...impact a company’s strategy. These factors are: threat of new entrants, power of buyers, power of suppliers, availability of substitutes and competitive rivalry. Threat of new entrants There are many different barriers in the FMCG industry that a new entrant would have to overcome to enter. P&G has a huge competitive advantage over new entrants due to following : Established economies of scale: P&G has huge production capabilities and which has resulted in advantage over new entrants as it will be difficult for the new entrant to compete on cost, quantity produced and price. P&G also has the first mover advantage. Distribution network: Access to existing distribution channels is a substantial barrier that new entrants have to face. Supermarkets and other retail stores have a limited amount of shelf space available for consumer goods. It is difficult for new entrants to fight for these shelf spaces as the brand recognition, consumer relationship of P&G makes it difficult for new entrants to get shelf spaces. Legal barriers: Legal barriers can also make it hard for new entrants to enter the personal products industry. A new entrant has to overcome many regulations, laws, patents, and copyrights that they have to abide by when they are entering into an industry. It is a research oriented industry and hence has lot of copyright and legal issues. This almost eliminates the threat of a new entrant in the personal products industry. Power of buyers Although P&G is an extremely...
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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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...Introduction Procter & Gamble (P&G) is one of the largest consumer goods company in the world. The company was first built in 1837 by William Procter and James Gamble. Later in 1890, P&G decided to stop being a private company and became a public company. Now, P&G is a worldwide company which has 126,000 employees and sub corporations in more than 80 countries. Their total revenue are 84.17billion in 2013. Their products range including Beauty, Grooming, Health Care, Fabric Care and Home Care, and Baby Care and Family Care. P&G sell their products in more than 180 countries. Some of 50 Leadership Brands are the world’s most well-known household names. Industry Structure and Global Markets P&G is a global company which manufacture operations in more than 40 countries and sell products in more than 180 countries. Their developed market are North America, Western Europe and Japan. The developing markets includes Asia (excluding Japan), Central & Eastern Europe, Middle East & Africa and Latin America. Although markets outside U.S.A contribute a huge portion of total revenue, there are some risks cannot be ignored. For example, the local regulations, laws and trade barriers can affect transactions. And exchange rates may impact adversely on financial condition. It is also difficult to P&G to protect intellectual property and implement policy immediately. The major competitors of P&G are Johnson & Johnson, Kimberly-Clark Corporation and Unilever. They own a huge percentage of...
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...IAOP’s Global Excellence in Outsourcing Award www.IAOP.org P&G: Taking Innovation to New Levels of Value through Partnership INTRODUCTION Many people believe innovation springs serendipitously from some kind of “aha” moment – literally a bolt out of the blue. P&G knows differently. Innovation has been the corporate lifeblood since P&G’s humble beginning in 1837 when William Procter and James Gamble signed a partnership agreement formalizing The Procter & Gamble Company. Today, P&G’s products touch and improve the lives of over 4.8 billion consumers in 180 countries. Fifty “Leadership Brands” include some of the world’s most well-known household names with 25 of these 50 brands each generating more than $1 billion in annual sales. Simply put, this degree of corporate growth could not be achieved without significant innovation across all aspects of the business even extending to our relationships with suppliers and partners. In 2001, P&G radically changed its approach to Research & Development (R&D). Instead of relying solely on its own, highly capable R&D resources, P&G welcomed ideas from individual entrepreneurs and scientists from other companies, and universities, the concept came to be known as Connect & Develop; the goal was to gain half the ideas from inside and half from outside the company. Connect and Develop brought many great ideas, but the question remained. How does a company like P&G drive innovation in its outsourcing efforts? After all, P&G’s outsourced...
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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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...Industry Valuation Analysis The Procter & Gamble Company and Unilever Group 5 Date: 03/18/2016 Project #: FINC 5300-WINTER 2016 Prepared for: Joan Miao Prepared by: Zhang, Leizi; Zhang, Lingfei; Zhu, Senglin; Zhang, Suyuan Date: 03/18/2016 Project #: FINC 5300-WINTER 2016 Prepared for: Joan Miao Prepared by: Zhang, Leizi; Zhang, Lingfei; Zhu, Senglin; Zhang, Suyuan STRATEGY ANALYSIS Macroeconomic Environment Overview U.S. growth has been recovering since the end of 2014, powered by private consumption. The labor market has been improving as well. The Eurozone is recovering on the heels of increases in private consumption and exports and growth is continuing to expand mildly. Growth in the emerging markets has been decelerating relative to the past in view of China’s structural slowdown, declining commodity prices, a downturn in foreign investment and the need to base growth on domestic demand. The developed countries’ monetary policies are likely to change direction gradually. In our judgment, the Fed will begin liftoff at a moderate pace, bringing its rate to about 1.0% by the end of 2016. Eurozone interest is unlikely to change in 2015 and 2016. Roughly Two thirds of The Procter & Gamble Company (P&G)’s revenue is from outside the United States. In fiscal 2015, net sales of all five-business segments were negatively affected by foreign currency fluctuations due to strong dollar, boosted by recovery of U.S. economy (See the...
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...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 and companies like wildfire, from Cover Girl to Pepto Bismol. Here's how the little soap and candle shop transformed itself into a global giant. 1837: Two Ohio brother-in-laws start soap and candle company: P&G was founded in 1837 by William Procter and James Gamble, working-class immigrants from England and Ireland, respectively. William Procter was a candle-maker and businessman by...
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...Megan Morales Madeline Row Mgmt 450.003 Case Brief Managing with Analytics at Procter & Gamble Overview Procter & Gamble has always maintained their brand position as a widely renowned and successful international company. That success has been attributed to many things over the years, including the information decision solutions provided through their core analytics team. With the passionate leadership exhibited by the company’s CEO, Bob McDonald, and the ambitious and visionary efforts of CIO Passerini, P&G was able to secure a clear competitive advantage through the development of their analytics department. In this case discussion, a brief overview of the company’s efforts to transform their IT department as well as specific actions and results will be discussed, in order to identify where the company is positioned now, and where they should be headed. This case explains how the leading soap and candle company, Procter & Gamble, dominated the detergent market by implementing up-to-date analytics into the decision making process in it’s operations. The development team led by Group President and Chief Information Officer Filippo Passerini, helped create a system of tools designed to collect data and aid in statistical forecasts. The data collected gave up-to-date performance information on specific brands, retailers and individual stores. This information became available to all leading executives at the touch of button, compiled into graphs and charts making...
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...7CASE 6-1 FACEBOOK OVERVIEW Three years ago 1-800-Flowers, long a pioneer in Internet marketing, became the first national florist to create a fan page on Facebook. It used the free page to build relationships with customers and sell selected products, but it spent very little money advertising on the site. In January, however, the company began buying a different kind of Facebook advertisement. “Sponsored stories,” as they’re called, let marketers pay to turn actions people take on Facebook into promotional content. When members click a thumbs-up button to signal that they “like” a product or brand, for example, a simple ad appears on their friends’ pages: “Julia Smith likes 1-800- HYPERLINK "http://www.Flowers.com" Flowers.com .” Those friends can click a Like button on that ad, which then shows up on their friends’ pages, and so on. Thanks in part to those ads, the company now has more than 125,000 Facebook fans, more than twice as many as it had at the start of the year. Now, says 1-800-Flowers president Chris McCann, “We look at Facebook as core to our marketing program.” So do dozens of other major brands, including Ford, Procter & Gamble, Starbucks, and Coca-Cola. Suddenly, large companies are running multimillion dollar ad campaigns on Facebook. Startups, such as the social-game maker Zynga and the daily-deal service Groupon, are mounting similar though smaller campaigns, and so are hundreds of thousands of local businesses, such as fitness salons...
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...to Shareholders Touching Lives P&G Brands — Designed to Be Leaders Billion- and Half-Billion Dollar Brands Improving Life P&G Leaders — Built from Within Corporate Officers Board of Directors P&G at a Glance Financial Contents Shareholder Information 11-Year Financial Summary 1 5 8 10 12 16 18 24 25 26 27 72 73 Financial Highlights FINANCIAL SUMMARY (UNAUDITED) Amounts in millions, except per share amounts 2009 2008 2007 2006 2005 Net Sales Operating Income Net Earnings Net Earnings Margin from Continuing Operations Diluted Net Earnings per Common Share from Continuing Operations Diluted Net Earnings per Common Share Dividends per Common Share $79,029 16,123 13,436 14.3% $ 3.58 4.26 1.64 $81,748 16,637 12,075 14.4% $ 3.56 3.64 1.45 $74,832 15,003 10,340 13.4% $ 2.96 3.04 1.28 $66,724 12,916 8,684 12.7% $ 2.58 2.64 1.15 $55,292 10,026 6,923 12.0% $ 2.43 2.53 1.03 NET SALES (in billions of dollars) DILUTED NET EARNINGS (per common share) 05 06 07 08 09 $55.3 $66.7 $74.8 $81.7 $79.0 05 06 07 08 09 $2.53 $2.64 $3.04 $3.64 $4.26 OPERATING CASH FLOW (in billions of dollars) 05 06 07 08 09 $8.6 $11.4 $13.4 $15.0 $14.9 Note: Previous period results have been amended to exclude the results of the Folgers coffee business from continuing operations. For more information refer to Note 12 on page 71. The Procter & Gamble Company 1 A.G. Lafley Chairman of the Board When I became CEO in 2000, P&G faced some of the most demanding...
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...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 is ranked the second most...
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...Simmons Jr. University of Phoenix Procter and Gamble Business Analysis III MGT 521 Dennis Boedeker July 8, 2012 Recent Economic Trends Procter and Gamble operates in over 70 countries. In order for a company to sustain or survive in this many different markets, the must be willing and able to adapt to the changes in these markets. Market trends and changes are what enable investors and traders to profits. Whether these changes are short-term or long-term, they dictate financial gains or losses (Investopedia.com, 2011). Four major indicators affect changes in markets. These include global or international transactions, the governments in those 70 countries, speculation on market changes, and supply and demand. In an organization the size of Procter and Gamble, some inevitable expenses can drastically reduce annual forecasts on profits. P&G relies heavily on other organizations (vendors and suppliers), to manufacture a number of their infamous products. If costs increase in procurement of certain materials, jeopardizes the company’s economic growth. Commodities such as using a specific form of energy to operate a facility can impact Procter and Gamble’s revenue. P&G uses materials like resin and would pulp to manufacture items like laundry boxes and pampers. A strong factor in economic trends is the highly unfavorable changes in exchange rates in foreign markets. Recession in countries where P&G conduct business has a profound impact on financial forecasts...
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...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………………………………………………………………………………………………………………………… Page 44,47 Matrices……………………………………………………………………………………………………………………………. Appendix end I. Executive Summary Procter and Gamble is a leader in the Global Household and Personal Products industry with revenues exceeding 85 billion dollars. It was first founded as a soap and candle...
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...centuries. ABOUT THIS REPORT Delivery method: instant download Report format: PDF (download a sample) Market statistics: Excel workbook (download a sample) Overview Discover the latest market trends and uncover sources of future market growth for the Home Care industry in India with research from Euromonitor's team of in-country analysts. Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections. If you're in the Home Care industry in India, our research will save you time and money while empowering you to make informed, profitable decisions. When you purchase this report, you also get the data and the content from these category reports in India for free: * Air Care * Bleach * Dishwashing * Insecticides * Laundry care * Polishes * Surface care * Toilet care The Home Care in India market research report includes: * Analysis of key supply-side and demand trends * Historic volumes and values, company and brand market shares * Five year forecasts of market trends and market growth * Robust and transparent market research methodology, conducted in-country Our market research reports answer questions such as: * What is the market...
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...filled with new, aggressive competitors. A few years ago, for example, who would have predicted that electronics manufacturer Samsung would offer stiff competition to GE in the appliance and lighting marketplaces? In the years ahead volatility and uncertainty will tyrannize markets, and companies will need leaders who are highly adaptive, continuous learners, able to lead diverse groups across functional disciplines, regions and cultures. They will also need to accomplish the difficult feat of driving results even where they do not have formal direct control or authority over resources. Achieving more growth through greater innovation, searching for new business opportunities across customer segments and leveraging best business practices to improve operational efficiency demand that leaders know how to work across organizational boundaries. Whether it’s across national boundaries or across teams, leaders will need to collaborate. This article will focus on the skills that leaders will need to develop if they are to collaborate successfully in the years ahead. GETTING TO THE ROOT OF COLLABORATION CHALLENGES The vast majority of participants in Hay Group’s recent global Best Companies for Leadership survey indicated that their organizations have become flatter and more matrixed. Individuals may be assigned to work on different project teams and report to multiple managers. The advantages can be huge — new innovations, increased sharing of information and better capacity to...
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