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Procter and Gamble

Procter and Gamble

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Published by: amnaarshad on Oct 02, 2010
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06/18/2013

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Procter and Gamble

About Company
‡ Procter and gamble was established in 1837 ‡ P&G markets almost 300 products to more than five billion consumers in 160 countries ‡ More than half of Procter & Gamble¶s sales come from out of U.S.

About Company
‡ P&G Company announced in January 2005 that it was acquiring the Gillette Company for $54 million in stock. ‡ The company uses its slogan ³touching lives, improving life´ to describe itself.

Africa. middle east. Latin America and Asia.Procter &Gamble Today ‡ Procter &Gamble¶s 110.000 employees server nearly 5 billion customers world wide. ‡ P&G launches product in new countries (regions). including Europe. ‡ In the US the company owns and operated 37 manufacturing facilities and leases and operates 2 manufacturing facilities. .

P&G brands touch the lives of people around the world. .Vision Statement Be. Mission Statement Two billion times a day. P&G people work to make sure those brands live up to their promise to make everyday life just a little bit better. and be recognized as. the best consumer products and services Company in the world.

.business segments P&G had five main business segments: ‡ Fabric and Home Care ‡ Feminine & Family Care ‡ Beauty Care ‡ Health Care ‡ Food and Beverage.

Management Situation ‡ Purpose of the Company ‡ Value Statement ‡ Corporate Governance ‡ Organization Structure ‡ Competitors .

8 billion .Competitor Analysis Competitors Johnson & Johnson Kimberly-Clark Colgate-Palmolive Sales ( 2004) $47.348 million $15.083 million $9.

‡ Recommendations .

and be recognized as. . the best consumer products and services Company in the world. Mission statement ‡ We will provide branded products and services of superior quality and value that improve the lives of the world¶s consumers.FORMULATION Vision Statement ‡ Be.

Mission Statement Evaluation Matrix ± Procter & Gamble ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Customers Products/Services Markets Technology Concern for Survival. Profitability Philosophy Self-Concept Concern for Public Image Concern for Employees YES NO YES NO YES NO NO YES YES . Growth.

SWOT Analysis ‡ Strength ‡ Weaknesses ‡ Opportunities ‡ Threats .

The Input Stage ‡ External Factor Evaluation (EFE) Matrix ‡ Internal Factor Evaluation (IFE) Matrix ‡ Competitive Profile Matrix (CPM) .

08 0.32 3 4 0.32 3.08 ‡ Global economic ‡ Political disruption ‡ Government regulation 0.07 4 0.56 0.28 0.06 ‡ Reconsider target market 0.24 0.24 0.09 ‡ New Entrant 0.09 3 4 3 4 Weighted 0.08 ‡ Cultural Norms & Values 0.08 4 0.Key External Factors Opportunities Weight Scores ‡ Expand market to other countries 0.21 4 4 0.08 Total 1 External Factor Evaluation (EFE) Matrix Rating 4 3 0.24 0.15 0. media fragmentation 0.07 ‡ Buy shares of others shareholders from all over the world for gaining more market share ‡ Launch competitive products ‡ Use latest technology 0.36 0.08 ‡ Strong Competitors 0.05 ‡ Develop distribution center in others countries 0.04 Threats ‡ Price competition in family care and coffee categories ‡ Rising commodity prices.24 0.36 .05 0.2 0.08 3 2 0.32 0.

06 0.24 0.28 0.2 0.14 0.06 0.05 0.07 0.05 0.2 3.05 1 Rating 3 3 4 3 3 4 4 4 2 2 2 4 3 4 4 4 Weighted Scores 0.24 0.07 0.2 0.Internal Factor Evaluation (IFE) Matrix Key Internal Factors Strength ‡ Market share ‡ Brand image ‡ Diversified products ‡ Unique organizational chart ‡ Global business Services ‡ Market Development organization ‡ Product availability ‡ Unique and Innovative products ‡ Brand conscious ‡ High quality products Weaknesses ‡ Merger ‡ High prices ‡ Massy infrastructure ‡ Decreasing sales ‡ Less advertisement ‡ No Campaign for introducing the products Total Weight 0.07 0.18 0.24 0.15 0.24 0.08 0.05 0.12 0.31 .05 0.06 0.06 0.21 0.09 0.21 0.1 0.06 0.36 0.07 0.

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SPACE Matrix for P&G .

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Boston Consulting Group (BCG) Matrix .

Internal-External (IE) Matrix for P&G .

PRODUCT LIFE CYCLE OF P & G .

The Decision Stage Strategies ‡ ‡ ‡ ‡ By using latest technologies they can enhance their products Stepping into market development by using brand name as a tool Seek more business by lower prices By increasing distribution center they can increase their sale ‡ Using brand name to overcome pricing competition ‡ Lower prices to overcome political instability .

IMPLEMENTATION STAGE .

LONG TERM OBJECTIVES AND GOALS ‡ Strategic Objective ‡ Become the fastest growing. most profitable and most admired consumer goods Company in the world ‡ Become a company of winners ‡ Become a company of leaders ‡ Become a caring organization ‡ Become a dynamic and innovative organization ‡ Become a preferred business partner of customers and suppliers ‡ Become a partner in nation building .

Financial Objectives NOS (Net Operating Sales) 1 Billion Dollars by 2010 ‡ Operating TSR (Total Shareholder Return) 13+% ‡ EPS (Earnings Per Share) 10+% ‡ NOS (Net Operating Sales) 4-6% .

or three shifts .low.Management Policies ‡ To offer more incentives within the limited range to its employees ‡ To give training of using new technology to their employees ‡ To offer Extensive or limited management development workshops and seminar ‡ To centralize or decentralize employee-training activities ‡ To buy. lease. or rent new production equipments ‡ To establish a high. two.safety stock of inventory ‡ To greatly stress quality control ‡ To promote from within or to hire from outside ‡ To operate one.

Billboards advertisements .Marketing Issues ‡ To set price according to their target market ‡ To use multiple channel of distribution ‡ To advertise online ‡ To offer complete warranty on products ‡ To use TV . Print .

Market Segmentation ‡ As P&G has already 5 major segments but still these have problem so we reconsider the segmentation process by using these elements .

EVALUATION .

A Strategy-Evaluation Assessment Matrix .

Levels of Strategies There are four levels of strategies: ‡ Corporate ‡ Divisional ‡ Functional ‡ Operational .

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Evaluation and review of the strategies is must to achieve their objectives and goals. . This would also allow them to best utilize their resources.Recommendation ‡ We recommend them to apply the suggested strategies in the implementation stage.

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