Strategic Management: Proctor & Gamble Name: Institution: Instructor: Course Code: Date: Analysis of P&G As one of the largest consumer goods company globally, P&G is committed to strategies that boost the long term growth and health of the company, and which deliver higher shareholder value in the top one third of the our peer group (P&G, 2012)…
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The company operates in six product segments: grooming, beauty, Health care, Home care, Family and Baby care, and Pet care (P&G, 2012a). Beauty and personal care arena are contained within P&G’s grooming, beauty and health business segments and include skin care, oral care, cosmetics, fragrances, hair care, baby care, depilatories and men’s grooming products (Euromonitor, 2010:4). Some of the fundamental brands in beauty and personal care arena include pampers, Olay, Head& Shoulders, Panteen, Mach3, Oral B, Puma, Fusion, Gillete, safeguard, ivory among others (P&G, 2012b). The company’s global Beauty and Personal care market share is 11.7% with the volume growth in net sales in this segment being an average of 4% in 2011 where the beauty segment growth was 3%, the grooming segment at 4% and the Health segment at 5% (P &G Annual Report, 2011: 41-42; Euromonitor, 2010: 4-5). The market share growth for the Beauty and personal care products experienced single digit growth at the rate of 2.8% with the market share growth for the Beauty and Personal Care share for the company based on the main categories of skin care, hair care, men’s grooming, fragrances, and oral care being as shown below in figure 1. Figure1: Value Market Share Source: Euromonitor, 2011 Similar with its peers in the industry, P&G was negatively impacted with the global economic crisis with its key brands being grossly affected and net sales within the industry having fallen during the 2008 – 2009 period. However, with the company’s strategy response in focusing on core businesses and brands, and divesting in its less critical segments, the company has been able to record growth within its various product segments, with the beauty and personal care products taking the lead in growth. In addition, the company has over the past three years focused in building a strong market position in emerging countries such as China, India, Russia, and Brazil (Raval, 2012: 1; Prior, 2011:201; Reingold, 2011:60). Financial Assessment: The company has bounced back from the 2009 decline in net sales through its post recession strategy of focusing on its core businesses and brands, and its continued investments in the emerging markets. The most impactful strategy though that has increased net sales is the company’s decision to cut down prices. These strategies have proved successful with the company increasing its net sales over the 2010 and 2011 period. Net sales rose by 4.6% in 2011 from 2010 net sales. This strategy though effective in the short term, it may be detrimental to brand equity in the long term. This is clearly noted with the downward trend of the net earnings value since 2009 at the rate of 1% (P &G Annual Report, 2011: 1-2). The revenue versus profit growth trends over the past five year period is as shown in figure 2. The beauty and personal care segments as noted above though have been growing in sales volume especially in the emerging countries (P&G Annual Report, 2011:52; P&G, 2010:5). In fact the company has moved its personal care hub from Ohio to Singapore, in order to strategically place itself in that market (Raval, 2012). Figure2: Net sales and Net Profit growth trend SWOT Analysis: A SWOT analysis of the company’s beauty and personal care segment reveals a stronger and powerful portfolio of products as a key strength. This provides a strong
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The purpose of the study is to understand impact of leadership in strategic change management. Understanding relationship between organizational culture and leadership issues of change management will be important aspect of the study. This discussion will create a link between academic theories with leadership issues in P&G.
government and also at home. Such was the proposition made by Fayol. He has described the management practices as being distinctly different from such business functions like finance, accounting, production and distribution. He then presented the 14 principles of management, which are division of work, authority, discipline, unity of command, unity of direction, subordination of individual interest to the general interest, remuneration, centralization, scalar chain, order, equity, stability of tenure of personnel, initiative, Esprit de Corps (Robbins, n.d., p.22).
The paper tells that Proctor & Gamble was established by William Procter and James Gamble in the year 1837. The company serves more than eighty countries across the globe. Sales volume has touched a record mark of more than $80,000 billion in the year 2011. They have established category leadership in various segments like House Care, Skin Care and Oral care.
A business report on the forecasted analysis of “your” company with two products Company Overview Proctor and Gamble is an international company which specializes in personal care products and cleaning agents. The company has origin in the United States but it has subsidiaries all over the world.
Upon review of the information in the study, it is clear that the company has a focused strategy regarding cost management. In fact, Wal-Mart specifically seeks innovative and aggressive ways to control costs within its own operating systems, as well as aspiring to be the market leader in low-cost product offerings to the public.
The concept of strategic fit is also discussed as part of this paper. After all these discussions, the process of strategic management followed at Gillette is discussed in detail throwing light on various issues involved in the field of strategic management.
A conscious effort to systematize the effort and to manage its evolution is preferable to an unmanaged and haphazard evolution. The basic planning problem is how to allocate the organization's limited resources. The major benefits to be expected from planning include an improved sense of direction for the organization, better performance, increased understanding of the organization and its purpose, earlier awareness of problems, and more effective decisions.
Proctor & Gamble are a relatively new entrant in Pakistan’s consumer market but in a short period of less than two decades have made a mark for themselves. The important feature of their venture in Pakistan is employing 99% local talent to run the company operations.
Procter & Gamble is a well-known American multinational consumer goods company which is head quartered in downtown Cincinnati, Ohio, USA. The great company was founded around 1837 by a soap maker, James Gamble and a candle maker, William Procter. These two investors had settled in Cincinnati, where they had married.
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
2 Pages(500 words)Case Study
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