...Abstract Proctor and Gamble is known as one of the largest consumer product companies in the world. With over 170 years of business experience they have also become one of the world’s largest manufacturer of home cleaning products. (Brown 2011) P&G invented branding in the 19th century: since then it has acquired products and companies like wildfire, from Cover Girl, to Pepto Bismol. (Business Insider. 2014) Throughout this paper we will examine whether P&G integrated behavioral, structural, or technological change strategies throughout the re-formation of the organization. We will examine whether or not they used all three strategies to effectively change the cultures and ideology of the employees throughout the process. OD Application: Changing P&G How do you think institutions, corporations, and organizations deal with changing times? Some of the most successful institutions, corporations, and organizations have set in place change strategies. Many companies ask advice from OD consultants; the consultants go into their organization and review processes and data so that a change process can be chosen. Then after a change process is chosen by executive management, the change begins. A company by the name of Proctor and Gamble was started by two brothers, Mr. William Proctor and Mr. James Gamble. The two brothers first started out with a little candle and soap shop and then decided to combine both of their crafts. (Business Insider 2014) Once Proctor & Gamble opened...
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...Proctor and Gamble There are many steps needed for successful change implementation. the successful change implementation. Many organizations require change to survive the economical battles of doing business. The communication style of management is also an important area for change. There are multitudes of articles and information regarding organizational change and many of them has have conflicting information on what is most important. The factors of change can be slightly different based upon the type of business, but the basics are always the same. How an organization communicates the need for change, the plan for change as well as the implementation of change are the broad spectrum of the success or failure of change. Not clear. The following literature reviews attempt to This literature review support the hypothesis that Proctor and Gamble would benefit from creating desire to change, communication, planning and resources. These are four of the most important phases of successful change implementation for Proctor and Gamble. Proctor and Gamble Problem Overview Underline not needed. Proctor and Gamble is an innovative, multinational company. Currently, Proctor and Gamble lacks an effective distribution system in some segments as well as poor location in some foreign countries and high cost of inputs. Another area of weakness is the employment of foreign based local management who don’t have international business experience. doesn’t have any international...
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...Proctor and Gamble D. Lewis University of Phoenix BUS/ 475- Integrated Business Topic Professor Cuccinello January 13, 2009 Proctor and Gamble Why did management at Proctor and Gamble allow the management to grow prior to Lafley? Proctor and Gamble has undergone costly restructuring. Upper management has forgotten that “Strategic management is defined as the set of decisions and actions that result in the design and activation of strategies to achieve the objectives of an organization” (Pearce & Robinson, 2005, p. 1). Proctor and Gamble has lost focus of their strategic management planning which involves maintaining the company’s mission and goals and looking at the company’s internal conditions and capabilities. The company became management top heavy. Lafley described this as been too invested in their employees. When a company acquires another company, one is also acquiring the other companies’ management team. Proctor and Gamble over the past century has acquired Folgers Coffee, Norwich Eaton Pharmaceutical, Richard- Vicks, Noxell, Shulton Old Spice, Max Factor and Iams Company. In 2005, Proctor and Gamble also acquired Gillette. No wonder the present management team had to eliminate 9600 management jobs. One of the ramifications of cutting...
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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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...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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...EXECUTIVE SUMMARY Proctor and Gamble (P&G) over its journey of about 175 years has become one of the world’s largest consumer goods Company with sales of nearly $80 billion and a net profit of about $10 billion. P&G has a presence in more than 180 countries with brands that accumulate to in excess of $25 billion. The company has achieved success by creating high quality brand recognized products that are sold on multinational level. It enjoys one of the largest brand names in household products like Pampers, Gillette, Tide, Ariel, Downy, Pantene, Head & Shoulders, Olay, Oral-B, Crest, Dawn, Fairy and Always and segments like household care, beauty, grooming, and personal health care. Although, P&G has world renowned brands, P&G needs to adopt strategies that enable it to maintain its competitive advantage over its rival. Consumer Goods industry where P&G operates has matured reaching the consolidation stage and competition amongst rivals is intense. P&G has many strategic options create competitive advantage over its rivals such as further market penetrations by rebranding its current line of products and selling them at a lower price. Another option for P&G is to expand in the emerging markets by collaboration or alliances with local businesses in various geographical regions. Lastly, P&G can specialize in skin care/beauty segment of consumer industry. P&G can provide consumers with products that are made with natural ingredients...
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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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...Procter & Gamble is an American global corporation based in Cincinnati, Ohio. It’s known as the world’s largest consumer goods company. P&G is ranked 86 in the 2012 fortune 500 list with a revenue of $ 82.5 billion. As of 2008, P&G is the 23rd largest US company by revenue and 14th largest by profit. P&G India is a subsidiary of world’s largest consumer goods company Procter & Gamble a nd the largest and fastest growing consumer goods companies in India. P&G India, was established in 1964 and serves over 650 million consumers. P&G operates under three entities in India : “Procter & Gamble Hygiene and Health Care Limited”, ‘Gillette India Limited’, and ‘Procter & Gamble Home Products’. These three entities have a direct reach of 1.3 million outlets across India. invested in the country via its five plants and over nine contract manufacturing sites. creates 26,000 jobs directly and indirectly. Procter & Gamble, will build its largest manufacturing plant in the Indian sub-continent in Hyderabad by investing 345 crore. 1. HOW P&G WAS BORN? William Procter, a candle maker, and James Gamble, a soap maker, immigrants from England and Ireland respectively who had settled earlier in Cincinnati, who met as they both married sisters, Olivia and Elizabeth Norris, formed the company initially. Alexander Norris, their father-in law called a meeting in which he convinced his new sons-in-law to become business partners. On October 31, 1837, as a result of the suggestion, Procter...
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...The Procter & Gamble Company (P&G) is focused on providing branded consumer packaged goods. The Company's products are sold in over 180 countries worldwide primarily through mass merchandisers, grocery stores, membership club stores, drug stores and in high-frequency stores, the neighborhood stores, which serve consumers in developing markets. (scottrade). We will be taking a look into, and answering questions pertaining the financial statements of Procter & Gamble. All figures will be in millions. The descriptions used by Procter & Gamble in its balance sheet to classify its property, plant, and equipment (PP&E) are; Buildings, Machinery and Equipment, and Land. Two out of the three descriptions of PP&E would be amortized, those being Buildings, and Machinery and Equipment. Land would not be amortized because most likely the economic value of land will increase, not decrease over time. (investopedia). The method of depreciation used by Procter & Gamble to depreciate its PP&E, as indicated in note 1 of the financial statements is the straight-line method. Depreciation expense is recognized over the assets’ estimated useful life. (note 1—Property, Plant and Equipment). The straight-line method is the most simplistic form of depreciation and therefore the most used. There are other forms of depreciation that may be used such as: Activity method, which focuses on the units of production rather than the passage of time. Decreasing-charge methods, which allow for lower...
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...Procter & Gamble Who are William Procter and James Gamble- not only future business partners, but brothers-in-law? Their story started when they married sisters, Olivia and Elizabeth Norris. The men’s father-in-law, Alexander, convinced them in 1837 to become partners and they formed the powerhouse behind what is known today as Procter and Gamble. In 1837, William Procter, a candle maker, and James Gamble, a soap maker, joined forces to compete with 14 other soap and candle makers. During this early time, the U.S. was in the midst of a financial panic. The financial panic did not scare away Procter and Gamble, their patience and dedication pulled them thru. Despite an impending civil war, in the 1850s, Procter and Gamble built a new factory to support their growing business. Their factory in 1862 was kept busy day and night by several Union army contracts to supply soap and candles to the soldiers. By 1890, Procter and Gamble were partners in a multi-million dollar corporation selling more than 30 different types of soap, including Ivory. The demand for the companies’ products was growing so extensively that the company’s original headquarters and operations in Cincinnati were expanded to two other major cities. The research labs were as busy as the plants. New products were being created. Ivory Flakes, Dreft, and Crisco were just a few of the new products created. All the new products were being created from an understanding of consumer needs and a new found...
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...Answer to the Question No.1 The main reason of marketing failure in Poland and Japan was that P&G did not have a proper market research of the region. P&G is an international brand and there wide ranges of products are available in different country. It is very important to understand that different region and market segment has different taste that was the fault that have been overlooked. In Japan the consumer complained that P&G‘s diapers were bulky but the local brand Kao had much thinner diapers, so the taste of japans were to use of thin diapers for their baby. Similarly, in Poland when P&G was advertising its popular shampoo Wash and Go which is a all-in-one shampoo but the marketing of the product failed later a private market research company found that due to polish communist party propaganda is the products that are advertised are that nobody wants. One more reason of the failure was polish people were less obsessed with personal hygienic then the U.S consumer. Answer to the Question No.2 The main change in the strategy should be that whenever a new product is launch in a new region that market shall be treated individually and marketing strategies shall be changed according to that region. The management shall always keep in mind that different region has different taste and preference of product. If these point is not kept in mind before launching the product then the product will never be successful in that region, but there still region where...
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...Procter and Gamble Company Renee Keith Principles of Economics I Procter and Gamble Company, also known as P&G, is recognized as the world’s largest producer and distributor of household and personal products. It provides branded packaged goods to its consumers around the world. P&G’s headquarters is located in Downtown Cincinnati, Ohio and was founded by William Procter and James Gamble in October 31, 1837, 177 years ago. The company's products include foods, beverages, cleaning agents, and personal care products. The company operates through three global business units: Beauty, Health and Well-Being, and Household Care. P&G has 23 brands with annual sales of $1 billion to more than $10 billion, and 14 with sales of $500 million to $1 billion, many of those with billion-dollar potential. Nearly all of the 23 billion-dollar brands and the vast majority of the $500 million to $1 billion brands hold the number one or two position in their category or segment, and they all have significant growth and value creation potential. P&G sells its products in approximately 180 countries primarily through mass merchandisers, grocery stores, membership club stores, and drug stores. The company operates in approximately 80 countries worldwide. In 2008, the national unemployment rate was 5.8%. Since 2009, the national unemployment rate rose to 9.3%, in 2010 to 9.6% and in 2011 to 9.0%. In 2012, we can see the unemployment rate start to drop slowly to 8...
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...ase 1: Virtual meetings: Smart Management Question 1: one consulting firm has predicted that video and web conferencing will make business travel extinct. Do you agree? Why or why not? Answer: I don’t agree with this consulting firm. I think video and tele conferencing will reduce the business travel in some extent (according to the case it 20%) but not totally. Regular business meeting can be done by the video or teleconferencing, but where it is necessary to be present physically, there is no alternative. The buyer of the garments has to come & check the quality of garment product because he can’t check the quality of the garments over camera. In near future unless 3D telepresence system or something revolutionary technology come up the business travel will not extinct. Question 2: what is the distinction between videoconferencing and telepresence? Answer: the distinction between videoconference and telepresence lie on the technology. Telepresence picks up where video conferencing left off. Videoconferencing is the predecessor of telepresence. Telepresence is real time, full-high-definition, immersible sound and vision. tele presence is more technologically advanced than videoconference and thus more costly than videoconferencing. Question 3: what are the ways in which videoconferencing provides value to a business? Would you consider it smart management? Explain your answer. Answer: videoconferencing is providing value in business in many ways. It has- - Reduced travel...
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...From the reading we can determine that Proctor & Gamble uses a “Distributed Development” as part of their business strategy. When then CEP Lafley proclaimed that half of its new products would come from outside sources (Laudon & Laudon, 2013). What would be required to make this successful would be the integration of new systems along with a new direction. To be able to optimize its effectiveness the company would need to adopt a new collaborative strategy. The goals were to create innovative ideas in order to address the needs throughout the country as well as overseas at a lower margin of cost. With one major aspect being to still improve the lives of the company’s large customer base. The obstacles were many when attempting to gain success for the distributed development strategy. The requirement would be to increase the communication between all teams across the company. This would include all aspects of the company; from management employees and product suppliers. Ultimately better communication fosters a greater interaction of its employees and decision making. This gives Proctor & Gamble more reliability to create more quality products. One hurdle was to upgrade its current desktop environment that although had collaborative tools it did not support data sharing. Proctor & Gamble implemented several collaborative tools one being the visual collaboration Microsoft lifecycle collaboration tool Teamcenter. The product took advantage of SharePoint technology along...
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...Project 2: BUS 321-M1 Dr. Xu Problem 1: - Please use P&G’s 2009 Annual Report (PDF) to answer this problem.Refer to P&G's 2009 financial statements and the accompanying notes to answer the following questions. | (a) | What alternative formats could P&G have adopted for its balance sheet? Which format did it adopt?P&G could have adopted the account form for their balance sheet. The textbook, “Intermediate Accounting” states that the account form “lists assets, by sections, on the left side, and liabilities and stockholder’s equity, by sections, on the right side” (Kieso, Weygandt, and Warfield). It goes on to say that often times, there isn’t enough room on the page to achieve this. P&G’s balance sheet seems to utilize the report format. The assets section is listed above the liabilities and owners equity section; however, they are separated into two different pages. | | | | | (b) | In what classifications are P&G's investments reported? What valuation basis does P&G use to report its investments? How much working capital did P&G have on June 30, 2009? On June 30, 2008?P&G’s investments are classified in a few different ways depending on different transactions and the time frame of their intent. The unrealized gains or losses may be classified as trading or be recorded in shareholders’ equity. This all depends on the “intent and ability to retain the security until [they] recover the full cost basis and the extent of...
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