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
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4) Chief Executive magazine named P&G the best overall company for leadership development in its list of “40 Best companies for leaders”. 5) Three billion times a day, P&G brands touch the lives of people around the world.
How did the company initiate its first global business? P&G – THE FIRST GLOBAL BUSINESS: HISTORY: * The company globalized in manufacturing and product sales and became an international corporation with its 1930 acquisition of the ‘Thomas Headley Co.’ based in New Castle upon Tyne, England. * P&G maintained a strong link to the North East of England after this acquisition. Numerous new products and brand names were introduced over time, and Procter & Gamble began branching out into new areas. * Procter & Gamble acquired a number of other companies that diversified its product line and significantly increased profits. These acquisitions included Folgers Coffee, Norwich Eaton Pharmaceuticals (the makers of Pepto-Bismol), Richardson-Vicks, Noxell (Noxzema), Shulton's Old Spice, Max Factor, and the Iams Company, among others. * In January 2005 P&G announced an acquisition of Gillette, forming the largest consumer goods company and placing Unilever into second place. This added brands such as Gillette razors, Duracell, Braun, and
Procter and Gamble Co. also know as P&G, is an American multinational consumer goods company, founded by William Procter and James Gamble. Its products include cleaning agents and personal care products. It has in its kitty global brands such as Ariel and Tide in the Fabric care segments and Head & Shoulder, Pantene and Rejoice is the Hair care segment. For this case study selects P&G Company as it has an important role in the consumer segment products. As P&G was a popular company, the financials statement shows better performance in the previous year.
1. What is their business strategy to grow profitably and compete over the long term?
In 2011, CEO of P&G - Mr. Robert McDonald mentioned that he is on a mission and that is to make P&G the most technologically enabled business in the world. And he get it all started by digitalizing operations everywhere which has eventually contributed to reduction of cost, time and effort, reaping better product yet higher profitability.
5. Should the company seriously consider any other options besides doing a spin-off or issuing targeted stock?
Procter & Gamble (P&G) is a Fortune 500 American multinational company, and a world 's leading consumer goods company. P&G’s work is driven by a Purpose of providing branded products and services of superior quality and value to improve the lives of the world’s consumers now and for generations to come. P&G now has 50 Leadership Brands, which are among the world 's best known and which account for more than 90% of P&G sales. P&G entered the Chinese market through a joint venture in 1988. Now, P&G is the most successful foreign marketer in China as measured by market share.
3. What is your assessment of the competitive strength of Kraft Foods’ different business units?
1924: Overseas expansion begins with the establishment of Johnson & Johnson Limited in the United Kingdom.
Describe the company and the major initiative(s) they have planned for the next 5 years.
P&G has diversified business with that it has increased its revenue but it did not neglect the core business and did not stop launching new innovative products in the market.
3. What are the biggest risks faced by the firm in the next 5-10 years?
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.
Gillette is seeking means to retain dominance in market share they have lead for the last century. Along with sustaining market share Gillette has continued focus on expanding worldwide into less saturated markets. In this analysis multiple alternatives will be explored in order to make a recommendation on steps that would favor Gillette’s organization in meeting their aspirations.
Procter & Gamble (P&G) is a world-leading producer of consumer goods. Today, it consists of over 20 million dollar brands (like Gillette) and operates in 42 countries
P&G has merged with Gillette which poses a threat to L'Oreal as they do not have the strong market share in the men's product (Euromonitor, 2005)
What is Proctor & Gamble’s corporate strategy? Do the company’s businesses seem to be related or unrelated? Are Gillette’s businesses closely related to P&G’s businesses? How will a merger with Gillette provide a 1 + 1 = 3 effect for P&G?