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Financial Case Study: Procter And James Gamble

Decent Essays

About the Company
William Procter and James Gamble, two men from United Kingdom, found Procter & Gamble, commonly known as P&G – an American multinational consumer goods company. P&G owns over 180 brands mainly in the category of cleaning agents and personal care.
With its headquarters in Ohio, United States, it holds a Board of 11 Directors. In May 2011, Petricia Sellers (Fortune Editor-at-large) praised P&G’s board diversity, as 5 of the company’s 11 directors are female and all have been on Fortune’s Annual Most Powerful Women list.
Procter & Gamble is a member of the US Global Leadership Coalition, a Washington DC based coalition of over 450 companies and NGO’s that advocate for a larger International Affairs budget, which funds American …show more content…

Their main strategy stresses on providing branded products and services of premium quality and value that are bound to improve the lives of consumers across the globe, now and for generations to come. In return, they expect a reward from consumers in form of leadership scales, profit and value creation. Innovation has been and continues to be P&G’s lifeblood. To win customers all over the world with price tiers, preferences as also to win against competing brands, P&G undergoes constant game changing innovation. Productivity too works as a core strength for the company and helps lower costs and improve efficiency. The company’s strategy demands a disciplined approach to investing so as to not sacrifice on long-term benefits in a bid at fulfilling short-term goals.

Structure
P&G’s organization structure is an important part of their capability to grow. It combines the global scale benefits of a $79 billion global company with a local focus to win with consumers and retail customers in each country where P&G products are …show more content…

Today, over and above these qualities it majorly looks for agility and adaptability. While traditional IQ skills are very important, an adequate amount of emotional skills (anxiety, excitement, curiosity) and fundamental social skills (self-awareness, empathy) are needed to complement them. These skills are every bit as hard to master as the analytical skills.
P&G has carefully tried to ease out people are stuck up, uptight and not willing to adapt to the changes. They test these skills of their employees by assigning challenging tasks that need stretching out of the comfort zone.
P&G also believe it to be extremely important to work outside your home region. It helps sharpen emotional skills and enhance the cross-cultural integration.
P&G has been successful in mid-career hiring and has learnt from organizational cultures of other firms. Though the proportion of such employees is very low in the company, it is big enough to make a difference.

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