In The Present Time For Any Business To Be A Success, There

It is abundantly clear that, the success of this giant corporation can be closely tied to its management and leadership style. “He restored focus on leading brands and reminded everyone in P&G that the measure of success was not innovation itself, but the consumer”. This is a clear customer focus leadership style of a CEO who was brought in within the corporation to strengthen employee morale and to refocus employees’ attention to providing the needs and wants of customers in this ever changing global market.

The answer? Yes. In fact, P & G has already taken many steps towards changing and expanding its operations. They have gone global—accessing worldwide markets in the U.S., Brazil, China, Denmark, France, Germany, Israel, Japan, Mexico, Poland, Sweden and Turkey, to name a few. Not only have they expanded their customer base, but in their international markets they promote specific brands in each country that are specific to that region, so as to gain some product recognition in foreign markets. For example, in Latin American a brand of dishwashing soap they offer is Cierto ® and Ela ® feminine napkins; as well as, Lanxiang and Panda—cleaning aids marketed in Asia. Offering brands that customers in each different region are familiar with enables customers to feel more comfortable purchasing those products and in turn, helps P & G establish security in international markets.

The purpose of this is to pressure strengths and defect weaknesses of the organizations’. The global strategic planning process also defines the company’s business and mission/vision. This helps portray the company’s image to the stakeholders and define what the company does. Furthermore, corporate objectives must be in the scope of the GSP process and the objectives give a path, boundaries, and ensure prosperity. Objectives are very important to a company and should be amplified, as much as possible. Another part of the process is to set up goals and or competitive strategies. The goals help to achieve strategies within multi-domestic, global, and transnational. These three strategies come from the two conflicting problems in international market of reduction cost and adaption to local markets. (Multi-domestic: decision making for quick change, increase cost structure, cost of and difficulty of coordination becomes substantial) (Global: value chain activities, limited ability to adjust to meet customer’s needs, and transportation cost.) (Transnational: analyze pressures of cost effectiveness and adaptations, locations that are the best for each company activity, decisions are complex when trying to attain the optimal

1. Problems/ Opportunities Executives at Proctor and Gamble are highly ambitious to enter into new and emerging markets, which could act as both an opportunity to increase sales, or a risky problem that could end up causing the company large amounts of money if it were to fail. The strategy Proctor and Gamble used in the 1990s, cutting costs to keep the profits increasing, was a poor strategy that could have caused the company to fail since the retail industry was changing, and rival companies were already causing a slowing of sales to all 18 top brands. The next major problem occurred in the late 1990s when CEO Durk I. Jager introduced expensive new products that never caught on with consumers. During this time, Jager’s decisions also caused share prices to drop 52 percent, which caused tension between the company and its employees as the employees owned around 20 percent

For example: P and G have placed recalls on Swiffer vacuum cleaner. If they have continual recalls, it could tarnish the brand image leading to lower customer loyalty.

Consequently P&G aimed to increase its innovative capacity and speed in order to accelerate global rollout of products and brands throughout new structures and policies. This was the main goal of Organization 2005:

P&G set up the newly reorganized global operations. I’m going to explain how the company works with its new global operations strategy and how P&G could push SK-II to world brand by using P&G’s target market – China, Europe, and Japan. By using the implement of Organization 2005 (O2005), the company is expected to have more annual growth rate together with less expense. P&G gives more compensation along with more responsibility tasks. P&G allows every employee in company to hold firm’s stock. P&G transferred primary profit responsibility from P&G four regional organizations to seven global business units.

P&G is the world 's largest consumer goods company that markets more than 300 brands in over 180 countries. Many of its products are non-discretionary; however, some are considered premium purchases and their sales suffered during the recession as cheaper, generic purchases rose. P&G has some of the strongest brands in the world that usually provide it a significant competitve advantage. It cut prices up to 10% on a wide swath of products to blunt any potential loss of market share. Below is a summary of the company 's competitive position.

Thanks to this two factors, P&G find itself with a significant competitive advantage. However, slowdown in global economic condition is making it increasingly difficult for branded product manufacturers like P&G to maintain their sales volume and revenue growth.

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

In 1990, Procter & Gamble ( P & G) faced some difficulties in selling their products globally. This is due the inability to produce new products and response to the consumer’s changing needs. The company’s products in market sold less than expected sales and getting reduced for several years. Most of the products are unnoticed by customers. The company practice dictated a multibrand strategy. P & G offer a new brand for every product in each category. This method looks like working well in laundry detergents and other categories but not at all. Moreover, new designation of product would bring higher operating costs and need more investment in order to develop new products. So, the company just retain the old product because of uncertainty about users and premium priced line of product. For example, Pampers just retain in the market with old designation for over two decades. Unfortunately, P & G calculation totally out of box which bring adverse effect to

P&G, a leader in cosmetics, infant products, and grocery industries, offered almost 250 products to 5 billion consumers in 130 countries (Procter & Gamble, Form 10-K 2-3 (1998)).

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.

As time goes on, the whole company’s segments have replaced with three major Global Business Units.

Economic Globalization: Because of the geographical expansion of the company, its focal point shifted from the national market to the global market. This shift was driven by important changes in their management team that leads to new and different practices of managing and organizing production and distribution processes of goods globally.