...FINANCIAL ANALYSIS: TEMPLATE NAME: EXECUTIVE SUMMARY: Proctor and Gamble® was founded in 1837 by William Proctor and James Gamble in Cincinnati, Ohio. Today the company is the world’s largest producer of consumer goods with over 300 brands in over 180 countries. The company has a significant advantage over its competitors because of market position and brands that everyone knows such as Tide®, Pampers®, Gillette®, Olay® and many more. The company’s purpose is to “provide branded products and services of superior quality and value that improve the lives of the world’s consumers now and for generations to come. As a result, consumers will reward us with leadership sales, profit and value creations, allowing our people, our shareholders and the communities in which we live and work to prosper.” During the second half of the 20th century the company increased profits by acquiring companies that diversified its product line. Among the acquired companies were Folgers®, Old Spice®, Iams® pet foods, cosmetic giant Max Factor® and several others. In 2005, Proctor and Gamble,s® acquisition of Gillette® made it the largest consumer goods company knocking top dog Unilever® to second place. Innovation is the life blood of Proctor and Gamble®. On April 7, 2014, the company declared 7% increase in dividends. Since its incorporation in 1890, the company has been paying dividends. This 7% increase marks the 58th consecutive year that the company has increased its dividend...
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..._____________________________________________ | 3 | | Company Overview_______________________________________ | 3 | | | Financial Ratio Analysis____________________________________ | 4 | 1. Liquidity Ratios________________________________________ | 5 | 1.1 Current Ratio_______________________________________ | 5 | 1.2 Quick Ratio_________________________________________ | 6 | 1.3 Working Capital_____________________________________ | 7 | | | 2. Profitability Ratios______________________________________ | 8 | 2.1 Gross Profit Ratio____________________________________ | 8 | 2.2 Net Profit Ratio______________________________________ | 9 | 2.3 Return on Total Assets________________________________ | 10 | 2.4 Return on Capital Employed___________________________ | 11 | 2.5 Return on Equity_____________________________________ | 12 | | | 3. Activity Ratios_________________________________________ | 13 | 3.1 Debtor's Collection Period_____________________________ | 13 | 3.2 Creditor's Collection Period ___________________________ | 14 | 3.3 Stock Turnover Period________________________________ | 15 | | | 4. Solvency Ratios________________________________________ | 16 | 4.1 Gearing Ratio_______________________________________ | 16 | 4.2 Interest Cover Ratio__________________________________ | 17 | 5. Market Analysis 5.1 Earnings Per Share Ratio(EPS)_________________________ | 1818 | 5.2 Price Per...
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...Proctor and Gamble (P&G) Company foundation started in Cincinnati in 1837 by William Procter and James Gamble. Proctor and Gamble is the largest and most profitable consumer of packaged goods. Such products like Pampers, Ariel, Downey, Head, and Shoulders, Olay, Dawn, Fairy, and Always are Proctor and Gamble brands. With 175 years of leading in the Health, Home, and Beauty Care Products with 84billion in sales and more than 10billion in net earnings. Proctor &Gamble is a global leader in retail goods that competes at a high-level with global, regional, and local entities. The "Proctor and Gamble co. Statement Of Financial Positions And Assets” (2011-2012) Total Current Assets (Reporting in Millions). Total current assets, is a measure of total cash and cash equivalents, Inventory receivables, and other current asset (web definitions). Cash and cash equivalents (sum Of any cash and any item liquidated) for Proctor and Gamble 2011 annual reporting was 2,768 and 4, 436 in 2012. In 2011 the accounts receivables (money owed to a business by Its clients and customers) were 6,275 and 6,068 in 2012. Material and supplies total in 2011 at 1,740 and 2012 2,175. Work in process (Unbilled fees and expenses for unfinished projects) current assets in 2011 was 717 million 685 million in 2012. In 2011 the finished goods (manufacture...
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...Financial Analysis and Valuation Project Summer I 2014 FIN 401 2 This valuation provides information about Procter & Gamble Co.’s (P&G) liquidity, profitability and financial stability as obtained through stock price and ratio analyses. The analysis is based on the five-year time span between 2009 and 2013. This report focuses primarily on P&G’s liquidity and credit management and overall earning power. Both time trend and peer group analyses are utilized to highlight the company’s strengths as well as weaknesses. Certain observed changes are noted and explanations are provided based upon the data collected. Johnson & Johnson (J&J) serves as the basis for the peer group analysis. Stock Price Movements In the past five years P&G has demonstrated a general upward trend in its stock prices. Towards the end of 2009, the market was just beginning to move out of the recession and P&G’s stock was at its five year low. As indicated in Chart A, the S&P 500 was also at its five year low around the same time. Until October of 2011, P&G trended more or less similarly with the S&P 500. However, after this point P&G’s progression slowed against the S&P. J&J’s growth however, better matched the growth of the market during this time. Despite the slowed growth since 2011, P&G demonstrates...
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...Environmental Analysis 4 2.1 Company Analysis 4 2.1.1 Management of Proctor & Gamble 5 2.2 Industry Analysis 8 3. Macro Environmental Analysis 10 3.1 Political 10 3.2 Economic 10 3.3 Social 12 3.4 Technological 13 4. SWOT Analysis 16 4.1 Strength 16 4.2 Weakness 16 4.3 Opportunity 17 4.4 Threat 17 5. Conclusion 19 6. Recommendation 21 7. References 22 8. Appendix 24 List of Figures Figure 2.1 Proctor & Gamble Mental Map 4 Figure 2.2 Organization Chart 6 Figure 2.3 Shopper Marketing Taxonomy 7 Figure 2.4 Value Proposition 9 Figure 3.1 Projected GDP % Growth and Inflation by Country 11 Figure 3.2 The advertising spending on Media 2013 12 Figure 3.3 Contribution to global growth in ad spend by medium 2013-2016 (US$m) 13 Figure 3.4 % of global smartphone users who have used the app in the past month (Q2 2013) 13 Figure 3.5 New Policy of Google Advertising (1) 15 Figure 3.6 New Policy of Google Advertising (2) 15 Figure 4.1 2012 Planning on Spending Advertising within the Social Media Space (%) 18 Figure 4.2 Advertising Spending on Facebook (Top 3 Brands) 19 1. Background Procter & Gamble is our target company in this project. We will start with the background, and then examine both the micro and macro environment. The conclusion and recommendation will be generated from the internal and external analysis. Some theories...
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...Financial Analysis of the Consumer Products Industry The consumer products industry produces and creates products that nearly everybody uses on a daily basis. Toilet paper, toothpaste, diapers, tissues, cosmetics, small appliances, and detergents are just a small sample of what this industry provides. With such a vast array of product offerings, which are essential to modern day living, there is no threat of this industry becoming obsolete. In fact, as emerging markets continue to prosper and new consumers enter the market, there are many growth opportunities available to the industry. In this analysis Proctor and Gamble, the largest competitor in the industry, will be compared Unilever, Colgate-Palmolive, and Kimberly Clark. The goal of this analysis is to figure out which factors drive success in the industry, then use ratios and trends to determine which company is currently performing the best financially. Based on the results, the conclusion should highlight which company will outperform its competition in the future. Factors that Drive Success in the Industry In developed markets, the cost of living is on the rise. Gas prices are higher than ever, and unemployment rates are also high. All this financial pressure translates to consumers wanting more for their money. Companies who can offer products that are both valuable to the consumers and priced well will outperform the competition. The consumer products industry is a concentrated, meaning that the industry...
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...Proctor and Gamble Global Fabric & Home Care Corporate and Strategic Business Unit Model Strategy Introduction The purpose of this paper is to examine a Strategic Business Unit for its overall fit and alignment within its corporate environment. For this case study, the corporate parent must be a publically traded, multinational corporation with two or more strategic business units. The corporation that will be examined is Proctor and Gamble. This study will begin by understanding the parent corporation through its history, its basic or generic corporate strategy, the current structure of the corporation, and its overarching business model. The case study will then thoroughly examine the selected strategic business unit to include its value chain, strengths weaknesses opportunities and threats (SWOT), marketing and sales, comparison to competitors, stock trends and shareholder value. In order to complete this study the effects of corporate parenting strategy, an examination of its resources and capabilities, and review of recent and emerging trends within the industry must also be examined. However, before this paper can delve into Proctor and Gamble and its strategic business unit basic theory and business analysis techniques must be determined and defined. The different theories and analysis techniques that will be used are Value Chain Analysis, Corporate Parenting Analysis, SWOT Analysis, and analysis of corporate resources and capabilities. These will be...
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...Proctor & Gamble Competitive Intelligence Case Tristen Leeder RES/351 January 14, 2013 Instructor: Steve Roussas Abstract In this paper I will show the usefulness of corporate intelligence. While this tool is helpful in making solid business decisions effort needs to go into monitoring of the gathering process. Intelligence gathered by unethical means does more harm to an organization then good. The financial repercussions of involvement in corporate spying are steep, and the damage it does to an organizations reputation can take years to repair. Management teams must continually monitor how intelligence is gathered to make corporate intelligence work for their benefit. Proctor & Gamble Competitive Intelligence Case In spring of 2001 John Pepper, then chair of Procter and Gamble was faced with a dilemma (Tuck School). It had been brought to light that P&G’s competitive analysis department had engaged in corporate spying (CNN). An outside firm hired by P&G had engaged in spying on Unilever, P&G’s main competitor in the hair care industry. According to Jordan and Finkelstein “the spying operation gathered about eighty documents detailing Unilever’s plans for its U.S. hair care business over the next three years, including information on its launch-plans, prices, and margins (Tuck School, p. 1).” In April 1999 John Pepper was the keynote speaker at an SCIP CEO Roundtable, held in Montreal. In his address Mr. Pepper...
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...Proctor & Gamble Making Everyday Life Better Executive Summary In the billion-dollar industry that is consumer packaged goods, one of two key giants is Proctor & Gamble (P&G), an Ohio-based company that specializes in consumer packaged products. Throughout this paper, I will show that P&G is a leading consumer packaged goods company with a very promising future ahead of them. I will discuss the market structure in which they operate, the marketing approaches that they use and conduct a brief financial analysis of the company. I will conclude by making several recommendations as to how the company can continue their successful growth pattern, including technological advances, response to consumer preferences, research and development (R&D) of new products and creating brand loyalty among their consumers. Company Overview P&G is a global leader in retail goods focused on providing branded consumer packaged goods of superior quality and value to their customers around the world. They began in Cincinnati Ohio as a small family-operated soap and candle company in 1837. Their products are sold in more than 180 countries and territories primarily through mass merchandisers, grocery stores, membership clubs stores, drug stores, department stores, salons and high-frequency stores. P&G produces nearly 300 different brands with annual sales of $84 billion. Popular brands include Pampers, Always, Bounty, Pantene, Zzzquil, Tide, and Downy. P&G have...
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...Company History William Proctor and James Gamble created Proctor and Gamble in 1873. William Proctor introduce him self to Cincinnati as a candlemaker, while his counterpart apprenticed himself to a soapmaker. They met by chance when they married sisters and fittingly they initiated a partnership of candlemaking and soapmakeing. A partnership then originated on October 13, 1837. In 1850 Moons and Stars became the unofficial trademark. In 1862, Proctor and Gamble profited by making candles for the Union soldiers, keeping the company afloat through good publicity. James Norris Gamble, the son of James Gamble, created Ivory in 1879. By 1980, Proctor and Gamble was a successful partnership. Producing over thirty types of soap. Excellent advertisement caused the need for more plants to be open, such as Ivorydale. With the creation of new plants, so the creation of new and improved ideas. Products such as: "˜Ivory-Flakes'-a soap for washing cloths and dishes, "˜Chipso'- the first soap for washing machines, "˜Dreft'- the first synthetic detergent for households, and "˜Crisco'- the all-vegetable shorting that changed cooking forever. The company had grown from $7,192.94 the original investment by Proctor and Gamble, to over $350 million in 1945. 53 years after the formation of the successful partnership, P&G was incorporated to gain financial capital for an expansion. The expansion carried with it the creation of Tide. Tide overtook the market and by 1959 was the leading detergent...
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...Introduction Procter & Gamble is one of the world’s largest producers of consumer goods and it was founded in 1837. Recently, Procter & Gamble is operating in 50 countries and serving nearly five billion customers with a series of brands across beauty, healthcare and food industry which generate which create more than 1 billion revenue annually. The purpose of this essay is to discuss how the diversification strategy changed Procter & Gamble in Singapore over the last ten years. The main position in this essay is that diversification can be considered as one of the main strategies used to assist Procter & Gamble build up business competitive advantage. This essay will use theoretical evidence from literature review to analysis the impact of diversification on Procter & Gamble in different time period. The analyses of Procter & Gamble will be carried out in 3 perspectives: the operation of business, the performance of business and the brand of business. Literature Review & analyses of organization Diversification can be defined as a strategy used to increase the range of products or markets of organization. (Johnson, Scholes & Whittington, 2008) There is a range of reasons result the diversification of organization such as spreading the business risk and increasing the business expectation of stakeholder. (Johnson, Scholes & Whittington, 2008) But the result of research from Aisjah and Subroto (2011) indicated that there are two main...
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...P&G Case Executive Summary This case study analysis is on the Proctor & Gamble Company (also referred to as “P&G”). Procter & Gamble is the world's largest producer of household and personal products by revenue, with its products reaching 4 billion people worldwide. The Case Study includes an Introduction, Company Overview, Company Mandate, Internal Analysis, and External Analysis, followed by various Strategic Options (see below). The author then makes a Final Strategy Option Recommendation. Strategic Option #1: Market to Lower-Income Consumers in both Developed and Emerging Markets (Expand and Build Beauty Segment strictly aimed at Low-Income Consumers). Industry Consolidator. Strategic Option #2: Given the maturity of the North American/Western European market, combined with the emerging popularity and demand for Natural/Organic ingredient products, P&G should look to create New Natural Products and Products tailored to the Male market - Multiple Segments, not just Skin Care (Expand and Build Beauty Segment). Industry Consolidator. Strategic Option #3: Related Diversification through Acquisition. Strategic Option #4: Joint Ventures in Emerging Markets such as China and India. Final Strategy Recommendation: The Recommendation is to go for a combined Low-Income segment and New Natural Product strategy as this facilitates P&G’s need to capture a greater slice of the Low-Income consumer market both in Mature and Developing markets, which also capturing a greater...
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...------------------------------------------------- Innovation at proctor and gamble Pritesh Tarte- 11906296 ------------------------------------------------- Innovation at proctor and gamble Pritesh Tarte- 11906296 Assignment 1 Assignment 1 I INDEX 1.Introduction to Proctor & Gamble ……………………..…….……………….3 2. Innovation at Proctor & Gamble……………………………………………...4 3. Connect & Develop Program & Open Innovation……………………………5 4. Voice of Customer……………………………………………………………6 5. Conclusion……………………………………………………………………7 6. References……………………………………………………………………8 1. Introduction to Proctor & Gamble ( P&G) William proctor and James Gamble established Proctor and Gamble in 1837 as a soap and candle company in Ohio USA. P &G has now developed into global manufacturing and marketing company of branded consumer products. Its markets are over 180 countries including America & Asia regions. Its Business is mainly into five segments. * Fabric & home Care * Beauty * Baby care * Family care * Health care & groom. The fabric care and home care compromises bleach and laundry additives, laundry detergents, pet care, dish care, fabric enhances and surface care products. Beauty care consist of cosmetics, deodorants, hair care & skin care, female personnel cleansing products, salon professional product. Baby care and family care contains products such as baby wipes, diapers, pant towels, tissues and toilet...
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...Real-World Business Analysis: Procter and Gamble Arlissa Williams MMBA-6570-9 Business Strategy for Competitive Advantage The Business Model Procter and Gamble is the world’s largest consumer products company that provides “branded products and services of superior quality and value that improve the lives of the world’s consumers, now and for generations to come.” -www.PG.com, 2010 - “New CEO Bob McDonald, who assumed office in July, is on the road promoting P&G's ‘purpose-inspired growth’ strategy of ‘touching and improving more consumers' lives in more parts of the world... more completely’"(Kanter, 2009). In 2007, P&G created a five prong business strategy to assist the company in growth, both financially and organically. Its business model focused on innovation in all parts of the company. Using the core strengths of consumer understanding, scale, innovation, go-to-market capabilities, and brand-building, virtually all the organic sales growth delivered in the past nine years has come from new brands and new or improved product innovation. Not only did the company want to ensure that its products were what the customers desired, they wanted to create a lasting positive effect on the community. The five strategies were as follows: Products: “Delight the customer with sustainable innovations that improve the environmental profile of [the] products” (P&G Strategies, Goals and Progress, 2010). In order to provide the most innovative products to the consumers...
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...Contents Executive Summary 3 Report On Globalization Of P&G 4 1) How did the company initiate its first global business? 4 2) Its Global business activity during the last 5-10 years ………………………………...6 3) What global initiatives the company has taken up currently and in the immediate future? 8 4) Can you suggest any alternative to its given future plan of expansion abroad? 10 5) Due to recent financial meltdown and the continuing recession/ slowdown in some developed countries , have some of the recently introduced expansion plans of your company become vulnerable? 12 6) What remedial measure / plan can you suggest? 14 7) Your suggestions for taking the company’s global businesses to the next level? 15 8) References…………………………………………………………………………….17 Executive Summary Procter and Gamble (P&G) was founded by William Procter and James Gamble on October 31, 1837. The company is now the largest company and brand in Fast Moving Consumer Goods (FMCG) industry. The company, today, deals with personal care product, pet food and cleaning agents. The company scored $83.86 billion sales in 2012 and ranks 1st in the Fortune magazine’s “Global Top Companies for Leaders.” The company as on February 19, 2013 has a market capitalization of $ 211.38 bn (Source: Yahoo Finance). The company has simple expansion plan. They have, since early days, have believed in both organic and inorganic growth. The company cultivated and grew in house...
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