Week 6 Individual Assignment

Carlos M. 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. Procter and Gamble has researched and implemented strategies to adapt to these economic uncertainties. Strategic Adaptation
A method used by Procter and Gamble to remain competitive in foreign markets is to limit the specific number of countries for expanding their company. Instead, the company plans to invest more money in to