Nicole Heredia

Professor Skylar Scott

Econ 2010
December 13, 2023

ECON 2010 ePortfolio Project

STEP ONE: Firm Analysis (Chapters 1 and 2):
Choose a public company and write a company profile in regard to it. The profile should include
a brief company history, where they operate, what good or service they produce, what the
market cap of the company is. Include one credible source where you gathered this information.

 Church & Dwight Co., Inc., known as C&D, is a leading consumer packaged goods
company established in 1846. Initially focused on sodium bicarbonate production, the
New Jersey-based corporation has expanded its offerings to include Arm & Hammer
baking soda, oral care essentials, laundry detergents, cat litter, and personal care items.
Operating globally, C&D's market capitalization stands at approximately $22.64 billion
(source: Google Finance). Business Wire's Q3 2023 Results further confirm C&D's
enduring market presence and industry significance.

STEP TWO: Consumer Demand (Chapters 3 and 4):

What factors would favorable shift demand of this good or service. What potential negative
events may shift demand left?

 The launch of new products in 2023, like Arm & Hammer Power Sheets for laundry
detergent and Trojan's Raw Non-Latex condoms, integrating convenience, eco-
friendliness, and specialized formulations, aligns with consumer demands for innovative,
sustainable, and health-conscious options. This could potentially increase demand.
 However, the success of these products depends on meeting consumer expectations.
Dissatisfaction or underperformance might negatively affect demand.
 Other influencing factors include competitive pressures, economic downturns affecting
discretionary spending, environmental concerns, and evolving consumer preferences,
potentially reducing demand for newly introduced items.

STEP THREE: Firm Costs (Chapter 22):

What fixed costs and variable costs would this firm have?

 C&D incurs fixed costs such as facility expenses (manufacturing plants, offices), specific
salaries, and equipment depreciation. Variable costs include raw materials, labor tied to
production levels, packaging, shipping, and potentially variable utility costs. Fixed costs
remain constant irrespective of production levels, while variable costs fluctuate with
production and sales, constituting a significant part of operational expenses.
Nicole Heredia
Professor Skylar Scott
Econ 2010
December 13, 2023

STEP FOUR: Market Structure (Chapters 23 -26):

What market structure is this firm likely in? What are complements to the goods produced?
What substitutes exists? What potential competition does this firm face?

 C&D likely operates within a monopolistic competition structure, offering diverse

household and personal care products.
 Complementary goods could be fabric softeners or skincare items, while substitutes
encompass products from competing brands fulfilling similar consumer needs.
 The company faces competition from major conglomerates like Procter & Gamble,
Unilever, Kimberly-Clark, Colgate-Palmolive, and smaller niche-focused brands. To
remain competitive, C&D must focus on differentiation, innovative product development,
and effective marketing strategies.

STEP FIVE: Potential Conflicts (Chapter 29):

What potential negative externalities exist within this firm? Do you think any government
intervention should be used to regulate how goods are made or distributed?

 C&D, as a producer of household and personal care products, may generate negative
externalities such as environmental impact through manufacturing processes, packaging
waste, and health concerns related to certain product ingredients.
 Government intervention might involve implementing environmental standards,
promoting eco-friendly packaging, enforcing product safety guidelines, encouraging
corporate social responsibility, and educating consumers on sustainable practices.
Balancing industry innovation with environmental and consumer interests is pivotal in
determining the necessity and extent of government intervention.

Source:
Chruch & Dwight Reports Q3 2023 Results