to construct a portfolio of household, personal care and specialty products.