...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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...becoming part of Procter & Gamble. Tambrands only has one product and that is the tampon and it is the best selling tampon in the world and has 44 percent of the global market (Cateora). Of that 44 percent of the global market, 90 percent of the sales are in North America and Europe (Cateora). Since Tambrands only has one product, it is very hard for them in the current market to expand globally. They needed the reach and Proctor & Gamble had with their present feminine care product line. With multiple products to help compliment each other, Tampax will be more successful in the global market. Proctor & Gamble should continue with Tambrands’s original goal adapted to the new educational program because the clusters where about the numbers of women relating to what they know about tampons. Cluster 1 were women that already know about tampons and were primarily the United States, United Kingdom, and Australia. Cluster 2 was France, Israel, and South Africa and only 50 percent of the women used tampons. Cluster 3 was Brazil, China, and Russia and they did not use tampons because of a virginity issue (Cateora). Using the combined approach with the cluster grouping and Proctor & Gamble’s educational plans based on culture and knowledge would be the ideal method. The educational programs uses the breakdown of the cluster groups, based on what women know about tampons and relating it to usage and virginity. What the women learn is relating to their culture. Using the education...
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...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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...Collaboration and Innovation at Proctor and Gamble: Case Study Angel J Robles January 26th, 2012 Abstract Is it possible for a company to optimize collaboration in order to maximize innovation in today’s day and age? Proctor and Gamble has shown that it is not only possible but profitable as well. Through the years we have seen countless corporations come and go. Somewhere they lacked the staying power of other corporations because of a flaw in the decision making methodology. Not to say that they did not have good decision makers at their executive level but rather that the methodology did not fully encompass all the aspects needed to make the informed decisions to better lead their companies. Proctor and Gamble saw a problem in their company’s collaboration techniques and went about attempting to fix it. They were not only successful in achieving this but their potential for innovation was able increase through the rapid sharing of opinions, ideas and discoveries. We will see how this was accomplished in the following. We will examine the Proctor and Gamble case study and see the problems and corrective actions that were made by the company to resolve these issues then break down the problem solving and decision making process which they incorporated. Angel J Robles Proctor and Gamble When A.G. Lafley became CEO of Proctor and Gamble in 2000 he set out to change how the company communicated within itself. He wanted to reduce...
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...Introduction The organization that was chosen for this project was Proctor and Gamble. This paper will touch on the global outlooks and strategies in which the CEO A.G. Lafley used. Lafley used these processes in conjunction with the five skills of discovery to promote growth within the company and to increase sales. This paper will discuss the different models that could be used to encourage innovation within Proctor and Gamble that will help innovative leaders in their roles and responsibilities. Lastly, this paper will also discuss how the information discussed correlates with the five skills of discovery. The leader’s actions will then be assessed and scored on how well they implemented change and shaped a culture that is more innovative in their organization. Supportive Leadership Model There is one model in particular that could be chosen to help increase the progression in the Proctor and Gamble organization. The Transformational leadership model could have been a great assesst in the development of new ideas in Proctor and Gamble. Proctor and Gamble first used the “closed innovation” model and then switched to the “open innovation” model to create growth within their organization. According to Venkatesh & Devi (2006), In 2003 Alan Lafley developed the “Connect and Development” model to generate ideas from scientist, engineers, and enterpauners and individuals outside the company. P&G already had some strong models in place to help with the change within their organization...
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...Identify and explain the characteristics of world class marketing organizations. Illustrate with examples of your choice. To claim to become a world class marketing organization there are certain qualitative and quantitative characteristics which should be possessed by the company. This section of the assignment will discuss these characteristics in detail. Every organization aspires to be a World Class Marketing Organization. World class Marketing organizations identify the needs of customers and develop brands that give lasting value to the customer. These organizations strategically segment the market and target each group separately. They build a very strong bond with each group so that they know exactly how the customer will respond to marketing activities. They analyze the activities of the competitors well enough to develop a competitive edge over its competitors and are very futuristic. They win the mind share of customers and become the champion of customers, so that by no means can competitors capture their customers. They have a rich pipeline of product improvements and new products which enables the organization to strengthen its brands further. These organizations also focuses on SMART Marketing, Marketing Mix, and Objectives while identifying any variances in actual versus planned business performance and plans well ahead the actions it should take to exploit the situation. They know precisely the Return on Investment for each marketing mix element and drive...
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...EXECUTIVE SUMMARY: Proctor and Gamble® was founded in 1837 by William Proctor and James Gamble in Cincinnati, Ohio. Today the company is the world’s largest producer of consumer goods with over 300 brands in over 180 countries. The company has a significant advantage over its competitors because of market position and brands that everyone knows such as Tide®, Pampers®, Gillette®, Olay® and many more. The company’s purpose is to “provide branded products and services of superior quality and value that improve the lives of the world’s consumers now and for generations to come. As a result, consumers will reward us with leadership sales, profit and value creations, allowing our people, our shareholders and the communities in which we live and work to prosper.” During the second half of the 20th century the company increased profits by acquiring companies that diversified its product line. Among the acquired companies were Folgers®, Old Spice®, Iams® pet foods, cosmetic giant Max Factor® and several others. In 2005, Proctor and Gamble,s® acquisition of Gillette® made it the largest consumer goods company knocking top dog Unilever® to second place. Innovation is the life blood of Proctor and Gamble®. On April 7, 2014, the company declared 7% increase in dividends. Since its incorporation in 1890, the company has been paying dividends. This 7% increase marks the 58th consecutive year that the company has increased its dividend. Proctor and Gamble® is leading the way...
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...EXECUTIVE SUMMARY: Proctor and Gamble® was founded in 1837 by William Proctor and James Gamble in Cincinnati, Ohio. Today the company is the world’s largest producer of consumer goods with over 300 brands in over 180 countries. The company has a significant advantage over its competitors because of market position and brands that everyone knows such as Tide®, Pampers®, Gillette®, Olay® and many more. The company’s purpose is to “provide branded products and services of superior quality and value that improve the lives of the world’s consumers now and for generations to come. As a result, consumers will reward us with leadership sales, profit and value creations, allowing our people, our shareholders and the communities in which we live and work to prosper.” During the second half of the 20th century the company increased profits by acquiring companies that diversified its product line. Among the acquired companies were Folgers®, Old Spice®, Iams® pet foods, cosmetic giant Max Factor® and several others. In 2005, Proctor and Gamble,s® acquisition of Gillette® made it the largest consumer goods company knocking top dog Unilever® to second place. Innovation is the life blood of Proctor and Gamble®. On April 7, 2014, the company declared 7% increase in dividends. Since its incorporation in 1890, the company has been paying dividends. This 7% increase marks the 58th consecutive year that the company has increased its dividend. Proctor and Gamble® is leading the way...
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...Business 02/14/2014 Mergers and Acquisitions When Proctor and Gamble acquired Gillette Products in 2005, Warren Buffet stated “This was a dream deal, this acquisition would create the greatest consumer products company in the world”. (Englishe, 2011) This is one reason why P&G chose to take on the major brand. Other than being known for their razors, Gillette’s products include Duracell batteries, Oral-B, and Braun. This acquisition meant Proctor and Gamble would take much control over the grocery market shelves. Control was everything to P&G at the time of this acquisition. P&G opened a huge door for Gillette, a door that looked inviting to shareholders. Gillette would now be invited into new markets such as China and Japan. China and Japan were two fast growing grocer markets. While this was a great end of the deal for Gillette, P&G would benefit greatly as well. Gillette housed products that were selling and evolving in the market faster than the brand itself. These were the type of acquisitions P&G needed to remain at the top of the product chain, and open the eyes of its competitors. (Englishe, 2011) Proctor and Gamble, the “signed partnership agreement” that formed in 1837 between William Proctor and James Gamble, was making money from the very beginning of its existence. Gamble, began in the large business venture as William Proctor’s protégé, in already existing soap and candle factory owned by Proctor. P&G was then started from that apprenticeship...
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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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...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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...Why are private label products successful? Private labels are successful because consumers, especially in todays economy are always searching for the best way to stretch their dollar and private labels fit into these types of budgets. Next, retailers understand that families are on a tighter budget and welcome private labels with open arms due to the fact that these products will attract more consumers to their store (Hauptman, 2009). What are the key success factors for private label products? The key factors pertaining to success of private labels was quite simple. For example, products must function similar to a branded product. Next, in order for a private label to succeed performance is the only way to survive and thrive in a cutthroat industry because, for private labels there is no advertising or marketing, the product must do the talking. Therefore, the majority of the leading private labelers today will take a proactive role in the production specifications of the product and will no longer place their logo on whatever comes off the conveyor belt. Therefore, attention to details has played big dividends and has helped expand the consumer base throughout several economic classes. Finally, as private labels continue to improve, the lower income shoppers can be assured that they will receive an appropriate value for their money ratio. So just like a name brand item, once a relationship has been formed, the shopper will continue to purchase it as long as it continues...
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...Chapter One Outline I. The Strategic Elements of Product Development 2.The Importance of New Products a. Product development costs over a hundred billion dollars on the technical development phase alone. (Crawford, & Di Benedetto, 2015) b. The new products process is incredibly complex and difficult and when a product fails there is often public scrutiny. 3.Globalization and New Product Development a.”To a greater extent than ever before, firms are seeing new product development as a global process in order to take advantage of worldwide opportunities and increase their efficiency and effectiveness of innovation.” (Crawford, & Di Benedetto, 2015) b. Global innovation cultures are the most effective at producing results. 4. How Product Development Is Different a. Product development teams are composed of a wide-range of professionals from multiple disciplines. b. Product development requires a creative and planned process. 5. What Is a New Product, and What Leads to Success? a. New Products come in a variety of ways. Some are completely new to the market where as others are existing products that have a new line or new functioning. b. Products must be unique and superior in order to succeed. Consumers must feel as if the value added is worth the costs. 6. Does This Field of Activity Have a Unique Vocabulary a. As the field of product development is both global and contains a melting pot of individuals vocabulary is unique to the field. 7. Does the...
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...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 brands for their organic growth. This includes the names of “Ivory” soap, “Tide” detergent, “Pampers” diapers, etc. These names...
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...Karen- Kimberly-Clark Case Study In 1872 four business men, John Kimberly, Havilah Babcock, Charles Clark and Frank Shattuck created a company called Kimberly, Clark and Company which initially sold manufactured paper goods. They would eventually branch out into personal care items in order to compete in a larger market with companies like Proctor and Gamble. In 1978, Kimberly-Clark introduced Huggies disposable diapers and were an instant success. In the mid 1990’s Kimberly-Clark merged with Scott Paper and found them in an unusual predicament, the merger did not go well, the integration of Scott and Kimberly-Clark was a rocky one that would lead to dissatisfaction on the part of most Scott employees and especially Scott’s senior management.[1] In 2002, Proctor and Gamble released a line of high end Pampers disposable diapers that not only was a substitute for Huggies, but also captured a large portion of Huggies market share. Around 2003, Kimberly-Clark decided to restructure the way that the company focused on business products. They chose to use a system of “grow, sustain and fix”, which split all products in to areas that needed growth, needed to sustain market share or items that needed to be reformulated. This system was a total failure and caused the company to take several steps back in market share in most of their areas.[2] Had Kimberly-Clark gone for a more product related divisional structure, it is possible that they would not have lost so much of its...
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