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A. G. Lafley: Innovating P&G’s Innovations

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A. G. Lafley: Innovating P&G’s Innovations

Table of Contents

Synopsis 4

Which Industry does P&G compete? 4

What are the Tangible and Intangible Resources? 4

Tangible Resources 4

Intangible Resources 4

Major Issues 5

P&G’s Strategic Health in 2005 5

Mission 5

External Environment Analysis 5

Porter’s Five Forces 5

Internal Characteristics 6

SWOT Analysis 8

Key Success Factors 9

Critical Development Factors 10

What factors are critical for success? 10

Strategic Objectives 11

Corporate Level Strategy 12

Business Level Strategy 12

Function Level Strategy 12

General Difference in Strategic Direction 13

References 14

Synopsis

P&G, one of the world’s largest …show more content…

This was apparent with the case of Colgate ' Palmolive introducing a new toothpaste that fights not only cavities but bad breath, yellowing teeth, sensitive gums and also gingivitis.

Rivalry among competitors

This market is a well established market and P&G would have competition from existing companies and businesses since they include similar resources and advertising techniques. The competing companies and firms produce similar products and as such new ideas and innovation is necessary for the survival of P&G.

Internal Characteristics

Success in terms of an internal analysis of P&G resources, capabilities, core competencies and their relationship to strategy

P&G is now one of the ten most valuable companies in the United States. During Mr. Lafley’s watch since the year 2000, sales have grown to more than $80B in 2008, from less than $40B when he took over, and earnings have tripled, topping $10B in 2007. The company has 24 brands generating more than $1B each, more than twice the number in 2000. And that number is likely to increase with close to 20 more brands with sales greater than $500M and growing. P&G’s stock, which was trading at about $28 per share when Mr. Lafley took over, now exceeds $70.
There were several core problems that were interrelated around the strategy, organization, and structure of the company. Strategically, they were trying to do too many things. It wasn’t clear what the core businesses were,

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