...Business Proposal R. Michelle Thomas ECO/561 March 3, 2014 Nancy Irizarry Proctor & Gamble (P&G) is the world’s largest and most profitable consumer products company, with nearly $84 billion in sales and 25 billion-dollar brands. On February 20, 2014 P&G introduced another Swiffer product called The Sweep and Trap. P&G says The Sweep & Trap will make clean-up faster and easier. The Sweep & Trap picks up small and large particles in one swipe with no batteries, cords or power supply required (P&G, 2014). Business Proposal Market structure: P&G market structure is what is called Oligopoly; Oligopoly is a form of market where there is domination of a limited number of suppliers and sellers. P&G is the world’s largest consumer products company controlling over 90% of the market. In the consumer products market P&G is the leader and main competition to all other consumer product companies. At P&G a lot of time money and effort goes into product research and development and advertising is very important part of competition (P&G, 2014). Elasticity of the product(s): Over the last 10 years P&G has had to face some stiff competition from a handful of powerful low-priced retailers such as Wal-Mart, Target, and supermarket chains that offer private label brands or store brands. Because Procter & Gamble has the biggest portfolio of products in the household and personal care industry and generates over one...
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...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 reasons boost the diversification of business: firstly, diversification expands the economics of scope of the organization; secondly, diversified business helps organization develop the market power. Similarly, Kotler & Armstrong (2008) also claimed that the diversification enable organization acquire business not only from current products and markets but also from...
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...Procter and Gamble Strategic Plan Paper LTA MGT 498 April 8, 2016 Robert Shereda Procter and Gamble Strategic Plan Paper The business world changes as often as the earth rotates around the sun. The way businesses remain successful is by choosing to embrace change, but wanting change is not enough. To stay competitive, a business must foresee change and adapt in a way that maintains profit, customers, and shareholder loyalty. Ways this will be achieved is through a carefully planned and implemented strategic plan. The strategic plan and other considerations for Procter and Gamble (P&G) will be outlined and detailed throughout this discussion. Importance of Proctor and Gamble having Strategic Plan For a company to be successful there needs to be a set of plans to achieve success. Strategic planning is geared toward specific results that a company needs to achieve and establishes a specific direction of action for goal attainment. Good strategic plans ensure that different departments of Proctor and Gamble work together to align themselves with the goals set by the business. Preparing a strategic plan is not a difficult task, it takes thought from the top all the way down to the employees, especially feedback from consumers concerning the company. Thought out strategic plan will span two to five years and details how the company will develop and succeed over that planning period. Procter and Gamble have created four divisions within the company to ensure...
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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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...Statement 3 - 5 4. Environmental Scanning 5 5.1. SWOT Analysis 5 - 10 5.2. Financial Ratios 11 - 14 5.3. Porter Five Forces Analysis 14 - 16 5. Strategic Formulation 16 - 17 6.4. Recommendation for Alternative Strategies 17 - 19 6.5. Selection of Alternative Strategy 19 6. Strategic Implementation 19 - 20 7. Evaluation and Control 20 - 22 8. Reference / Work Cited 23 - 26 1. Executive Summary The objective of this case study is to assess the Procter & Gamble (P&G) corporation within its current environment by evaluation of its present performance with in its industry (Hunter, 2009). The assessment is based on information provided in the 2007 case study by Professor Shamsie and Eisner as well as various other secondary research materials. The objectives of the case analysis are to point out potential problems with P&G, conducting a SWOT analysis, strategic Porter Five Forces analysis, reviews various recommendations to the problems stated and implement a strategic recommendation. Regarding the problem in this case, as research will show, P&G’s faces three major problem areas within the organization. The problems reach from struggle with sustainable product innovation, increased reliance on one sided distribution channels and leadership in-cohesiveness within the company. To support these assumptions, comprehensive...
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...Introduction Marketing is delivering goods and services to the customers and be likely to signify managerial future more willingly than industry prospective. Analysis says that, marketing is conducts which are guarded in their implementation to reach objective and collective performance of the company. Recently P&G has introduced an extra $1bn for the purpose of advertising and making total spend was $8.6bn (£5.4bn), that is equal of around 11% of whole sales. Chief executive of P&G Mr. Bob McDonald P&G says: “They are carrying out on all three width of expansion strategy - touching and recovering extra consumers' lives, in new parts of the world and more absolutely."They have made investments in modernization, support of marketing and value of consumer. These have provided go faster unit volume that might increase the profitable market share growth in the near future. Those are very obvious sign in their strategy is operating." (http://www.mad.co.uk/) Marketing planning process strategy for the expansion The P&G has implemented a supply chain innovation and MR. Jake Barr is in charge of this. He is responsible to form out the techniques to obtain the customer commodities like giant's detergents, soaps and personal care products etc. for the people of 5 billion customers in 170 countries more efficiently including USA. This could generate $50 billion for the company that have boasts 13 brands and making more than $1 billion worth of revenue every year. In order to...
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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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...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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...Procter & Gamble Co. (P&G) P&G – Procter & Gamble is a consumer product company founded and headquartered at Cincinnati, Ohio in 1837 by Mr. William Procter and Mr. James Gamble. It is now led by Mr. Alan.G.Lafley whom rejoins the company in 2010. P&G success was contributed to the heart of its business model – Innovation; and that is not just for newly invented product or service, it was for the goal of recreating needs for the improvement of consumers’ living. And it is a very long culture started where the roots started from the founders; whom are soap and candles makers. The first innovative product – Ivory; started in 1879, by James Norris Gamble who is the son of the founder and a trained chemist. Ivory at then was an inexpensive white soap equal to high-quality, imported Castile soap. It was introduced nationwide through a weekly newspaper. Today, P&G has its presence across 180 countries and a team of 121,000 employees. Its business operations spanned across various segments like Beauty, Grooming, Health Care, Fabric Care & Home Care and Baby Care & Family Care; it is the house to many of the world leading brands like Head & Shoulder, Gillette, Oral B, Fabrics, Pampers and many more. Touching more than 4 billion consumers worldwide every day, the company sales volume as of fiscal year ending June 30, 2013 was more than 80 billion in sales. The Strategy – Unique Value According to Michael Porter, He argued that organizations...
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...volution of Strategy at Procter & Gamble Founded in 1837, Cincinnati-based Procter & Gamble has long been one of the world’s most international of companies. Today P&G is a global colossus in the consumer products business with annual sales in excess of $50 billion, some 54 percent of which are generated outside of the United States. P&G sells more than 300 brands—including Ivory soap, Tide, Pampers, Iams pet food, Crisco, and Folgers—to consumers in 160 countries. Historically the strategy at P&G was well established. The company developed new products in Cincinnati and then relied on semi-autonomous foreign subsidiaries to manufacture, market, and distribute those products in different nations. In many cases, foreign subsidiaries had their own production facilities and tailored the packaging, brand name, and marketing message to local tastes and preferences. For years this strategy delivered a steady stream of new products and reliable growth in sales and profits. By the 1990s, however, profit growth at P&G was slowing. The essence of the problem was simple: P&G’s costs were too high because of extensive duplication of manufacturing, marketing, and administrative facilities in different national subsidiaries. The duplication of assets made sense in the world of the 1960s, when national markets were segmented from each other by barriers to cross-border trade. Products produced in Great Britain, for example, could not be sold economically in Germany due to high tariff duties...
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...[FT- 09-862] Ravi Kumar Sinha [ FT- 09-813] IILM-GSM-09-11_PBM_SEC-A_ 1 | P a g e We take this opportunity to convey our sincere thanks and gratitude to all those who have directly or indirectly helped and contributed towards the completion of this project. First and foremost, we would like to thank Prof. Pitamber Dwivedi for her constant guidance and support throughout this project. During the project, we realized that the degree of relevance of the learning being imparted in the class is very high. The learning enabled us to get a better understanding of the nitty-gritty of the subject which we studied. We would also like to thank our batch mates for the discussions that we had with them. All these have resulted in the enrichment of our knowledge and their inputs have helped us to incorporate relevant issues into our project. Last but not the least we would like to thank God and our parents for their cooperation and help. IILM-GSM-09-11_PBM_SEC-A_ 2 | P a g e |TOPICS |PAGE | |1. Introduction to FMCG/HUL...
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...Institute of Business and Information Technology PU, Lahore Project Report “Procter and Gamble” Organization Theory and Design F10BB (Morning) Submitted To: Ma’am Heena Saleem Submission Date 11th June, 2014 Group Members: Abeeha Mahmood F10BB038 Taliha Ghazi F10BB037 Saba Javed F10BB008 Komal Asim F10BB036 Fatima Mushtaq F10BB004 Zunaira Mumtaz F10BB018 Table of Contents Brief History and Background of the Organization: 3 Structure of the Organization: 6 Structural Dimensions of the Organization: 7 Goals, Strategies and Effectiveness: 10 P&G Goals and Objectives: 10 P&G Company Strategies: 13 Organizational Strategies: 14 The External Environment Analysis: 16 Technology: 17 Life Cycle Assessments: 20 Innovation and Change: 21 Conflict, Power and Politics: 25 Procter and Gamble Brief History and Background of the Organization: Procter & Gamble is the largest consumer goods company in the world and sells products under more than 80 brand names. The Procter and Gamble Company is today more familiarly known as P&G, and it has grown from its humble roots as a Cincinnati soap maker to one of the 20 largest multinational corporations in the world (based on sales). P&G took a long time to become the wonder brand they are today. The path to success took a lot of creativity and innovation. P&G invented branding in the 19th century; since then it has acquired products...
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...goods companies in the world, both P&G and Unilever have been extremely successful in building highly recognized brands that meet consumer needs and drive sustainable value to its shareholders. Currently, P&G operates in two unique segments: Beauty/Grooming and Household Care. It has completely exited the foods segment with the latest divestiture of Pringles. In comparison, Unilever operates in three different segments: Personal Care, Foods, and Homecare. In the past five years, Unilever has re-aligned its foods portfolio (with the divestitures of Lawry’s & Bertolli) while making major acquisitions in the Personal Care space (TIGI & Alberto Culver). For both companies, growth is the name of the game. P&G has committed to growing organics sales 1%-2% faster than the market while Unilever set a goal to double the size of its business in 10 years while reducing its environmental impact. To achieve their ambitions, both companies have articulated their corporate strategy within their annual reports (P&G Shareholder Report 2011, Unilever 2010 Annual Report). Today P&G’s strategy revolves around market development through innovation. Their process starts at identifying a consumer need and developing a product that solves the problem. Once the product and design are finalized, they leverage their complimentary assets such as marketing and distribution to launch. (Anthony, Video) Although a CPG’s value chain is more complicated and involved, P&G is extremely efficient from points A...
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...The Evolution of Strategy at Proctor and Gamble Founded in 1837, Cincinnati-based Procter &Gamble has long been one of the world’s most international of companies. Today P&G is a global colossus in the consumer products business with annual sales in excess of $50 billion, some 54 percent of which are generated outside of the United States. P&G sells more than 300 brands- including Ivory soap, Tide, Pampers, IAM per food, Crisco, and Folgers- to consumers in 160 countries. It has operations in 80 countries and employs close to 100,000 people globally. P&G established its first foreign factory in 1915 when it opened a plant in Canada to produce Ivory soap and Crisco. This was followed in 1930 by the establishment of the company’s first foreign subsidiary in Britain. The pace of international expansion quickened in the 1950s and 1960s as P&G expanded rapidly in Western Europe, and then again in the 1970s when the company entered Japan and other Asian nations. Sometimes P&G entered a nation by acquiring an established competitor and its brands, as occurred in the case of Great Britain and Japan, but more typically the company set up operations from the ground floor. By the late 1970s, the strategy at P&G was well established. The company developed new products in Cincinnati and then relied on semiautonomous foreign subsidiaries to manufacture, market, and distribute those products in different nations. In many cases, foreign subsidiaries had their own production...
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...of knowledge acquired, understanding developed and skills or abilities gained in relation to the achievement of the learning outcomes. Learners are expected to use their acquired knowledge to prepare a business report of not less than 3,500 words, clarity of ideas and presentation would attract extra marks as well as use of own initiative and real and imaginative scenarios to demonstrate understanding of the course. COURSE WORK- PROCTER & GAMBLE Zeroing in on the first moment of truth Procter & Gamble, a world leader in consumer packaged goods, sells nearly 300 brands in more than 160 countries. It has sales of $40 billion a year and 130 manufacturing sites around the world. P&G measures consumer satisfaction at two levels, which it calls the two “moments of truth.” The first moment of truth occurs when the consumer reaches the shelf and finds that the desired product is, or is not, available. This is a critical moment, because if the product is not immediately available, the consumer usually moves on to buy a rival product. The second moment of truth depends on the buyer’s satisfaction when consuming the product. This, too, has a crucial impact on consumer loyalty, but is beyond the scope of this case study. Detailed consumer surveys in July 2000 told P&G that in 55% of cases (75% for promotional items), consumers were not satisfied when they looked on the shelf for the products they wanted. The exact product variant, in the size and packaging the shopper...
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