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Proctor & Gamble Strategic Analysis
1
Outline
Introduction
History of P&G
SWOT Analysis
Balanced Scorecard
Communication
Marketing
PEST Analysis
Ethics
Conclusion
Outline of Power Point Presentation
2
Introduction
Looking at internal and external strategies
Developing Markets
Competitive advantage
This report provides a thorough internal as well as external
analysis of P&G, identifies its mandate, along with certain
strategies that would help it increase its profitability, profit
growth and sustain its competitive advantage in both developed
and developing markets. Although, P&G has world renowned
brands, P&G needs to adopt strategies that enable it to maintain
its competitive advantage over its rival.
3
History of P&G
William Procter & James Gamble were founders in 1837.
Total assets at that time:$7,192.24
William A. Procter became first president in 1890.
Ivory soap was first branded product launched in 1879.
(Procter & Gamble, 2012)
Procter & Gamble is a US Global company that provides
consumer products in the areas of pharmaceuticals goods
founded in 1837.P&G processes operations in more than 80
countries thanks to 300 brands on market
Procter & Gamble is a multinational corporation with more than
300 successful brands worldwide. The company is earning trust
of its clients in every part of the world and famous for its
steady innovations in all areas of the company. More than 4
billion people use the products of Procter & Gamble daily.
The company has offices in Johannesburg and Cape Town. P&
G has its Headquarters in Ohio, US.
4
SWOT Analysis
Strengths:
Network
Weakness:
Opportunity:
Threats:
lation
SWOT analysis serves to summarize all of the key findings from
the entire situation analysis process including important
information about the company’s
internal strengths and weaknesses and important information
about external opportunities and threats in the form of consumer
trends, competition, and macro
environmental trends.
Strengths: include diverse portfolios, global operations, and
strong distribution in which P&G uses to distribute their
products and stay ahead of the competition.
Weakness: include a poor online presence, missing opportunity
from lack of internet resources, and improvement needed in
beauty products.
Opportunity: include P&G’s ability to reach out to diverse
markets, improving on online media sources, and playing an
important role for environmental concern.
Threats: include competition from other companies such as
Unilever and Johnson & Johnson, lack of new innovation, and
government regulations concerning outsourcing products.
5
SWOT Analysis cont….
STRENGTHS
Leading brands
Procter & Gamble has strong brands to its name. The company
boasts 24 billion dollar brands. It also claims 50 leadership
brands that contribute 90% to its overall sales and profit.
(P&G brands, 2011)
OPPORTUNITIES
Emerging Markets
Emerging markets are expected to produce strong growth in
beauty and personal care. Procter & Gamble can benefit from
the shift of consumption to the emerging markets.
WEAKNESSES
Mature market reliance
The company continues to rely heavily on mature markets. The
emerging markets will outperform mature markets over the
forecast period putting Procter & Gamble in a vulnerable
position.
THREATS
Global/local competition
Unilever remains a significant threat in the developing markets
in some categories such as bath and shower. Local players will
also compete fiercely with Procter & Gamble.
* Strengths: - Reaches retailers and consumers at the right place
and time. * Well-driven brand building by benefiting customers.
* Translates consumer desires into new products.
* Brand recognition all around the world.
* Weaknesses: - Out of hand management because of too much
diversification. * Supply Chain System failing in some
Countries.
* No presence at all in some other countries especially in the
third world countries.
* Opportunities: - Opportunity to reach new target markets in
third world countries such as Africa. * Can be more efficient as
far as distribution and getting to retailers. * Investing in more
countries around the world especially third world countries to
implement brands, target markets and be close to retailers and
customers.
* Threats: - Tough competition such as Unilever.
- Possibilities of concurrent to invest in third world countries
and eventually monopolize the market.
6
Balanced Scorecard
Product leadership:
According to the P&G website they have fifty leadership
brands worldwide. Some of these brands include Charmin,
Pringles, Tide, Iams and many more. Majority of P&G products
are well known household names. 24 out of the fifty brands
generate more than one billion dollars in sales per year (P&G
brands, 2011).
Customer intimacy:
P&G conducts over 20,000 research studies every year and
invests more than $400 million per year into consumer research.
This is more than any other company in the world (“PG.com
core...”, 2011). P&G is dedicated to improving their products
so that their customers have the best experience while using
them as possible.
A balanced scorecard is a strategic business tool used to collect
and report information to management on four specific areas
which include the financial perspective, customer’s perspective,
internal operations perspective, and learning and growing
aspect. These help a business monitor performance and make
necessary improvements that will contribute to the success of
the organization.
7
Communication
● Makes the company profitable
● Develops trust amongst consumers
● Promotes change and motivates employees.
The purpose of most businesses conducting business in the
world is to make a profit. P & G is a large and powerful
company with a good purpose. Their purpose states that the
company will provide branded products and services of superior
quality and value that improve the lives of the world’s
consumers, now and for generations to come. As a result,
consumers will reward P & G with leadership sales, profit and
value creation, allowing our people, our shareholders and the
communities in which we live and work to prosper. (Procter &
Gamble, 2011).
P&G realizes that communicating to it’s employees everything
that may be taking place internally is very important to it’s
bottom line. P&G ensures that all of its units understand the
impact of any change going on within especially at the
professional level. (Gunu) The more employees are made to
understand the changes that are taking place, the more they will
begin to become excited about them.
(Olympics P&G -Thank You Mom Commercial – YouTube
Video)
8
Marketing
$100 million in projects
3 million consumer contracts for marketing
Analyzing the global market
Brand awareness and distribution
Procter and Gamble has been known to be the most skillful
marketers of consumer packaged goods in the world with their
powerful and emotional marketing campaigns. They currently
hold one of the most powerful portfolios of trusted brands in the
world. They have 138,000 employees in over 80 countries
netting $79 billion in worldwide sales.
They generate their marketing campaigns through their vast use
of customer knowledge and research. They study consumers on
both ends, consumers and trade partners. Every year Procter and
Gamble spends 100 million dollars on 10,000 formal consumer
research projects to ensure that they are marketing correctly,
their consumers are happy and to make sure they stay ahead of
the curve regarding similar companies. They now have 3 million
consumer contacts that they are able to use for conducting even
more accurate marketing research. Procter and Gamble makes
sure to encourage their marketers and researchers to emphasize
their focus out into the field to interact with both consumers
and retailers on a personal level for more accurate results.
Procter and Gambles long-term outlook is currently looking
extremely well when compared to similar companies. They
focus heavily on analyzing each opportunity in each market
carefully to prepare the best products to market to the
consumers of each of their many brands. Recently Proctor and
Gamble has been focusing on increasing their presence in
developing markets by concentrating on affordability, brand
awareness and distribution of products through e-commerce and
high frequency stores.
9
PEST Analysis
The P&G Political Action Committee (P&G PAC) is a
voluntary, nonpartisan political action committee. Registered
with the U.S. Federal Election Commission (FEC) and
appropriate state offices, the PAC allows P&G employees to
pool personal, voluntary financial contributions to support
candidates at the federal, state and local level,
Procter & Gamble believes that there is growing scientific
evidence linking greenhouse gas (GHG) emissions and global
climate change. As a global citizen, P&G is concerned about the
potentially negative consequences of climate change and
believes prudent and cost-effective action by governments,
industry and citizens to reduce emissions to the atmosphere are
justified.
P&G leaders are expected to build an inclusive work
environment that welcomes and embraces diversity – an
environment where people feel comfortable being who they are,
regardless of their individual differences, talents or personal
characteristics.
Political environment:
Environmental:
Social environment:
Technological:
P&G’s Global Medical organization advises and assists
management and employees to assure a safe, healthy work
environment.
PEST analysis is used to evaluate the political, environmental,
social and technological influences that organizations might
face when they are about to start a project. It provides external
factors that organizations should take into consideration before
they start the projects.
10
Ethics
P&G's Pantene launched its Beautiful Lengths program in 2006
P&G's ads about efforts to provide free sanitary protection in
Africa
Company principles include: respect for all employees, the
interests of the company and the individual.
(Nickels, McHugh, & McHugh, Chapter 7, 2010).
P & G has built their business on a platform of ethical behavior.
They pride themselves on providing superior products that
enhance the lives of their customers. They strive to work within
the letter of the law. Rational decision-making Is a multiple
step process starting with creating a definition of the situation
(Nickels, McHugh, & McHugh, Chapter 7, 2010).
P&G's Pantene launched its Beautiful Lengths program in 2006
to solicit locks of hair to be woven into wigs for women
receiving cancer treatments.
Even P&G's ads about efforts to provide free sanitary protection
in Africa to help keep girls from missing school.
Procter and Gamble has been identified as one of the best
companies to be employed at as an employee in whichever
country (Witt, 2012).
11
Conclusion / Recommendation
They must be able to retain customer loyalty which has
contributed to their success.
The company should exploit new market segments and
opportunities to support for the concentrated growth strategy,
gain market share, and minimize the threats of losing market
caused by its vibrant external environment and fierce
competitive market.
There are some strategies that PG can implement to improve and
solidify its performance as follow:
Utilize the strengths in research and development and human
resource to develop its technological resource. This will help
the company to minimize the threat of substitutes due to the
rapidly changes in technological environment.
2.
Utilize the strengths in financial resource, invest more in
marketing to build up reputation with consumers and minimize
the threat of losing market due to its high extent of competitive
rivalry
Procter & Gamble has established itself as a market leader
which is a result of its unique purpose and certain strategies
applied on its products. The company's growth strategy is
through acquisitions which makes the company highly
diversified.
12
References
Gunu, O. M. (n.d.). How Procter and Gamble Survived Through
Innovation – A Case Study. Retrieved from knol:
http://knol.google.com/k/how-procter-and-gamble-survived-
through-innovation-a-case-study#
Nickels, W. G., McHugh, J.M., & McHugh, S.M. (2010).
Understanding Business (9th ed.).
Procter & Gamble. (2011). Retrieved from
http://www.pg.com/en_US/
Procter & Gamble. (2012). Procter & Gamble Official Website.
Retrieved from
http://www.pg.com/en_US/company/purpose_people/pvp.shtml.
Witt, H. (2012). Corporate news: Procter symbol succumbs to
devilish rumor. Chicago
Tribune.
13
MBA Capstone Project Guidelines
Throughout your MBA program, you have worked to develop as
a practitioner-scholar to meet the needs and future challenges as
a business leader. Your program culminates in the capstone
project, which forms the primary focus of MBA6900, the final
course you will take in the program. The capstone project is
intended to provide you the opportunity to demonstrate your
MBA program outcomes by:
· Planning and executing the strategic and tactical elements of a
comprehensive project.
· Integrating and demonstrating skills and techniques you have
learned throughout the MBA program.
· Communicating project outcomes both in written form and in a
formal presentation.
· Completing your MBA program with an experience that
reinforces and integrates the components that have preceded it.
The following information outlines the requirements and work
associated with the capstone project for MBA6028 and
MBA6900.
Capstone Project Examples
Examples of project types that might be proposed to meet these
requirements include but are not limited to:
· Preparation of a strategic plan for an organization.
· A strategic analysis of all or a selected part of an
organization.
· Development of a case study of all or a selected part of an
organization.
· Development of an intervention, such as a workshop or
training activity, that is broad- based enough to demonstrate the
program-level outcomes.
· Development of a consulting report on a problematic issue
within an organization, provided that the issue is broad-based
enough to demonstrate program-level outcomes.
You may propose other structures for the capstone project so
long as you are able to identify how the proposed project
satisfies the requirement of demonstrating the program-level
outcomes. When choosing your topic, keep in mind that your
capstone project must result in recommendations, next steps, or
some other type of actionable, evidence-based take-aways for
the reader or subject of the project.
Capstone Project Requirements
The capstone course project must demonstrate your achievement
of the MBA program outcomes. The following table is taken
from the proficient column of the final capstone grading rubric.
It outlines the expectations for demonstrating each program
outcome.
Program Outcome:
Proficient Column:
1. Apply foundational knowledge and an understanding of
business systems,
processes, and technology within and across core disciplines.
Applies foundational knowledge (theories, models, and
practices) and an understanding of core business systems,
processes, and technology within and across core disciplines.
2. Integrate information across disciplines and from differing
perspectives.
Integrates most relevant supportive and conflicting information
(data, insights, best
practices) across disciplines from differing primary functional
perspectives individually
and holistically.
3. Think critically and analytically to
provide evidence-based solutions to business challenges and
opportunities.
Develops logical, well-supported, solutions based on relevant,
sound, logical, and credible evidence (data, insights, analyses,
best practices) to solve business challenges and opportunities.
4. Apply innovative, strategic, and sustainable approaches to
business practice and planning.
Applies innovative, strategic, and sustainable (long-term)
approaches to business practice and planning.
5. Lead and collaborate in virtual, global, and culturally
diverse environments.
Applies leadership and collaboration principles and strategies
for virtual, global, and culturally diverse environments.
6. Integrate principles of ethics and
integrity into business decisions.
Integrates principles of ethics and integrity into business
decisions by assessing ethical implications and resolving ethical
conflicts and dilemmas.
7. Communicate clearly and effectively in
a business environment.
Communicates clearly and effectively in a business environment
by applying professional speaking, effective presentation, and
persuasion skills to create a clear and compelling case for
business solutions.
MBA Capstone Project Guidelines
1
When proposing a capstone project in MBA6028, you will be
required to identify how the proposed project addresses the
demonstration of program outcomes 1, 2, 5, and 6. Outcomes 3,
4, and 7 are demonstrated by the quality of the final deliverable.
The project will be completed individually, not in teams. In
addition, the capstone project must meet these criteria:
· The organization must be real, not fictitious. This may be an
organization to which you have direct access for data gathering
or one for which you will gather data via published sources. In
either case, it must be an organization for which you can gather
the data needed to complete the project. If need be, you may be
allowed to use a disguised name for the organization in the
project report, but you must disclose to the instructor what
actual organization is being used as the setting for the project.
· The scope of effort required should be such that, once planned
in MBA6028, the project can be completed in a single, six-week
iteration of MBA6900; extensions will be granted only in
unusual situations.
MBA6028 Capstone Planning Requirements and Timeline
Since the six-week duration of a single MBA course may not
provide enough time for both planning and delivering the
capstone project, planning for the project begins in MBA6028 –
Business Integration Skills. Typically, this course is taken in
the period immediately before the capstone course. During
MBA6028, you will complete a proposal for the project that you
will deliver in MBA6900. Specific milestones for this proposal
include:
· Unit 1 – You will post a discussion with a preliminary
summary of and rationale for what you are considering as a
project, for feedback from colleagues and your instructor.
· Unit 3 – You will submit a draft proposal for the project to
your instructor for feedback. (Appendix A below contains a
template to prepare the proposal and Appendix B illustrates an
example of a completed draft.)
· Unit 5 – You will submit the final proposal in Unit 5 to the
instructor for grading. (Appendix C below contains an outline
you may adapt to prepare your proposal.)
Note: Successful completion of an acceptable proposal will
facilitate a smooth transition into your capstone course and help
you make timely progress toward your degree completion. Be
sure to contact your instructor with any questions or challenges
you have completing your proposal.
MBA6900 Capstone Deliverables
Once you have successfully completed MBA6028, you will
move on to your final course, MBA6900. In MBA6900, you will
complete the following:
Unit 1 Capstone Project Summary – You will develop a brief
summary of your capstone project to help your instructor
become familiar with your capstone project and provide
appropriate guidance. This project summary will specify the
topic and scope of your project, including a rough outline of
your final capstone project and a project plan that briefly
outlines what you plan to do each week to ensure timely
completion of your capstone.
Units 2, 4, and 5 Progress Reports – In each unit, you will
prepare a brief report of the status of your project, based on
your plan. You may also submit parts of your project for
feedback.
Unit 3 Capstone Project Draft – You will submit a draft of your
capstone project for feedback on your progress toward
demonstrating your program outcomes, based on the final
Capstone Project and Presentation Scoring Guide.
Unit 6 Capstone Project and Presentation – You will submit
your final Capstone Project and Presentation assignment. You
will deliver two work products to complete this project:
· Written Report – The final written project report will be a
formal document prepared for the key stakeholders of your
project. The structure and length of the document will vary
according to the type of project being undertaken, but the report
is expected to be substantial: approximately 20-40 pages in
length.
· Oral Presentation – This formal oral presentation will be
supported by an MS PowerPoint presentation including slides
with notes. The oral presentation will be recorded using Adobe
Connect, and uploaded to the MBA6900 courseroom for review
by your colleagues and a formal review by the instructor. This
presentation should be no more than 15-20 minutes in length
and will serve to present all facets of the capstone project.
Appendix D below contains the scoring guide rubric with
grading criteria for your final capstone deliverable. Be sure to
review the criteria often throughout your project to ensure you
are fulfilling the expectations for demonstrating your program
outcomes.
Appendix A – Proposal Rough Draft Template
Element
Description
Target Organization
Identify the organization that will be the setting or focus of the
project.
Brief Project Description
Describe the project in sufficient detail that the instructor can
get a good understanding of what you propose to do.
Access and Data Availability
Describe what access you have to this organization and your
sources of data.
Program Outcomes
Apply foundational knowledge and an understanding of business
systems, processes, and technology within and across core
disciplines.
Describe how the proposed project will enable you to
demonstrate your achievement of this outcome.
Integrate information across disciplines and from differing
perspectives.
Describe how the proposed project will enable you to
demonstrate your achievement of this outcome.
Lead and collaborate in virtual, global, and culturally diverse
environments.
Describe how the proposed project will enable you to
demonstrate your achievement of this outcome.
Integrate principles of ethics and integrity into business
decisions.
Describe how the proposed project will enable you to
demonstrate your achievement of this outcome.
Estimate expected length.
Estimate the length, in double-spaced pages, of the deliverable
you expect to produce.
You may use the above table and merely replace the instructions
in the Description column with your entries. Or, if you prefer,
you may prepare a document in an alternative format that
addresses all of the entries shown in the table.
Appendix B – Sample Proposal Rough Draft
Element
Description
Target Organization
R. D. Tech, Inc.
Brief Project Description
The project will be a comprehensive case study of this
manufacturer of stainless steel processing equipment for the
food and dairy industry.
Access and Data Availability
I am employed by R. D. Tech and have permission to gather the
required data. In the actual case document, the company name
will be disguised.
Program Outcomes
Apply foundational knowledge and an understanding of business
systems, processes, and technology within and across core
disciplines.
The case study will cover all organizational components and
functions, including marketing, operations, finance, and
administration. It will examine the company’s upstream and
downstream supply chain, and the information and materials
flows involved.
Integrate information across disciplines and from differing
perspectives.
The case will examine the interrelationships among the different
organizational functions in light of the challenges the company
is facing. It will present the perspectives of major points of
view, including the Marketing, Finance, and Operations teams,
as well as senior Management.
Lead and collaborate in virtual, global, and culturally diverse
environments.
The case will assess issues involved in the company’s
investigation of overseas market prospects, including the
establishment of overseas branches.
Integrate principles of ethics and integrity into business
decisions.
The company is considering a change to its full employment
policy, as dairies in its local two-state area consolidate and it
considers expansion abroad. The ethical issues of changing the
implied contract with employees will be examined as part of the
case.
Estimate expected length.
Approximately 35-45 pages, double-spaced.
Appendix C – Proposal Content and Format
· Introduction—In this section, identify the organization and
whether you have access to it directly. Describe the exact nature
of the project you propose to do and why you want to do this
particular project.
· Target Organization.
· Nature of the Project.
· Rationale for the Project.
· Outcome Demonstration – Describe how this project will
allow you to demonstrate each MBA program outcome. The four
section titles below refer to the outcomes that are listed in the
Prospectus Template.
· Apply Foundational Knowledge.
· Integrate Information.
· Lead and Collaborate.
· Integrate Principles.
· Data Sources – Identify where you will get the data needed to
complete the project, whether via direct access to the
organization or via published sources. Be as detailed as
possible, since the instructor must evaluate whether you have
access to enough data to make the project feasible.
· Projected Timeline – Provide a timeline for the project, to be
completed no later than the end of MBA6900. Tasks should
include any preliminary activity needed to get permissions (if
needed), data gathering, data analysis, report writing,
presentation preparation, and anything else that would form a
significant part of the work needed to complete the project.
Appendix D – Capstone Project and Presentation Grading
Criteria
Criteria
Non-performance
Basic
Proficient
Distinguished
Apply foundational
knowledge and an understanding of
business systems,
processes, and technology within
and across core disciplines.
References but does not apply
fundamental, practical foundational knowledge and a
functional understanding of business systems, processes, and
technology.
Applies fundamental,
practical foundational knowledge and a functional
understanding of a limited set of business systems, processes,
and technology within
but not across core disciplines.
Applies foundational knowledge
(theories, models, and practices) and an understanding of core
business
systems, processes, and technology within and across core
disciplines.
Applies a balance of theoretical and
practical foundational knowledge (theories, models,
and practices) and an in-depth understanding of a full range of
business systems,
processes, and technology within and across core disciplines.
Recognizes and justifies approach to integrating foundational
knowledge, business systems, processes, and technology within
and across core disciplines.
Integrate
information across disciplines from differing perspectives.
Analyzes information from a
singular discipline or
perspective or poorly analyzes
information across disciplines from few differing primary
functional perspectives.
Analyzes but does not integrate limited
information (data,
insights, best practices) across
disciplines from few differing primary functional perspectives
individually but not
holistically.
Integrates most relevant supportive
and conflicting
information (data, insights, best
practices) across disciplines from differing primary functional
perspectives
individually and holistically.
Evaluates supportive and
conflicting
information (data, insights, best
practices) integrating insights across disciplines from multiple,
diverse functional
and strategic perspectives individually and
holistically.
Develop logical,
well-supported, evidence-based
solutions to business challenges and opportunities.
Develops unsupported (emotional
testimonials, anecdotes, lack of evidence) solutions and
solutions that
are not logically connected to business challenges and
opportunities.
Develops unsupported (emotional
testimonials, anecdotes, lack of evidence) solutions or solutions
that are
not logically connected to business challenges and
opportunities.
Develops logical, well-supported, solutions based on
relevant, sound, logical, and credible evidence (data, insights,
analyses,
best practices) to solve business challenges and opportunities.
Develops logical, well-supported, solutions based on
relevant, sound, logical, and credible evidence (data, insights,
analyses,
best practices) to systematically solve business challenges and
opportunities
relevant to all applicable
stakeholders and
cross-functional departments.
Apply innovative,
strategic, and sustainable approaches to
business practice and planning.
Does not apply or poorly applies elements of innovative,
strategic,
and sustainable approaches to business practice and planning.
Applies some elements of innovative, strategic, and sustainable
approaches to business practice and planning.
Applies innovative, strategic, and sustainable (long- term)
approaches to
business practice and planning.
Integrates and justifies innovative, strategic, and sustainable
(long-
term) approaches business practice and planning that
appropriately
challenge the status quo while recognizing change management
implications.
Assess leadership
and collaboration opportunities in
virtual, global, and
culturally diverse environments.
Does not describe or poorly describes
leadership or collaboration strategies.
Describes leadership and
collaboration principles and strategies that may or may not be
appropriate to virtual, global, and culturally diverse
environments.
Applies leadership and collaboration
principles and strategies for virtual, global, and culturally
diverse
environments.
Assesses leadership and collaboration
principles, strategies, and opportunities in virtual, global, and
culturally diverse environments and integrates flexible
perspectives and collaborative
approaches in business.
Integrate
principles of ethics and integrity into business decisions.
Does not assess or poorly assesses
principles of ethics
and integrity.
Assesses principles of ethics and
integrity by
analyzing ethical implications but may
overlook important ethical considerations.
Integrates principles of ethics and
integrity into
business decisions by assessing ethical
implications and resolving ethical conflicts and dilemmas.
Integrates principles of ethics and
integrity into
business decisions by assessing ethical
implications, resolving ethical conflicts and dilemmas, and
making right and just decisions for the organization and the
larger business
community.
Communicate
clearly and effectively in a
business environment.
Does not communicate appropriately in a
business environment.
Communicates in a business environment with
heavy jargon and inconsistent application of professional
speaking, effective presentation, and persuasion skills to create
an
unconvincing case for business solutions.
Communicates clearly and effectively in a
business environment by applying professional
speaking, effective presentation, and persuasion skills to create
a clear and
compelling case for business solutions.
Communicates clearly and effectively in a
business environment by adapting to specific audiences’
knowledge/needs, utilizing presentation best practices, and
integrating
persuasion with cross-functional stakeholders to create a clear
and
compelling case for business solutions.

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  • 1. Government Sector Nonprofit Sector Private Sector Local Level Job 1 Job 1 Job 1 Job 2 Job 2 Job 2 National Level Job 1 Job 1 Job 1 Job 2 Job 2 Job 2 Global Level
  • 2. Job 1 Job 1 Job 1 Job 2 Job 2 Job 2 Proctor & Gamble Strategic Analysis 1 Outline Introduction History of P&G SWOT Analysis Balanced Scorecard Communication
  • 3. Marketing PEST Analysis Ethics Conclusion Outline of Power Point Presentation 2 Introduction Looking at internal and external strategies Developing Markets Competitive advantage This report provides a thorough internal as well as external analysis of P&G, identifies its mandate, along with certain strategies that would help it increase its profitability, profit growth and sustain its competitive advantage in both developed
  • 4. and developing markets. Although, P&G has world renowned brands, P&G needs to adopt strategies that enable it to maintain its competitive advantage over its rival. 3 History of P&G William Procter & James Gamble were founders in 1837. Total assets at that time:$7,192.24 William A. Procter became first president in 1890. Ivory soap was first branded product launched in 1879. (Procter & Gamble, 2012) Procter & Gamble is a US Global company that provides consumer products in the areas of pharmaceuticals goods founded in 1837.P&G processes operations in more than 80 countries thanks to 300 brands on market Procter & Gamble is a multinational corporation with more than 300 successful brands worldwide. The company is earning trust of its clients in every part of the world and famous for its steady innovations in all areas of the company. More than 4 billion people use the products of Procter & Gamble daily. The company has offices in Johannesburg and Cape Town. P& G has its Headquarters in Ohio, US. 4 SWOT Analysis Strengths:
  • 5. Network Weakness: Opportunity: Threats: lation SWOT analysis serves to summarize all of the key findings from the entire situation analysis process including important information about the company’s internal strengths and weaknesses and important information about external opportunities and threats in the form of consumer trends, competition, and macro environmental trends. Strengths: include diverse portfolios, global operations, and
  • 6. strong distribution in which P&G uses to distribute their products and stay ahead of the competition. Weakness: include a poor online presence, missing opportunity from lack of internet resources, and improvement needed in beauty products. Opportunity: include P&G’s ability to reach out to diverse markets, improving on online media sources, and playing an important role for environmental concern. Threats: include competition from other companies such as Unilever and Johnson & Johnson, lack of new innovation, and government regulations concerning outsourcing products. 5 SWOT Analysis cont…. STRENGTHS Leading brands Procter & Gamble has strong brands to its name. The company boasts 24 billion dollar brands. It also claims 50 leadership brands that contribute 90% to its overall sales and profit. (P&G brands, 2011) OPPORTUNITIES Emerging Markets Emerging markets are expected to produce strong growth in beauty and personal care. Procter & Gamble can benefit from the shift of consumption to the emerging markets.
  • 7. WEAKNESSES Mature market reliance The company continues to rely heavily on mature markets. The emerging markets will outperform mature markets over the forecast period putting Procter & Gamble in a vulnerable position. THREATS Global/local competition Unilever remains a significant threat in the developing markets in some categories such as bath and shower. Local players will also compete fiercely with Procter & Gamble. * Strengths: - Reaches retailers and consumers at the right place and time. * Well-driven brand building by benefiting customers. * Translates consumer desires into new products. * Brand recognition all around the world. * Weaknesses: - Out of hand management because of too much diversification. * Supply Chain System failing in some Countries. * No presence at all in some other countries especially in the third world countries. * Opportunities: - Opportunity to reach new target markets in third world countries such as Africa. * Can be more efficient as far as distribution and getting to retailers. * Investing in more countries around the world especially third world countries to implement brands, target markets and be close to retailers and customers. * Threats: - Tough competition such as Unilever. - Possibilities of concurrent to invest in third world countries
  • 8. and eventually monopolize the market. 6 Balanced Scorecard Product leadership: According to the P&G website they have fifty leadership brands worldwide. Some of these brands include Charmin, Pringles, Tide, Iams and many more. Majority of P&G products are well known household names. 24 out of the fifty brands generate more than one billion dollars in sales per year (P&G brands, 2011). Customer intimacy: P&G conducts over 20,000 research studies every year and invests more than $400 million per year into consumer research. This is more than any other company in the world (“PG.com core...”, 2011). P&G is dedicated to improving their products so that their customers have the best experience while using them as possible. A balanced scorecard is a strategic business tool used to collect and report information to management on four specific areas which include the financial perspective, customer’s perspective, internal operations perspective, and learning and growing aspect. These help a business monitor performance and make
  • 9. necessary improvements that will contribute to the success of the organization. 7 Communication ● Makes the company profitable ● Develops trust amongst consumers ● Promotes change and motivates employees. The purpose of most businesses conducting business in the world is to make a profit. P & G is a large and powerful company with a good purpose. Their purpose states that the company will provide branded products and services of superior quality and value that improve the lives of the world’s consumers, now and for generations to come. As a result, consumers will reward P & G with leadership sales, profit and value creation, allowing our people, our shareholders and the communities in which we live and work to prosper. (Procter & Gamble, 2011). P&G realizes that communicating to it’s employees everything that may be taking place internally is very important to it’s bottom line. P&G ensures that all of its units understand the
  • 10. impact of any change going on within especially at the professional level. (Gunu) The more employees are made to understand the changes that are taking place, the more they will begin to become excited about them. (Olympics P&G -Thank You Mom Commercial – YouTube Video) 8 Marketing $100 million in projects 3 million consumer contracts for marketing Analyzing the global market Brand awareness and distribution Procter and Gamble has been known to be the most skillful marketers of consumer packaged goods in the world with their powerful and emotional marketing campaigns. They currently hold one of the most powerful portfolios of trusted brands in the world. They have 138,000 employees in over 80 countries netting $79 billion in worldwide sales.
  • 11. They generate their marketing campaigns through their vast use of customer knowledge and research. They study consumers on both ends, consumers and trade partners. Every year Procter and Gamble spends 100 million dollars on 10,000 formal consumer research projects to ensure that they are marketing correctly, their consumers are happy and to make sure they stay ahead of the curve regarding similar companies. They now have 3 million consumer contacts that they are able to use for conducting even more accurate marketing research. Procter and Gamble makes sure to encourage their marketers and researchers to emphasize their focus out into the field to interact with both consumers and retailers on a personal level for more accurate results. Procter and Gambles long-term outlook is currently looking extremely well when compared to similar companies. They focus heavily on analyzing each opportunity in each market carefully to prepare the best products to market to the consumers of each of their many brands. Recently Proctor and Gamble has been focusing on increasing their presence in developing markets by concentrating on affordability, brand awareness and distribution of products through e-commerce and high frequency stores. 9 PEST Analysis The P&G Political Action Committee (P&G PAC) is a voluntary, nonpartisan political action committee. Registered with the U.S. Federal Election Commission (FEC) and appropriate state offices, the PAC allows P&G employees to pool personal, voluntary financial contributions to support candidates at the federal, state and local level, Procter & Gamble believes that there is growing scientific evidence linking greenhouse gas (GHG) emissions and global
  • 12. climate change. As a global citizen, P&G is concerned about the potentially negative consequences of climate change and believes prudent and cost-effective action by governments, industry and citizens to reduce emissions to the atmosphere are justified. P&G leaders are expected to build an inclusive work environment that welcomes and embraces diversity – an environment where people feel comfortable being who they are, regardless of their individual differences, talents or personal characteristics. Political environment: Environmental: Social environment: Technological: P&G’s Global Medical organization advises and assists management and employees to assure a safe, healthy work environment. PEST analysis is used to evaluate the political, environmental, social and technological influences that organizations might face when they are about to start a project. It provides external factors that organizations should take into consideration before they start the projects. 10 Ethics P&G's Pantene launched its Beautiful Lengths program in 2006
  • 13. P&G's ads about efforts to provide free sanitary protection in Africa Company principles include: respect for all employees, the interests of the company and the individual. (Nickels, McHugh, & McHugh, Chapter 7, 2010). P & G has built their business on a platform of ethical behavior. They pride themselves on providing superior products that enhance the lives of their customers. They strive to work within the letter of the law. Rational decision-making Is a multiple step process starting with creating a definition of the situation (Nickels, McHugh, & McHugh, Chapter 7, 2010). P&G's Pantene launched its Beautiful Lengths program in 2006 to solicit locks of hair to be woven into wigs for women receiving cancer treatments. Even P&G's ads about efforts to provide free sanitary protection in Africa to help keep girls from missing school. Procter and Gamble has been identified as one of the best companies to be employed at as an employee in whichever country (Witt, 2012). 11
  • 14. Conclusion / Recommendation They must be able to retain customer loyalty which has contributed to their success. The company should exploit new market segments and opportunities to support for the concentrated growth strategy, gain market share, and minimize the threats of losing market caused by its vibrant external environment and fierce competitive market. There are some strategies that PG can implement to improve and solidify its performance as follow: Utilize the strengths in research and development and human resource to develop its technological resource. This will help the company to minimize the threat of substitutes due to the rapidly changes in technological environment. 2. Utilize the strengths in financial resource, invest more in marketing to build up reputation with consumers and minimize the threat of losing market due to its high extent of competitive rivalry Procter & Gamble has established itself as a market leader which is a result of its unique purpose and certain strategies applied on its products. The company's growth strategy is through acquisitions which makes the company highly diversified. 12
  • 15. References Gunu, O. M. (n.d.). How Procter and Gamble Survived Through Innovation – A Case Study. Retrieved from knol: http://knol.google.com/k/how-procter-and-gamble-survived- through-innovation-a-case-study# Nickels, W. G., McHugh, J.M., & McHugh, S.M. (2010). Understanding Business (9th ed.). Procter & Gamble. (2011). Retrieved from http://www.pg.com/en_US/ Procter & Gamble. (2012). Procter & Gamble Official Website. Retrieved from http://www.pg.com/en_US/company/purpose_people/pvp.shtml. Witt, H. (2012). Corporate news: Procter symbol succumbs to devilish rumor. Chicago Tribune. 13 MBA Capstone Project Guidelines Throughout your MBA program, you have worked to develop as a practitioner-scholar to meet the needs and future challenges as a business leader. Your program culminates in the capstone project, which forms the primary focus of MBA6900, the final
  • 16. course you will take in the program. The capstone project is intended to provide you the opportunity to demonstrate your MBA program outcomes by: · Planning and executing the strategic and tactical elements of a comprehensive project. · Integrating and demonstrating skills and techniques you have learned throughout the MBA program. · Communicating project outcomes both in written form and in a formal presentation. · Completing your MBA program with an experience that reinforces and integrates the components that have preceded it. The following information outlines the requirements and work associated with the capstone project for MBA6028 and MBA6900. Capstone Project Examples Examples of project types that might be proposed to meet these requirements include but are not limited to: · Preparation of a strategic plan for an organization. · A strategic analysis of all or a selected part of an organization. · Development of a case study of all or a selected part of an organization. · Development of an intervention, such as a workshop or training activity, that is broad- based enough to demonstrate the program-level outcomes. · Development of a consulting report on a problematic issue within an organization, provided that the issue is broad-based enough to demonstrate program-level outcomes. You may propose other structures for the capstone project so long as you are able to identify how the proposed project satisfies the requirement of demonstrating the program-level
  • 17. outcomes. When choosing your topic, keep in mind that your capstone project must result in recommendations, next steps, or some other type of actionable, evidence-based take-aways for the reader or subject of the project. Capstone Project Requirements The capstone course project must demonstrate your achievement of the MBA program outcomes. The following table is taken from the proficient column of the final capstone grading rubric. It outlines the expectations for demonstrating each program outcome. Program Outcome: Proficient Column: 1. Apply foundational knowledge and an understanding of business systems, processes, and technology within and across core disciplines. Applies foundational knowledge (theories, models, and practices) and an understanding of core business systems, processes, and technology within and across core disciplines. 2. Integrate information across disciplines and from differing perspectives. Integrates most relevant supportive and conflicting information (data, insights, best practices) across disciplines from differing primary functional perspectives individually and holistically. 3. Think critically and analytically to provide evidence-based solutions to business challenges and opportunities.
  • 18. Develops logical, well-supported, solutions based on relevant, sound, logical, and credible evidence (data, insights, analyses, best practices) to solve business challenges and opportunities. 4. Apply innovative, strategic, and sustainable approaches to business practice and planning. Applies innovative, strategic, and sustainable (long-term) approaches to business practice and planning. 5. Lead and collaborate in virtual, global, and culturally diverse environments. Applies leadership and collaboration principles and strategies for virtual, global, and culturally diverse environments. 6. Integrate principles of ethics and integrity into business decisions. Integrates principles of ethics and integrity into business decisions by assessing ethical implications and resolving ethical conflicts and dilemmas. 7. Communicate clearly and effectively in a business environment. Communicates clearly and effectively in a business environment by applying professional speaking, effective presentation, and persuasion skills to create a clear and compelling case for business solutions. MBA Capstone Project Guidelines 1 When proposing a capstone project in MBA6028, you will be required to identify how the proposed project addresses the demonstration of program outcomes 1, 2, 5, and 6. Outcomes 3,
  • 19. 4, and 7 are demonstrated by the quality of the final deliverable. The project will be completed individually, not in teams. In addition, the capstone project must meet these criteria: · The organization must be real, not fictitious. This may be an organization to which you have direct access for data gathering or one for which you will gather data via published sources. In either case, it must be an organization for which you can gather the data needed to complete the project. If need be, you may be allowed to use a disguised name for the organization in the project report, but you must disclose to the instructor what actual organization is being used as the setting for the project. · The scope of effort required should be such that, once planned in MBA6028, the project can be completed in a single, six-week iteration of MBA6900; extensions will be granted only in unusual situations. MBA6028 Capstone Planning Requirements and Timeline Since the six-week duration of a single MBA course may not provide enough time for both planning and delivering the capstone project, planning for the project begins in MBA6028 – Business Integration Skills. Typically, this course is taken in the period immediately before the capstone course. During MBA6028, you will complete a proposal for the project that you will deliver in MBA6900. Specific milestones for this proposal include: · Unit 1 – You will post a discussion with a preliminary summary of and rationale for what you are considering as a project, for feedback from colleagues and your instructor. · Unit 3 – You will submit a draft proposal for the project to your instructor for feedback. (Appendix A below contains a template to prepare the proposal and Appendix B illustrates an example of a completed draft.) · Unit 5 – You will submit the final proposal in Unit 5 to the
  • 20. instructor for grading. (Appendix C below contains an outline you may adapt to prepare your proposal.) Note: Successful completion of an acceptable proposal will facilitate a smooth transition into your capstone course and help you make timely progress toward your degree completion. Be sure to contact your instructor with any questions or challenges you have completing your proposal. MBA6900 Capstone Deliverables Once you have successfully completed MBA6028, you will move on to your final course, MBA6900. In MBA6900, you will complete the following: Unit 1 Capstone Project Summary – You will develop a brief summary of your capstone project to help your instructor become familiar with your capstone project and provide appropriate guidance. This project summary will specify the topic and scope of your project, including a rough outline of your final capstone project and a project plan that briefly outlines what you plan to do each week to ensure timely completion of your capstone. Units 2, 4, and 5 Progress Reports – In each unit, you will prepare a brief report of the status of your project, based on your plan. You may also submit parts of your project for feedback. Unit 3 Capstone Project Draft – You will submit a draft of your capstone project for feedback on your progress toward demonstrating your program outcomes, based on the final Capstone Project and Presentation Scoring Guide. Unit 6 Capstone Project and Presentation – You will submit your final Capstone Project and Presentation assignment. You will deliver two work products to complete this project:
  • 21. · Written Report – The final written project report will be a formal document prepared for the key stakeholders of your project. The structure and length of the document will vary according to the type of project being undertaken, but the report is expected to be substantial: approximately 20-40 pages in length. · Oral Presentation – This formal oral presentation will be supported by an MS PowerPoint presentation including slides with notes. The oral presentation will be recorded using Adobe Connect, and uploaded to the MBA6900 courseroom for review by your colleagues and a formal review by the instructor. This presentation should be no more than 15-20 minutes in length and will serve to present all facets of the capstone project. Appendix D below contains the scoring guide rubric with grading criteria for your final capstone deliverable. Be sure to review the criteria often throughout your project to ensure you are fulfilling the expectations for demonstrating your program outcomes. Appendix A – Proposal Rough Draft Template Element Description Target Organization Identify the organization that will be the setting or focus of the project. Brief Project Description Describe the project in sufficient detail that the instructor can get a good understanding of what you propose to do.
  • 22. Access and Data Availability Describe what access you have to this organization and your sources of data. Program Outcomes Apply foundational knowledge and an understanding of business systems, processes, and technology within and across core disciplines. Describe how the proposed project will enable you to demonstrate your achievement of this outcome. Integrate information across disciplines and from differing perspectives. Describe how the proposed project will enable you to demonstrate your achievement of this outcome. Lead and collaborate in virtual, global, and culturally diverse environments. Describe how the proposed project will enable you to demonstrate your achievement of this outcome. Integrate principles of ethics and integrity into business decisions. Describe how the proposed project will enable you to demonstrate your achievement of this outcome. Estimate expected length. Estimate the length, in double-spaced pages, of the deliverable
  • 23. you expect to produce. You may use the above table and merely replace the instructions in the Description column with your entries. Or, if you prefer, you may prepare a document in an alternative format that addresses all of the entries shown in the table. Appendix B – Sample Proposal Rough Draft Element Description Target Organization R. D. Tech, Inc. Brief Project Description The project will be a comprehensive case study of this manufacturer of stainless steel processing equipment for the food and dairy industry. Access and Data Availability I am employed by R. D. Tech and have permission to gather the required data. In the actual case document, the company name will be disguised. Program Outcomes Apply foundational knowledge and an understanding of business systems, processes, and technology within and across core disciplines.
  • 24. The case study will cover all organizational components and functions, including marketing, operations, finance, and administration. It will examine the company’s upstream and downstream supply chain, and the information and materials flows involved. Integrate information across disciplines and from differing perspectives. The case will examine the interrelationships among the different organizational functions in light of the challenges the company is facing. It will present the perspectives of major points of view, including the Marketing, Finance, and Operations teams, as well as senior Management. Lead and collaborate in virtual, global, and culturally diverse environments. The case will assess issues involved in the company’s investigation of overseas market prospects, including the establishment of overseas branches. Integrate principles of ethics and integrity into business decisions. The company is considering a change to its full employment policy, as dairies in its local two-state area consolidate and it considers expansion abroad. The ethical issues of changing the implied contract with employees will be examined as part of the case. Estimate expected length. Approximately 35-45 pages, double-spaced.
  • 25. Appendix C – Proposal Content and Format · Introduction—In this section, identify the organization and whether you have access to it directly. Describe the exact nature of the project you propose to do and why you want to do this particular project. · Target Organization. · Nature of the Project. · Rationale for the Project. · Outcome Demonstration – Describe how this project will allow you to demonstrate each MBA program outcome. The four section titles below refer to the outcomes that are listed in the Prospectus Template. · Apply Foundational Knowledge. · Integrate Information. · Lead and Collaborate. · Integrate Principles. · Data Sources – Identify where you will get the data needed to complete the project, whether via direct access to the organization or via published sources. Be as detailed as possible, since the instructor must evaluate whether you have access to enough data to make the project feasible. · Projected Timeline – Provide a timeline for the project, to be completed no later than the end of MBA6900. Tasks should include any preliminary activity needed to get permissions (if needed), data gathering, data analysis, report writing, presentation preparation, and anything else that would form a significant part of the work needed to complete the project.
  • 26. Appendix D – Capstone Project and Presentation Grading Criteria Criteria Non-performance Basic Proficient Distinguished Apply foundational knowledge and an understanding of business systems, processes, and technology within and across core disciplines.
  • 27. References but does not apply fundamental, practical foundational knowledge and a functional understanding of business systems, processes, and technology. Applies fundamental, practical foundational knowledge and a functional understanding of a limited set of business systems, processes, and technology within but not across core disciplines. Applies foundational knowledge (theories, models, and practices) and an understanding of core business systems, processes, and technology within and across core disciplines. Applies a balance of theoretical and practical foundational knowledge (theories, models, and practices) and an in-depth understanding of a full range of business systems, processes, and technology within and across core disciplines. Recognizes and justifies approach to integrating foundational knowledge, business systems, processes, and technology within and across core disciplines. Integrate information across disciplines from differing perspectives. Analyzes information from a singular discipline or perspective or poorly analyzes information across disciplines from few differing primary functional perspectives. Analyzes but does not integrate limited information (data, insights, best practices) across disciplines from few differing primary functional perspectives individually but not holistically. Integrates most relevant supportive
  • 28. and conflicting information (data, insights, best practices) across disciplines from differing primary functional perspectives individually and holistically. Evaluates supportive and conflicting information (data, insights, best practices) integrating insights across disciplines from multiple, diverse functional and strategic perspectives individually and holistically. Develop logical, well-supported, evidence-based solutions to business challenges and opportunities. Develops unsupported (emotional testimonials, anecdotes, lack of evidence) solutions and solutions that are not logically connected to business challenges and opportunities. Develops unsupported (emotional testimonials, anecdotes, lack of evidence) solutions or solutions that are not logically connected to business challenges and opportunities. Develops logical, well-supported, solutions based on relevant, sound, logical, and credible evidence (data, insights, analyses, best practices) to solve business challenges and opportunities. Develops logical, well-supported, solutions based on relevant, sound, logical, and credible evidence (data, insights, analyses, best practices) to systematically solve business challenges and opportunities relevant to all applicable stakeholders and
  • 29. cross-functional departments. Apply innovative, strategic, and sustainable approaches to business practice and planning. Does not apply or poorly applies elements of innovative, strategic, and sustainable approaches to business practice and planning. Applies some elements of innovative, strategic, and sustainable approaches to business practice and planning. Applies innovative, strategic, and sustainable (long- term) approaches to business practice and planning. Integrates and justifies innovative, strategic, and sustainable (long- term) approaches business practice and planning that appropriately challenge the status quo while recognizing change management implications. Assess leadership and collaboration opportunities in virtual, global, and culturally diverse environments. Does not describe or poorly describes leadership or collaboration strategies. Describes leadership and collaboration principles and strategies that may or may not be appropriate to virtual, global, and culturally diverse environments. Applies leadership and collaboration principles and strategies for virtual, global, and culturally
  • 30. diverse environments. Assesses leadership and collaboration principles, strategies, and opportunities in virtual, global, and culturally diverse environments and integrates flexible perspectives and collaborative approaches in business. Integrate principles of ethics and integrity into business decisions. Does not assess or poorly assesses principles of ethics and integrity. Assesses principles of ethics and integrity by analyzing ethical implications but may overlook important ethical considerations. Integrates principles of ethics and integrity into business decisions by assessing ethical implications and resolving ethical conflicts and dilemmas. Integrates principles of ethics and integrity into business decisions by assessing ethical implications, resolving ethical conflicts and dilemmas, and making right and just decisions for the organization and the larger business community. Communicate clearly and effectively in a business environment. Does not communicate appropriately in a business environment. Communicates in a business environment with heavy jargon and inconsistent application of professional speaking, effective presentation, and persuasion skills to create an
  • 31. unconvincing case for business solutions. Communicates clearly and effectively in a business environment by applying professional speaking, effective presentation, and persuasion skills to create a clear and compelling case for business solutions. Communicates clearly and effectively in a business environment by adapting to specific audiences’ knowledge/needs, utilizing presentation best practices, and integrating persuasion with cross-functional stakeholders to create a clear and compelling case for business solutions.