Research and Analysis on Proctor & Gamble (P&G)

5481 WordsMar 22, 200822 Pages
Executive Summary Procter & Gamble (P&G) is a multinational consumer-product company which operates in nearly 80 countries with more than 300 brands. With its core competency in development and commercialization of products and brands such as Pampers, Tide, and Wella which are part of P&G 's 22 billion-dollar brands, P&G has been highly successful in the market with sales of $68 billion and a net profit of $8 billion in 2006. Its aggressive international expansion and innovation-driven strategy enable the company to achieve economies of scale as well as to differentiate itself from strong competitors like Unilever, and Kimberly-Clark. Due to its large size and complexity, the organizational structure tends to be centralized. The…show more content…
Due to its nature as a transnational corporation, it must deal with consumers from various cultural backgrounds and respond to different customer needs, both vitally important in international business. Thus, we chose P&G 's international operations as the focal area of our project. More specifically, China was chosen to conduct a detailed and sophisticated analysis. China, as an emerging and competitive market, has caught increasingly more attention from almost all major multinational corporations. Without exception, China has played a more important role in P&G 's ambitious blueprints, due to its immense consumer base, rapid economic growth, and gradually open environment. However, many of P&G 's brands failed and exited the Chinese market, which largely affected the company 's profitability and reputation. Therefore, to analyze the causes behind the failure and to design a set of potential recommendation to fix the issue is beneficial for the company 's future operations. Description and analysis of the organization 's present design and context P&G Company overview Procter & Gamble is a multinational consumer-product company established by William Procter and James Gamble in 1837. P&G currently has a

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