...Introduction Procter & Gamble is one of the world’s largest producers of consumer goods and it was founded in 1837. Recently, Procter & Gamble is operating in 50 countries and serving nearly five billion customers with a series of brands across beauty, healthcare and food industry which generate which create more than 1 billion revenue annually. The purpose of this essay is to discuss how the diversification strategy changed Procter & Gamble in Singapore over the last ten years. The main position in this essay is that diversification can be considered as one of the main strategies used to assist Procter & Gamble build up business competitive advantage. This essay will use theoretical evidence from literature review to analysis the impact of diversification on Procter & Gamble in different time period. The analyses of Procter & Gamble will be carried out in 3 perspectives: the operation of business, the performance of business and the brand of business. Literature Review & analyses of organization Diversification can be defined as a strategy used to increase the range of products or markets of organization. (Johnson, Scholes & Whittington, 2008) There is a range of reasons result the diversification of organization such as spreading the business risk and increasing the business expectation of stakeholder. (Johnson, Scholes & Whittington, 2008) But the result of research from Aisjah and Subroto (2011) indicated that there are two main...
Words: 1302 - Pages: 6
...Proctor and Gamble, Inc. Scope Case Synopsis Gwen Hearst, Scope Mouthwash Brand Manager for Procter & Gamble, Inc is preparing a three year strategic plan for Scope in the Canadian market. Her responsibilities focus on three central areas: maximize the market share, volume and profitability of the brand. She needs to develop a strategy to compete with a new market entry, Plax. Plax has targeted fighting plaque as a new benefit for mouthwash. In two years, Plax has gained 10% of the market and during a time when the market growth rate has been declining. The Scope brand has maintained a constant market share level with slight decline and still retains largest percentage of the market. The strategic options include maintaining the status quo, introducing a new product already developed as either a line extension or flanker product, or develop new marketing plan for existing product. She has formed a team across company functions to address these issues and formulate a strategic plan. Decisions to be Made 1) Should Scope maintain the status quo or seek new opportunities? 2) Should Scope reposition its current product or develop a new product? 3) Should Scope launch a flanker brand or introduce a line extension? These decisions must be made in this order. Scope must first decide if it actually needs or wants to move forward with seeking new opportunities. If Scope wants to maintain the status quo, then no effort needs...
Words: 2954 - Pages: 12
...Business and Management Procter & Gamble, Scope Case Study In: Business and Management Procter & Gamble, Scope Case Study Case Study: Procter & Gamble, Inc. Scope Introduction Procter & Gamble (P&G), first introduced a great tasting mouthwash that was minty green and sure to fight off bad breath, called Scope in 1967. In 1990, Scope led the Canadian market share with 32%. However, since 1988 when Pfizer Inc. launched a new mouthwash called Plax, it became Scopes’ major competitor. Plax offered something different from the typical mouthwashes. Plax had the advantage over other brands because not only did it offer fresh breath and killing germs, but it was also a plaque fighter. Gwen Hearst, brand manager, is in charge of increasing market share, volume, and profits for Scope. Marketing Issues First, does Scope intend on introducing a new line extension by developing a product that strictly focuses on fighting plaque. This must be done in a way not to mistake the customer into thinking that there are additional claims to the original product. Second, add new claims to the already existing product. This would state something like “Scope not only gives fresh breath and kills germs, but it also fights plaque.” Or third, take no action but would need to focus on increasing advertising and promotion on what Scope already does, freshens breath and kills germs. Situation Analysis SWOT Analysis: Strengths *Since 1967, Scope has been in the health care,...
Words: 488 - Pages: 2
...Proctor and Gamble Global Fabric & Home Care Corporate and Strategic Business Unit Model Strategy Introduction The purpose of this paper is to examine a Strategic Business Unit for its overall fit and alignment within its corporate environment. For this case study, the corporate parent must be a publically traded, multinational corporation with two or more strategic business units. The corporation that will be examined is Proctor and Gamble. This study will begin by understanding the parent corporation through its history, its basic or generic corporate strategy, the current structure of the corporation, and its overarching business model. The case study will then thoroughly examine the selected strategic business unit to include its value chain, strengths weaknesses opportunities and threats (SWOT), marketing and sales, comparison to competitors, stock trends and shareholder value. In order to complete this study the effects of corporate parenting strategy, an examination of its resources and capabilities, and review of recent and emerging trends within the industry must also be examined. However, before this paper can delve into Proctor and Gamble and its strategic business unit basic theory and business analysis techniques must be determined and defined. The different theories and analysis techniques that will be used are Value Chain Analysis, Corporate Parenting Analysis, SWOT Analysis, and analysis of corporate resources and capabilities. These will be...
Words: 3520 - Pages: 15
...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...
Words: 3683 - Pages: 15
...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...
Words: 1103 - Pages: 5
...Five Forces Model In any given industry, when a firm is being analyzed the analyst must first review the potential profits of each of the industries in which their particular firm is competing within. Due to the fact that the diversity of each industry will change in a somewhat predictable manner over a period of time when a certain event may happen in the economy the analyst need a way to predict what the outcomes are going to be. There is a model that we refer to do just this, it is known as the “Five Forces Model” and it shows the influence of industry structure on profitability. The model is made up of two main components: The first one is the degree of actual and potential competition, which consists of the rivalry among existing firms, threat of new entrants, and the threat of substitute products. The second one is the bargaining power of input and output markets; made up of the powers of buyers and suppliers. Together these five forces can help predict the industry’s profitability and be able to classify the important factors of Colgate- Palmolive. Within the five forces there is a high and low end that must be applied to each of the forces to determine the volatility and to what extent each force affects a firm within the industry. These five forces help an investor understand how and by how much, different factors that could happen in an industry would affect the firm. The following table shows a summary of the highs and lows within the personal product industry...
Words: 7540 - Pages: 31
...Industry Assessment - Part 1 Cosmetics Industry Riley Bell Alexandru Colita Nicholas Gonzalez Derek Morin Yuan (Amy) Zhang MGMT 390: Industry Analysis Projects Norine Webster University of British Columbia Okanagan February 14th, 2014 Table of Contents 1. Executive Summary……………………………………………………………………….2 2. Industry Description………………………………………....…………………………….3 3. Value Chain……………………………...………………………………………………..5 4. Relevant Features/Factors for the Industry ……………………………………………….7 5. Porter’s Five Forces ………………………………………………………………………9 6.1. Competitors and Level of Rivalry ……………………………………………………………………...9 6.2. Suppliers and Relative Power…………………………………………………………………………10 6.3. Buyers and Relative Power …………………………………………………………………………...10 6.4. Possible New Entrants, Barriers to Enter and Exit, Threat of Entry ………………………………….11 5.5 Substitute Products, Barriers to Switching, and Threat of Substitutes………………………………...12 6. Financial Ratios………………………………………………………………………….12 7. STEEP Analysis………………………………………………………………………….16 7.1. Social/Cultural Factors…………………………………………………………………………………16 7.2. Technological Factors…………………………………………………………………………………..18 7.3. Economic Factors………………………………………………………………………………………19 7.4. Environmental Factors………………………………………………………………………………….20 7.5. Political Factors………………………………………………………………………………………...20 8. Significant Drivers……………………………………………………………………….20 9. Key Success Factors……………………………………………………………………...
Words: 7545 - Pages: 31
...service o Bousbib's vision: "To become the recognized leader in service excellence among all companies%mdash;not just elevator companies—worldwide." o Bousbib challenged ... launch a new initiative that would help make Otis the #1 service company in the world p 235/15 • Continue strong revenue growth • Maintain / improve operating margins, already substantially above industry averages • Establish strategic advantage in emerging markets e.g. China • Make the transition from a manufacturing to a service organization • Reorient Otis to a customer-centric organization • Employ technology to provide an information advantage over service company competitors Competitors FedEx, UPS, Procter & Gamble, Other Supply Chain Companies like The Wheels Group and Exel plc. Decisions Test Tom and Ryan Problems, opportunities and risks • Problem 1: Challenges for e*Logistics p 233/13 • Problem 2: Otis needed to embrace a culture of service and to develop the processes needed to deliver world-class service. Otis had to re-define its processes, beyond service support tools like OTISLINE customer service center and REM elevatore monitoring. • Problem 3: The major problem facing Otis how can they can continue their dominance and profitability within a new market space, which is providing global logistics and service support to firms of any kind, while leveraging their investments in IT. Evidence Alternatives ...
Words: 1740 - Pages: 7
... Pages 1. Executive summary..................................................................................... 3 2. Introduction................................................................................................ 3 3. Company overview..................................................................................... 3 4. Importance of business strategy................................................................... 4 5. Mission of Wal-Mart.................................................................................. 4 6. Objectives of Wal-Mart.............................................................................. 4 7. SWOT analysis of Wal-Mart...................................................................... 4-5 8. Application of Porter’s five forces in Wal-Mart............................................ 6-7 9. Wal-Mart Focus on Low-cost..................................................................... 8 10. Conclusion................................................................................................ 8 11. Recommendation....................................................................................... 9 12. References................................................................................................ 10-11 Executive Summary: In contemporary...
Words: 2259 - Pages: 10
...Title: Market Research on Consumer Preference towards Detergent Sector. Author Details – Name: Arnab Roy Chowdhury. Affiliation: Student, UnitedWorld School of Business. E-mail Address: arnabroychowdhury2010@gmail.com ACKNOWLEDGEMENT: I express my sincere gratitude to Ms. Sapna Choraria for giving me the opportunity to undergo this project. I, further, thank her for lending me a helping hand in solving my problems related to the project. This project would not have been possible without her valuable time, constant support and inspiration. I also thank UnitedWorld School of Business for providing me an opportunity to undertake a skill basis project at this crucial stage of my life, while pursuing MBA, which helped me to understand the topic, that was untouched before, deeply. Any suggestions for improvement are always welcome. ABSTRACT: Due to rapid urbanization, emergence of small pack size and sachets, the demand for the household products is flourishing. With the increase in per capita income and wide range of choices being available, the consumers are mainly focusing on these products. The companies are finding it difficult to survive or to retain their market share due to changing trends in demand and high peak competition. In order to lure the consumers, companies study the quantity being purchased...
Words: 3784 - Pages: 16
...management and strategic management are the foundations for managers. The growing pressures of global competition and technological innovation have made cost management more critical and dynamic than ever before. Now cost management has moved towards a broader strategic focus than that of product costing. This so-called strategic cost management needs to facilitate strategic management in order to allow the firm to retain its competitive advantage. In order to implement this, benchmarking, value chain, balance scorecard and SWOT analysis should be undertaken. A firm should then identify its strategic positioning in the market: how it will sustain a competitive position. Furthermore, the strategic role of cost concepts will also be described in relation to product/service costing, strategic decision-making (cost driver analysis), planning/decision making and control/feedback purposes. Costs are now more complex than ever since large companies like Proctor & Gamble have a large product portfolio, and costs have become a vital element of a firm’s strategy. In order to understand these concepts fully, we will relate them to real businesses; in particular, we will analyze these concepts with relation to the McDonald’s corporation. Strategic Management Strategic management is the conduct of drafting, implementing and evaluating cross-functional decisions that will enable an organization to achieve its long-term objectives. It is the process of specifying the organization’s mission...
Words: 2772 - Pages: 12
...Cliffs Natural Resources Inc. (CLF) In this paper we examine the dynamics of cross-listing, particularly US companies that cross-list in the NYSE Euronext equity-based exchange. We look at the number of US firms cross-listed in this exchange and then study one of these companies specifically, Cliffs Natural Resources, Inc. In addition, we explore the importance of cross-listing in NYSE Euronext as well as: the benefits, costs and requirements of fast path cross-listing and the trading volumes of the shares transacted in the exchange. The foundation of our case study is based on Cliffs Natural Resources Inc. (CLF), an international mining and natural resources company headquartered in Cleveland, Ohio. Formerly known as Cleveland-Cliffs Inc., the company was founded in 1847 (Yahoo Finance). CLF is North America’s larger supplier of iron ore. The Company produces iron ore pellets and metallurgical coal. CLF operates in four segments: U.S. Iron Ore, Eastern Canadian Iron Ore, North American Coal and Asia Pacific Iron Ore. In the United States, it operates five iron ore mines in Michigan and Minnesota, five metallurgical coal mines located in West Virginia and Alabama and one thermal coal mine located in West Virginia. It also operates two iron ore mines in Eastern Canada that primarily provide iron ore to the seaborne market for Asian steel producers (NYSE Euronext). As part of their growth strategy and due to its largely increased presence in the international market, CLF...
Words: 2155 - Pages: 9
...Cliffs Natural Resources Inc. In this paper we examine the dynamics of cross-listing, particularly US companies that cross-list in the NYSE Euronext equity-based exchange. We look at the number of US firms cross-listed in this exchange and then study one of these companies specifically, Cliffs Natural Resources, Inc. In addition, we explore the importance of cross-listing in NYSE Euronext as well as: the benefits, costs and requirements of fast path cross-listing and the trading volumes of the shares transacted in the exchange. The foundation of our case study is based on Cliffs Natural Resources Inc. (CLF), an international mining and natural resources company headquartered in Cleveland, Ohio. Formerly known as Cleveland-Cliffs Inc., the company was founded in 1847 (Yahoo Finance). CLF is North America’s larger supplier of iron ore. The Company produces iron ore pellets and metallurgical coal. CLF operates in four segments: U.S. Iron Ore, Eastern Canadian Iron Ore, North American Coal and Asia Pacific Iron Ore. In the United States, it operates five iron ore mines in Michigan and Minnesota, five metallurgical coal mines located in West Virginia and Alabama and one thermal coal mine located in West Virginia. It also operates two iron ore mines in Eastern Canada that primarily provide iron ore to the seaborne market for Asian steel producers (NYSE Euronext). As part of their growth strategy and due to its largely increased presence in the international market, CLF decided...
Words: 2223 - Pages: 9
...EXAMINING THE CRACKS IN THE CEILING: A Survey of Corporate Diversity Practices of the S&P 100 March 2013 Table of Contents FOREWORD ....................................................................................................... 1 EXECUTIVE SUMMARY ................................................................................. 2 EXAMINING THE 10 KEY INDICATORS .................................................... 7 1. Equal Employment Opportunity (EEO) Policy ........................... 8 2. Internal Diversity Initiatives ...........................................................10 3. External Diversity Initiatives ..........................................................12 4. Scope of Diversity Initiatives...........................................................13 5. Family-Friendly Benefits....................................................................14 6. EEO-1 Disclosure ..................................................................................15 7. Highest-Paid Executives ...................................................................16 8. Board Representation .......................................................................18 9. Director Selection Criteria ...............................................................20 10. Corporate Commitment ................................................................21 DIVERSITY SCORES BY SECTOR ................................................................22 CONCLUSIONS AND NEXT STEPS...
Words: 11806 - Pages: 48
