Proctor & Gamble Co Analysis - Case Study Example

Despite the poor performance, 25% of the company’s revenue is generated from beauty products sales that have brought forth highly innovative products under the leadership of A.G. Lafley as the CEO. Under his first tenure (2000 to 2009), P&G undertook various creative innovations that saw double the increase in the sales of its products. As the CEO, A.G. Lafley has come up with various measures that are aimed at propelling the company’s profitable sales of its products. The company has been pruning some of its product segments which include the selling of the pet food producing segment to the Candy Bar and Pedigree-maker Mars Inc. for $2.9 billion which is enough cash to undertake innovations and reinvest in the growing shaving, baby care, beauty and fabric segments (Brown, Bruce, and Scott D. Anthony, 42-56).

In 2010, the company revealed a sustainable program to drive a 20% reduction in energy used for every unit of production by 2020. This has cut down energy consumption by 8% per unit, and also continues to introduce energy management systems at new locations that will help the company save millions of dollars. Moreover; P&G has engaged momentous mechanisms to enhance productivity, counting a five-year cost-savings initiative that will last through 2016. Through this, Proctor and Gamble CO. Targets to save $10 billion in costs related to goods traded, marketing expenses, and non-manufacturing expenses. This program helped the company save $1.2 billion in the cost of goods sold in the fiscal year 2013. The company has also incorporated a reshuffling process of its worldwide sales operation, combining Eastern and Western Europe into a single transaction. While the other combination is for India into its African and Middle East operations aiming at organizing the sales distribution in parallel geographical locations and cutting costs (Brown, Bruce, and Scott D. Anthony, pg 69-72).

The company is also investing in expansion in new and emerging markets such as Brazil and also has pledged to track its palm oil procurement and also cut off the suppliers who produce it by destroying rainforests in a bid to defuse conflicts with environmental groups.