...Contents List of Figures 2 1. Background 3 2. Micro Environmental Analysis 4 2.1 Company Analysis 4 2.1.1 Management of Proctor & Gamble 5 2.2 Industry Analysis 8 3. Macro Environmental Analysis 10 3.1 Political 10 3.2 Economic 10 3.3 Social 12 3.4 Technological 13 4. SWOT Analysis 16 4.1 Strength 16 4.2 Weakness 16 4.3 Opportunity 17 4.4 Threat 17 5. Conclusion 19 6. Recommendation 21 7. References 22 8. Appendix 24 List of Figures Figure 2.1 Proctor & Gamble Mental Map 4 Figure 2.2 Organization Chart 6 Figure 2.3 Shopper Marketing Taxonomy 7 Figure 2.4 Value Proposition 9 Figure 3.1 Projected GDP % Growth and Inflation by Country 11 Figure 3.2 The advertising spending on Media 2013 12 Figure 3.3 Contribution to global growth in ad spend by medium 2013-2016 (US$m) 13 Figure 3.4 % of global smartphone users who have used the app in the past month (Q2 2013) 13 Figure 3.5 New Policy of Google Advertising (1) 15 Figure 3.6 New Policy of Google Advertising (2) 15 Figure 4.1 2012 Planning on Spending Advertising within the Social Media Space (%) 18 Figure 4.2 Advertising Spending on Facebook (Top 3 Brands) 19 1. Background Procter & Gamble is our target company in this project. We will start with the background, and then examine both the micro and macro environment. The conclusion and recommendation will be generated...
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...leveraging what your business does best to create a 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...
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...The Organization of International Business Organizational structure at Procter and Gamble Procter and gamble unique organizational structure offers the global scale benefits of an international company and the local focus to be relevant for customers in roughly 180 countries where their brands are solid. The company corporate structure provides the framework that allows them to tap the benefits of a global operation keep them in touch with local communities, and their strong governance practices ensure that they carry out operations with consistently high standard and integrity. Procter and gamble have made their organization structure an important part of their capability to grow. It combines global scale benefits with a local focus to win with consumers and retail customers in each country where P & G products are sold. Procter and gamble recently grouped its global business units into four industry-based sectors as part of the company’s on-going plan to improve business performance. The businesses in each sector are focused on common consumer’s benefits, share common technologies and face common competitors. Procter and gamble structure has removed many of the traditional overlaps and inefficiencies that exist in many large companies. Four organizational structure Procter and gamble uses: Market development organizations: are charged with knowing consumers and retailers in each market where Procter and gamble competes and integrating the innovations...
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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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...Change: A Study of Procter & Gamble and Johnson & Johnson Procter & Gamble (NYSE: PG) and Johnson & Johnson (NYSE: JNJ) are both iconic, legacy American businesses that are customer-centric and manufacture consumer household products. Today, both are lead by two exemplary strategic-thinkers, A.G. Lafley, CEO of PG and Alex Gorsky, CEO of JNJ. This paper examines the history of each company and which change images each CEO applies to implement change in their business and practices through applicable examples. Company History Procter & Gamble. In 1837, William Procter and brother-in-law, James Gamble found Procter & Gamble in Cincinnati, OH to provide consumer household products, particularly soap and candles (Procter & Gamble, 2014). PG quickly grew by leveraging its operating environment to drive innovation and design in regard to consumer products. Today, 177 years later, PG is the world’s largest multinational consumer goods company, located in more than 70 countries with over 180 product brands (Procter & Gamble, 2014). Due to its expansive portfolio of products PG is divided up into the following sectors: Baby, Feminine and Family Care, Beauty, Fabric and Home Care, and Health and Grooming (Procter & Gamble, 2014). Johnson & Johnson. In 1886, the Johnson Family found Johnson & Johnson in New Brunswick, NJ to provide consumer pharmaceutical products (Johnson & Johnson, 2013). JNJ is a pioneer in global strategy and expansion establishing...
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...Procter and Gamble | Strategic Management | | Table of Content Introduction 3 Company Overview 4 Mission and Vision 5 External Analysis 5 Industry analysis 7 Internal Analysis 8 Corporate level strategy 10 Critique and Recommendation 12 References 13 INTRODUCTION Procter and Gamble, more commonly known as P&G is a company, which offers consumer goods with an impressive portfolio. Gillette, Duracell, Tampax, Tide, Oral-B and Ariel are so many brands owned by the group that are part of the daily life of consumers. In fact its more than 300 leading brands and 50 leadership brands that the company owns to serve about 4.8 billion customers. This report will try to provide a strategic analysis of P&G thorough internal analysis of strengths and weaknesses including a financial analysis as well as an external analysis of firm opportunities and threats but also, an industry analysis using Porter’s five forces. Most of references came from the P&G website and information was sought from the Procter & Gamble Company Annual Reports but external references were also used as such article on web from American and French magazine. COMPANY OVERVIEW The company was born in the United States to Cincinnati in 1837. William Procter and James Gamble who were respectively, candle maker and soap maker created it. In 1954, Procter and Gamble establishes...
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...Introduction Global operations involves the linking and relating of four primary functions; marketing, finance and accounting, suppliers, and human resources to create a competitive advantage in global markets (Russell & Taylor, 2011). The business environment has become increasingly competitive over the past decade, due to the global economic crisis, environmental challenges, technological innovations, as well as, consumer lifestyle changes. As a result of the changes, many multi-national corporations (MNC), in an effort, to remain competitive and sustainable are responding by creating global strategic management plans to address the competitive trends occurring in the market (Kim, Bak, & Bae, 2010). In fact, the aforementioned factors created a rich environment for firms to access new technologies, materials, customer bases, as well as, the ability to form business partnerships, globally (Russell & Taylor, 2011; Nembhard, Shi, & Park, 2000). Consequently, there has been a shift in the way business operations are performed and managed. Procter and Gamble Company (P&G), is an excellent example of an iconic firm maintaining a competitive advantage in global markets through the effective implementation of global operations strategies and management. In fact, P&G is the leading consumer goods firm, generating annually $84 billion in sales, operating in 180+ countries, spanning the Americas, Europe, the Middle East and Africa (EMEA), and Asia. In...
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...| Procter & Gamble | GEB 4890 | | Hessum Zangenehpour | Fall 2013 | | Table of Contents Executive Summary ……………………………………………………………………………………………………………… Page 2 The Company………………………………………………………………………………………………………………………… Page 2 History and 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…………………………………………………………………………………………………………………………...
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...PROCTER & GAMBLE COMPANY PROFILE – SWOT ANALYSIS October 2012 SCOPE OF THE REPORT Scope All values expressed in this report are in US dollar terms, using a fixed exchange rate (2011). 2011 figures are based on part-year estimates. All forecast data are expressed in constant terms; inflationary effects are discounted. Conversely, all historical data are expressed in current terms; inflationary effects are taken into account. Oral Care US$39.7 bn Microwaves Refrigeration Home 60,669 Appliances Laundry Large Cooking Home Laundry Confectionary 144,010 121,107 Appliances Appliances 132,745 121,107 US$185,477 mn Disclaimer Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Euromonitor International cannot be held responsible for omissions or errors. Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies’ opinions, reader discretion is advised. Microwaves 60,669 Deodorants US$20.4 bn Beauty and Personal Care US$425.7 bn Bath and Shower US$37 bn Baby Care US$13.6 bn Hair Care US$73.7 bn Small Appliances Jewellery 1,724,022 Men’s Grooming US$32.7 bn Procter & Gamble is the global leader in beauty and personal care. Its key brands here include Olay, Gillette and Pantene. The company has however underperformed some of its rivals including Unilever and L’Oréal, which...
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...world that “more is better” in terms of number of blades and other razor features. Why has that worked in the past? What’s next? 12 Question 2: Some of Gillette’s spokespeople such as Tiger Woods have run into controversy after becoming endorsers for the brand. Does this hurt Gillette’s brand equity or marketing message? Explain. 13 Question 3: Can Gillette ever become as successful at marketing to women? Why or why not? 14 Summary 16 References 18 Abstract This paper seeks to analyze the super-brand Gillette. It discusses its history, strategic growth techniques, and current global success metrics. The methods used to gain and maintain market share are scrutinized, along with the impact of its current alliance with the Procter & Gamble Company on its growth. The current product life cycle stage is identified, and suggestions are made regarding approaches to maintain and grow its global market share. The Gillette Company: An assessment of past performance and future outlook for the brand Organizational Overview Founded in 1903 by King C. Gillette and Will Nickerson as an innovative approach to improving men’s daily shaving experience, Gillette is now over 110 years old. Still best known today as a shaving razor brand, Gillette has evolved with time from offering a single product for men, into producing and marketing multiple diverse products in different markets to both men and women. Historically, Gillette expanded by acquisition into stationery/writing instruments...
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...volution of Strategy at Procter & Gamble Founded in 1837, Cincinnati-based Procter & Gamble has long been one of the world’s most international of companies. Today P&G is a global colossus in the consumer products business with annual sales in excess of $50 billion, some 54 percent of which are generated outside of the United States. P&G sells more than 300 brands—including Ivory soap, Tide, Pampers, Iams pet food, Crisco, and Folgers—to consumers in 160 countries. Historically the strategy at P&G was well established. The company developed new products in Cincinnati and then relied on semi-autonomous foreign subsidiaries to manufacture, market, and distribute those products in different nations. In many cases, foreign subsidiaries had their own production facilities and tailored the packaging, brand name, and marketing message to local tastes and preferences. For years this strategy delivered a steady stream of new products and reliable growth in sales and profits. By the 1990s, however, profit growth at P&G was slowing. The essence of the problem was simple: P&G’s costs were too high because of extensive duplication of manufacturing, marketing, and administrative facilities in different national subsidiaries. The duplication of assets made sense in the world of the 1960s, when national markets were segmented from each other by barriers to cross-border trade. Products produced in Great Britain, for example, could not be sold economically in Germany due to high tariff duties...
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...Proctor & Gamble vs. Unilever Dominic Williamson BUS. 508 Prof. Garabedian 11/3/2013 Determine how each corporate culture differs from the other. The consumer goods market has been historically dominated by Unilever and Procter & Gamble (P&G). Both companies boast of strong brands. Unilever has brands such as Dove, Axe, Vaseline, Comfort, and Lipton. P&G is equipped with brands such as Head & Shoulder, Olay, Pantene, Gillette, Crest, Oral-B, Duracell, Gain, Tide and Pampers. Each company has a lot of similarities which have helped them be successful in the industry. Along with those similarities come vast differences which allow them to successfully compete with one another. Unilever is one of the world's largest and fastest growing consumer goods companies in the world. The company is headquartered in the UK and the Netherlands (Unilever, (n.d). Unilever Plc). With headquarters in London and Rotterdam, Unilever was one of the few companies to focus on emerging markets. Their culture focuses on “What we believe in and how we act collectively.” They believe in targeting emerging markets to contribute to their total sales. Unilever expects emerging markets to account for 70% of total sales by the end of the decade (Procter & Gamble Vs. Unilever: Comparing 2 Consumer Staples Giants, 2013). They also believe in a high standard of corporate behavior and ethical standards for both people and the environment. Unilever executives provide...
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...Bottom of Form * Home Page » * Business and Management Evolution of Strategy at Procter & Gamble In: Business and Management Evolution of Strategy at Procter & Gamble Global Issues in Business Week 5 Case Analysis DeVry University Federal Way, Washington Summary In the case study “,” it discusses the history of Procter & Gamble’s foreign business strategy and some of the problems they incurred along the way. It also covers some of their business strategy changes the company introduced in order to become more profitable in a changing world economy along with a more globalized less restrictive trade and business environment. It’s summarized with a detailed discussion regarding P & G reorganization and complete restructuring of the company to control its costs by having European plant closures and layoffs. Questions 3 a, b, c a. What strategy was Procter & Gamble pursuing when it first entered foreign markets in the period up until the 1980s? Procter & Gamble clearly used an international strategy for their expansion into foreign markets throughout a large portion of the 20th century. Not until they began to experience slower growth, profits and sales in the in the early 1990’s did they take a serious look into their business model for international expansion. But up to this pint they were unparalleled by any other competitor as the chart shows below. (2) b. Why do you think this strategy became less viable in the 1990s? I...
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...Global Issues in Business Week 5 Case Analysis DeVry University Federal Way, Washington Summary In the case study “,” it discusses the history of Procter & Gamble’s foreign business strategy and some of the problems they incurred along the way. It also covers some of their business strategy changes the company introduced in order to become more profitable in a changing world economy along with a more globalized less restrictive trade and business environment. It’s summarized with a detailed discussion regarding P & G reorganization and complete restructuring of the company to control its costs by having European plant closures and layoffs. Questions 3 a, b, c a. What strategy was Procter & Gamble pursuing when it first entered foreign markets in the period up until the 1980s? Procter & Gamble clearly used an international strategy for their expansion into foreign markets throughout a large portion of the 20th century. Not until they began to experience slower growth, profits and sales in the in the early 1990’s did they take a serious look into their business model for international expansion. But up to this pint they were unparalleled by any other competitor as the chart shows below. (2) b. Why do you think this strategy became less viable in the 1990s? I feel there are several defendable reasons that P&G’s business strategy began to lose its effectiveness it has had years prior. First, the changing global market created a...
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...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 make the equal of a 14th billion-dollar brand—by...
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