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Categories:Types, School Work
Published by: Christian Jay S. de la Cruz on May 10, 2011
Copyright:Attribution Non-commercial


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 Procter and Gamble
Procter & Gamble Co. (P&G, NYSE: PG) is a Fortune 500 American multinationalcorporation headquartered in Downtown Cincinnati, Ohio that manufactures a wide rangeof consumer goods. It is 5th in Fortune's Most Admired Companies 2011 list. P&G is creditedwith many business innovations including brand management and the soap opera.Companies like P&G are a force in the world. The market capitalization is greater thanthe GDP of many countries, and we serve consumers in more than 180 countries. With thisstature comes both responsibility and opportunity. Our responsibility is to be an ethical corporatecitizen²but our opportunity is something far greater, and is embodied in our Purpose.P&G¶s Purpose Statement articulates a common goal that inspires us daily:Our Purpose works to unify us in a common cause and growth strategy. It is powerful because it promotes a simple idea to improve the lives of the world¶s consumers every day. P&Ggrows by touching and improving more consumers¶ lives in more parts of the world...morecompletely. While this statement defines our commercial opportunity, our culture reflects the broader opportunity of improving lives through and beyond our branded products and services.At P&G, we touch lives in small but meaningful ways. Billions of them. Every day.The simple, inspiring way to think about this opportunity is that P&G brands serve about4.2 billion of the 6.5 billion people on the planet today. Before P&G can serve the world'sremaining consumers profitably, we can reach them altruistically. We can improve their lives inways that enable them to thrive, to increase their quality of living and, over time, to join the population of consumers we serve with P&G brands. Through our overall
 Live, Learn &ThriveŒ 
cause program, initiatives such as
Children¶s Safe Drinking Water 
and Pampers
1 Pack = 1 Vaccine
are examples of how we are improving the lives of millions of people every day.Our shared Purpose attracts and unites an extraordinary group of people, P&Gers, aroundthe world²the most diverse workforce in P&G history. Together, we represent around 145nationalities. Our recruiting and development philosophy to ³build from within´ fosters a strongculture of trust and shared experiences. Our diversity, our shared culture and our unified Purposeare the defining elements that enable P&G to touch lives and improve life every day.
P&G¶s History
William Procter, a candle maker, and James Gamble, a soap maker, immigrants fromEngland and Ireland, respectively, who had settled earlier in Cincinnati, who met as they marriedsisters, Olivia and Elizabeth Norris, formed the company initially. Alexander Norris, their father-in law, called a meeting in which he persuaded his new sons-in-law to become business partners.On October 31, 1837, as a result of the suggestion, Procter & Gamble was born.In 1858-1859, sales reached $1 million. By this point, approximately 80 employeesworked for Procter & Gamble. During the American Civil War, the company won contracts tosupply the Union Army with soap and candles. In addition to the increased profits experiencedduring the war, the military contracts introduced soldiers from all over the country to Procter &Gamble's products.In the 1880s, Procter & Gamble began to market a new product, an inexpensive soap thatfloats in water. The company called the soap Ivory. William Arnett Procter, William Procter'sgrandson, began a profit-sharing program for the company's workforce in 1887. By giving theworkers a stake in the company, he correctly assumed that they would be less likely to goon strike.The company began to build factories in other locations in the United States because thedemand for products had outgrown the capacity of the Cincinnati facilities. The company'sleaders began to diversify its products as well and, in 1911, began producing Crisco,a shortening made of vegetable oils rather than animal fats. As radio became more popular in the1920s and 1930s, the company sponsored a number of radio programs. As a result, these showsoften became commonly known as "soap operas".The company moved into other countries, both in terms of manufacturing and productsales, becoming an international corporation with its 1930 acquisition of the Thomas Hedley Co., based in Newcastle upon Tyne, England. Procter & Gamble maintained a strong link to the NorthEast of England after this acquisition. Numerous new products and brand names were introducedover time, and Procter & Gamble began branching out into new areas. The company introduced"Tide" laundry detergent in 1946 and "Prell" shampoo in 1947. In 1955, Procter & Gamble began selling the first toothpaste to contain fluoride, known as "Crest". Branching out once againin 1957, the company purchased Charmin Paper Mills and began manufacturing toilet paper andother paper products. Once again focusing on laundry, Procter & Gamble began making"Downy" fabric softener in 1960 and "Bounce" fabric softener sheets in 1972. One of the most
revolutionary products to come out on the market was the company's "Pampers", first test-marketed in 1961. Prior to this point disposable diapers were not popular, although Johnson &Johnson had developed a product called "Chux". Babies always wore cloth diapers, which wereleaky and labor intensive to wash. Pampers provided a convenient alternative, albeit at theenvironmental cost of more waste requiring landfilling.Procter & Gamble acquired a number of other companies that diversified its product lineand significantly increased profits. These acquisitions included Folgers Coffee, Norwich EatonPharmaceuticals (the makers of Pepto-Bismol), Richardson-Vicks, Noxell (Noxzema),Shulton's Old Spice, Max Factor, and the Iams Company, among others. In 1994, the companymade headlines for big losses resulting from leveraged positions in interest rate derivatives, andsubsequently sued Bankers Trust for fraud; this placed their management in the unusual positionof testifying in court that they had entered into transactions that they were not capable of understanding. In 1996, Procter & Gamble again made headlines when the Food and DrugAdministration approved a new product developed by the company, Olestra. Also known by its brand name
, Olestra is a lower-calorie substitute for fat in cooking potato chips and other snacks that during its development stages is known to have caused anal leakage andgastrointestinal difficulties in humans.Procter & Gamble has dramatically expanded throughout its history, but its headquartersstill remains in Cincinnati.In January 2005 P&G announced an acquisition of Gillette, forming the largest consumer goods company and placing Unilever into second place. This added brands such as Gilletterazors, Duracell, Braun, and Oral-B to their stable. The acquisition was approved bythe European Union and the Federal Trade Commission, with conditions to a spinoff of certainoverlapping brands. P&G agreed to sell its SpinBrush battery-operated electrictoothbrush business to Church & Dwight. It also divested Gillette's oral-care toothpaste line,Rembrandt. The deodorant brands Right Guard, Soft & Dri, and Dry Idea were sold to DialCorporation. The companies officially merged on October 1, 2005. Liquid Paper, and Gillette'sstationery division, Paper Mate were sold to Newell Rubbermaid. In 2008, P&G branched intothe record business with its sponsorship of Tag Records, as an endorsement for TAG BodySpray. P&G's dominance in many categories of consumer products makes its brandmanagement decisions worthy of study. For example, P&G's corporate strategists must accountfor the likelihood of one of their products cannibalizing the sales of another.On August 24, 2009, the Irish-based pharmaceutical company Warner Chilcott announced they had bought P&G's prescription-drug business for $3.1 billion.

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