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The best a man can get The original safety razor was the brainchild of salesman King C. Gillette and machinist William Nickerson. Originally dubbed the American Safety Razor, the company was an instant success, selling 90,844 shaving sets in its second year. But business really boomed during World War I, when the U. S. government equipped every one of its soldiers with an American Safety Razor shaving kit. Gillette sold over 3.5 million razors during the war and familiarized an entire generation of young men with its products. The company changed its name to Gillette in the 1950s and expanded rapidly, acquiring subsidiaries and marketing a diverse group of household goods. Not just razors Today, Gillette reigns as the world's leading manufacturer of razors. The firm also produces an army of personal hygiene products, including Braun electric razors, White Rain hair care, Oral-B toothbrushes, and Right Guard deodorants, as well as prestige items like Waterman pens. The company's 1996 acquisition of Duracell International instantly made batteries the company's second biggest product line. The indomitable Sensor Gillette's current star is its Sensor line. Introduced in 1990, the technologically advanced razor soon became a best seller in the United States and most other major world markets. Initial sales of the Sensor shaved earnings from Gillette's other razors--especially the company's Trac II line. Nevertheless, Sensor, as well as the shaver's sibling, Sensor for Women, have proved powerful engines for Gillette's growth. In 1996 alone sales of Sensor rose 18 percent. Though the Sensor is Gillette's most costly product, customers have proven willing to pay more for higher performance. Meanwhile, Gillette's 29 Sensor patents have deterred knock-offs, and today Gillette dominates the cartridge razor market. Spreading like wildfire Gillette stakes its growth on the expansion of its international market as much as on the introduction of new products; in 1997 international sales accounted for over 60% of the company's sales revenue. The firm reaped profits from over 200 countries and an estimated 700 million shavers worldwide. Innovation is also important to Gillette; in 1997, nearly half of sales came from products introduced in the last five years. The company made a profit of $1.4 billion on sales of $10 billion in 1997. Shaving products made up 29 percent of sales, but 50 percent of profit. Mock? No, Mach! Gillette's dependence on the shaving market makes the introduction of new razors that much more important. In April 1998, Gillette unveiled its newest and greatest assault on the world whisker market: the Mach3. The culmination of over twenty years of research and $750 million in developing, the Mach3 uses technology from aerodynamic and ion-deposition research (a process also used on computer chips) to boast the closest shave on the market. The company professes to taking years of research to perfect blade angles. Meanwhile, the Mach3's three carbon-coated, ultra-thin blades allow for a light touch. All told, Gillette shelled out $300 million in advertising and promotion during Mach3's first year. Investment savant Warren Buffett banked on the product's success - he owns 11 percent of the company. So far, the prospects are looking good. In late 1998, Gillette announced that the Mach3 was the leading U.S. brand in both razors and blades. The product took a 13% share of the U.S. blade market, slipping past its sibling, the Sensor. Bearded ladies? What does a company do when there aren't enough faces to shave? Turn to legs and underarms. After years of scant advertising on the women's market front, Gillette has upped the ante with a brand-new female campaign. With the intrepid, if not-very-catchy slogan, "Gillette for Women: Are You Ready?," the company hopes to attract the wallets of women everywhere. Indeed, Gillette will spend a whopping $41 million on TV and print ads in the U.S. and Western Europe--quite an increase from 1997's $26 million budget. The new product is sure to be an improvement over the company's feeble Daisy razor, a pink-coated version of the male blade. "We were taking a man's product and giving it a different color," says Mary Ann Pesce, vice president of Gillette's North Atlantic Group. "Women didn't buy it--literally." Sharp and sharper In many respects, 1998 was a turbulent year for Gillette. In a steely battle, corporate giant Sharper Image Corp. filed suit against Gillette, alleging that the consumer products company was usurping sales. Specifically, Sharper Image complained that Gillette was unfairly attempting to keep it from selling battery-powered razors that use Gillette's Sensor and Mach3 blades. In more bad news, Gillette decided to close down 14 of its factories and lay off 11% of its workforce after a marked slowdown by retailers from international markets. "Gillette's days as a premiere growth stock are essentially over," admonished Andrew Shore, an analyst at PaineWebber Group Inc. After a disappointing 1999, Gillette's struggles have continued into 2000. Decreases in revenues and earnings have led to speculation that some - or possibly all - of the company will be sold. In February 2000, the company hired J.P. Morgan & Co. to explore the possibility of selling part of the company. Two months later, Gillette found a potential buyer of its shampoo division. In summer 2000, the company also began negotiations with Newell Rubbermaid Inc., regarding the sale of Gillette's stationery products line. These negotiations took place amid rumors that Colgate-Palmolive Co. was interested in buying all of Gillette.
Gillette boasts low job turnover and a high level of job security, which means fewer entry-level opportunities than at many corporations of comparable size. Gillette does not post current openings nationally, so "it's really hard to get in the door," even if you have a friend on the inside. "If you do not yet have a job offer or a formal recruiting channel, Gillette is a difficult company to get into," say insiders, though they allow that the firm does conduct campus recruiting - perhaps your best chance of cracking the company. All of Gillette's "brand management training positions (marketing) are recruited at the MBA level from a select few Ivy League Schools." Those who break through the gauntlet will find the interview process "intense, with many rounds of technical questions" designed to find out if "you know your stuff, how you handle pressure, and if you will be able to present data confidently to senior management." When asked what Gillette is looking for in its new hires, one contact responded, "A future CEO." Insiders recommend that interviewees "stress projects [they have] worked on as part of a team" in the past; they should also "point out areas of success." Perhaps most important of all, applicants should be familiar with Gillette products--both past and present. Applicants who are unaffiliated with academia should contact the Human Resources department on a regular basis to inquire about current openings.
A cut above Gillette management is "hungry for people with ideas good enough to move the business ahead." Advancement opportunities abound, and employees often work at Gillette for their entire careers. "Because employees turnover is so low," says one insider, "the workforce is older than you might find at other companies." Gillette has an excellent reputation for "giving great benefits and having most people retire as millionaires" - including some of "those on the factory floor" - mostly "due to the savings and a matching 401K plan." The old-fashioned way As part of its old-fashioned company values, Gillette's business formal dress code consists of "a suit, five days a week" and while there is a casual Friday, "you wouldn't know it by looking around." "It's an early morning world here," notes one insider of the days, which start for some departments "between 6 and 7:30 a.m. 8:30 am is about the latest." Fortunately, "overtime is pretty much a non-issue" at Gillette, as "nobody is required to work beyond their 40 hours a week." Employees receive numerous perks including "time off for those who donate blood to the Red Cross," discounts on products, "some sports clubs like skiing and softball," tickets to events Gillette sponsors, and a generous matching 401K and savings plan. Participation in the local fitness center at Gillette is subsidized and costs $4.50 weekly. Boy's club The state of diversity at Gillette has been described as "more than a bit backward," with very few minorities or women in senior positions. The company reportedly hired its first woman engineer in 1997. One insider cagily confirms that "treatment of women can be an interesting issue depending on whom you speak with." Insiders cite a "large 'boy's network'" that is reinforced by the fact that while the average age of employees is "42 or so," many in senior positions have been at the company for that long. Gillette does have female and minority support/empowerment groups; the women's group is called Equitas and it "sponsors speakers, social events and professional development workshops." Despite the rigid attitude, "turnover is very low." Familiar faces Friends you make at Gillette "will always be around, just in different departments," coos one insider. "Promotion from within is normal, and team work is highly valued," says another, although "the group effort makes for a few ego problems with co-workers." Most insiders find they "respect upper management" and point to the fact that Gillette is "doing extremely well financially, which makes it a good place." The company is "an excellent innovator of new products," revitalizing the work environment as well as the profit margin. While insiders note that Gillette offers "excellent experience and lots of opportunity," they admit that the company "may not be as fun or exciting as other opportunities." Get ready to mesh Insiders call the "friendly, but formal" culture at Gillette "somewhat authoritarian." They comment that the company emphasizes seniority and has "no peer reviews or channels for providing feedback to management." Culturally speaking, says one insider, "Gillette is a very 'old school' type company" with a formal hierarchy. This does not, however, reduce the chances of career growth. At Gillette, as long as "your personality meshes with those of the people who manage you," it is possible to "rise in the organization." The limits of an employee growth are based on the "match between people's skills and the company's needs," but not due to "any lack of good opportunity in the company."
Human Resources
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