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Procter & Gamble Paper - Case Study Example

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Procter & Gamble Analysis The company ‘Procter & Gamble’ (P&G) came into existence after the partnership between the two European immigrants named William Procter and James Gamble was formed. William Procter was an established candle maker while James Gamble produced soaps…
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Download file to see previous pages This became rather beneficial for the P&G to improve its brand image and position in the market among others. In the year 1890, Procter & Gamble integrated extra funds so as to enhance the business process of the P&G. Moreover, innovative machines and analytical labs were also introduced so as to improve the soap making procedure of P&G. It was the first research labs in the American industry which augmented the status and the corporate image of P&G in the market among others and marked the company as a market leader (Eugene, 2005). After that the company continued to expand and develop for the next 120 years with the help of extensive research and development, modernization and global expansions. Apart from this, P&G also developed new products such as Tide detergent and Crest toothpaste, which became quite famous in the market. This ultimately facilitated P&G to become a global market leader by 1993 resulting in the enhancement of the sales by US$30 billion. At this time, P&G was not only a market leader but also an innovator of new product lines which were highly appreciable among the other competitors. This helped to improve the market share and the brand identity of the company in the international market. This as a result improved the turnover of the company to a wide extent. Still, P&G continued its pace of movements and in the year 1999, it purchased a pet food producing company Iams. At that time, Iams was also one of the reputed brands in the sector of pet food manufacturing in the US. Hence, this helped P&G’s endeavor to become a multinational corporation working worldwide. Iams was a company developed by an animal nutritionist with the vision to improve the welfare of the dogs and cats by offering them with eminent quality of foods and care. As P&G deals with animal well-being which is one of the significant responsibilities of ‘PETA’, so its role is mandatory. PETA refers to ‘people for the ethical treatment of animals’ which was established in 1980 so as to defend the rights of the animals and maintain the interests of the animals. However, unfortunately certain unethical conducts of P&G on the animals hampered its brand image and marked the beginning of the investigation by PETA (Eugene, 2005). Question 1 Due to unethical treatment of animals, Procter & Gamble had faced risk of reputation damage (Eugene, 2005). Therefore, damage in reputation can impact upon the communication of stakeholders with the company. It is uncertain that how the stakeholders will react in the reputation crisis of Procter and Gamble. The stakeholders can be any group which can impact or can be impacted by the performance of Procter & Gamble, such as advertisement agencies, financiers, wholesalers, traders, community groups, competitors, customers, clients, employees, franchises, global managers, investors, law administration officers, licensers, media, politicians, suppliers and salespersons. Among them the most significant stakeholders that will be affected most are customers, clients, suppliers, financiers, law administration officers, licensers and investors. Protecting reputation is vital for any organization in order to retain a position in the market and to avoid poor status in the industry. Managing the reputation is the way about how an organization is satisfying the expectations of stakeholders on the basis of past performances. Reputation is extensively acknowledged as a worthy intangible resource which helps to entice more customers and investors, ...Download file to see next pagesRead More
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