...P&G Case Executive Summary This case study analysis is on the Proctor & Gamble Company (also referred to as “P&G”). Procter & Gamble is the world's largest producer of household and personal products by revenue, with its products reaching 4 billion people worldwide. The Case Study includes an Introduction, Company Overview, Company Mandate, Internal Analysis, and External Analysis, followed by various Strategic Options (see below). The author then makes a Final Strategy Option Recommendation. Strategic Option #1: Market to Lower-Income Consumers in both Developed and Emerging Markets (Expand and Build Beauty Segment strictly aimed at Low-Income Consumers). Industry Consolidator. Strategic Option #2: Given the maturity of the North American/Western European market, combined with the emerging popularity and demand for Natural/Organic ingredient products, P&G should look to create New Natural Products and Products tailored to the Male market - Multiple Segments, not just Skin Care (Expand and Build Beauty Segment). Industry Consolidator. Strategic Option #3: Related Diversification through Acquisition. Strategic Option #4: Joint Ventures in Emerging Markets such as China and India. Final Strategy Recommendation: The Recommendation is to go for a combined Low-Income segment and New Natural Product strategy as this facilitates P&G’s need to capture a greater slice of the Low-Income consumer market both in Mature and Developing markets, which also capturing a greater...
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...of the competition. The major issue that concerned Hearst was how P&G should capitalize on the market segment within the rinse category that focused on “health related benefits” rather than Scopes traditional strategy. The constraints that scope has is that they would like to re-position themselves, but they are looked at as a “breath” brand and deterring from that could possibly make them lose out on market share. She is faced with three options to increase sales. They can either do nothing and hope that people with continue to prefer “breath” over “rinse”, they can add a product line extension, or they can add an entirely new product line to the mix. Since 1986, breath only products saw an enormous increase in market shares from 3% in 1986 to 26% in 1987 primarily due to the introduction of flavors in the mouthwash, however, since 1987, there have only been a 3-5% increase of market share. If Gwen does nothing, she may be faced with the market trend of consistently flat sales. Proctor & Gamble pride themselves as being viewed as innovators and market leaders in the packaged goods industry in Canada. If they continue to focus on a segment which is stagnant or a declination of market growth, their sales may decline. In opposition of that is creating a brand extension. This option has been pondered on the most because if the competitors find a way to gain market share in the rinse segment, then P&G shares may decline...
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...Innovation in Outsourcing: The Case of The Procter & Gamble Company Case Study by the Academic Team from The University of Tennessee, College of Business Administration GEO 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...
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...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 growth from the mid 1940’s to 2000 on both a...
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...CASE Procter & Gamble, Inc. Scope As Gwen Hearst looked at the year-end report, she was pleased to see that Scope held a 32 percent share of the Canadian mouthwash market for 1990. She had been concerned about the inroads that Plax, a prebrushing rinse, had made in the market. Since its introduction in 1988, Plax had gained a 10 percent share of the product category and posed a threat to Scope. As brand manager, Hearst planned, developed, and directed the total marketing effort for Scope, Procter & Gamble's (P&G) brand in the mouthwash market. She was responsible for maximizing the market share, volume, and profitability of the brand. Until the entry of Plax, brands in the mouthwash market were positioned around two major benefits: fresh breath and killing germs. Plax was positioned around a new benefit-as a "plaque fighter"-and indications were that other brands, such as Listerine, were going to promote this benefit. The challenge for Hearst was to develop a strategy that would ensure the continued profitability of Scope in the face of these competitive threats. Her specific task was to prepare a marketing plan for P&G's mouthwash business for the next three years. It was early February 1991, and she would be presenting the plan to senior management in March. ■ COMPANY BACKGROUND Based on a philosophy of providing products of superior quality and value...
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...Table of Contents 1.0 Question 3 (Plagiarism) 3 1.1 What is plagiarism? 3 1.2 Types of plagiarism 3 1.3 Why students plagiarize? 3 1.4 The effect / consequences of plagiarism 3 1.5 Prevention of plagiarism 3 1.6 Conclusion 3 1.7 References 3 2.0 Question 4 (GST) 5 2.1 What is GST? 5 2.2 Elaboration on GST 6 2.3 Conclusion 6 2.4 References 7 3.0 Question 5 (Nursery) 8 3.1 Promotion of Nursery school and day care 8 3.2 References 9 4.0 Question 6 (Bicycle Lanes) 10 4.1 Introduction 11 4.2 Purpose 11 4.3 Problem 11 4.4 Solution 12 4.5 Conclusion 12 4.6 References 12 5.0 Question 7 (License) 13 5.1 What is driving license? 13 5.2 Requirement and Procedure to get a driving license 13 5.3 References 15 1.0 QUESTION = Plagiarism has become an issue of growing concern across universities in Malaysia and internationally. Discuss. 1.1 What is plagiarism? Plagiarism means stealing another person’s works, ideas, research, language and thoughts and treated as one own original work. Plagiarism is originated from two Latin words; plagiaries which means an abductor and plagiary which...
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...Summary Statement/Abstract P&G is a global company that is involved in many different markets including beauty and grooming and household care. The company has been through a lot of change due to the O2005 project that was undertaken in 1999 and saw a complete overhaul of the company during those years. One product that also was involved a lot during that time was the SK-II skin care product which was popular in Japan and a man named de Cesare wanted to take the product global to either the Chinese or European market. However, in order to do this there was a lot of analysis and research which had to be done to determine which market was the best to move the product to and de Cesare had to make a recommendation to the GLT knowing that he must do everything possible to make sure he made the best decision possible. As Paolo DeCesare, what factors do you need to consider before deciding what to recommend in your SK-II presentation to the global leadership team (GLT)? What kind of analysis will you need to do in preparing for that meeting? As Paolo DeCesare there are a lot of factors to consider before deciding what to recommend in the SK-II presentation to the GLT. The biggest factor of course to consider is the profitability of the market or markets that would be chosen to enter in an effort to have SK-II become a global brand within P&G. In order to determine this there is a lot of analysis that goes into determining whether a market will be profitable and could include...
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...What Lafley brought to the table wasn’t exactly a change in the business processes of P&G, it was more of a change of lifestyle and personality. Jager had come in trying to rip apart the current culture and rebuild it from the ground up in his eyes. What happened was that P&G pushed back at him, and caused an instant revolt that almost tore the company apart. In comes Lafley, who was the complete opposite of Jager’s gruffness. Lafley was more soothing and built his personality around persuading others to buy into his image. He didn’t try to force himself onto the employees, but reassured them that they still had values. Lafley knew that he had to put himself onto the ground level and get people to agree with him on the images that the company needed. He ingeniously did this by sending out memos stressing the core values of P&G and what it stood for. He stressed that the emphasis of P&G was still “ to improve the everyday lives of people around the world with P&G brands and products that deliver better performance, quality, and value. The value system-integrity, trust, ownership, leadership, and a passion for winning: not going to change. The six guiding principles, respect for the individual, all not going to change.” Once he had the people around him accepting him, he began to incorporate his vision. He made it known that his view of “any business doesn’t have a strategy is going to develop one: any business that has a strategy is either going to change it, or improve its execution”...
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...Scope was introduced in 1967 by Procter & Gamble, is a green mint tasting mouthwash, and was positions as a great tasting mouth refreshing brand that provided bad breath protection. Scope held 32% share of the Canadian market for 1990. In 1970 Scope became the market leader in Canada, with many competitors, such as Listerine mouthwash that was launched by Warner Lambert in 1977 and it was a direct competitor to Scope, it had nearly the same characteristics as Scope with a 12% of the market share during that time. But the major competitor for Scope was Plax, a brand by Pfizer Inc, which was launched in Canada in 1988 on a platform quite different from the traditional mouthwashes, and gained a 10% share since launched. Plax detergents were supposed to help loosen plaque to make brushing effective. Before the entry of Plax, brands in the mouth wash market were positioned around two major benefits that are fresh breath and killing germs, whereas Plax was positioned around a new benefit as a plaque fighter and claims Plax removes up to three times more plaque than just brushing alone. In studying the current situation and preparing for a strategic plan, Gwen Hearst reviewed the available information and surveys for the mouthwash market and Scope showed that 75% of Canadian household use 1 or more mouthwash brands. The company’s market research revealed that users could be segmented to “heavy” users that comprised 40% of all users and to “medium” users that comprised 45% of all...
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...Scope The problem for Procter & Gamble`s (P&G) “Scope” brand is that their share at mouthwash market is slightly going down while a new brand called “Plax” launched by Pfizer Inc. has gained a %10 market share in a very short time period which created a situation that left “P&G”s management team in dilemma for how to respond. P&G has some constraints to solve the problem (in fact, the situation is so complex that for some, no problem and threat exist). First of all, if they introduce a new product in the mouthwash market as a competitor against Plax; they are not sure if it will be really innovative or it will focus on unmet consumer needs. Another limitation is that introducing a new product to the market will cost a lot (even the test production costs $20,000. Capital costs, marketing costs, delivery costs, inventory costs, ingredients costs, packaging costs are other important costs which create concerns) and also will require an effective strategic management. After that, the new product is very similar to Plax and has no significant advantage except a better taste; on the other hand, sales department thinks that for success, the product must be seen as unique. So, P&G can not be sure about the future success of this product. Next, for the new product to gain reassurance, patience is needed. This can only be achieved in the long period. Following this, the new product will also reduce the sales of Scope. Additionally, P&G is not sure about the name of the product too...
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...1987 and 1990, worldwide sales for P&G had increased by $8 billion and net earnings by $1.3 billion. This success was due to variety of factors, including the ability to develop truly innovative products to meet consumers’ needs. Of the many products introduced throughout the 3 years, Scope, mouthwash, held 34% of the Canadian mouthwash market. Although there was success, there had been concerns with competition and the major changes happening in the mouthwash market. Up until 1988, most mouthwash was marketed primarily on a “bad-breath” strategy. However, Listerine introduced a plaque and inflamed gums preventing mouthwash. New flavors were introduced by a number of brands and it greatly expanded the market in 1987. In 1988 Colgate launched a mouthwash that included fluoride to fight cavities with a mild taste that encouraged children to rinse longer and more often. Finally, Pfizer launched a “prebrushing” rinse called Plax. Although P&G’s Scope held over 30% of the market share in 1990, they recognized that the industry was changing. The market was indefinitely moving towards healthier alternative. 2. Scope’s performance during the past three years can be considered extremely successful. Although it is marginal, in 1988, Scope’s market share was 33% but by 1990 the percentage fell to 32.3%. During the slim decline, Plax’s market share jumped from 1% to 10% in two years. Therefore, the sudden growth in Plax’s sales should be a concern for P&G’s Scope. 3. There are currently...
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...CUTCO & Vector Marketing 1. What is direct selling? Direct selling is the marketing and selling of products directly to consumers away from a fixed retail location. Modern direct selling includes sales made through party plan, one-on-one demonstrations, and other personal contact arrangements as well as internet sales. A textbook definition is: "The direct personal presentation, demonstration, and sale of products and services to consumers, usually in their homes or at their jobs.” While direct sales proves to be quite effective for Cutco, the industry also has its negatives. Many times there is very little advertising and because the company is not well known, it may lack legitimacy. 2. How would you respectively characterize Cutco and Vector Marketing? CUTCO cutlery has always been historically marketed through direct selling. This is viewed as a distinct advantage by the company because it allows the quality and performance features of the product to be explained and demonstrated directly to potential customers. Direct selling sets the company apart from its major competitors. These sales are made through in-home presentations in which sales representatives validate and prove the superiority of CUTCO cutlery through demonstrations. 3. How is Cutco cutlery marketed? Vector Marketing Company & Sales Representatives In 1985, CUTCO acquired Vector Marketing Corporation to have greater control over its sales efforts. organized into six geographical regions...
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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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...given questions. Following is the given problem. 1. The probability of cases being appealed in each of the three different courts. 2. The probability of cases being reversed in each of the three different courts. 3. The probability of cases being reversed given an appeal in each of the three different courts. 4. The probability of a case being appealed for each judge. 5. The probability of a case being reversed for each judge. 6. The probability of reversal, given an appeal for each judge. After these six questions have been answered then a ranking of the judges can be accomplished. The numbers being used in each of the calculations is coming from the excel worksheet that is attached. The last question of the given problem follows. Rank the judges within each court for each of the probabilities in 4 - 6. Then, find the sum of the ranks and get an overall ranking for each judge. Evaluate and discuss the meaning of your results. Results The following results are based on the calculations found on the attached Excel spreadsheet. The probability of cases being appealed in each of the three different courts uses the formula of: P(appeal)=Total number of cases appealed/total number of cases disposed. The results are as follows. Court Appeal Probability Common Pleas: 0.04010 Domestic Relations: 0.00348 Municipal: 0.00461 The probability of cases being...
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...Applying Lean Concepts in a Warehouse Operation Frank Garcia Partner ADVENT DESIGN CORPORATION What We’ll Cover Basic Lean Concepts for Warehouse Improvement Using Value Stream Maps: Current & Future State Implementing Process Improvements Case Study Using and Ongoing Application (Pork Producer) WHAT TO DO ABOUT THE WAREHOUSE? • • • • • Too many people Excessive material handling Inventory inaccuracies Don’t ship the pounds No space!!!! Need to Expand! WAREHOUSE CHALLENGES Focus on Manufacturing. Warehouse is a box on the VSM Office & Info Flow Customer Demands Product pushed into warehouse & pulled by customers Warehouse Application of Lean Principles to an area that exists because of waste in the value stream or customer Production Suppliers demand/lead time Warehouse is the crossroads of conflicting requirements How Do We Use Lean Techniques for Warehouse Improvement? Assess the operation using a Value Stream Map and/or PFDs (Product families & Warehouse data) Involve the operators & supervisors Identify lean improvements & kaizens Question every activity! Treat the warehouse like a large staging area Develop justification Implement lean improvements using VSM plan Start the cycle again! Lean Manufacturing Fundamental Principle of Lean Manufacturing Any activity or action which does not add value to the product is a form of waste and must be eliminated or minimized. In the Warehouse Customer Pays for Shipping Everything Else Must Be Minimized ! What Do We Need...
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