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Situation Analysis and Recommendation Conducted for P&G Essay

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Situation Analysis and Recommendation Conducted for P&G 1.1Company Background --------------------- P&G is one of the best known and biggest consumer goods companies in the world. It owned several well-known brands that were sold in over 140 countries to nearly 5 billion consumers. For example, Tide, Pantene and Pampers. P&G was founded by William Procter and James Gamble as a partnership in Cincinnati, Ohio, merging Procter¡¯s candle-making company with gamble¡¯s soap business in 1837. In the early 1860s P&G¡¯s initial foray into branding was the Moon and Stars. After 50 years development, P&G became one of the first companies in the US to offer a profit-sharing program for its …show more content…

1.2 Vision ---------- The vision of P&G is that to be, as recognized, the best consumer products and services company in the world. 1.3 Mission ----------- The mission of P&G is to increase its after-tax profits by approximately $900millinon by fiscal 2004. 1.4 Current strategies ---------------------- 1.4.1 Product diversification One of the strategies for their product is diversifying. P&G had five business segments which are Fabric and Home Care, Baby, Feminine, and Family Care, Beauty Care, Health Care and Food and Beverage. Each of the segments include different kinds of products which from toothpaste to medicine and nearly cover everything we use in life. P&G as diversity is a fundamental business strategy because their customers and suppliers become more and more diversified every day. So P&G¡¯s success depends on their ability to understand diverse consumers¡¯ needs. 1.4.2 Cost cutting As an expansion and acceleration of Organization 2005, P&G improve the company¡¯s competitiveness and revitalize long-term growth through reform its¡¯ cost structure by further reducing overhead and manufacturing cost. During 2000, P&G reduced staffing by 9 percent of P&G¡¯s workforce .In manufacture functions, reductions came as a result of both plant closures and rationalization. 1.4.3 Innovation support by

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