...Analysis DeVry University Federal Way, Washington Summary In the case study “,” it discusses the history of Procter & Gamble’s foreign business strategy and some of the problems they incurred along the way. It also covers some of their business strategy changes the company introduced in order to become more profitable in a changing world economy along with a more globalized less restrictive trade and business environment. It’s summarized with a detailed discussion regarding P & G reorganization and complete restructuring of the company to control its costs by having European plant closures and layoffs. Questions 3 a, b, c a. What strategy was Procter & Gamble pursuing when it first entered foreign markets in the period up until the 1980s? Procter & Gamble clearly used an international strategy for their expansion into foreign markets throughout a large portion of the 20th century. Not until they began to experience slower growth, profits and sales in the in the early 1990’s did they take a serious look into their business model for international expansion. But up to this pint they were unparalleled by any other competitor as the chart shows below. (2) b. Why do you think this strategy became less viable in the 1990s? I feel there are several defendable reasons that P&G’s business strategy began to lose its effectiveness it has had years prior. First, the changing global market created a better market for companies to expand and...
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...1] Contract labor system * A workman is deemed to be employed as Contract Labor when he is hired in connection with the work of an establishment by or through a contractor. Contract workmen are indirect employees; persons who are hired, supervised and remunerated by a contractor who, in turn, is compensated by the establishment. * 3. Contract labor should not be employed where (a) The work is perennial and must go on from day to day;(b) The work is incidental to and necessary for the work of the factory;(c) The work is sufficient to employ considerable number of whole time workmen; and (d) The work is being done in most concerns through regular workmen. * 4. The Contract Labor (Regulation and Abolition) Act, 1970 Act and the Contract Labour (Regulation and Abolition) Central Rules, 1971 came into force on 10.2.71 * 5. Main objective of the Contract Labour (Regulation & Abolition) Act, 1970 is two fold:-i) To regulate the employment of Contract Labour in certain establishments; andii) To provide for its abolition in certain circumstances. In order to achieve above objectives, the Act lays down various requirements with regard to hiring of Contract Labour, its wages & earnings, working conditions etc. * Every Every industry engaging 20 or more workers on contract basis.6. contractor engaging 20 or more workers. * Contract is awarded by the concerned department /commercial7. Concerned deptt. send a job request to the purchase deptt.department...
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... * Home Page » * Business and Management Evolution of Strategy at Procter & Gamble In: Business and Management Evolution of Strategy at Procter & Gamble Global Issues in Business Week 5 Case Analysis DeVry University Federal Way, Washington Summary In the case study “,” it discusses the history of Procter & Gamble’s foreign business strategy and some of the problems they incurred along the way. It also covers some of their business strategy changes the company introduced in order to become more profitable in a changing world economy along with a more globalized less restrictive trade and business environment. It’s summarized with a detailed discussion regarding P & G reorganization and complete restructuring of the company to control its costs by having European plant closures and layoffs. Questions 3 a, b, c a. What strategy was Procter & Gamble pursuing when it first entered foreign markets in the period up until the 1980s? Procter & Gamble clearly used an international strategy for their expansion into foreign markets throughout a large portion of the 20th century. Not until they began to experience slower growth, profits and sales in the in the early 1990’s did they take a serious look into their business model for international expansion. But up to this pint they were unparalleled by any other competitor as the chart shows below. (2) b. Why do you think this strategy became less viable in the 1990s? I feel there are...
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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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...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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...The Strategy of International Business Learning objectives • Explain the concept of strategy. • Understand how firms can profit from expanding globally. • Understand how pressures for cost reductions and pressures for local responsiveness influence strategic choice. • Be familiar with different strategies for competing globally and their pros and cons. In this chapter the focus shifts from the environment to the firm itself and, in particular, to the actions managers can take to compete more effectively as an international business. This chapter looks at how firms can increase their profitability by expanding their operations in foreign markets, the different strategies that firms pursue when competing internationally, and the various factors that affect a firm’s choice of strategy. Subsequent chapters build on the framework established here to discuss a variety of topics including the design of organization structures and control systems for international businesses, strategies for entering foreign markets, the use and misuse of strategic alliances, strategies for exporting, and the various manufacturing, marketing, R&D, human resource, accounting, and financial strategies that international businesses pursue. OUTLINE OF CHAPTER 12: THE STRATEGY OF INTERNATIONAL BUSINESS Opening Case: MTV Networks Introduction Strategy and the Firm Value Creation Strategic Positioning Operations: The Firm as a Value Chain Global...
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...| Procter & Gamble | GEB 4890 | | Hessum Zangenehpour | Fall 2013 | | Table of Contents Executive Summary ……………………………………………………………………………………………………………… Page 2 The Company………………………………………………………………………………………………………………………… Page 2 History and Evolution……………………………………………………………………………………………….. Page 2 Mission and Major Goals…………………………………………………………………………………………. Page 2 Current Strategies……………………………………………………………………………………………………. Page 7 Competitive Environment…………………………………………………………………………………………………….. Page 14 Industry…………………………………………………………………………………………………………………… Page 15 Forces and Trends…………………………………………………………………………………………………… Page 18 Consolidating Retail Sector…………………………………………………………………………. Page 19 Private Labels…………………………………………………………………………………………….. Page 20 Competition……………………………………………………………………………………………… Page 20 Porter’s Five Forces………………………………………………………………………………………………. Page 21 Ethical Responsibilities and Challenges ……………………………………………………………….. Page 25 Environmental pollution…………………………………………………………………………… Page 26 Energy Consumption………………………………………………………………………………… Page 26 Possible challenges facing Procter and Gamble…………………………………………………….. Page 27 Internal Strengths and Weaknesses…………………………………………………………………………………. Page 28 Recommendations ………………………………………………………………………………………………………….. Page 37,45 Implementation……………………………………………………………………………………………………………….. Page 40,45 Evaluation…………………………………………………………………………………………………………………………...
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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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...Consumer Goods: IN AFRICA NAME: DENATA BALYAGATI STUDENT NO: 213570712 INTRODUCTION This paper aims at firstly creating an overview of what constitutes as a fast moving consumer goods industry, from which we conduct an analysis for such goods within the African continent in attribution to Unilever; one of the leading fast moving consumer goods companies. Fast moving consumer goods (FMCG) also known as consumer packaged goods (CPG) form one of the biggest industries in the world, there are many facts for this; 1.) Strong companies are behind this industry, they gain dominance through the big brands they establish i.e. products that are recognised and preferred by consumers 2.) The FMCG industry is characterised by fast changes and evolution, this is evident in the pace at which products move in the shelves of retail shops and innovative changes in products themselves 3.) The resilience of the FMCG industry during the recession whilst other company’s weathered is because consumers still need their products for their daily activities 4.) The FMCG industry is focused with offering what consumers want and need these are demands that can never be fully fulfilled because of changing preferences. This guarantees business. (Reckitt Benckiser Group plc, 2015) The rise in the presence of FMCG companies in Africa can be attributed to the fact that nine of the 20 fast growing economies are from the African continent; Mozambique, Zambia, Nigeria to mention but a few. Despite the growth...
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...Assignment 4 Internet Technology, Marketing and Security Melody Walton BUS 508 Contemporary Business Dr. Ron Steffel June 1, 2013 Evaluate the reasons Social Media marketing has become exceedingly popular among businesses of all sizes. In today’s business world one cannot operate their business without having some type of advertising source such as a website or other media source. Over the past few years there has been a boom in the usage of social media usage. Creating a business and having the ability to promote with the proper tools is key to your business success. Social media is a tool that helps businesses build a platform and client base that would not be accomplished with just a traditional website. Social media is now more popular than ever, utilization has grown at a rapid pace for businesses large and small with or without a marketing department. Social media rants a business the opportunity to reach out to markets they would not have had access to before. Smaller business needs may vary differently as far as the usage of the social media based upon their needs compared to those of a larger business. As a business owner you must know the needs of your business and what tools are necessary for longevity and customer loyalty. Using social media helps develop a client base who recognize your product, service, or brand. Individuals today have computers, iPads, smartphones and other devices that are used on a daily basis. These devices are...
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...Procter & Gamble Equity Valuation & Analysis As of November 1, 2007 Raider Investments Group Brian Hooper Tyler Yenzer Nathan Yosten Dustin Bradford Brian.D.Hooper@ttu.edu Phillip.T.Yenzer@ttu.edu Nathan.Yosten@ttu.edu Dustin.Bradford@ttu.edu Table of Contents Executive Summary Business & Industry Analysis Company Overview Industry Overview Five Forces Model Rivalry Among Existing Firms Threat of New Entrants Threat of Substitute Products Bargaining Power of Buyers Bargaining Power of Suppliers Key Success Factors Firm Competitive Advantage Analysis Future Competitive Analysis Accounting Analysis Key Accounting Policies Potential Accounting Flexibility Actual Accounting Strategy Quality of Disclosure Qualitative Analysis of Disclosure 36 31 33 35 10 11 13 13 18 20 22 24 24 28 30 5 2 Quantitative Analysis of Disclosure Sales Manipulation Diagnostics Expense Manipulation Diagnostics Potential “Red Flags” Undo Accounting Distortions Financial Analysis Liquidity Analysis Profitability Analysis Capital Structure Analysis IGR/SGR Analysis Financial Statement Forecasting Cost of Equity Estimation Valuation Analysis Multiples Valuation Discounted Free Cash Flow Model Discounted Dividends Model Residual Income Model Long-Run Return on Equity Residual Income Model Abnormal Earnings Growth Model Credit Analysis 40 41 44 49 49 50 63 72 76 79 83 86 95 96 98 100 103 106 3 Analyst Recommendation Appendix Regression Analysis Income Statement Balance Sheet Statement...
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...Central issue of the case Unilever is one of the oldest multinational companies in the world. Has in its offer food, cleaning products and body care products. It generates $50 billion in annual revenue in different countries. In the past, Unilever was organized in a decentralized manner. Unilever had other companies that were responsible for the production, marketing, sales and distribution of products in different markets. They had full autonomy and were able to independently make a decisions. In the early 1990s Unilever had 17 such companies in Europe, which focused exclusively on the markets in their countries. Back then decentralization was good for the company because it allowed local managers to adapt their products and marketing strategies to local tastes and preferences of...
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...North Amen The diaper war:Kimberly-clark versus procter and gamble(condensed) Disposable Diaper Early Evolution 1. 1940s-- J&J introduces disposable diapers in the United States. 2. 1952-Kendall and Parke-Davis enter the market. Focused- traveling parents with infants Uses: with fatening pins and plastic pants/ineffective for both babies and parents dry Result- Slow sales/ high price($.10 for disposable vs $.03 to $.05 for cloth diaper services and $.01 to $.02 for home laundered diapers). 3. 1961- P&G entered disposable diapers indusrty with Introduction of Pampers Pampers: Price $.10 per daiper(Similar price as other firms) 4. 1964-P& G enginners developed technology process which was faster than prior process with minimal process of raw material which cut cost Pamers reintroduce with low price of $.055 per diaper nd national distribution was achieved by 1969. 5. 1960s- Diaper reasearch began at K-C Used feminine napkins to develop product which used fluff pulp in place of tissue. Pulp--- provided better absorbency and competitive cost savings. 6. 1968-- K-C introduced---- Kimbies Kimbies----Parity prices with Pampers(eqal cost to consumers)/ Kc invested it's profit into further development of product which show a high degree of price indiference to consumers 7. Late 1960s--Other companies (scott paper, borden and internation paper-) experimenting with a two -piece disposable diaper systems(Technology developed in Europe) with disposable...
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...FOURNIE Mélanie WOJTOWICZ Beata Monographie : Environnement et Stratégies des Firmes Multinationales L’OREAL Université Paris 1 Panthéon-Sorbonne 0 SOMMAIRE INTRODUCTION………………………………………………………………………….3-4 I. PRESENTATION DU GROUPE………………………………………………………3-8 1. Historique……………………………………………………………………………….3-4 2. Position…………………………………………………………………………………..4-8 a) Valeurs du groupe..........................................................................................................4-5 b) Poids sur le marché........................................................................................................5-6 3. Activités…………………………………………………………………………………6-8 a) Les produits grand public…………………………………………………………….....7 b) Les produits professionnels……………………………………………………………..7 c) Les produits de luxe……………………………………………………………………..8 d) La cosmétique active……………………………………………………………………8 e) The Body Shop………………………………………………………………………….8 II. L’ENVIRONNEMENT : LES 5 FORCES DE PORTER…………………………8-11 1. Intensité concurrentielle.............................................................................................9-10 a) Procter et Gamble………………………………………………………………………9 b) Unilever……………………………………………………………………………..9-10 c) Beiersdorf……………………………………………………………………………..10 d) Johnson & Johnson……………………………………………………………………10 2. Pouvoir de négociation des fournisseurs……………………………………………...10 3. Pouvoir de négociation des clients.................................................................................11 4. Menaces...
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...Innovation Leadership MBA6006 Capella University Introduction When one thinks of innovation, it is a term used to describe new ideas and new beginnings. One who introduced this concept to a failing organization, was an innovative leader named. Alan Lafley former CEO of P&G, adapted the five discovery skills that were displayed in Dyer, Gregersen, & Christensen ‘s Innovator’s DNA associating, questioning, observing, networking, and experimenting. Lafley applied these skills to create an innovative organization and gave a blueprint for other innovative organizations to follow. Although, leadership is a group experience that includes interpersonal influences or persuasion, is goal directed and can lead others through certain actions or to achieving goals through influence, and has hierarchy within the group that can be formal and well defined or informal and flexible. Leaders assist in establishing goals and reaching those goals through actions, allowing individuals in leadership positions to be effective (Nahavandi, 2006). Analyzes which leadership model and practices would encourage innovation considering the global context of the organization in your chosen case. Leadership research has been and will be completed by many individuals and has led to many theories and models to be developed that have both similarities and differences. Four theories or models of leadership that have been researched...
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