Procter and Gamble Market Analysis Essay

7261 WordsApr 17, 201130 Pages
procter and gamble market analysis Executive Summary 3 Swot Analysis 4 Cash Assessment 5 Profitability Assessment 8 eARNING PER SHARE 9 MARKET ANALYSIS 10 INDUSTRY ANALYSIS 10 Target marke 10 customer profile 11 major competitors and participants 12 market segmentation 12 PROJECTED MARKET GROWTH AND MARKET SHARE OBJECTIVES 13 PRODUCT AND SERVICE OFFERING 13 PRODUCT AND SERVICE UNIQUENESS 14 PRODUCT AND SERVICE DESCRIPTIONS 14 COMPETITIVE COMPARISON 15 research and development 16 Patent and trademarks 16 summary of key findings 17 references 18 Executive summary The Procter & Gamble Company (P&G) began its operation in downtown Cincinnati, Ohio in 1837. The company operates in a very competitive industry where…show more content…
In this way the company will then be well positioned to handle future growth. Current Ratio The current ratio is used to measure whether or not a company have enough resources and is able to pay back its short term liabilities with its short term assets. In 2010 PG with current ratio of 0.8 compare to 2009 with the ratio of 0.9 experiences a negative working capital, so P&G has 0.8 in current asset for every $1 in current liabilities. Since the ratio below 1 (which is the rule of thumb) this is an indicator of failing to meet the short term obligations. If P&G had to pay back all its short term liabilities with its short term assets, at this point, it’s not able to do so. Therefore, P&G is lower than their industry average (1.1), and significantly lower than the companies in the S&P 500 (a broad measure of the market) which has a current ratio of 1.4. This could happen because customers pay upfront and so rapidly, and the company has no problems raising cash. Also, the low current ratio could be due to the fact that P &G products are delivered and sold to the customer before the company ever pays for them. There are two different approaches that P&G must take into consideration in order to improve its current ratio; to collect outstanding account receivables, convert fixed assets to cash by selling off their unused equipment. Quick Ratio This ratio is an indicator of a company's short-term liquidity. The quick ratio measures a company's

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