Presentation p&g

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Presentation p&g

  1. 1. Presented By: Usman Rehmani
  2. 2. Usman Rehmani
  3. 3. VISION STATEMENT “Be, and be recognized as, the best consumerproducts and services company in the world.” Usman Rehmani
  4. 4. MISSION STATEMENTWe will provide products andservices of superior quality andvalue that improve the lives of theworlds consumers. As a result,consumers will reward us withleadership sales, profit and valuecreation, allowing our people, ourshareholders, and thecommunities in which we live andwork to prosper. We will providebranded products and services ofsuperior quality and value thatimprove the lives of the worldsconsumers, now and forgenerations to come.
  5. 5. RECOMMENDED VISION & MISSIONVISION“P&G’s intent is to offer the highest quality consumerproduct goods at the least expensive price for thewidest spectrum of customers in a convenient format.”MISSION“coca-cola will work with its suppliers and distributorsto ensure that its products are recognized both in themarket and on the supply side as contributory to aretail distributor’s bottom line.”
  6. 6. VALUES Integrity Passion for Winning Leadership Trust Ownership
  7. 7. PRINCIPLES We Are Strategically Focused in Our Work. We Value Personal Mastery. We Seek to Be the Best. The Interests of the Company and the Individual Are Inseparable. We Are Externally Focused. Mutual Interdependency is a Way of Life
  8. 8. OBJECTIVES To build existing core businesses into stronger global leaders. To grow leading brands in big countries, winning customers. To develop fast-growing, higher-margin with global leadership potential. To regain growth momentum rate and leadership in Western Europe. To drive growth in key developing markets.
  9. 9. COMPANY OVERVIEW & HISTORY Procter and Gamble is actually thename of two persons WilliamProcter and James Gambleimmigrants from England &Ireland respectively. Procter’s business was candlemaking and Gamble’s business wassoap making.
  10. 10. History Of coca-cola In Pakistan coca-cola Pakistan, headquartered in Karachi, commenced operations in Pakistan in 1991. In 1994 coca-cola acquired a soap-manufacturing facility Hub, Baluchistan. In 2004, a PUR facility was set up to produce P&G’s water purifying technology. Today, the Hub plant is equipped with state-of-the- art manufacturing technologies and quality assurance processes and systems, reflecting the companys values of safe, hygienic and ethical manufacturing practices.
  11. 11. DISTRIBUTION CHANNELcoca-cola itself has no distribution channel rather they were initially distributing its products through International Brands Limited (IBL).In the 1940s, Abudawood became the exclusive distributor of coca-cola(coca-cola) brands throughout Saudi Arabia. In 1956, Abudawood and coca-cola established a joint-venture factory in Saudi Arabia (called Modern Industries Inc.). In the same year Abudawood started distribution of coca-cola products in Pakistan.
  12. 12. SOCIAL RESPONSIBILITY Pampers Hospital Education Program Safeguard School Education Program
  13. 13. SUSTAINABILITY AT coca-cola
  14. 14. FINANCIAL ANALYSIS
  15. 15. Balance Sheet 2010 During the previous 3 years P&G’s assets have diminished by 10%. While long term debt has been constant short term debt has decreased by 48%. coca-cola has an extremely low ratio of tangible assets to intangible assets.
  16. 16. June 2008 June 2009 June 2010Total Assets 143992.00 134833.00 128172.00Total Liabilities 74498.00 71734.00 67057.00Total Equity 69494.00 63099.00 61115.00Short Term Debt 13084.00 16320.00 8472.00Long Term Debt 23581.00 20652.00 21360.00Current Assets 24515.00 21905.00 18782.00Intangible Assets 98837.00 93466.00 90146.00
  17. 17. Porter’s Five Forces
  18. 18. Continued.. faces very strong buyers’ power because retailers like Wal-Mart are able to negotiate for pricing with companies. limited supplier power because of the costs they incur when switching suppliers. low threat of new entrants because a huge capital amount is required. high threat of substitutes. high level of rivalry exists among existing firms.
  19. 19. PEST ANALYSIS Usman Rehmani
  20. 20. SWOT ANALYSIS (Opportunitiesand Threats) Usman Rehmani
  21. 21. Opportunities• Developing markets.• Niche markets.• New products.• To invest in the segment forchildren.• To introduce food andbeverages for Pakistani market.• Emerging consumer market(China& India).• Manufacturing facilities inChina.• Selling through internet.
  22. 22. Threats•Uncertainty inpharmaceuticals business.• Increase in prices of raw materials.• Unilever is the biggestthreat.• Price competition around the world.• Political disruption.
  23. 23. COMPETITORS Usman Rehmani
  24. 24. CPM coca-cola Kimberly- Johnson & Clark Johnson Critical Success Weight Rating Score Rating Score Rating Score FactorsAdvertising 0.20 4 0.80 1 0.20 3 0.60Product Quality 0.10 4 0.40 4 0.40 3 0.30Price Competitiveness 0.10 3 0.30 3 0.30 4 0.40Management 0.10 3 0.30 4 0.40 3 0.30Financial Position 0.15 3 0.45 4 0.60 3 0.45Customer Loyalty 0.10 4 0.40 4 0.40 2 0.20Global Expansion 0.20 2 0.40 4 0.80 2 0.40Market Share 0.05 4 0.20 1 0.05 3 0.15 Total 1.00 3.25 3.15 2.80
  25. 25. EFE Matrix Key External Factors Weight Rating Weighted Score Opportunities 1. Global markets are a significant growth 0.15 1 0.15 market 1. Increased demand due to new health and 0.05 4 0.20 beauty needs. 1. Internet advertising growth. 0.05 1 0.05 1. coca-cola is a category killer. 0.14 4 0.60 1. Increasingly health conscious public. 0.10 3 0.30 Threats 1. Economic downturn. 0.10 3 0.30 1. Increased competition from rivals. 0.05 3 0.15 1. Lack of product acceptance. 0.05 2 0.10 1. Poor media exposure for new products. 0.10 4 0.40 1. High core commodity prices affecting 0.20 1 0.20 product cost. Total 1.00 2.45
  26. 26. SWOT ANALYSIS (Strengths and Weaknesses)
  27. 27. Strengths •large scale operations. • very strong brand name and leading market position. • coca-cola has a huge customer base. • innovations to sustain its customer base. • Diversified product portfolio. • Strong focus on research & development. • Strong global presence (160countries).
  28. 28. Core StrengthsCoca-cola focuses on five core strengths required towinin the consumer products industry.
  29. 29. Weaknesses•less innovative than its major competitor Unilever.• products have failed in certain geographic areas. Forexample, Oil of Olay failed in Pakistan, Camay failedhere as well.•Dependent on Wal-Mart stores for majority of itsrevenue.•Production facilities in 43 countries while operationsin more than 160 countries.
  30. 30. IFE Matrix Key Internal Factors Weight Rating Weighted ScoreInternal Strengths1. Largest home consumer product goods manufacturer. 0.05 4 0.201. Innovative products format. 0.10 4 0.401. Increasing free cash flows. 0.05 3 0.151. Career development program. 0.15 4 0.601. Strong management team. 0.05 3 0.151. Strong logistics supply chains. 0.05 3 0.151. Discount pricing structures. 0.05 3 0.151. Long-range planning. 0.05 4 0.201. Reputation for quality. 0.05 3 0.151. Outperforming financial ratios 0.05 3 0.15Internal Weaknesses1. Many products are not personal care necessity. 0.04 2 0.081. Little unified brand focus. 0.05 2 0.101. Narrow margins. 0.05 2 0.101. High operating costs. 0.11 1 0.111. Uncertain joint marketing ventures. 0.10 1 0.10
  31. 31. TOWS MATRIX S- Strengths W- Weaknesses •Innovative products. •Lack of direct marketing. •Professional management. •Lack of new media marketing •Diverse product lineup. channels. •Plans for acquisitions. •Dependence on few major product categories.O- Opportunities S-O Strategies W-O Strategies•Expanding marketing strategies. •Develop new products to target niche •More focused marketing•Undifferentiated rival products. markets. strategy.•Consumer demand. •Utilize managerial competencies for •Liaison with good distributors•Niche markets. aggressive marketing strategy to attain to increase online sales. competitive advantage. •Utilize niche markets rather to •Continue diversification to fulfill depend upon few product consumer’s demand. categories.T- Threats S-T Strategies W-T Strategies•Price competition. •Utilize buying volume to put pressure on •Develop good partnership with•Regulations. competitors. internet consumer product goods•Rival competitors. •Continue product diversification to distributors to increase sales. offset increased chances of competitor entry.
  32. 32. SPACE MatrixFinancial Strength Ratings• The company’s original capital ratio is 7.23 percent which is 1.23 percentage points 1.0 over the generally required ratio of 6. 1.0 3.0• P&G’s return on assets is negative 8.7 compared to industry average of positive 8.0. 4.0• The company’s net income is continually expanding. 9.0• The company’s revenue increased 14 percent.Industry Strength Ratings• Increasing market share provides geographic and product freedom. 4.0 2.0• More competition in global markets. 4.0• Kimberly-Clark provides a strong industry benchmark. 10.0Environmental Stability Ratings• High inflation rate in developing countries and political instability are big -4.0 hurdles for international business growth. -4.0• Merger and acquisitions are also difficult due to credit markets. -5.0• coca-cola get more of its revenue fr0m US market. -13.0Competitive Advantage Ratings• coca-cola focused on home consumer product goods for health and beauty. -2.0• coca-cola is a recognized category killer. -5.0• In addition of Kimberly-Clark, Johnson & Johnson is a trouble creating -2.0 competitor. -9.0
  33. 33. Conclusion:•ES average is -13.0 ÷ 3= -4.33•IS average is +10.0 ÷ 3= +3.33•CA average is -9.0 ÷ 3= -3.00•FS average is +9.0 ÷ 4= +2.25•Directional vector coordinates:x-axis: -3.00 + (13.33) = 0.33y-axis: -4.33 + (12.25) = -2.08Outcome:coca-colashould pursue Competitive Strategies.
  34. 34. QSPM ChartQUANTITATIVE STRATEGIC PLANNING MATRIX Strategic Alternatives Key Factors Weight Joint Ventures in Joint Ventures in Europe Asia Opportunities AS TAS AS TAS 1. Europe is a potential growth market. 0.10 4 0.40 2 0.20 1. The US market continues to develop 0.15 4 0.60 3 0.45 new product categories. 1. Free market economies increasing in 0.10 2 0.20 4 0.40 Asia. 1. Demand for health & beauty products 0.05 - - - - is increasing. Threats 1. Competitor threats such as Kimberly-Clark. 0.10 3 0.30 4 0.40 1. Economic contraction in its main US market. 0.05 - - - - 1. Lack of defining product to attract continued 0.10 4 0.40 1 0.10 foot-traffic in the company’s retail distributors. 1. Environmental issues with some home 0.05 - - - - consumer product goods products. 1. Low value of US dollar abroad. 0.15 4 0.60 2 0.30
  35. 35. Strengths1. Profits rose 0.10 4 0.40 2 0.201. Strong management team 0.10 - - - -1. New employee development programs. 0.10 4 0.40 2 0.201. Diversified product portfolio. 0.05 4 0.20 3 0.151. Performance driven management. 0.05 - - - -1. Capacity utilization increased from 60% 0.15 3 0.45 4 0.60 to 80% for all manufacturing facilities.Weaknesses1. Johnson & Johnson’s troubles could be 0.05 - - - - contagious.1. Restructuring costs could be significant if 0.05 - - - - the market requires.1. International expansion suffers. 0.15 2 0.30 4 0.601. The company is slow in leveraging its 0.15 4 0.60 3 0.45 global operations due to current economic conditions.1. Pre-tax profit margins are narrow. 0.05 - - - -Sum of Total Attractiveness Score 1.0 5.30 4.65
  36. 36. INTERNAL-EXTERNAL (IE) MATRIX
  37. 37. BOSTON CONSULTANT GROUP MATRIX
  38. 38. CONCLUSION coca-colais the world’s largest producer of household and personal products by revenue with net sales of $83503 million with its products reaching 4 billion people worldwide. Being in more competitive position coca-cola must continue to scan the environment for possible threats, whether through acquisition or Greenfield investments. coca-cola must continue to innovate because economies of scales allow coca-cola to spend much more than rivals on research and development.
  39. 39.  coca-cola will also have to control its pricing and reduce outside vendors. coca-cola will want to continue its strong support and funding of its world class research and development in order to continue to provide innovative products to touch the lives of customers worldwide.
  40. 40. RECOMMENDATIONS coca-cola may have a series of strategies which can be more attractive to the company. Such series of alternatives may not result in an alternative internal rate of return (IRR) relative to the cost of the strategies. Hence, in such time of economic pressure it is recommended to do nothing and continue business as usual and even avoid organic expansion also.
  41. 41.  Another recommendation is to expand organically. coca-cola has access to a greater number of developed and developing markets. The company has also product co-branding opportunities because of its size and volume of sales. Thus, coca-cola can opt to expand through organic growth by establishing another brand category that will target specifically the UK and European markets to increase company’s continued growth.
  42. 42.  Third suggestion is about acquisition that the company can acquire its primary competitor. Through such acquisition the established company can gain immediate sales capacity and market position without investing in substantial marketing effort. New products must be introduced which must be appropriately positioned relative to its competitors but this would involve thousands of dollars in terms of marketing. Usman Rehmani Conts no= 03007477593

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