Proctor & Gamble - Case Study Example

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The total revenue of P & G was 84167 million dollars whereas in 2012, it was 83680 million dollars. The net income or profit of P & G in FY 2013 was 41739 whereas that in 2012 was 41780 million…
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Proctor & Gamble Compared to FY the performance of Proctor and Gamble in FY is better. The total revenue of P & G was 84167 million dollars whereas in 2012, it was 83680 million dollars. The net income or profit of P & G in FY 2013 was 41739 whereas that in 2012 was 41780 million dollars (Stock analysis on net). From the above statistics, it is evident that the future of the company is promising. However, it is necessary for the company to expand its business more in emerging markets such as India and China. It should be noted that these two countries are the most rapidly emerging economies as well as the most heavily populated countries at the moment. Both top and bottom line products suitable for these counties should be developed more by P & G. The company should think about merger and acquisition strategies to create new business in these countries.
P&G has 300 plus brands sold in more than 180 countries at the moment. Even though majority of these brands are performing well, some of them are performing below par. The company has 22 billion-dollar brands and 19 half-billion-dollar brands (P & G Media kit, p.4). 70 to 80 brands account for 90 percent of P&G sales and 95 percent of its profit (Monk). In other words, around 100 brands perform insignificantly for P & G. P & G believes that the time and efforts given for the sustainment of these underperforming brands can be better utilized for the development of better performing brands. In my opinion, P & G’s strategy will be successful since the closure or the restructuring of underperforming brands would help the company to allocate more resources to the better performing brands and thereby monopolize concerned markets. Therefore, investors need not worry too much about the brand restructuring strategies of P& G.
A.G. Lafley is the Chairman, President, and Chief Executive Officer of Procter & Gamble. It is believed that Lafley was rehired mainly because of the inefficiency of Robert McDonald, the predecessor of Lafley. Under the leadership of McDonald, the company failed to win in emerging markets because of its poor organizational structure, marketing problems, and bloated overhead (Nisen). Lafley on the other hand is believed to be an expert in increasing company value through various strategies. His leadership style is highly motivating and his business principles are highly effective in modern day market. His book “playing to win” helps organizational leaders to learn some important lessons about the importance of every day actions, and strategies built around business elements that are capable of bringing success. This book helps leaders to understand where to play and how to win in tough situations (Lafley and Martin)
P & G’s hiring process consists of total assessment of the applicants with the help of sound resume screening, multiple interviews, and multiple tests. The ultimate aim of the hiring process is to identify the best talents from the employment market (Hiring process, your steps to success, p.2). The company conducts many behaviour based interviews to get more insights about the candidate. These interviews will test the behaviour as well as the skills and capabilities of the candidates. Numerical reasoning test is conducted with the help of numeric and logic based questions among college students in order to identify their reasoning skills. It is important for me to improve my verbal as well as nonverbal communication skills to be considered a serious candidate at P&G. It is believed that more than half of the actual message is communicated through nonverbal means. Moreover, nonverbal means of communication helps the interviewer to assess the behaviour of the candidates properly. Therefore, I should improve my communication, especially the nonverbal communication skills more to get a job in P & G.
The major advantage of working at P & G is the prestige it gives to an employee. Even though the work climate could be demanding, employees in P & G is getting a decent salary and other benefits. I believe that I will not get enough opportunities for work life balancing while working in a big company like P & G. At the same time, the experiences received from a company like P & G would definitely help me in my future endeavours.
Works Cited
“Hiring Process, Your Steps To Success”. Web. 28 October 2014
Lafley A.G. and Martin, Roger L. “Playing to Win: How Strategy Really Works”. Publisher: Harvard Business Review Press (5 February 2013). Print
Monk, Dan. “Procter & Gamble Co. (PG) Plans Major Restructuring Of Its Brand Portfolio”. Web. 28 October 2014.
Nisen, Max. “Heres Why Wall Street Loves The Return Of P&Gs Old CEO”. Web. 28 October 2014.
“P & G Media Kit”. Web. 28 October 2014.
Stock analysis on net. “Procter & Gamble Co. (PG)”. Web. 28 October 2014. Read More
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