PROCTER AND GAMBLE COMPANY

A business that deals with personal care and hygiene products is called Procter and Gamble. It
has values that it regards as beliefs that are connected to its mission and goals. The employee
handbook's code of conduct, to which employees are expected to comply and act in accordance
with the ideals specified therein, details the relevant elements. Integrity, leadership, ownership, a
will to succeed, and trust are among the values. When a business demonstrates integrity, it makes
an effort to act morally, is straightforward and honest, complies with the word and spirit of the
law, and is aware of dangers. In order to accomplish leadership goals and strategies, a leader
must have a clear vision for the region under their control and allocate resources appropriately.
Personal accountability, in which they all behave like owners, is a sign of ownership. The
business is driven to excel in all areas that matter most and has a strong desire to advance and
dominate the industry.

DIVERSITY OF THE WORKFORCE

Market penetration is the Procter & Gamble Company's main intensive growth strategy. The
primary goal of this aggressive strategy is to grow the market share of the business. Procter &
Gamble accomplishes this through launching marketing efforts to raise consumer awareness of
the company's merchandise. This tactic is particularly important for the market's
underperforming products. Procter & Gamble also uses advantageous contracts with merchants
to carry out this comprehensive plan. For instance, P&G increases its market share by giving
some significant merchants bigger retail profit margins. In exchange, these merchants place
Procter & Gamble products prominently on their shelves. The differentiation generic approach
generates a competitive advantage that increases the success of implementing the market
penetration intensive strategy. Increase Procter & Gamble's market share through aggressive
marketing is a strategic goal based on this intensive growth approach.

Market Development

Market expansion serves as a pillar of The Procter & Gamble Company's intense growth
strategy. Market expansion allows the organisation to expand by entering new markets or market
segments(Felgate,2020). For instance, when it develops a whole new product line or shifts its
market focus, Procter & Gamble may enter new market categories. Procter & Gamble can
anticipate a new source of revenue in this way. When applying this aggressive growth strategy,
P&G finds it simpler to penetrate new markets or market categories thanks to the generic
differentiation strategy. Additionally, increasing Procter & Gamble's R&D spending for new
product lines or changing its marketing tactics to target different market segments in a
developing or stable consumer goods market are strategic goals based on market development.

Diversification:

One of Procter & Gamble's supporting intense growth strategies is diversification. Setting up
new commercial activities is a key component of this complex plan. For instance, Procter &
Gamble's history shows that every purchase and related business diversification has resulted in
significant growth. However, due to its extensive effects on P&G's corporate organisation, this
aggressive growth plan is extremely challenging to put into practise. Procter & Gamble's
organisational structure, for instance, changes as a result of each purchase. The differentiation
generic strategy aids in developing the competitive edge the organisation needs to succeed in
new commercial ventures. Additionally, this rigorous approach results in the strategic goal of
utilising an aggressive strategy to acquire other companies to expand Procter & Gamble's
company(Klimoski.R,2019).

Procter and Gamble (P&G) Business Definition:

The Procter & Gamble Company (P&G), an American international consumer goods corporation
with its headquarters in Cincinnati, Ohio, was established in 1837 by William Procter and James
Gamble. This business has been These items are divided into numerous categories, such as
beauty, grooming, health care, fabric & home care, and baby, feminine, and family care. They
specialise in a wide range of personal health/consumer health, as well as personal care and
hygiene products. P&G has operations in approximately 70 nations, one of the strongest product
portfolios in the world, and is utilised by about 5 billion people worldwide. P&G is dedicated to
being one of the most socially conscious businesses in the world.

What drives change?

A combination of competitors' actions and changing client wants were routinely displacing the
incumbent products and methods of operating quickly. Change is driven by PEST analysis. For
instance, P&G's decision to go online is a technological development, and the company's
adoption of its SUSTAINABLE GOALS policy is a result of environmental changes.

How does change impact on our markets/business environment?

Many industries must realise that the days of incremental annual growth are ended, even though
fast growth is still feasible within some "sun-rise" industries. Traditional marketplaces are
getting more difficult due to changes in customer behaviour and demographic trends. Intense
rivalry always accompanies change, and the phenomena of business globalisation can only make
it worse. Shorter product life cycles are becoming more common, and projecting the future is
becoming more challenging.

Core competencies:

1. Consumer understanding

 Market and advertising research are conducted by independent, internal research

organisations. Due to significant investments in market research, P&G has achieved success in
the sector. P&G has developed a mastery through the years in recognising customer needs.
(Hoch.J.E&Dulebohn.JH,2019)).

 Focus groups, in-person interviews, in-context observations, and in-store visits are some of the
qualitative approaches employed.

 Researcher and respondent contact is a feature of quantitative tools.

 Online idea testing to gather user feedback.

 invest more than $ 350 million in improving customer comprehension.

2. Innovation

 P & G has 41000 awarded patents and 55000 active patent filings worldwide..

 A customer-centered strategy is supported by innovative culture.

 Mid-career industry members are involved in human restheyce.

3. Brand building

 Twenty-six of P&G's brands have more than a billion dollars in net annual sales, according to
the 2011 Annual Report and P&G Corporate Newsroom.

 P&G revealed in August 2014 that it was restructuring the business, eliminating about 100
brands and focusing on the remaining 80 brands, which account for 95% of the company's
income. (Ariyanto.A et.al.,2019).

 P&G had created a brand-new technology, and Tide advertisements assured customers that
their clothes would be "cleaner than soap" and covered in "oceans of suds."

4. Go to market capabilities

 P & G spends approximately $ 2 million each year to minorities and women suppliers.

5. Scale

 Diversity of business portfolio.

 Science and technology portfolio.

 Geographic reach.

Financial Perspective:

 There is a decline in the rapid ratios. The company's fast assets are insufficient to cover its
current liabilities.

 Current ratios are quite bad. They have increased in recent years but have decreased since
2015. As a result, Procter and Gamble is unstable in the short run.

 The turnover of all assets is quite low. This ratio demonstrates that Procter and Gamble's total
assets turn an average of.58 times annually.

 Turnover of receivables is favourable. They quite regularly collect accounts receivable..

 The turnover of inventories is good. This ratio demonstrates that inventory changes 6.93 times
on average year.
What is the result of change on the organisation’s strategy?

There are two primary results. First of all, opportunity arises from change. Companies that are
adaptable and aware of client needs are more likely to thrive than simply survive. Second, prior
behaviours, approaches, and techniques do not guarantee future success.

Customer Perspective:

 Boost client satisfaction: P&G has given customer satisfaction a lot of thought and works to
produce new goods after conducting adequate research.

 Tapping into developing countries

 Developing new products

 Tide PODS, which had sales of about $500 million in North America this fiscal year, is now
moving internationally, starting with Latin America, Western and Central Europe, and Africa.

 Since 3D White's initial debut, Crest and Oral-B 3D White toothpaste have experienced
growth in value share in the U.S. for 13 straight quarters. The toothpaste is currently available in
more than 40 markets worldwide.

 Seven years ago, the US market for Fusion Pro Glide opened. It has lately expanded to Brazil,
Mexico, and China, giving it a presence in more than 45 markets. Since the debut of the first
fusion product, the company has increased its global value share for 30 consecutive quarters.

Internal Perspective

Innovations P&G uses to ensure their products are what the consumer needs and wants.

 Signal P&G

 The Clay Street Project

 The Loft Approach

 Business Sphere

 Symphony IRI Pacesetters

Learning and Growth:

 The foundation of Procter & Gamble is internal. Their most valuable resource and source of
competitive advantage is this.

 One of P&G's major goals is keeping up with the rapidly evolving technologies, so all of its
employees—whether they work in an innovation centre, a retail outlet, or a consumer home—
must be constantly learning new things.

 Employees go through work-related experiences that strengthen their dedication to influencing

and bettering consumers' lives.

 P&G approaches its workforce with a perspective on career planning. The CEO, vice chairs,
business presidents, and board of directors all participate in the management of talent on a global
scale.

 Leaders in business and functional areas actively hire, educate, and coach.

 P&G employees are challenged from away to grasp the need of staying in touch with
consumers, retail clients, and external stakeholders through structured projects.

As of right now, the company's "volume assumptions" are more cautious than what is observed
in the market. It took into account the price elasticity and pricing over time. The assumptions
encompass the company's feelings, perceptions, beliefs, and unconscious thinking.
(Sharma.R&Tanwar.K,2021). Any forward-looking statements and market-based assumptions
must be updated, according to Procter & Gamble. The cornerstone of Procter and Gamble's
culture is the organization's mission, values, and beliefs, which have been embraced by the
business for many years. To offer a premium brand that has a special place in the world is the
goal. It also has eight guiding principles, including respect, integrity, becoming the best,
innovation, and strategic emphasis. Teamwork is another one of them.
Influence of culture within the organization

There should be a strategy in place to improve the ethical climate within the organisation.
Whether they are employees or leaders, there is often a potential that someone may act
unethically and display atrocious behaviour in the workplace. There is a negative consequence
since it encourages a culture of mistrust and lowers consumer satisfaction, especially when
cheating and lying are involved. Having clear expectations of what is right and wrong is one of
several actions that make up the strategy for a culture of ethics. It should outline the explicit and
implicit norms and rules governing the working environment, including acceptable conduct,
attitudes toward coworkers, and dress. (Katagiri.H,2020). The first step in creating a positive
organisational culture should be set forward by the corporation as clear expectations. Modeling
desired conduct, particularly describing how the leaders should behave, comes next. Since they
are closely scrutinised, the leaders are encouraged to exercise caution in their actions and words..

Boost the intended behaviour. Rewarding unethical behaviour won't make it stop, so don't do it.
The business should be careful and deliberate when using this strategy so that ethical behaviour
is maintained. For individuals who uphold moral principles and the ethical organisational culture,
rewards and recognition are part of the reinforcing process. The emphasis should be on
improving the employees' skills and suitable problem-solving methods so that they can grow
their ethical skills. Instead of just describing the ethical principles, use step-by-step techniques to
help people solve ethical problems or dilemmas and develop ethical decision-making skills. Give
your staff the means and equipment they need to behave morally. These consist of guidance,
role-playing, advice, and suitable instruction. Give thoughtful and timely corrective criticism
regarding actions that people believe are unlikely to create an ethical organisational culture.
Continue to uphold the adopted organisational culture. Procter and Gamble has been conducting
itself responsibly, especially when it comes to encouraging customer hygiene, openness, and
loyalty to its staff. The Sumatra Jungle in particular has been subject to immoral practises of
rapid deforestation in pursuit of its heavy production of palm oil and tissue papers, putting the
native species like tigers and Sumatran Orangutans in peril. The corporation seriously damages
forests that are essential to preventing climate change and puts wildlife, frontline workers, and
indigenous communities in jeopardy while producing goods like soap and beauty products. Other
employees have been observed acting inappropriately while conducting business, which is
against the code of corporate ethics. The business has repeatedly failed to set deadlines for
stopping its purchasing from Canadian suppliers who don't adhere to government habitat
preservation standards of at least 65%. The principles of informed, prior, and free consent are not
always upheld by many of their suppliers. The inability to follow ethical principles results in the
loss of confidence and loyalty because the aspect has given rise to numerous customer
complaints, including the harm caused by the company's products. To guarantee that the business
has superior ethical practises, it is necessary to build an improved ethical organisational culture.

Observation, whereby employees learn from their leaders, reinforcement, including sanctions for
failure to follow ethical standards, and ongoing evaluation and teaching of the practises are just a
few learning tactics that can be used in the workplace to prevent practise oblivion. Continuous
review can assist new hires in learning about ethical standards while watching how others
behave. Others who act unethically may face consequences, such as losing their jobs, while those
who conduct morally receive benefits(Patnaik.B&Shukla.M.K,2020). Procter and Gamble will
pay attention to the areas where they are mistaken, especially in terms of environmental
deterioration, and make sure that they are corrected by implementing stronger environmental
conservation measures. Employees won't engage in unethical behaviour, making it easier for
them to adapt to the ethical business culture, reap the benefits, and increase their productivity
and efficiency.
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