Procter & Gamble GBS Report & Recommendations
Introduction:
P & G is the quintessential American company, with more than 175 years of history. Coming from humble roots, it was established by a partnership of William Procter and his brother in law James Gamble. Over its extensive history, P&G has followed an aggressive “growth by acquisition” strategy which has transformed it into the global manufacturer of household & health items in the world. After P & G’s merger with Gillette in 2005, it controlled 22 individual brands, 8 of which would each be large enough to be included in the Fortune 100. Due to recent changes in market conditions and renewed competition, P & G started to change strategies and became
…show more content…
Outsource GBS divisions separately to best-of-breed companies:
Pros:
* Allow P&G to control the cost of services and retain the quality of services from experienced employees who are familiar with P&G’s business processes. In fact, this choice may actually improve the quality of services, as P&G will most likely seek out only companies who are at the top of their respective service industries. These “Top-of-Breed” companies will most likely add experience and know-how to bring additional value to P&G. * May prevent job losses * Allows P&G to focus on core businesses
Cons:
* All previous concerns from option ii * Multiple partnerships necessitated by this option could prove extremely costly and complicated to integrate and manage
iv. Retain GBS in-house
Pros:
* Maintain continuity with employees possibly boost morale * Least disruptive to employees * Less conflict with core values * Develop business unit further than other options
Cons:
* Costly investment to make GBS competitive in the long run * Makes Org structure more complex * P&G may eventually outgrow the capabilities of GBS (temporary fix)
Recommendations:
After careful analysis, I’ve decided to recommend that P&G spin GBS off as a separate business. This move will allow P&G to keep its commitment to
Established in 1837, Proctor and Gamble (P&G) had developed a holy grail of principles and practices. Its philosophy is focused on individual talents, abilities and how best to make use of them. P&G source this talent from within the organization attracting people willing to spend their entire career with the company. Proctor & Gamble has developed a reputation of caution in the industry of household 's sundries and personal care products. It 's marketing strategies and judgements towards different markets stand out to the competition. Extensive marketing research and testing are "trademarks" that distinguish P&G in the industry. "Internal operations at P&G are described as thorough, creative, and aggressive by some, and slow, risk
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.
Procter & Gamble Co is an American global consumer goods company. P&G have various products that range from personal hygiene products to household products.
The company continually strives for innovation and leadership. Utilizing a decentralized management approach, it allows each of their companies to function as its own small business giving the advantages of both a small and large organization. The Executive Committee of Johnson & Johnson is the principal management group responsible for the operations of Johnson & Johnson. In addition, certain Executive Committee members serve as Worldwide Chairmen of Group Operating Committees, which are comprised of managers who represent key operations within the group, as well as management expertise in other specialized functions. These committees oversee and coordinate the activities of domestic and international companies related to each of the Consumer, Pharmaceutical and Professional segments of business. Operating management of each company is headed by a Chairman, President, General Manager or Managing Director who reports directly to, or through a line executive to, a Group Operating Committee. In line with this policy of decentralization, each international subsidiary is, with some exceptions, managed by citizens of the country where it is located.
2 news for the top 100 brands: Gillette & Duracell: Retailers cannot afford them not to sell its
P&G success was contributed to the heart of its business model – Innovation; and that is not just for newly invented product or service, it was for the goal of recreating needs for the improvement of consumers’ living. And it is a very long culture started where the roots started from the founders; whom are soap and candles makers. The first innovative product – Ivory; started in 1879, by James Norris Gamble who is the son of the founder and a trained chemist. Ivory at then was an
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.
In addition, it owns and operates 93 manufacturing facilities in 45 other countries” (2). With such a huge, world-wide customer base, P & G has the challenge of meeting the needs of millions of people. To do so, the company has to constantly update its product line and expand is operations, increase it to answer new consumer demands. The question is then, is P & G capable of doing so?
The Procter & Gamble business strategy is to focus on creating new brands and categories so the company can focus on being the best in branding, innovation and scale. This is what sets this company apart from many of its competitors. The Proctor and Gamble are the global leader in all of their core businesses within the company which consists of laundry, baby care, hair care and feminine protection. This report is designed to understand the company’s business model and strategies, and analysis how the P&G has formulated its business-level strategies to pursue its business model.
Johnson & Johnson was founded in 1886 by a New England Druggist named Robert Wood Johnson. Robert had his ingenuity inspired when Joseph Lister revealed that infections in the operating room were caused by airborne germs. Robert joined with his brothers, James and Edward, and started producing dressings in New Brunswick, New Jersey in 1886. They started with only 14 employees and were situated in an old wallpaper factory. Johnson and Johnson became incorporated in 1887. (Johnson & Johnson)
P&G is a multinational Organization of consumer goods situated in United States. It sells products like personal care, cleaning agents, pet foods. The P&G Company is well known for its unique strategy which cares about the need of human. It not only makes its product available to its consumers but also tries to improve the life of its consumers. This strategy is more focus on its consumers wants and that is why it has an appeal to the heart of the consumer. The company has diversified its product line and also acquired other companies which have significantly contributed in the growth of their profitability.
Procter & Gamble is one of the most successful consumer goods companies in the world. There are many brand names found under the name of P&G INC . Scope, a mouth-wash brand, is a part of P&G. Scope was introduced as part of oral hygiene industry in the year 1967, in Canada. Scope had the highest market growth in Canada.
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.
As a large global company, P&G has strengths that have helped them to acquire such a vast market share. The company’s culture, strong product quality, the ability to understand customers, brand equity, and centralized management is at the
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)