...Business Analysis Part II April 22, 2012 The financial heath of a company is detrimental to survival. While conducting research on Proctor and Gamble’s financial statements there were many interesting finds. In this paper I will examine P&G’s financial heath and how it compares to its competitors. I will also be discussing P&G’s technological advantages and how globalization has affected P&G’s business strategies. In closing I will conduct a benchmark analysis for the current industry. P&G Financial Heath Procter & Gamble is America’s premier maker of domestic products, with at least 250 brands in six main categories. ("Corporate watch," 2011) While researching P&G financial heath I found them to be in good shape in contrast to previous years in most areas. Some of P&G’s financial highlights include net sales of 82.6 billion in 2011. This is a 3.7 billion dollar increase in net sales from 2010. P&G’s current operating cash flow for 2011 is 13.2 billion and its diluted net earnings (per common share) is $3.92. ("Financial highlights," 2011). According to Yahoo Finance, P&G announced that its board of directors has ratified a 7% hike to its regular quarterly dividend. This is the 56th uninterrupted year for which the company increased its quarterly dividend. (Equity Research, 2012) After comparing P&G to its two top competitors, Johnson & Johnson and Kimberly-Clark Corporation I discovered P&G’s power in this industry. P&G...
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...Environmental Analysis 4 2.1 Company Analysis 4 2.1.1 Management of Proctor & Gamble 5 2.2 Industry Analysis 8 3. Macro Environmental Analysis 10 3.1 Political 10 3.2 Economic 10 3.3 Social 12 3.4 Technological 13 4. SWOT Analysis 16 4.1 Strength 16 4.2 Weakness 16 4.3 Opportunity 17 4.4 Threat 17 5. Conclusion 19 6. Recommendation 21 7. References 22 8. Appendix 24 List of Figures Figure 2.1 Proctor & Gamble Mental Map 4 Figure 2.2 Organization Chart 6 Figure 2.3 Shopper Marketing Taxonomy 7 Figure 2.4 Value Proposition 9 Figure 3.1 Projected GDP % Growth and Inflation by Country 11 Figure 3.2 The advertising spending on Media 2013 12 Figure 3.3 Contribution to global growth in ad spend by medium 2013-2016 (US$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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...Procter and Gamble | Strategic Management | | Table of Content Introduction 3 Company Overview 4 Mission and Vision 5 External Analysis 5 Industry analysis 7 Internal Analysis 8 Corporate level strategy 10 Critique and Recommendation 12 References 13 INTRODUCTION Procter and Gamble, more commonly known as P&G is a company, which offers consumer goods with an impressive portfolio. Gillette, Duracell, Tampax, Tide, Oral-B and Ariel are so many brands owned by the group that are part of the daily life of consumers. In fact its more than 300 leading brands and 50 leadership brands that the company owns to serve about 4.8 billion customers. This report will try to provide a strategic analysis of P&G thorough internal analysis of strengths and weaknesses including a financial analysis as well as an external analysis of firm opportunities and threats but also, an industry analysis using Porter’s five forces. Most of references came from the P&G website and information was sought from the Procter & Gamble Company Annual Reports but external references were also used as such article on web from American and French magazine. COMPANY OVERVIEW The company was born in the United States to Cincinnati in 1837. William Procter and James Gamble who were respectively, candle maker and soap maker created it. In 1954, Procter and Gamble establishes...
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...Introduction The Procter & Gamble Company was founded in 1837 by James Procter and William Gamble. The company started out manufacturing soap and built on innovation by 1890 the company was selling more six different kinds of soap (PG, 2006). As we know the rest is history the company was later incorporated in 1905 and sells their consumer products in more than 180 countries and has operations in approximately 70 countries. The Procter and Gamble Company has more than 100,000 employees domestic and foreign. Their customers include mass merchandisers, grocery stores, member club stores, drug stores, department stores, salons, distributors, e-commerce and high frequency stores. Income Statement Analysis ($ in million) The 2015 net sales were negatively impacted by approximately $4.8 billion of unfavorable foreign exchange fluctuation compared to 2014. Net earnings attributable to Procter & Gamble in 2015 were negatively impacted by approximately $1.4 billion due to foreign exchange, $2.1 billion of non-cash impairment charges related to the Batteries business reported in discontinued operations and a $2.1 billion Venezuelan deconsolidation charge. The Vertical analysis shows that the gross profit represented 49% of sales and cost of goods sold rounded at 51% of sales for 2015 compare to 2014 that represent 49.1% and 50.9% respectively. Total SG&A decreased 5% to $23.6 billion, as reduced overhead and marketing spending was partially offset by increased foreign...
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...Procter and Gamble- 2006 | Written Case Analysis | Contents Executive Summary 3 Facts about Procter and Gamble: 4 Financial Ratio Analysis: 5 Profitability Ratios: 5 Liquidity Ratios 5 Disadvantages of acquiring Gillette: 6 Employees Layoff: 6 Divergence of P & G from its functioning Efforts: 6 Competitor Threats 6 Supporting of the Acquisition 7 Strong Brand Portfolio, opportunity for more innovation, faster sales growth and cost saving: 7 More Bargaining Power: 8 Boy Meets a Girl! 8 Over all Recommendations for P & G 9 Should Penetrate in the Indian Market 9 P&G should diversify 9 Conclusion 10 Recommendations over Organizational chart 11 Executive Summary With more than 100,000 employees and nearly 5 billion customers, Procter and Gamble (26 among 500 fortune companies is considered as number one US and Global manufacturer of household products, with $56.7 billion revenues by the end of 2005. Procter and Gamble was established back in 1837, a company holds immense financials with very strong and un-orthodox management structure. Company operated with more than 300 products in 160 countries. The main segment of Procter and Gamble includes the Beauty care which further includes personal and beauty products, the fabric and home care segment which mainly consisted of fabric care and laundry products, the health care segment which encompasses the oral care and prescription drugs and the baby family care segment which further...
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...Case Study – Procter & Gamble ® / Case # 24 Student Name BUS 4333.50 Dr. Derek Crews July 26, 2009 Table of Contents Topic Page 1. Executive Summary 2 2. Introduction 3 3. Problem 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...
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...leveraging what your business does best to create a competitive advantage.”(Lafley, 2008) COLLABORATION AND INNOVATION AT PROCTER & GAMBLE CASE STUDY Prepared by: xxxxxxxxx Lawrence Technical University Management Information Systems, MIS-6013 Professor Patrick Mach Evans February14, 2012 Table of Contents Introduction 3 Analysis 6 Conclusion 16 References 17 Introduction When the typical consumer hears the name Procter and Gamble they might think of Ivory Soap, Tide, Pantene, Pampers, or possibly Swiffer. The reason being is that these are a just a few of the everyday household products that have been contributors to the huge success of Procter and Gamble. But when another consumer product company hears the name Procter and Gamble – they think of innovation, leaders on the cutting edge of technology, and one of the front runners in globalization. Procter and Gamble, also known as P&G, has been a key element of American business for over 150 years. In 1837 a small soap and candle company formed in Cincinnati, Ohio. This little business, named after brother-in-laws, Procter and Gamble, has since grown to a global giant with 138,000 employees working in more than 80 countries. (P&G Revolutionizes Collaboration with Cisco, 2008) P&G is the largest manufacturer of consumer products in the world and one of the top 10 largest companies in the world by market capitalization. (Laudon & Laudon, 2012) p.75. Proctor and Gamble realized strong...
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...Procter & Gamble: A Case Study Analysis Abstract Procter & Gamble is a consumer-goods company that began in 1837 and has grown to be a leader of its industry. It has over 800 brands worldwide, 25 of which generate more than 1 billion dollars in sales, including Tide, Downy, Always, Oral B, Crest, Gillette, Febreze, Swiffer, and Duracell. However, in the last 10 years, P&G has experienced a loss of sales. Through an analysis of the company and its history, its visions and goals, a SWOT analysis, and the Porter’s Five Forces Model, the problems Procter & Gamble face will be identified, discussed, and possible solutions and recommendations will be given. Keywords: Procter & Gamble, brands, analysis, consumer-goods Procter & Gamble: A Case Study Analysis Procter & Gamble is a company that specializes in consumer products for households, such as cleaning supplies, hygienic products, and cosmetics. The company has more than 25 recognizable brands that “each generate more than $1 billion in sales”, including Pampers, Downy, Olay, Crest, Febreze, Tide, Braun, Duracell, and Pantene, making P&G one of the most well-known consumer products companies in the world. It has also recently acquired brands such as Gillette, Wella, and Clairol. Although P&G is one of the most recognized enterprises in the world, for the past 6 years, the company has been struggling to keep sales up and increase growth. Through an analysis of the company, these...
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...Papers Home Page » Business and Management Procter & Gamble, Scope Case Study In: Business and Management Procter & Gamble, Scope Case Study Case Study: Procter & Gamble, Inc. Scope Introduction Procter & Gamble (P&G), first introduced a great tasting mouthwash that was minty green and sure to fight off bad breath, called Scope in 1967. In 1990, Scope led the Canadian market share with 32%. However, since 1988 when Pfizer Inc. launched a new mouthwash called Plax, it became Scopes’ major competitor. Plax offered something different from the typical mouthwashes. Plax had the advantage over other brands because not only did it offer fresh breath and killing germs, but it was also a plaque fighter. Gwen Hearst, brand manager, is in charge of increasing market share, volume, and profits for Scope. Marketing Issues First, does Scope intend on introducing a new line extension by developing a product that strictly focuses on fighting plaque. This must be done in a way not to mistake the customer into thinking that there are additional claims to the original product. Second, add new claims to the already existing product. This would state something like “Scope not only gives fresh breath and kills germs, but it also fights plaque.” Or third, take no action but would need to focus on increasing advertising and promotion on what Scope already does, freshens breath and kills germs. Situation Analysis SWOT Analysis: Strengths *Since 1967,...
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...Contents 1.0 Introduction 1 1.1 Procter and Gamble (P&G), as a whole 1 1.2 Procter & Gambles Sverige AB 1 2.0 Marketing Campaign 2 2.1 Overview 2 2.2 Campaign Impact 3 3.0 Marketing Strategy 3 3.1 Analysis of Advertisement in Sweden 3 3.1.1 Root Cause Analysis (RCA) 4 3.1.2 Proposed Solutions and Possible Outcomes 4 3.2 Barriers of Communication 4 4.0 SWOT Analysis of P&G Sverige AB 6 4.1Strength 6 4.2 Weakness 6 4.3 Opportunity 6 4.4 Threats 6 4.5 SWOT Matrix Analysis 7 5.0 Marketing mix analysis 7 5.1 Product analysis 7 5.2 Price Analysis 8 5.3 Place/Distribution Analysis 9 5.4 Promotion Analysis 9 6.0 Conclusion 9 7.0 Appendices 10 1.0 Introduction 1.1 Procter and Gamble (P&G), as a whole The Procter & Gamble Company (also known as P&G) initiated a partnership agreement between William Procter and James Gamble, at the year of 1837. The small business was initially a soap and candle shop, but now an American Multinational Company (MNC) for Fast Moving Consumer Goods (FMCG). P&G who has never neglected the importance of human capital and being passionately develop talents that show great curiosity, appreciation towards diversity, and flexibility in tackling tricky problems. With that, P&G has been rated as the Top 7 in the World’s Top Employers for New Grads at the year of 2014 (refer Figure 1). Comparing between Procter and Gamble (P&G), Colgate-Palmolive (CL), and Unilever, P&G...
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...Executive Summary Procter and Gamble is the world’s largest consumer goods company that markets to more than 300 brands in over 180 countries. (Citation needed) The company’s leading market position along with its strong brand portfolio provides it with significant competitive advantage. The company is engaged in producing beauty, health, fabric, home, baby, family and personal care products. In addition, the company’s product portfolio includes pet health products and snacks. P&G’s purpose is to touch and improve people’s everyday lives. Currently, there are nearly seven billion people on the planet and P&G reaches about 4.4 billon people. (Citation) The company is executing its growth strategy by innovating products and services to improve people’s lives in all markets. Innovation is the driving force behind the company’s strategy. As stated by, CEO Robert McDonald “our experience has proven that price promotion may win a quarter here and there, but innovation wins decades”. (Citation needed) There many examples to prove this, the company’s laundry business in the U.K., for instance. In the late 1970s, the company was competing hard to defend and maintain its 35% market share leadership position. In the three decades since, P&G stepped up innovation efforts which introduced a series of game-changing innovations such as Daz automatic detergent, concentrated liquid detergent and most recently Liqutabs. These new innovation efforts now allow the company to enjoy around...
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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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...Dissertation 8 2. Literature Review 10 2.1 Introduction 10 2.2 The 21st Century Business Environment 10 2.3 The Notion of Technology 11 2.4 The SWOT Framework 14 3. Research Methodology 17 3.1 Introduction 17 3.2 Justification of Theoretical Approach 17 3.3 Research Paradigm 17 3.4 Research Methodology 18 3.5 Ethical considerations 21 3.6 Challenges Encountered 21 3.7 Alternative Approach 22 4. Discussion and Findings 24 4.1 Introduction 24 4.2 Case Discussion and Analysis 24 4.3 Case Findings 29 5. Conclusion 31 5.1 Key Findings and Recommendations 31 5.2 Limitations 31 5.3 Future Research Options 32 6. Appendix 33 Appendix A: References 33 Appendix B: Interview Questions 36 Appendix C: Activity Plan 37 Abstract Gone are those days when firms used to just blindly invest in technology and forget. In this era of rapidly changing market needs and increasing use of technology, it is extremely significant and almost mandatory for firms to formulate a strong socio-technical network involving both technical and non-technical artefacts and structured around the organizational business strategies in order to attain set goals. Corporations all across the world especially Multi National Corporations (MNCs) which work twenty four hours round the clock and possess some of the best brains of the world, innovatively use technology as part of their business and operational processes. Similarly, this piece of study attempts to explore...
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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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...Value Chain Analysis M. Porter introduced the generic value chain model in 1985. Value chain represents all the internal activities a firm engages in to produce goods and services. VC is formed of primary activities that add value to the final product directly and support activities that add value indirectly. Michael Porter published the Value Chain Analysis in 1985 as a response to criticism that his Five Forces framework lacked an implementation methodology that bridged the gap between internal capabilities and opportunities in the competitive landscape. This framework focused on industry attractiveness as a determinant of the profit potential of all companies within that particular industry. However, significant differences in performance exist between companies operating within the same industry that can be explained either by the company's participation in a successful strategic group or by a firm's specific competitive advantages. THE VALUE CHAIN DEFINED The idea of a value chain was first suggested by Michael Porter (1985) to depict how customer value accumulates along a chain of activities that lead to an end product or service. Porter describes the value chain as the internal processes or activities a company performs “to design, produce, market, deliver and support its product.” He further states that “a firm’s value chain and the way it performs individual activities are a reflection of its history, its strategy, its approach to implementing its strategy, and the underlying...
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