Procter and Gamble Research

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IB Dream Company PROJECT – P&G March 1, 2012
Group 21
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IB Dream Company PROJECT – P&G March 1, 2012
Group 21
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A Humble Beginning . . . roctor & Gamble was born in 1837 by the collaboration or William Proctor, a candle maker and James Gamble, a soap maker. They started this partnership at the suggestion of their common father-in-law Alexander Norris. After 175 years, P&G is one of the consumer goods company in the world. It features in the Fortune 500 list and recorded sales of $82.6 billion dollars in 2011.
The year 1837 was quite a difficult time to start any business. Although Cincinnati was a busy market-place, the United States of America was gripped by financial panic. Scores and scores of banks were closing down across the
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. . roctor & Gamble is known to expand rapidly. The summary of the mergers & acquisition by P&G is given in Table 1. As you can see, though P&G is acquiring an average of 2 to 3 firms in the recent past, it is divesting its stakes at a faster rate. This implies that P&G wants to expand in areas of strength & focus its full concentration there and at the same time reduce its stake in all the ventures that it deems unprofitable.
One of the major acquisitions by P&G in the last 10 years was the acquisition of the German Hair Company Wella AG for $6.27 billion. Wella AG was the market leader in hair care products, with revenues exceeding $3.6 billion in 2002. Through this deal, P&G entered the salon market. They also entered the dental market in the same year by acquiring Glide, a dental floss brand from W.L. Gore & Associates, Inc. P&G decided to exit the food market gradually. The first step was by selling its Sunny Delight and Punica drinks in April 2004 to J.W. Childs Associates LP.
P&G made a major foray into the pharmaceutical sector with the acquisition of the Spanish firm Laboratorios Vita for € 150 million. It followed this with the acquisition of Asacol, another pharmaceutical firm.
After Wella AG, P&G made another major acquisition – Gillette Co. This was in January 2005 and the deal was for $57 billion, the largest acquisition made by P&G till date. Through this deal, P&G acquired the brands Gillette, Braun, Right Guard and Duracell. P&G acquired
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