ID (20221734), Comp. Exam (Group L - May 2023)

Comprehensive Exam Reg. No.
: 20221734
May 2023 Major: Strategic Management
Arab Academy for Science, Technology and Maritime Transport

Graduate School of Business - Cairo
Master of Business Administration
Comprehensive Exam, May 2023
Registration Number: 20221734
Major: Strategic Management
Group L: Procter & Gamble Co. (P&G)
Turns to AI to Create Digital Manufacturing of the Future
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Comprehensive Exam Reg. No.: 20221734
CONTENTS
1. Introduction, Company Profile and Timeline .................................................................... 6
THE STRATEGIC PLAN ....................................................................................................... 10
2. Vision Statement .............................................................................................................. 11
2.1 Current Vision Statement ..................................................................................... 11
2.2 Vision Criticizing ................................................................................................... 11
2.3 Proposed Vision ...................................................................................................... 11
3. Mission Statement ............................................................................................................ 12
3.1 Current Mission Statement ................................................................................... 12
3.2 Mission Criticizing ................................................................................................. 12
3.3 Proposed Mission ................................................................................................... 13
4. Core Values ...................................................................................................................... 14
4.1 Current Core Values.............................................................................................. 14
4.2 Core Values Criticizing ......................................................................................... 14
4.3 Proposed Core Values............................................................................................ 15
5. Goals ................................................................................................................................ 16
INPUT PHASE ........................................................................................................................ 17
6. External Environment Assessment .................................................................................. 18
6.1.1 PESTLE Analysis, USA (Macro Environment, Not Controllable) ........... 18
6.1.1.1 Political............................................................................................................ 18
6.1.1.1.1 Governmental and Political Stability (Opportunity) .............................. 18
6.1.1.1.2 Russian invasion of Ukraine (Threat) ...................................................... 18
6.1.1.1.3 Taxation Laws (Threat) ............................................................................. 19
6.1.1.1.4 Pressure Groups / Lobbies (Threat) ......................................................... 19
6.1.1.2 Economical...................................................................................................... 20
6.1.1.2.1 USA Growth Domestic Product, GDP (Opportunity) ............................ 20
6.1.1.2.2 USA Growth National Product, GNP (Opportunity) ............................. 22
6.1.1.2.3 Foreign Exchange Rates (Threat)............................................................. 23
6.1.1.2.4 Economic Disruptions in Large Markets (Threat) ................................. 23
6.1.1.2.5 Fluctuating Prices of Raw Material (Threat) .......................................... 23
6.1.1.3 Socio Cultural ................................................................................................. 24
6.1.1.3.1 Social and Gender Inclusion (Opportunity) ............................................ 24
6.1.1.3.2 Changing Trends (Opportunity) .............................................................. 24
6.1.1.3.3 Social Class and Demographic Shifts (Opportunity) .............................. 25
6.1.1.4 Technological .................................................................................................. 26
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6.1.1.4.1 Technology (Opportunity)......................................................................... 26

6.1.1.4.2 Artificial Intelligence and R&D (Opportunity) ...................................... 26
6.1.1.4.3 Extensive Use of IT Networks - Cyber Security Breaches (Threat) ...... 27
6.1.1.5 Environmental / Ecological ........................................................................... 28
6.1.1.5.1 Carbon Footprint (Opportunity) .............................................................. 28
6.1.1.5.2 Environmental Sustainability (Opportunity) .......................................... 29
6.1.1.6 Legal ................................................................................................................ 29
6.1.1.6.1 Compliance with Legislation of Various Countries (Threat) ................ 29
6.1.1.6.2 Complying with Competition Laws (Threat) .......................................... 30
6.1.1.6.3 Imports and Exports Laws (Threat) ........................................................ 31
6.1.1.6.4 Boycotts and Restricted Countries (Threat)............................................ 32
6.1.1.6.5 Child Labor and Human Rights Abuse (Threat) .................................... 32
6.1.1.6.6 Health and Hygiene Laws (Opportunity) ................................................ 33
6.1.1.6.7 Patent Law (Opportunity) ......................................................................... 33
6.1.2 Porter Five Forces Model (For External Part Of The Microenvironment)
35
6.1.2.1 Bargaining Power of Suppliers (Moderate) ................................................. 35
6.1.2.2 Bargaining Power of Buyers (Moderate) ..................................................... 36
6.1.2.3 Threat of Substitute (Moderate) ................................................................... 37
6.1.2.4 Threat of New Entrants (Low)...................................................................... 38
6.1.2.5 Rivalry Among Existing Competitors (Moderate)...................................... 39
6.1.3 Main Competitors .......................................................................................... 40
6.1.4 Strategic Types (Miles And Snow’s Organizational Strategies) ................ 41
6.1.4.1 Prospectors (Threat) ...................................................................................... 41
6.1.4.2 Defenders (Opportunity) ............................................................................... 41
6.1.4.3 Analyzers (Threat) ......................................................................................... 42
6.1.4.4 Reactors (Stuck In The Middle) ................................................................... 42
6.1.5 Value Discipline Triad ................................................................................... 43
6.1.6 Strategic Group Mapping ............................................................................. 46
6.1.7 Situational Analysis ....................................................................................... 48
6.1.7.1 Opportunities.................................................................................................. 48
6.1.7.2 Threats ............................................................................................................ 48
6.1.8 EFAS (External Factor Analysis Summary) ............................................... 49
6.1.9 CPM (Competitive Profile Matrix) .............................................................. 50
6.2 Internal Environmental Analysis ......................................................................... 51
6.2.1 Financial Parameters ..................................................................................... 51
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6.2.1.1 Income Statement........................................................................................... 51

6.2.1.2 Balance Sheet .................................................................................................. 52
6.2.1.3 Cash Flow Statement ..................................................................................... 54
6.2.1.4 Financial Ratios (Time Series) ...................................................................... 55
6.2.1.5 Financial Ratios (Cross Section) ................................................................... 57
6.2.2 Porter Value Chain Analysis......................................................................... 58
6.2.3 Mckinsey 7S Model ........................................................................................ 62
6.2.4 VRIO Framework .......................................................................................... 63
6.2.5 Brands Portfolio and SKUs ........................................................................... 65
6.2.6 Internal Environment Assessment ............................................................... 66
6.2.6.1 Strengths ......................................................................................................... 66
6.2.6.2 Weaknesses ..................................................................................................... 66
6.2.7 IFAS (Internal Factor Analysis Summary) ................................................. 67
6.2.8 SWOT Analysis .............................................................................................. 68
6.2.9 SFAS Analysis ................................................................................................ 69
MATCHING PHASE .............................................................................................................. 70
7. TOWS Analysis ............................................................................................................... 71
8. BCG (Boston Consulting Group) Matrix (Product Portfolio Analysis) .......................... 73
9. IE (Internal – External) Matrix ........................................................................................ 74
10. SPACE (Strategic Position & Action Evaluation Matrix) 2-Dimensional Matrix ...... 75
DECISION PHASE ................................................................................................................. 77
11. QSPM (Quantitative Strategic Planning Matrix) ......................................................... 78
12. SMART Strategic Objectives ...................................................................................... 80
13. Annual / Tactical Objective (Short Term) ................................................................... 80
14. Selected Corporate (Directional / Grand) Strategies ................................................... 81
15. Selected Business Strategies (Competitive / Cooperative Strategies) ......................... 82
IMPLEMENTATION AND INTERNAL POLICIES PHASE ............................................... 83
16. Functional Objectives - Implementation Matrix .......................................................... 84
EVALUATION AND CONTROL MECHANISM PHASE ................................................... 92
17. Balance Scorecard ........................................................................................................ 94
THE BUSINESS PLAN .......................................................................................................... 98
18. Executive Summary ..................................................................................................... 99
19. Situational Analysis ..................................................................................................... 99
20. Industry/Company Description .................................................................................... 99
21. Organization And Management ................................................................................. 100
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22. Product Line ............................................................................................................... 101

23. Market Analysis ......................................................................................................... 103
24. Marketing Objectives ................................................................................................. 104
25. Marketing Strategies .................................................................................................. 104
26. Competitive Strategy ................................................................................................. 104
27. Competitive Advantage ............................................................................................. 105
MARKETING PLAN ............................................................................................................ 106
28. Plan ............................................................................................................................ 107
28.1 S.T.P. (Market Segmentation, Targeting and Positioning) .............................. 107
28.1.1 Segmentation .................................................................................................... 107
28.1.2 Targeting ........................................................................................................... 108
28.1.3 Positioning ........................................................................................................ 108
28.2 Marketing Mix ..................................................................................................... 110
28.2.1 Product .............................................................................................................. 110
28.2.2 Price ................................................................................................................... 111
28.2.2.1 Pricing Strategies for Existing Products .................................................... 111
28.2.2.2 Pricing Strategies for New Products .......................................................... 112
28.2.3 Promotion ......................................................................................................... 113
28.2.4 Place .................................................................................................................. 115
OPERATIONAL PLAN ........................................................................................................ 116
29. Operational Strategy .................................................................................................. 117
30. Operational Objective ................................................................................................ 117
31. Plan ............................................................................................................................ 117
FINANCIAL PLAN............................................................................................................... 119
32. Historical Financial Statements ................................................................................. 120
33. Financial Projections & Plan ..................................................................................... 121
34. Conclusion ................................................................................................................. 123
35. References .................................................................................................................. 124
THANK YOU ........................................................................................................................ 125
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1. Introduction, Company Profile and Timeline

The Procter & Gamble Company (P&G) is an American multinational consumer goods
corporation headquartered in Cincinnati, Ohio, founded in 1837 by William Procter and
James Gamble.[1]
It specializes in a wide range of personal health/consumer health, personal care, and hygiene
products; these products are organized into several segments including beauty; grooming;
health care; fabric and home care; and baby, feminine, and family care.
Before the sale of Pringles to Kellogg's, its product portfolio also included food, snacks, and
beverages.[2] P&G is incorporated in Ohio.[3]
In 2014, P&G recorded $83.1 billion in sales. On August 1, 2014, P&G announced it was
streamlining the company, dropping and selling off around 100 brands from its product
portfolio in order to focus on the remaining 65 brands,[26] which produced 95% of the
company's profits. A.G. Lafley, the company's chairman and CEO until October 2015, said
the future P&G would be "a much simpler, much less complex company of leading brands
that's easier to manage and operate".[25]
In March 2015, VapoSteam was divested to Helen of Troy, part of a brand-restructuring

operation. The deal included a fully paid-up license to the Vicks VapoSteam trademarks and
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the U.S. license of P&G's Vaks VapoPad trademarks for scent pads, which are used in
various products such as humidifiers, vaporizers, and other health care devices.[1]
Later that same year in July, the company announced the sale of 43 of its beauty brands
to Coty, a beauty-product manufacturer, in a US$13 billion deal. It cited sluggish growth of
its beauty division as the reason for the divestiture.[7][8][27] The sale was completed on
October 3, 2016. [28]
In February 2016, P&G completed the transfer of Duracell to Berkshire Hathaway through
an exchange of shares. [2]
In December 2018, Procter & Gamble completed the acquisition of the consumer health
division of Merck Group (known as EMD Serono in North America) for €3.4 billion ($4.2
billion) and renamed it as Procter & Gamble Health Limited in May 2019. [4][9]
In November 2018, P&G unveiled a simpler corporate structure with six business units that
was effective from July 2019. [25]
In the 2021 review of WIPO's annual World Intellectual Property Indicators Procter &
Gamble ranked ninth in the world, with 57 designs in industrial design registrations being
published under the Hague System during 2020. [16]
Jon Moeller Vittorio Cretella

The current president and CEO of Chief Information Officer at Procter
P&G. [6] & Gamble [10]
In summer 2022, P&G sealed a multiyear partnership with Microsoft to transform P&G’s
digital manufacturing platform. The partners say they will create the future of digital
manufacturing by leveraging the industrial internet of things (IIoT), digital twin, data, and AI
to bring products to consumers faster and increase customer satisfaction, all while improving
productivity and reducing costs. [10]
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The main purpose of their digital transformation is to help create superior solutions for daily
problems of millions of consumers around the world, while generating growth and value for
all stakeholders, by leveraging data, AI, and automation with agility and scale across all
dimensions of their business, accelerating innovation and increasing productivity in
everything they do. [10]
P&G's digital transformation of its manufacturing platform will enable scalable predictive
quality, predictive maintenance, controlled release, touchless operations, and manufacturing
sustainability optimization. [10]
❑ Smart manufacturing at scale
The company has already undertaken pilot projects in Egypt, India, Japan, and the US that
use Azure IoT Hub and IoT Edge to help manufacturing technicians analyze insights to
create improvements in the production of baby care and paper products. [31] IIoT platform
uses machine telemetry and analytics to monitor production lines, improving cycle time,
network losses, and quality while improving operator productivity. [31]
P&G is also piloting the use of IIoT, advanced algorithms, machine learning (ML),
and predictive analytics to improve manufacturing efficiencies. [31]
Advanced analytics, data integration, algorithm creation, training, and deployment are
necessary for smart manufacturing. Providing common components at the edge and in the
Microsoft cloud that engineers can utilize to install a variety of use cases into a particular
manufacturing environment — without having to design everything from scratch — is the
key to achieving scalability. [31]
P&G will now be able to digitize and integrate data from more than 100 manufacturing sites
across the world and improve edge computing, AI, and machine learning capabilities for real-
time visibility using Microsoft Azure as the foundation. Employees at P&G will then be able
to use AI to analyze production data and support decisions that lead to improvement and
have a multiplicative effect. Within the consumer goods sector, it is uncommon to have
access to this level of data at scale. [31]
❑ Data and AI as digital fundamentals
P&G engineers also utilize Azure AI to assure quality control and equipment resilience on the
production line, and the firm employs predictive analytics to assist ensure its products are
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accessible at retail partners when, when, and how consumers purchase for them. P&G's secret
sauce is its talented data scientists and engineers, and automation of AI will allow them to
concentrate on areas where they add value, deliver with consistency in quality, manage bias
and risk, and make these capabilities available to an expanding number of employees,
ensuring that AI's advantages are felt throughout the entire organization. [31]
❑ The power of people
P&G has a "composite" approach to building teams in its IT organization, balancing the
organization between central teams and teams embedded in its categories and markets.
Cretella notes that the company prioritizes insourcing talent, especially in areas such as data
science, cloud management, cybersecurity, software engineering, and DevOps. [31]
Microsoft and P&G have created a DEO to support their transformation. It will act as an
incubator to create high-priority business scenarios in product manufacturing and packaging
processes and is seen as a project management office rather than a center of excellence. [31]
According to McKinsey, by 2030, machine learning could add up to nearly $13 trillion back
into the global economy by enabling workers in all sectors to improve their output. Across
industries, whether it’s gaming, military preparedness or pop music, artificial intelligence is
streamlining everything from manufacturing to product testing to supply chain logistics and
more. Companies like P&G are applying modern-day technologies across the entire
ecosystem to create better consumer experiences and build brand loyalty while generating
top line growth and bottom-line productivity. [31]
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THE STRATEGIC PLAN
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2. Vision Statement
2.1 Current Vision Statement
“Be, and be recognized as, the best consumer products and services company in the
world.”
2.2 Vision Criticizing
No. Vision Shall Be Fulfilled or Not Criticizing
1 Unrealistic, A dream Yes The current vision is not reflecting the current
agile P&G’s position in producing the most
2 Clear statement No innovative and sustainable products and
pipelines designed by the strong P&G’s R&D,
3 Concise statement Yes AI, digital manufacturing & transformation, and
the latest automated technology they have.
4 Common understanding No
2.3 Proposed Vision
“Always to be recognized as, the best consumer innovative & sustainable products and
services agile company in the world.”
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3. Mission Statement
3.1 Current Mission Statement
“We 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 us with leadership sales, profit, and value creation, allowing our
people, our shareholders, and the communities in which we live and work to
prosper.” [11]
3.2 Mission Criticizing
No. Mission Components Component is Criticizing

included or not
included
1 Customers (Who are the Yes No change
firm’s customers? and Target
audience)
2 Products or Services (What Yes Products’ pipelines
are the firm’s major products
or services)
3 Markets (Geographically Yes No change
where does the firm
competes)
4 Technology (Latest, …etc. No Through P&G’s R&D, AI, digital
and reflects quality & manufacturing & transformation, and the
efficiency) latest automated technology they have for
new pipelines.
5 Survival, Growth, Yes No change
Profitability
6 Philosophy (Believes, …etc.) No In an ethical manner
7 Self-Concept (The No Strong R&D

competitive advantage)
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8 Public Image (Social No CSR to save our planet

Responsibility)
9 Employees (Are employees a No Significant investment in employees
valuable asset for the
company)
3.3 Proposed Mission
“We will provide branded products’ pipelines and services of superior quality and value
that improve the lives of the world’s consumers, now and for generations to come
through the latest automated technologies and artificial intelligence from our strong
R&D research in an ethical manner. As a result, consumers will reward us with
leadership sales, profit and value creation and CSR to save our planet, allowing
significant investing in our people, our shareholders, and the communities in which we
live and work to prosper.”
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4. Core Values
4.1 Current Core Values
P&G Core Values are [11]:
❑ Integrity
We always try to do the right thing.
We are honest and straightforward with each other.
We operate within the letter and spirit of the law.
We uphold the values and principles of P&G in every action and decision.
We are data-based and intellectually honest in advocating proposals, including recognizing
risks.
❑ Leadership
We are all leaders in our area of responsibility, with a deep commitment to delivering
leadership results.
We have a clear vision of where we are going.
We focus our resources to achieve leadership objectives and strategies.
We develop the capability to deliver our strategies and eliminate organizational barriers.
❑ Ownership
We accept personal accountability to meet our business needs, improve our systems and help
others improve their effectiveness.
We all act like owners, treating the Company’s assets as our own and behaving with the
Company’s long-term success in mind.
❑ Passion for Winning
We are determined to be the best at doing what matters most.
We have a healthy dissatisfaction with the status quo.
We have a compelling desire to improve and to win in the marketplace.
❑ Trust
We respect our P&G colleagues, customers and consumers, and treat them as we want to be
treated.
We have confidence in each other’s capabilities and intentions.
We believe that people work best when there is a foundation of trust.
4.2 Core Values Criticizing
No. Main Core Values Selected or Not
1 Integrity and Honesty (FCPA foreign corruption Yes

practice act)
2 Respect Yes
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3 Loyalty Yes
4 Creativity (thinking) and innovation (execution) Personal health and hygiene
5 Team Spirit not Silo Mentality Yes
6 Assertiveness (decision making, problem Yes

solving, risk taking and confrontation)
7 Perfection (Quality (ISO, six sigma, PDCA) Yes
8 Commitment Yes
9 Certain degree Transparency Yes
10 Environmental protection Responsibility to make the world better
11 Customer focus Yes
12 Efficiency Yes
4.3 Proposed Core Values
I will add the herein below core values to P&G’s current core values:
We provide the brands people count on to take care of their personal health and hygiene and
to create clean and healthy homes.
We have a responsibility to make the world better. P&G is committed to positively

impacting our homes, our communities, and our planet — especially in the areas of
Climate, Forestry, Water and Packaging, environmental sustainability is embedded in how
we do business.
We have brands Tide and Ariel have helped consumers increase their use of low-energy
laundry cycles to avoid roughly 15 million metric tons of carbon dioxide.
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5. Goals
P&G’s “Ambition 2030” goals include [11]:
❑ Brands: P&G’s 20 leadership brands including Always, Ariel, Dawn, Fairy,

Febreze, Head & Shoulders, Pantene, Pampers and Tide will enable and inspire
responsible consumption through packaging that is 100 per cent recyclable or
reusable, launching more sustainable innovations, and building trust through
transparency and sharing safety science.
❑ Supply Chain: P&G manufacturing sites will cut greenhouse gas emissions in
half and will purchase enough renewable electricity to power 100 per cent of
plants. The Company will also source at least five billion liters of water from
circular sources.
❑ Society: P&G will continue to create transformative partnerships that enable
people, the planet and their business to thrive, including those that stem the
flow of plastic into the world’s ocean, protect and enhance forests, expand
recycling solutions for absorbent hygiene products and protect water in priority
basins around the world.
❑ Employees: P&G will engage, equip and reward employees for building
sustainability thinking and practices into their everyday work. It will reward
progress and integrate recognition into performance assessments.
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INPUT PHASE
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6. External Environment Assessment
6.1.1 PESTLE Analysis, USA (Macro Environment, Not Controllable)
6.1.1.1 Political
These determine the extent to which government and government policy may impact on an
organization or a specific industry.
6.1.1.1.1 Governmental and Political Stability (Opportunity)
The more the stability of the government, the higher is the ease of working in that region.
There are various opportunities that investors can utilize, and thus make it as strength rather
than just a policy to be followed. With governments across the world supporting the efficient
use of its natural resources and investors are working towards a sustainable environment, it
has a chance of getting involved with the government for the overall societal benefit. The
company itself has a political action committee. This committee works on issues that directly
affect its operations. It is registered with the U.S. Federal Election Commission (FEC) and
various state offices. It allows its employees to pool personal and voluntary financial
contributions to support candidates at the federal, state and local level. These people elected
at these different levels; help shape the future policies that directly affect the company’s
daily operations.
❑ Comment, Governmental and political stability support the investment opportunity.

Governmental and Political Probable Impact on Corporation
Stability (Opportunity) High Medium Low
Probability of High High Priority High Priority Medium Priority
Occurrence Medium High Priority Medium Priority Low Priority
Low Medium Priority Low Priority Low Priority
6.1.1.1.2 Russian invasion of Ukraine (Threat)

The invasion of the Russia on Ukraine. These geopolitical conflicts may be adverse for the
company in the annual-term and recovery from this war is a matter of uncertainty. Some
companies have strong presence globally with special focus on key markets like America,
Europe, Middle East and South Asian countries like India and China and therefore, any
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tensions or changes in the business environment of these countries significantly affect

investors. Tensions arising out of trade war between US and China caused the prices to hike
in the Chinese market with lowered sales which is the economic factor that is affecting
investors.
❑ Comment, this war has negative impact on the investment.

Russian invasion of Ukraine Probable Impact on Corporation
(Threat) High Medium Low
6.1.1.1.3 Taxation Laws (Threat)

The U.S. income tax system imposes a tax based on income on individuals, corporations,
estates, and trusts. The tax is taxable income, as defined, times a specified tax rate. This tax
may be reduced by credits, some of which may be refunded if they exceed the tax calculated.
Corporations in the United States pay federal corporate income taxes levied at a 21 percent
rate. [32]
❑ Comment, Changes in tax regulation will negatively impact the investment.

Taxation Laws Probable Impact on Corporation
6.1.1.1.4 Pressure Groups / Lobbies (Threat)

The pressure group is defined as a special interest group which seeks to influence Government
policy in a particular direction; action groups are loosely organized pressure groups. Such
groups do not seek Government control or responsibility for policy, and their political function
is not officially recognized.They are divided into Sectional & Trade units and Promotional
(Human and Environmental rights). [33][34]
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Although some companies hold that doing away with animal testing is the moral thing to do.
Unless required by law, they don't test any of their ingredients or products on animals
anywhere in the globe. [33][34]
People for the Ethical Treatment of Animals (PETA) accused some companies like P&G as
being cruelty-free by. [33][34]
Although it is doing its part to protect the environment, particularly in the areas of packaging,
forestry, water, and climate. [33][34]
According to a filing, environmental groups are urging some companies’ shareholders to vote
against re-electing its chief executive as board chair and against two other candidates for the
position, as well as against the company's use of excessive amounts of virgin wood pulp in its
paper products. In a letter submitted to P&G shareholders on Thursday, more than 100
environmental organizations urged them to reduce the company's negative effects on the
Indonesian and Malaysian tropical rainforests as well as the Canadian boreal forest. [28][34]
❑ Comment, PETA and Environmental groups will negatively impact the

investment.
Pressure Groups / Lobbies Probable Impact on Corporation
6.1.1.2 Economical
These factors are determinants of an economy’s performance that directly impacts a
company and have resonating long term effects.
6.1.1.2.1 USA Growth Domestic Product, GDP (Opportunity)
The Gross Domestic Product (GDP) in the United States was worth 23315.08 billion US
dollars in 2021, according to official data from the World Bank. The GDP value of the United
States represents 10.41 percent of the world economy.[13]
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Related Last Previous Unit Reference

GDP Growth 1.10 2.60 percent Mar 2023
Rate
GDP Annual 1.60 0.90 percent Mar 2023
Growth Rate
GDP 23315.08 21060.47 USD Billion Dec 2021
GDP Constant 20235.90 20182.50 USD Billion Mar 2023
Prices
GDP per Capita 61855.52 58453.45 USD Dec 2021
GDP per Capita 63669.71 60167.86 USD Dec 2021
PPP
Full Year GDP 2.10 5.90 percent Dec 2022
Growth
USA GDP Per Capita
GDP per capita is gross domestic product divided by midyear population. GDP is the sum of
gross value added by all resident producers in the economy plus any product taxes and minus
any subsidies not included in the value of the products. It is calculated without making
deductions for depreciation of fabricated assets or for depletion and degradation of natural
resources. Data are in current U.S. dollars. [13]
❑ U.S. gdp per capita for 2021 was $70,249, a 10.57% increase from 2020.
❑ U.S. gdp per capita for 2020 was $63,531, a 2.44% decline from 2019.
❑ Comment, the above data will create an opportunity for increasing the
investment.
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Economic Growth, Growth Probable Impact on Corporation

Domestic Product, GDP High Medium Low
(Opportunity )
6.1.1.2.2 USA Growth National Product, GNP (Opportunity)
GNP is calculated by adding the value contributed by all resident producers, any product taxes
that are not considered in the output valuation, and net foreign primary income receipts. For
comparisons between different economies, it is typically converted to U.S. dollars at official
exchange rates. The World Bank employs a unique Atlas technique of conversion to tame
pricing and exchange rate swings. To account for variations in inflation rates between the
countries, a conversion factor is applied that averages the exchange rate for the current year
and the two years prior. These nations include the Eurozone, Japan, the UK, and the United
States as of 2001. [13]
❑ U.S. gnp for 2021 was $23,539.92B, a 9.83% increase from 2020.
❑ U.S. gnp for 2020 was $21,432.32B, a 1.29% decline from 2019.
investment.
Growth National Product, GNP Probable Impact on Corporation

(Opportunity) High Medium Low
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6.1.1.2.3 Foreign Exchange Rates (Threat)

Foreign exchange risk, also known as exchange rate risk, is the risk of financial impact due
to exchange rate fluctuations, one of the companies reported second quarter fiscal year
2023 net sales of $20.8 billion, a decrease of one percent versus the prior year, it is
geographically diverse and derives -63% of its revenue outside the United States. This is
one of the main reasons the company faces a significant impact of negative foreign
currencies.[11][13]
❑ Comment, Foreign exchange rate will have a negative impact on the

investment.
Foreign Exchange Rate Probable Impact on Corporation

6.1.1.2.4 Economic Disruptions in Large Markets (Threat)

Economic downturns, some companies are exposed to economic downturns as consumer
spending on non-essential goods tends to decline in times of economic uncertainty. This
could lead to a decrease in demand for their products, which could negatively impact the
company's financial performance.[11]
Due to the world economic crisis, purchasing power of the dollar declined about 7.4 percent
between 2021 and 2022 because of inflation. Or stated another way, a dollar in 2022 could
only buy 92.6 percent of what it could buy, on average, in 2021.Social classes purchasing
power are affected by inflation.[11]
❑ Comment, Economic disruptions in large markets will have a negative impact

on the investment.
Economic Disruptions in Large Probable Impact on Corporation

Markets (Threat) High Medium Low
6.1.1.2.5 Fluctuating Prices of Raw Material (Threat)
Rising raw material costs have still led investors to increase prices by 9%, which has reduced
sales volume by 3%. Consumers are becoming somewhat put off by the ever-increasing prices.
Supermarket chains have already revealed that people are opting more for cheaper private
23
labels. In addition, the strength of the dollar against the euro and the pound has cost investors
6% of its turnover. As a result, net profit fell by 4% to 3.9 billion dollars (4 billion dollars).
[35]
❑ Comment, Fluctuating prices of raw material will have a negative impact on the
investment.
Fluctuating Prices of Raw Probable Impact on Corporation

Material (Threat) High Medium Low
6.1.1.3 Socio Cultural

These factors scrutinize the social environment of the market, and gauge determinants like
cultural trends, demographics, population analytics etc.
6.1.1.3.1 Social and Gender Inclusion (Opportunity)
Some companies have been awarded the best company in terms of social inclusion and
gender inclusion. With its policies treating all genders equally, they have made a mark in this
segment. Most of the edible products are needed to be healthy for the consumer and thus
these changing trends provide an opportunity for the company to mix and match or create
newer and better products thus helping the society grow and make life easier. [3]
investment.
Social and Gender Inclusion Probable Impact on Corporation

6.1.1.3.2 Changing Trends (Opportunity)

Consumers interact with the product, package, and how they feel about the brand, how they
experience it in the store or online, and whether it truly creates value for them versus the
alternatives he or she must choose from. These factors need to be considered to obtain a
positive category growth and build competitive advantage. With changing trends people are
looking for better quality/high quality products at affordable rates. With inclusion of Ariel and
tide pods into its fleet of products companies have proven that social needs are what drives
innovation. [3]
24
❑ Comment, changing trends will create an opportunity for increasing the

investment.
Changing Trends Probable Impact on Corporation

6.1.1.3.3 Social Class and Demographic Shifts (Opportunity)

In the United States, the lower, middle, and upper classes are the three classifications used in
the American class system. Each of these categories also has sub-categories that have their
own characteristics, such as the lower-middle class, who typically do not possess a college
degree.
Social class affects consumer behavior by shaping individuals' perceptions of their needs and
wants. People in the same social class tend to have similar attitudes, live in similar
neighborhoods, attend the same schools, have similar tastes in fashion, and shop at the same
types of stores.
Demographic shifts, such as aging populations or changes in family structures, can also
impact company's sales. [3]
❑ Comment, Social class habits and Demographic shifts will create an

opportunity for increasing the investment and may increase consumer trials.
Social Class and demographic Shifts Probable Impact on Corporation

25
6.1.1.4 Technological
These factors pertain to innovations in technology that may affect the operations of the
industry and the market favorably or unfavorably. This refers to automation, research and
development and the amount of technological awareness that a market possesses.
6.1.1.4.1 Technology (Opportunity)
Data-processing technologies like machine learning are helping shape everything from the
chemical compositions of cleaning products to consumer behaviors around washing dishes to
the way products are packaged and marketed.
In the digital age, any company is a technology company, leveraging the cloud to connect
data previously held in functional silos, developing tools to facilitate the work of data
scientists and data engineers, and attracting and developing talented resources.
Companies’ technology journey is a continuous journey, driven by a passion to improve the

lives of consumers and leveraging technologies to continue to improve products and
experiences. AI is key to our digital transformation strategy, which focuses on disrupting
business constructively and better meeting the needs of consumers, creating value for all
stakeholders.
❑ Comment, the improvement of the ICT sector supports and facilitates the
business and innovation processes.
Technology Probable Impact on Corporation
6.1.1.4.2 Artificial Intelligence and R&D (Opportunity)

Artificial intelligence accelerates product innovation and development process, using
modeling and simulation techniques to shorten lead time to find new ingredients. Algorithms
can also process consumer feedback and flag R&D engineers in real time, with
recommendations for adjustments.
Engineers use AI for quality control on the production line, capturing data from sensors and
imaging to replace manual off-line quality testing, increasing equipment efficiency and
managing power and water consumption.
❑ Comment, the improvement of the Artificial Intelligence and R&D support and
facilitate the business process for innovating new pipelines.
26
Artificial Intelligence and R&D Probable Impact on Corporation

6.1.1.4.3 Extensive Use of IT Networks - Cyber Security Breaches

(Threat)
Annual number of data compromises and individuals impacted in the United States from
2005 to 2022.[17]
Some companies have confirmed are affected by a data breach of the GoAnywhere MFT file-
sharing platform. As part of this incident, an unauthorized third party obtained some
information about the companies’ employees. The number of employees concerned has not
been disclosed. [17]
The data that was obtained by the unauthorized party did not include information such as
social security numbers or national identification numbers, credit card details, or bank
account information. [17]
These companies claims that the company learned about the incident in early February. The
company then immediately launched an investigation, disabled the use of Fortra’s services,
and notified company employees about the cyberattack.[36]
Number of Individuals
Characteristic Data compromises records exposed impacted in
in millions millions
2022 1,802 - 422.14
2021 1,862 - 298.08
2020 1,108 - 310.12
2019 1,279 164.68 883.56
2018 1,175 471.23 2,227.85
2017 1,506 198 1,825.41
2016 1,099 36.6 2,541.07
2015 785 169.1 318.28
❑ Comment, Cyber security breaches have negative impact on the investment.
Cyber Security Breaches Probable Impact on Corporation

27
6.1.1.5 Environmental / Ecological

Environmental factors are those that are influenced of the surrounding environment and the
impact of ecological aspects. With the rise in importance of CSR (Corporate Sustainability
Responsibility) and sustainability, this element is becoming more central to how
organisations need to conduct their business.
6.1.1.5.1 Carbon Footprint (Opportunity)
❑ Major Federal Laws: [37]

Endangered Species Act (ESA): This Act protects endangered species in order to prevent their
extinction.
Resource Conservation and Recovery Act (RCRA): This Act governs the disposal of solid
and hazardous waste.
Comprehensive Environmental Response Compensation and Liability Act (CERCLA): Also
known as the “Superfund,” this Act is aimed at cleaning up areas which are already
polluted. This statute assigns broad liability to parties associated with the improper disposal of
hazardous waste. The statute also provides funding for cleaning up the impacted areas.
Clean Air Act (CAA): The CAA is designed to protect air quality by regulating stationary and
mobile sources of pollution.
Clean Water Act (CWA): The CWA protects water by preventing discharge of pollutants into
navigable waters from point sources.
❑ State Law: [37]

State laws reflect similar concerns which allow adversely affected property owners to seek a
judicial remedy for environmental harms. Although laws on the state level vary from state to
state, many of them mirror the federal laws.
Reducing U.S. greenhouse gas emissions 50-52% below 2005 levels in 2030. Reaching
100% carbon pollution-free electricity by 2035. Achieving a net-zero emissions economy by
2050. Delivering 40% of the benefits from federal investments in climate and clean energy to
disadvantaged communities.[38], OSHA has established a Permissible Exposure Limit (PEL)
for CO2 of 5,000 parts per million (ppm) (0.5% CO2 in air) averaged over an 8-hour work
day (time-weighted average orTWA.)[39]
❑ Comment, the above analysis creates an opportunity for increasing the

investment by innovating net eco-friendly products.
Carbon Footprint Probable Impact on Corporation

28
6.1.1.5.2 Environmental Sustainability (Opportunity)
Environmental sustainability is embedded in how companies are doing their business. They
have a responsibility to make the world better.[11][37][38][39]
Companies are committed to positively impacting our homes, our communities, and our planet
especially in the areas of e.g.
❑ Climate: NET zero ambition by 2040

❑ Water: to conserve and restore water for people and nature.
❑ Forestry: using 100% certified pulp in Family Care and will achieve 75% FSC
certification, our preferred certification, by 2022 with an ambition to reach 100% FSC
by 2030.
❑ Packaging: In 2021, 73% of our consumer packaging is recyclable or reusable, and we
continue to work towards 100% recyclable or reusable consumer packaging.
❑ Saving Energy at Home: Some brands have helped consumers increase their use of
low-energy laundry cycles to avoid roughly 15 million metric tons of carbon dioxide.
We have leveraged innovation and sustained consumer education
They are focusing on developing innovations and products that deliver irresistible superiority
in a sustainable way.[11]
❑ Comment, Environmental sustainability creates an opportunity for increasing

the investment.
Environmental Sustainability Probable Impact on Corporation
6.1.1.6 Legal
There are certain laws that affect the business environment in a certain country while there are
certain policies that companies maintain for themselves.
6.1.1.6.1 Compliance with Legislation of Various Countries (Threat)
Working on Government Contracts at many countries place strict legal requirements on
companies that do business with the government.
Some companies have their “The Worldwide Business Conduct Manual” contains the global
standards they must follow to ensure they uphold the PVPs in their daily work. The WBCM
29
provides clear guidance on specific situations they might face and directs them where to go
when they have questions or concerns.
When selling to, negotiating with or working with government customers, it is critical that
companies abide by these requirements. These rules are often much stricter and more complex
than those that govern their sales to commercial customers.[40]
❑ Comment, Compliance with Legislation, Regulation and Enforcement of

Various Countries may have a negative impact on the investment.
Compliance with Legislation of Probable Impact on Corporation

various countries High Medium Low
(Threat)
6.1.1.6.2 Complying with Competition Laws (Threat)

It is illegal for businesses to act together in ways that can limit competition, lead to higher
prices, or hinder other businesses from entering the market. The FTC challenges unreasonable
horizontal restraints of trade.[41]
Some companies strongly support vigorous yet fair competition. They succeed based on the
quality of their products and People, and never through unfair business practices. They must
all abide by competition laws (also referred to as “antitrust” laws). These laws can vary from
market to market, but their common goal is to preserve free and open competition and to
promote a competitive marketplace.[11]
When markets operate freely, investors consumers benefit through high-quality goods and
services at fair prices. Failure to comply with these laws can have serious and far-reaching
consequences for companies and the individuals involved.[11]
❑ Comment, Any violation to the complying with competition laws may have a
negative impact on the investment.
Complying with Competition Probable Impact on Corporation

Laws (Threat) High Medium Low
30
6.1.1.6.3 Imports and Exports Laws (Threat)

Both CBP and the importing/exporting community have a shared responsibility to maximize
compliance with laws and regulations. In carrying out this task, CBP encourages
importers/exporters to become familiar with applicable laws and regulations and work
together with the CBP Office of Trade to protect American consumers from harmful and
counterfeit imports by ensuring the goods that enter the U.S. marketplace are genuine, safe,
and lawfully sourced.[42]
The information on this page promotes the understanding of this responsibility, as there may
be specific requirements related to a particular commodity, such as those set by Partner
Government Agencies (PGA).[42]
Companies’ business has many global aspects, and we need to know about and abide by
special laws and regulations that apply to the import and export of products and technical
data.
A product, piece of software, technological advancement, service, or piece of information is

considered to have been exported when it is transported to another nation and disclosed to or
made available to a national of that nation. companies must obtain the necessary licences and
permits and confirm the eligibility of both the delivery location and the recipient.
Bringing the items companies buy from a foreign or external source into another country is
generally considered a "import" activity, which is governed by a number of laws and
regulations. In particular, this activity could demand for the payment of duties and taxes in
addition to the delivery of specific filings.
Consequences for violating trade control laws and regulations are severe for both companies
and the individuals involved, including the loss of export privileges and possible civil and
criminal penalties. They shall have very detailed policies and procedures for those that work
in this area.[42]
❑ Comment, any violation to imports and exports laws may have a negative
impact on the investment.
Imports and Exports Laws Probable Impact on Corporation

31
6.1.1.6.4 Boycotts and Restricted Countries (Threat)
Economic sanctions and trade embargoes are occasionally used by the United States and
other countries to advance a variety of foreign policy and national security goals. Contact
Legal if you have any questions about whether a transaction conforms with any relevant
trade embargo and punishment programmes.
Several governments have passed legislation making it illegal for businesses to take part in
or support any international boycott that the government does not support. companies must
notify Legal right away if you learn of or suspect that you have received a request to take
part in an international boycott in any form.
❑ Comment, this issue may have a negative impact on the investment.
Boycotts and Restricted Countries Probable Impact on Corporation

6.1.1.6.5 Child Labor and Human Rights Abuse (Threat)
According to a recent Fortune.com article, companies have been accused of sourcing palm
oil that was obtained with the use of child labor. Amnesty International was quoted in the
article saying that children as young as eight worked in “hazardous” conditions. [23][24]
The article quoted an email from one of the companies that said that it was working with
Wilmar to “ensure they can remedy any potential human rights infringements in their supply
chain.” [23][24]
❑ Comment, although some companies are keen that there is No Child Labor, No
Forced Labor, Non-Discrimination and respecting all human rights, one of its
suppliers violated this, so this issue may have a negative impact on the investment.
Child Labor and Human Rights Probable Impact on Corporation

Abuse (Threat) High Medium Low
32
6.1.1.6.6 Health and Hygiene Laws (Opportunity)
Some companies have the potential to improve its internal standards to reach superior
quality. Companies can benefit from higher standards to ensure their products are superior to
those of its rivals.[24]
companies of the huge business size that must comply with pollution restrictions to avoid
costly lawsuits that could damage its reputation. Violations of patents can lead to lawsuits,
such as the Unilever Dollar Shave lawsuit, which the corporate giant eventually settled. It is
important to monitor these occurrences to prevent market share loss. [24]
❑ Comment, the above analysis creates an opportunity for increasing the

investment.
Health and Hygiene Laws Probable Impact on Corporation

6.1.1.6.7 Patent Law (Opportunity)
Companies’ Intellectual Property (IP) is among its most valuable assets. IP includes,
copyrights, patents, trademarks, trade secrets, design rights, trade dress, logos, know how,
photos / videos, individuals’ names and likenesses and other intangible industrial or
commercial property.[22]
To the extent permitted by law, companies own the rights to all IP relating to their businesses.
This is true regardless of whether the IP is patentable or protectable by copyright, trade secret
or trademark. No one can use this IP in a manner that is inconsistent with P&G’s ownership
rights. Contact Legal with any questions.[22]
❑ Comment, this creates an opportunity for increasing the investment.
Patent Law Probable Impact on Corporation

33
❑ Conclusion, Opportunities and Threats from the PESTEL Analysis

Opportunities Threats
• Governmental and Political Stability • Russian invasion of Ukraine
• Economic Growth, Growth Domestic Product, • Taxation Laws
GDP • Pressure Groups / Lobbies
• Growth National Product, GNP • Foreign Exchange Rate
• Social and Gender Inclusion • Economic Disruptions in Large Markets
• Changing Trends • Fluctuating Prices of Raw Material
• Social Class Social Class and demographic • Cyber Security Breaches
Shifts • Compliance with Legislation of various
• Technology countries
• Artificial Intelligence and R&D • Complying with Competition Laws
• Carbon Footprint • Imports and Exports Laws
• Environmental sustainability • Boycotts and Restricted Countries
• Health and Hygiene Laws • Child Labor and Human Rights Abuse
• Patent Law
34
6.1.2 Porter Five Forces Model (For External Part Of The

Microenvironment)
Fred David added a 6th force which is other stakeholders, e.g. Government, Pressure groups,
…etc. But I will analyze the five forces.
6.1.2.1 Bargaining Power of Suppliers (Moderate)

Assessment Yes / No
Are there a large number of potential suppliers? Yes
Are the products that we need to purchase for our business unique? No
Do our purchases from suppliers represent a large portion of their business? Yes
Would it be difficult for our suppliers to enter our business? Yes
Are substitutes not easily available? (higher power) No
Can we easily switch to substitute products from other suppliers? Yes
Are there Cartels? (UE Detergent Cartel Fines) Yes
Are we well informed about our supplier’s product and market? No
Is the Product critical for our business? Yes
Is the target industry not important to the supplier? Yes
Is there a real threat of forward integration from supplier? No
P&G has considerable negotiating power with suppliers thanks to its size and purchasing
strength. However, the business might run into problems in some markets where there aren't
many suppliers or where the cost of raw materials varies a lot. Suppliers therefore have a
35
moderate amount of negotiating power. In many industries it is more economical to use

outside suppliers of component parts than to self-manufacture the items, who specialize in
such components and have huge economies of scale.
❑ Comment, Intensity of “Bargaining Power of Suppliers” is (Moderate)
Bargaining Power Probable Impact on Corporation

of Suppliers High Medium Low
6.1.2.2 Bargaining Power of Buyers (Moderate)
Assessment Yes / No
Can consumers inexpensively switch to competing brands or substitutes? Yes
Are consumers particularly important to the seller? No
Do we have enough customers such that losing one isn’t critical to the success? Yes
Are sellers struggling in the face of falling consumer demand? No
Are consumers informed about sellers’ products, prices, and costs? Yes
Are consumers have discretion in whether and when they purchase the product? No
Are alternative suppliers plentiful because the product is standard or No

undifferentiated?
A buyer earns low profits and is thus very sensitive to costs and service Yes
differentiation.
Is the purchased product unimportant to the final quality or price of a buyer’s No
products or service.
Would it be difficult for buyers to integrate backward in the supply chain? Yes
Is it difficult for customers to switch from ours to our competitors’ products? No
Are consumers price sensitivity? Yes
Is the total price of purchase to our consumers affordable? Yes
36
Consumers have many options when it comes to purchasing consumer goods, which may
reduce P&G's ability to set prices. However, the business can maintain client loyalty and
pricing power by leveraging its strong brand reputation, advertising, and product innovation.
❑ Comment, Intensity of “Bargaining Power of Buyers” is (Moderate)
Bargaining Power Probable Impact on Corporation
of Buyers High Medium Low
6.1.2.3 Threat of Substitute (Moderate)
Assessment Yes / No
Are there a small number of competitors / substitutes available? No
Is the substitute performance better than me? No
Is there a clear leader in our market? Yes
Is the market growing? Yes
Do we have low fixed costs? No
Does our competitors pursuing a low growth strategy? No
Is it easy for competitors to abandon their product? No
Is it difficult for consumer to switch between our product and our competitors’ No
(switching cost)?
P&G's pricing power and market share may be constrained by the abundance of substitute
items available in the consumer goods sector. However, P&G has a competitive advantage
thanks to its broad product portfolio, strong brand recognition, and marketing and innovation
capabilities.
❑ Comment, Intensity of “Threat of Substitute” is (Moderate)
Threat of Substitute Probable Impact on Corporation

High Medium Low
37
6.1.2.4 Threat of New Entrants (Low)
Assessment Yes / No
Do our company has economies of scale (cost advantages reaped by companies Yes
when production becomes efficient)?
Do we have a unique process (Technology protection/ The need to gain technology Yes
and specialized knowhow) that is protected?
Do we have a unique license / patency that is protected? Yes
Do we have a suitable mass production? Yes
Are new entrants face difficulty enticing prospective customers to pay the additional Yes
money required to make a change/switch?
Are there any governmental policies, taxes, or customs? Yes
Are consumers loyal to our brand? No
Are there high start-up costs for our business? Yes
Are the assets (Infrastructure and Knowhow) needed to run our business unique? Yes
Is there a process or procedure critical to our business? Yes
Will a new competitor have difficulty acquiring/obtaining needed inputs? Yes
Will a new competitor have any difficulty taking my consumers? Yes
Would it be difficult for a new entrant to have enough resources to compete? No
The high barriers to entry in the consumer goods industry make it difficult for new
competitors to enter the market. P&G has a major edge thanks to its well-known brand,
economies of scale, and established distribution networks.
❑ Comment, Intensity of “Threat of New Entrants” is (Low)
Threat of New Entrants Probable Impact on Corporation

High Medium Low
38
6.1.2.5 Rivalry Among Existing Competitors (Moderate)
Assessment Yes / No
Do I have a unique competitive advantage that delivers the value proposition? Yes
Are there a high number of competing firms? Yes
Am I of similar size of firms competing? Yes
Am I of similar capability of firms competing? Yes
Is my company having a high level of advertising expense? Yes
Do I have more innovative products? (Healthy competition) Yes
Am I offering products with lower prices than competitors? (Healthy competition) Yes
With numerous well-established firms striving for market share, the consumer products
industry is extremely competitive. Along with smaller, niche players, big multinational
corporations compete with P&G. P&G has a competitive advantage thanks to its wide range of
products, solid brand recognition, and marketing and innovation skills.P&G must Focus on
competitive advantage of strategies.
❑ Comment, Intensity of “Rivalry Among Existing Competitors” is (Moderate)
Rivalry Among Existing Competitors Probable Impact on Corporation

High Medium Low
❑ Conclusion, P&G operates in a highly competitive industry, but its strong brand
reputation, extensive product portfolio, and marketing and innovation capabilities give
it a significant advantage. The company must continue to innovate and adapt to
changes in the market to maintain its competitive position.
39
6.1.3 Main Competitors
❑ Major competitors for P&G include Colgate-Palmolive, Church and Dwight,

Johnson & Johnson, Kimberly-Clark, The Clorox Company and Unilever.
❑ Nearly two-thirds of P&G’s revenues are generated from developed markets,
while Unilever gets the majority of its revenues from faster-growing emerging
markets. Investopedia.com
❑ I will choose Colgate-Palmolive and Unilever.
40
6.1.4 Strategic Types (Miles And Snow’s Organizational Strategies)
6.1.4.1 Prospectors (Threat)

P&G and Unilever are prospectors as the company has a long history of innovation and is
constantly developing new products and technologies. They invest heavily in R&D to drive
product innovation, and they have strong focus on product leadership.
Colgate-Palmolive does align with the prospector type to some extent, as the company has a
history of developing new products and technologies that set the standard for the industry.
However, the company is not as focused on innovation and new market entry as P&G and
Unilever.
❑ Comment, Unilever is with direct competition with P&G, which I will consider as
“High Priority” as it may cause some sort of threat.
Prospectors (Threat) Probable Impact on Corporation
Unilever is with direct competition High Medium Low
with P&G
6.1.4.2 Defenders (Opportunity)

Colgate-Palmolive aligns more with the defender type, as the company is focused on
maintaining its existing market position and is less likely to take risks to enter new markets or
develop new products.
P&G and Unilever do not align with the defender type, as they are constantly looking to
innovate and develop new products to maintain their competitive edge.
41
❑ Comment, Colgate-Palmolive is not with direct competition with P&G, which I will
consider as “Low Priority” as it is not a sort of threat.
Defenders (Opportunity) Probable Impact on Corporation
Colgate-Palmolive is not with direct High Medium Low
competition with P&G
6.1.4.3 Analyzers (Threat)

P&G, Unilever and Colgate-Palmolive have some aspects of analyzers, as they invest in
developing new products while also maintaining its existing market position.
❑ Comment, Unilever and Colgate-Palmolive are with direct competition with P&G,
which I will consider as “Medium Priority” as they may cause some sort of threat.
Analyzers (Threat) Probable Impact on Corporation

Unilever and Colgate-Palmolive are High Medium Low
with direct competition with P&G
6.1.4.4 Reactors (Stuck In The Middle)
Not important as a competitor.
42
6.1.5 Value Discipline Triad
P&G, Unilever, and Colgate-Palmolive are all renowned FMCG (Fast Moving Consumer
Goods) companies that operate on a global scale. All three companies have a strong focus
on operational excellence, customer intimacy and product leadership which is about
delivering products and services at the lowest cost and with the highest efficiency. Here's
how the three companies compare in terms of operational excellence in order:
❑ Operational Excellence
1. P&G
2. Unilever
3. Colgate-Palmolive
43
P&G has invested heavily in manufacturing and supply chains to increase productivity and
reduce costs, utilizing lean manufacturing practices and automation and technology to
provide high-quality products at a lower price than its rivals.
Three companies have placed a high priority on operational excellence and streamline their
production and supply chain processes to provide high-quality products at a lower cost.
Although there may be some variations in the technologies and procedures employed, they
are all very effective and efficient.
Operational Excellence (Threat) Probable Impact on Corporation

with P&G
❑ Customer Intimacy:
1. Unilever
2. P&G
Each company use customer needs to create tailored products tailored to the needs of
various market sectors, investing in consumer research to understand trends and preferences
before creating and promoting items that appeal to consumers.
The three companies have placed a strong emphasis on building close relationships with
consumers and have employed similar approaches to address their needs. Despite each
company having a slightly different strategy, they all succeed in creating goods that appeal
to consumers and address their unique needs. It is challenging to rank them in terms of
customer intimacy due to their high priority on getting to know their clients and satisfying
their individual needs.
Customer Intimacy (Threat) Probable Impact on Corporation

with P&G
❑ Product Leadership:
1. P&G
2. Unilever
44
Colgate-Palmolive has a strong emphasis on product leadership and a track record of

creating cutting-edge new products and technologies. To promote product innovation, the
company invests in research and development, and is able to set itself apart from rivals and
add value for customers.
The three companies have a strong commitment to product leadership and a long track
record of creating new goods and technology. All three companies stand out from the
competition and add value for their customers through cutting-edge products. It is
challenging to rank them based on product leadership.
Product Leadership (Threat) Probable Impact on Corporation

with P&G
❑ Comment, P&G is the leader in operational excellence, customer intimacy and Product
leadership, providing a competitive advantage and opportunity in the external
environment. Unilever is a threat that P&G must take action to maintain its position
and enhance it.
45
6.1.6 Strategic Group Mapping
A strategic group mapping, or strategy map, is a visualization tool that incorporates data from
industry rivals with similar characteristics and market share to my own company. This tool
will help us to see how my company stacks up against its competitors.
P&G
Unilever
Johnson
Market Share
&
Johnson
Colgate-
palmolive
Kimberly
-Clark
The
Clorox
Company
Brand Name
❑ Comment, Strategic group has been classified based on the “Brand Name” vs
“Market Share”; The Market has been divided into three groups;
Group 1: Shows the high competition between P&G and Unilever in terms of the high
market share.
Group 2: Is in the middle layer of competition between Johnson & Johnson and Colgate-
Palmolive.
Group 3: Is the least group in terms of market share having Kimberly-Clark and The
Clorox Company.
46
Conclusion Probable Impact on Corporation

High Medium Low
High Priority High Priority Medium
Governmental and Political Stability Taxation Laws (Threat) Priority
(Opportunity) Pressure Groups / Lobbies
Russian invasion of Ukraine (Threat) (Threat)
Foreign Exchange Rate (Threat) Economic Growth, Growth
Economic Disruptions in Large Markets Domestic Product, GDP
(Threat) (Opportunity )
Fluctuating Prices of Raw Material Growth National Product, GNP
(Threat) (Opportunity)
Technology (Opportunity) Environmental Sustainability
Artificial Intelligence and R&D (Opportunity)
High (Opportunity)
Cyber Security Breaches (Threat)
Compliance with Legislation of various
countries (Threat)
Complying with Competition Laws
(Threat)
Imports and Exports Laws (Threat)
Probability Unilever is with direct competition with
of P&G (Threat)
Occurrence Operational Excellence, Unilever is with
direct competition with P&G (Threat)
High Priority Medium Priority Low Priority
Social and Gender Inclusion
(Opportunity)
Changing Trends (Opportunity)
Social Class and demographic
Shifts (Opportunity)
Carbon Footprint (Opportunity)
Boycotts and Restricted
Countries (Threat)
Child Labor and Human Rights
Abuse (Threat)
Medium Health and Hygiene Laws
(Opportunity)
Patent Law (Opportunity)
Moderate Bargaining Power of
Buyers
Moderate Threat of Substitute
Moderate Rivalry Among
Existing Competitors
Customer Intimacy, Unilever is
with direct competition with
P&G (Threat)
Medium Priority Low Priority Low Priority
Bargaining Power of Suppliers Low Threat of New Entrants
Low Unilever and Colgate-Palmolive are with Colgate-Palmolive is not with
direct competition with P&G (Threat) direct competition with P&G
Product Leadership, Unilever is with (Opportunity)
direct competition with P&G (Threat)
47
6.1.7 Situational Analysis

6.1.7.1 Opportunities
Number Opportunities
1 Governmental and Political Stability
2 Technology and Growth of e-commerce and direct-to- consumer sales
3 Artificial Intelligence and R&D (Pipelines)
4 Economic Growth, Growth Domestic Product, GDP
5 Growth National Product, GNP
6 Growing demand for eco-friendly, Carbon Footprint and sustainable products
7 Social and Gender Inclusion
8 Increasing demand for personal and home care products
9 Growing demand for premium and high- margin products
10 Expansion into emerging markets
11 Partnerships and collaborations with external stakeholders
12 Health and Hygiene Laws
13 Patent Law
14 Moderate Bargaining Power of Buyers
15 Moderate Threat of Substitute
16 Moderate Rivalry Among Existing Competitors
17 Moderate Bargaining Power of Suppliers
18 Low Threat of New Entrants
19 Colgate-Palmolive is not with direct competition with P&G
6.1.7.2 Threats
Number Threats
1 Russian invasion of Ukraine
2 Foreign Exchange Rate
3 Economic Disruptions in Large Markets which can change consumer preferences and trends
4 Fluctuating Prices of Raw Material and input costs
5 Intense competition in the FMCG industry
6 Supply chain disruptions and logistics challenges
7 Cyber Security Breaches
8 Regulatory challenges and compliance requirements of various countries
9 Complying with Competition Laws
10 Imports and Exports Laws
11 Unilever is with direct competition with P&G
12 Operational Excellence, Unilever is with direct competition with P&G
13 Taxation Laws
14 Pressure Groups / Lobbies
15 Boycotts and Restricted Countries
16 Child Labor and Human Rights Abuse
17 Customer Intimacy, Unilever is with direct competition with P&G
18 Unilever and Colgate-Palmolive are with direct competition with P&G
19 Product Leadership, Unilever is with direct competition with P&G
48
6.1.8 EFAS (External Factor Analysis Summary)
EFAS
No. Factors Weight Score Weighted
Score
Opportunities
O1 Governmental and Political Stability 0.1 3 0.3
O2 Growth of e-commerce and direct-to- consumer sales 0.05 3 0.15
O3 Technology, Artificial Intelligence and R&D 0.1 4 0.4
O4 Growth Domestic and National Product, (GDP & GNP) 0.02 3 0.06
O5 Growing demand for eco-friendly, Carbon Footprint and 0.1 4
0.4
sustainable products
O6 Social and Gender Inclusion 0.03 3 0.09
O7 Increasing demand for personal and home care products 0.02 3 0.06
O8 Growing demand for premium and high- margin products 0.02 3 0.06
O9 Expansion into emerging markets 0.08 4 0.32
O10 Partnerships and collaborations with external stakeholders 0.03 4 0.12
O11 Health and Hygiene Laws 0.01 3 0.03
O12 Patent Law 0.01 3 0.03
Threats
T1 Russian invasion of Ukraine 0.02 2 0.04
T2 Foreign Exchange Rate 0.03 2 0.06
T3 Economic Disruptions in Large Markets which can 0.03 2
0.06
change consumer preferences and trends
T4 Fluctuating Prices of Raw Material and input costs 0.05 2 0.1
T5 Intense competition in the FMCG industry 0.1 2 0.2
T6 Supply chain disruptions and logistics challenges 0.03 2 0.06
T7 Cyber Security Breaches 0.03 2 0.06
T8 Regulatory challenges and compliance requirements of 0.03 3
0.09
various countries
T9 Complying with Competition Laws 0.01 3 0.03
T10 Imports and Exports Laws 0.01 3 0.03
T11 Taxation Laws 0.03 3 0.09
T12 Pressure Groups / Lobbies 0.03 2 0.06
T13 Boycotts and Restricted Countries 0.01 2 0.02
T14 Child Labor and Human Rights Abuse 0.02 2 0.04
Total 1 2.96
❑ Comment, Sum of the Weighted score > 2.5, P&G is in good position to catch the
opportunities and avoid the threats and this reflects the company’s ability to respond
to the external factors.
49
6.1.9 CPM (Competitive Profile Matrix)
P&G Unilever Colgate-

Palmolive
Critical Success Factor Weight Rating Score Rating Score Rating Score
Product Diversification & Portfolio 0.1 3 0.3 4 0.4 3 0.3
Product Quality & Innovation 0.2 4 0.8 3 0.6 2 0.4
Pricing Strategy 0.03 4 0.12 3 0.09 3 0.09
Place (Global Market Presence 0.15 3 3
4 0.6 0.45 0.45
& Distribution Network)
Marketing & Advertising Effectiveness 0.03 4 0.12 3 0.09 2 0.06
People (Well Trained) 0.03 4 0.12 4 0.12 3 0.09
Process (KISS, Keep it Simple & 0.03 3 3
3 0.09 0.09 0.09
Straight)
Financial Performance & Profitability 0.1 3 0.3 3 0.3 3 0.3
Supply Chain & Logistics Efficiency 0.03 4 0.12 3 0.09 3 0.09
Brand Reputation (Strength & 0.15 4 2
4 0.6 0.6 0.3
Recognition)
Sustainability Initiatives & Commitment 0.05 4 0.2 3 0.15 2 0.1
Customer Loyalty & Satisfaction 0.1 4 0.4 3 0.3 2 0.2
Total 1 3.77 3.28 2.47
❑ Comment, From the CPM results, P&G has a competitive advantage over its two
competitors, with a total weighted score of 3.77 out of 4, compared to Unilever's score
of 3,28 and Colgate-Palmolive score of 2.47.
P&G can preserve its competitive position and foster long-term development and
profitability by continuing to build on its strengths and resolve its weaknesses.
50
6.2 Internal Environmental Analysis

Analysis for items related to the products, employees, and the company itself.
6.2.1 Financial Parameters
[14][15]
6.2.1.1 Income Statement
2023 2022 2022 2022

Period Ending 31/03 31/12 30/09 30/06
Total Revenue 20068 20773 20612 -

Revenue 20068 20773 20612 -
Other Revenue, Total - - - -
Cost of Revenue, Total 10404 10897 10846 -
Gross Profit 9664 9876 9766 -
Total Operating Expenses 15734 15900 15678 -
Selling/General/Admin. Expenses,
5330 5003 4832 -
Total
Research & Development - - - -
Depreciation / Amortization - 574 583 -
Interest Expense (Income) - Net
-222 -171 -123 -
Operating
Unusual Expense (Income) - - - -
Other Operating Expenses, Total -388 -403 -460 -
Operating Income 4334 4873 4934 -
Interest Income (Expense), Net Non-
- - - -
Operating
Gain (Loss) on Sale of Assets 2 -1 9 -
Other, Net 44 39 -72 -
Net Income Before Taxes 4288 4835 4997 -
Provision for Income Taxes 864 876 1034 -
Net Income After Taxes 3424 3959 3963 -
Minority Interest 281 270 259 265
Equity In Affiliates - - - -
U.S GAAP Adjustment - - - -
Net Income Before Extraordinary
3397 3933 3939 -
Items
51
Total Extraordinary Items - - - -

Net Income 3397 3933 3939 -
Total Adjustments to Net Income -69 -70 -71 -
Income Available to Common
3328 3863 3868 -
Excluding Extraordinary Items
Dilution Adjustment - - - -
Diluted Net Income 3397 3933 3939 -
Diluted Weighted Average Shares 2473.2 2481.2 2503.6 -
Diluted EPS Excluding
1.37 1.59 1.57 -
Extraordinary Items
DPS - Common Stock Primary Issue 0.913 0.913 0.913 -
Diluted Normalized EPS 1.07 1.21 1.24 0.968
* In Millions of USD (except for per share items)
6.2.1.2 Balance Sheet
2023 2022 2022 2022

Period Ending 31/03 31/12 30/09 30/06
Total Current Assets 22305 21866 22521 21653

Cash and Short Term Investments 7596 6854 6710 7214
Cash - - - -
Cash & Equivalents 7596 6854 6710 7214
Short Term Investments - - - -
Total Receivables, Net 5471 5767 5720 5143
Accounts Receivables - Trade, Net 5471 5767 5720 5143
Total Inventory 7483 7541 7590 6924
Prepaid Expenses 1755 1704 2501 2372
Other Current Assets, Total - - - -
Total Assets 119851 117715 116282 117208
Property/Plant/Equipment, Total - Net 21564 21167 20593 21955
Property/Plant/Equipment, Total -
- - - 47457
Gross
Accumulated Depreciation, Total - - - -25502
Goodwill, Net 40718 39951 38761 39700
Intangibles, Net 23832 23594 23465 23679
Long Term Investments 91 86 93 140
52
Note Receivable - Long Term - - - -

Other Long Term Assets, Total 11341 11051 10849 10081
Other Assets, Total 2012 1774 1870 1781
Total Current Liabilities 38030 38746 36618 33081
Accounts Payable 13790 14153 14845 14882
Payable/Accrued - - - -
Accrued Expenses 10523 10293 10056 5675
Notes Payable/Short Term Debt - - - 4998
Current Port. of LT Debt/Capital
13717 14300 11717 3852
Leases
Other Current liabilities, Total - - - 3674
Total Liabilities 74430 72990 71948 70354
Total Long Term Debt 22874 20582 21286 22848
Long Term Debt 22874 20582 21286 22848
Capital Lease Obligations - - - -
Deferred Income Tax 6422 6462 6986 -
Minority Interest 281 270 259 265
Other Liabilities, Total 6823 6930 6799 2353
Total Equity 45421 44725 44334 46854
Redeemable Preferred Stock, Total - - - -
Preferred Stock - Non Redeemable,
822 831 834 843
Net
Common Stock, Total 4009 4009 4009 4009
Additional Paid-In Capital 66316 66145 65955 65795
Retained Earnings (Accumulated
117082 115858 114163 112429
Deficit)
Treasury Stock - Common -130002 -129012 -127205 -123382
ESOP Debt Guarantee - - - -
Unrealized Gain (Loss) - - - -
Other Equity, Total -12806 -13106 -13422 -12840
Total Liabilities & Shareholders'
119851 117715 116282 117208
Equity
Total Common Shares Outstanding 2357 2359.14 2369.7 2393.88
Total Preferred Shares Outstanding - - - -
53
6.2.1.3 Cash Flow Statement
2023 2022 2022 2022

Period Ending 31/03 31/12 30/09 30/06
Period Length 0 Months 0 Months 0 Months 0 Months
Net Income/Starting Line 3397 3933 3939 -
Cash From Operating Activities 3863 3574 4070 -
Depreciation/Depletion 610 574 583 -
Amortization 82 79 80 -
Deferred Taxes 38 -268 -130 -
Non-Cash Items 359 63 60 -
Cash Receipts - - - -
Cash Payments - - - -
Cash Taxes Paid - - - -
Cash Interest Paid - - - -
Changes in Working Capital -585 -1075 -592 -
Cash From Investing Activities -1380 -490 -832 -
Capital Expenditures -730 -708 -890 -692
Other Investing Cash Flow Items,
-650 218 58 10
Total
Cash From Financing Activities -1753 -2993 -3507 -
Financing Cash Flow Items - - - -
Total Cash Dividends Paid -2224 -2231 -2255 -
Issuance (Retirement) of Stock, Net -927 -1753 -3812 -
Issuance (Retirement) of Debt, Net 1398 991 2560 -
Foreign Exchange Effects - - - -
Net Change in Cash 742 144 -504 -
Beginning Cash Balance 6854 6710 7214 -
Ending Cash Balance 7596 6854 6710 7214
Free Cash Flow 2858 3372.75 2182.88 2942.38
Free Cash Flow Growth -15.26 54.51 -25.81 98.37
Free Cash Flow Yield 0.893 0.799 1.06 -
54
6.2.1.4 Financial Ratios (Time Series)

[14][15]
Year Industry
Parameters 2020 2021 2022 2023 Average Comment
Profitability Ratios
ROI Increase in trend is showing that
(EBIT / Average 10.45% 25.43% 25.97% 26.13% - P&G investment is becoming
Total Book profitable over time
Capital)
ROA
(Net Profit Increase in trend is showing high
(Income) / Average 4.11% 11.67% 11.91% 11.92% 1.3% performance in managing assets
Assets) that facilitates planning for
expansion.
ROE A slight decrease in ROE means
(Net Profit that the P&G's profitability has
(Income) / Average 10.14% 29.19% 31.17% 30.97% -2% decreased slightly relative to the
Book Equity) amount of equity invested.
Slight decrease in ROE may not
necessarily be a cause for
concern, as there are many factors
that can affect a company's
profitability. However, if the
decrease in ROE persists over
time or if it is accompanied by
other negative trends, it could be
a sign that the company is facing
challenges that could potentially
impact its long-term success.
Gross Margin Increase in trend is showing an
(Gross Profit efficient performance of
(COGS) /Total 49.90% 51.57% 48.32% 46.96% 51.4% production & logistics (good
Sales) performance of supply chain
department).
Operating (EBIT) A decrease in trend is showing an
Margin 10.00% 23.94% 22.30% 21.70% - operational risk that indicates to
(EBIT / Sales) decline in operation management
and needs some advancement.
(Retrenchment strategy)
ROS A decrease in trend is showing
(Net Income 6.72% 18.61% 17.98% 17.34% 9.2% that the company is using more
Margin) debt to finance operations which
(Net Income / leads to increased interest rates.
Sales) it is recommended that P&G
should change its financial
strategy to
55
depend more on equity rather

than debt, Moreover, a change in
its marketing strategy to increase
sales in less operations cost to
increase its net income is
required.
Liquidity Ratios
Current Ratio A decrease in trend is showing
(End Current that the firm has a great risk in
Assets/ End 0.83 0.71 0.68 0.59 1.49 related to its ability to satisfy its
Current Liabilities short-term obligations which is
) critical indication for both
creditors & shareholders.
Quick Ratio A decrease in trend in the Quick
(End Liquid Assets ratio could be caused by a variety
/ End Current 0.66 0.52 0.47 0.39 0.78 of factors, such as a decrease in
Liabilities) cash reserves or an increase in
current liabilities.
Debt Coverage Ratios
Leverage An increase in Trend is showing
(End Book / Book 1.58 1.49 1.63 1.64 0.63 that the financial department
Debt and Equity) needs to reconfigure P&G’s
"Finance Plan" & depends more
on "Equity"
Cash Flow A decrease in trend in the cash
Coverage flow coverage ratio could be
((EBIT + 0.54 0.63 0.54 -0.62 - caused by a decrease in operating
Depreciation) / cash flow or an increase in total
Interest Expense) debt.
Short Term Activity (Asset Management) Ratios
Inventory 6.70 6.46 6.53 - - An increase in trend in inventory
Turnover turnover ratio means that a
(Cost of Goods company is selling its inventory
Sold/Average more quickly or efficiently than
Inventory) before. This is generally a
positive sign, as it suggests that
the company is managing its
inventory well and can generate
more revenue from the same
amount of inventory.
Fixed Assets 3.38 3.59 3.74 - - An increase in trend in fixed
Turnover assets turnover ratio means that a
(Revenue/ Average company is generating more
Fixed Assets) revenue for each dollar invested
in its fixed assets, such as
property, plant, and equipment
(PP&E). This is generally a
positive sign, as it suggests that
56
the company is using its fixed

assets more efficiently to generate
revenue.
Total Assets 0.60 0.63 0.68 - - An increase in trend in total
Turnover Ratio assets turnover ratio means that a
(Net Sales/Average company is generating more
Total Assets) revenue for each dollar invested
in its total assets. Total assets
include all the assets of the
company, including current and
non-current assets.
6.2.1.5 Financial Ratios (Cross Section)

[14][15]
Parameters P&G Unilever Colgate-Palmolive
ROI 26.13% 14.82% 43.05%
ROA 11.92% 10.82% 10.00%
ROE 30.97% 42.31% 224.51%
Gross Margin 51.4% 40.23% 56.65%
Operating (EBIT) Margin 21.70% 16.19% 16.04%
ROS 17.34% 9.98% 8.71%
Current Ratio 0.59 0.75 0.41
Quick Ratio 0.39 0.4 0.25
Leverage 1.64 0.67 0.38
Cash Flow Coverage - 0.62 - 0.73 - 0.98
P&G Company reported earnings results for the third quarter ended March 31, 2023. For the
third quarter, the company reported sales was USD 20,068 million compared to USD 19,381
million a year ago. Net income was USD 3,397 million compared to USD 3,355 million a
year ago. Basic earnings per share from continuing operations was USD 1.41 compared to
USD 1.37 a year ago. Diluted earnings per share from continuing operations was USD 1.37
compared to USD 1.33 a year ago.
❑ Comments, The financial ratios are showing that P&G has a strong financial
position in Y2022 and first quarter of Y2023.
57
6.2.2 Porter Value Chain Analysis
A value chain analysis is a tool that helps to identify the activities that create value for a
company and its customers. Here's how P&G's value chain could be analyzed using Porter's
value chain framework:
Strength
Activity or Weakness
Primary Activities
Inbound Logistics
Raw materials and other inputs are sourced from vendors all around the world as part (Strength)
of P&G's inbound logistics. The company manages its import logistics successfully and P&G utilizes
efficiently thanks to a well optimized supply chain and logistics system. inbound logistics
operations to
Planning and forecasting: P&G uses advanced planning and forecasting technologies ensure a steady
to ensure a steady supply of raw materials and production inputs. supply of high-
Sustainability: P&G collaborates with suppliers to reduce its inbound logistics quality raw
operations, looking for ways to reduce carbon footprint and improve transportation. materials and
Supplier management: P&G collaborates with global suppliers to find the raw components, while
materials and components needed for its products and holds them to high standards of optimizing
quality and sustainability through a stringent vetting procedure. transportation,
Storage and warehousing: P&G operates a global network of distribution centers and warehousing, and
warehouses to optimize storage and cut waste for production. inventory
Transportation: P&G uses transportation methods such as trucks, trains, ocean liners, management to
and aircraft to get raw materials and components from suppliers to manufacturing reduce costs and
plants. increase efficiency
in its supply chain.
Operations
The processes used by P&G entail converting raw resources into final goods. The (Strength)
company can produce high-quality goods at a low cost thanks to its highly automated P&G combines
and effective manufacturing system. supply chain
58
management and
Supply chain management: P&G uses forecasting technologies to ensure a steady manufacturing to
supply of raw materials and production-related components to maximize inventory and maximize
reduce waste. efficiency and
Sustainability: P&G is committed to sustainability and has implemented programs to reduce waste.
reduce its environmental footprint, such as reducing waste, saving resources and
emissions.
Innovation: P&G is renowned for its innovative goods and invests heavily in research
and development to maintain an edge over the competition. It is constantly innovating
to enhance its processes and operations by implementing new technologies.
Manufacturing: P&G produces a variety of consumer goods, such as pet food,
cleaning supplies, and personal care items, utilizing cutting-edge production techniques
to maximize productivity and quality.
Quality control: P&G places a strong focus on product quality and adheres to stringent
standards for quality control, using sophisticated testing and inspection techniques to
ensure its products meet customer expectations.
Outbound Logistics
Outbound logistics for P&G involves safely and efficiently shipping finished goods to (Strength)
clients worldwide. P&G provides
dependable
Sustainability: P&G seeks to reduce emissions through packaging and transportation delivery of finished
strategies. goods while
Supply chain visibility: P&G uses technology to track items and address issues. minimizing
Distribution: P&G uses inventory management technologies to optimize storage and environmental
reduce waste. impact through
Transportation: P&G uses a variety of transportation methods to deliver goods. streamlining
Customer service: P&G provides excellent customer service and uses order distribution and
management systems to track orders. transportation,
investing in
technology, and
sustainability
initiatives.
Marketing & Sales
P&G uses various marketing channels such as broadcast, digital, and social media to (Strength)
reach its target audience and increase brand recognition. P&G employs a
multifaceted
Advertising: P&G spends a lot of money promoting its brands through various strategy for
mediums, using celebrities, memorable phrases, and emotive appeals to engage with marketing that
consumers. includes
Social media: To interact with customers and market its products, P&G makes use of conventional forms
social media sites like Facebook, Twitter, and Instagram. of advertising,
Product placement: To improve exposure and brand familiarity, P&G regularly online promotions,
incorporates its products into films and television programs. and efforts for
Loyalty programs: P&G offers loyalty programs for a few of its brands. One such experiential
program is Pampers prizes, which offers prizes to customers who buy Pampers goods. marketing.
Sponsorships: To improve brand visibility and interact with consumers, P&G sponsors
sports teams, events, and other initiatives. For instance, P&G is a recognized Olympic
sponsor.
59
Sampling: To encourage product trial and promote favorable word-of-mouth, P&G

frequently offers free samples of its products to consumers.
Influencer marketing: To promote its products and reach new audiences, P&G works
with bloggers and influencers.
Service
P&G places a high priority on customer service and strives to meet customer needs in (Strength)
terms of both goods and services, including customer service, processing product P&G provides
returns and repairs, and customer assistance. services to improve
customer
Customer support: P&G provides excellent customer service services, including experience and
phone, email, and online chat, to help customers with product queries, grievances, and foster loyalty.
other difficulties.
Product demonstrations: To provide customers the chance to test out its products
before buying, P&G offers product demonstrations and sampling programs.
Product training: To help its clients, such hairdressers and pet groomers, better
understand and apply P&G's products, the company conducts product training
programs.
Online resources: To assist customers get the most out of its goods, P&G offers a
variety of online resources, including product information, usage guidelines, and
troubleshooting manuals.
Loyalty programs: As was already mentioned, P&G offers loyalty programs for a
number of its brands. One such program is the Pampers prizes program, which offers
prizes to consumers who buy P&G goods.
4.
Support (Secondary) Activities
Firm Infrastructure
P&G's infrastructure activities involve the development and upkeep of technological (Strength)
and physical infrastructure, such as manufacturing, logistics system, and optimized P&G invests in
supply chain, to produce high-quality goods at a low cost. corporate
governance,
Human resources: P&G employs a large and strong staff and provides a variety of financial
training and development programmes to help employees develop their abilities and management,
advance their careers. human resources,
Technology and innovation: P&G is renowned for its cutting-edge goods and technology, and
investing in R&D to stay ahead of the competition and boost productivity and sustainability to
streamline operations. maintain
Corporate governance: P&G has a strong corporate governance framework with a competitive edge.
board of directors and committees to monitor operations and strategic direction.
Strong financial management systems, including processes for budgeting, forecasting,

and reporting, are in place at P&G. The business also has a good credit rating, which
enables it to get financing at a good rate.
Sustainability: P&G has pledged to be sustainable and has put up a number of efforts
to lessen its environmental impact and increase its social responsibility.
Human Resource Management
60
P&G prioritizes employee development through training and development (Strength)

opportunities. P&G invests in
recruitment,
Diversity and inclusion: P&G promotes diversity and inclusion through training, training,
mentoring, and resource groups. remuneration,
Talent management: P&G provides high-potential workers with opportunities to diversity, and talent
develop their talents. management to
Recruitment and selection: P&G uses a variety of recruitment and selection methods create a successful
to find and hire the best personnel. workforce.
Training and development: P&G provides training and development options to help
employees develop and advance their careers.
Pay and benefits: P&G offers competitive pay and benefits to attract and retain
employees.
Technology Development (R&D)
P&G invests in research and development to promote product innovation. (Strength)
P&G invests in
Product Testing: P&G conducts advanced testing techniques to assess product R&D to create
performance. innovative products
Intellectual property: P&G has a large portfolio of IP to protect ideas. that meet consumer
needs and address
Investing in R&D: P&G invests in R&D to create new products. environmental
issues.
Partner collaboration: P&G collaborates with other businesses to develop R&D
initiatives.
Advanced technology: P&G invests in cutting-edge technologies to promote
innovation and address environmental issues.
Procurement
P&G can negotiate advantageous pricing and terms with suppliers. (Strength)
Risk management: P&G has a risk management programme to ensure supply P&G optimises
continuity. supplier
Sustainability: P&G seeks to reduce its carbon footprint through collaboration and management, cost
waste reduction. management, risk
Supplier management: P&G collaborates with suppliers to ensure quality and management,
sustainability. sustainability, and
Cost management: P&G uses tactics to control costs and improve procurement. innovation to
Innovation: P&G uses analytics and automation to optimise procurement and cut increase efficiency.
expenses.
❑ Comment, P&G has a strong emphasis on operational excellence and customer

centricity, enabling them to offer high-quality items at a lower cost than their rivals.
They also have a well-known brand and strong marketing abilities, and are a dominant
market position in the FMCG sector.
61
6.2.3 Mckinsey 7S Model
Strength
No. The “S” My organization or Weakness
Hard Ss
1 Structure P&G has an organisational structure to achieve strategic
objectives, divided into business divisions focused on particular (Strength)
product areas and a leadership team to create strategies to promote
growth and profitability.
2 Strategy P&G emphasizes innovation, product leadership, and operational
excellence, investing in R&D to create cutting-edge items to meet (Strength)
customer needs.
3 Systems P&G relies heavily on a supply chain and logistics system to
manage operations efficiently and productively. Data analytics is (Strength)
used to generate insights and guide decision-making.
4 Shared values P&G values innovation, teamwork, and customer centricity,
creating cutting-edge products to spur growth and add value. (Strength)
Soft Ss
5 Staff P&G is committed to fostering innovation and providing value to
its clients, investing in the training and development of its staff (Strength)
members and offering them numerous possibilities.
6 Skills P&G employees have a wide range of knowledge and abilities,
including data analytics, supply chain management, marketing, (Strength)
and research and development, and are highly valued for their skill
development skills.
7 Style P&G promotes an innovative and collaborative culture, enabling
them to drive growth and create innovative products. (Strength)
❑ Comment, P&G generally adheres to the McKinsey 7S Model, placing a high

emphasis on innovation, teamwork, and client centricity. The organization's systems,
common values, leadership style, workforce, and skill sets are all in line with the
company's strategic objectives and growth and profitability drivers.
62
6.2.4 VRIO Framework
Is it Is the What is the

No. Resource Is it Is it Rare? Difficult to Organization Impact on the
Valuable? Imitate? Organized Competitive
(Inimitable) Around? Advantage?
1 P&G's strong brand Yes Yes Yes Yes Distinctive
portfolio, extensive (Long-Term)
distribution network, and Competitive
innovative R&D Advantage
capabilities in the FMCG
industry. The company
has developed these
resources over several
decades and has invested
heavily in them.
2 P&G engineers use Yes Yes Yes Yes Distinctive
Azure AI to guarantee (Long-Term)
equipment durability and Competitive
quality control on the Advantage
assembly line. P&G's
secret sauce is its talented
data scientists and
engineers, and
automation of AI will
allow them to concentrate
on areas where they add
value, deliver with
consistency in quality,
manage bias and risk, and
make these capabilities
available to an expanding
number of employees,
ensuring that AI's
advantages are felt
63
throughout the entire

organization.
3 P&G's highly efficient Yes Yes Yes Yes Distinctive
supply chain and logistics (Long-Term)
system. Competitive
It is difficult to replicate Advantage
due to the company's
extensive network of
suppliers and partners.
4 The company's brands, Yes No No Yes Temporary
such as Tide, Pampers, Competitive
and Crest, are recognized POP Advantage
around the world and are (Point of
associated with quality Parity)
and reliability.
5 P&G's distribution Yes No No Yes Temporary
network is also a Competitive
valuable resource, as it POP Advantage
allows the company to (Point of
reach customers in Parity)
various geographic
locations.
6 P&G has a strong Yes No No Yes Temporary
management team, a Competitive
well-defined POP Advantage
organizational structure, (Point of
and a culture of Parity)
innovation and
collaboration. These
factors contribute to the
effectiveness of P&G's
resources and
capabilities.
❑ Comment, P&G's valuable, rare, inimitable, and organized resources provide the
company with a sustained and distinctive (Long-Term) competitive advantage in the
consumer goods industry. P&G can create and deliver high-quality products that
satisfy shifting consumer needs and preferences thanks to these resources.
64
6.2.5 Brands Portfolio and SKUs
Procter & Gamble (P&G) is a large multinational consumer goods company

with a diverse portfolio of brands across multiple categories. As of 2021, P&G
has more than 65 brands that are sold in over 180 countries. The number of
SKUs (stock-keeping units) for each brand varies widely depending on the
category and market (About 150,000).
It is difficult to provide an exact number of SKUs for P&G as it is constantly

changing due to new product launches, line extensions, and market-specific
variations. However, some of P&G's most well-known brands include Tide,
Pampers, Gillette, Crest, Pantene, and Olay, which collectively have thousands
of SKUs across various markets and product lines.
65
6.2.6 Internal Environment Assessment

6.2.6.1 Strengths
Points shall include strengths about products, employees and company
Number Strengths
1 Huge Number of SKUs (About 150,000).
2 Extensive R&D capabilities.
3 Strong brand portfolio.
4 Highly efficient supply chain and logistics system.
5 Focus on innovation and product leadership.
6 Strong financial performance.
7 Global presence and extensive distribution network.
8 Strong customer relationships and loyalty.
9 Sustainability initiatives and commitment.
6.2.6.2 Weaknesses
Number Weaknesses
1 Relatively high-cost structure.
2 Limited diversification of product portfolio (10-Category Portfolio).
3 Talent retention and development challenges.
4 Complex organizational structure.
5 Limited agility and significant amount of bureaucracy and processes that can make it
difficult.
66
6.2.7 IFAS (Internal Factor Analysis Summary)
IFAS
No. Factors Weight Score Weighted Score
Strengths
S1 Huge Number of SKUs (About 150,000). 0.05 4 0.2
S2 Extensive R&D capabilities. 0.09 4 0.36
S3 Strong brand portfolio. 0.09 4 0.36
S4 Highly efficient supply chain and logistics 0.09 4
0.36
system.
S5 Focus on innovation and product leadership. 0.10 4 0.4
S6 Strong financial performance. 0.05 4 0.2
S7 Global presence and extensive distribution 0.06 4
0.24
network.
S8 Strong customer relationships and loyalty. 0.03 3 0.09
S9 Sustainability initiatives and commitment. 0.04 3 0.12
Weaknesses
W1 Relatively high-cost structure. 0.09 2 0.18
W2 Limited diversification of product portfolio (10- 0.09 2
0.18
Category Portfolio).
W3 Talent retention and development challenges. 0.1 2 0.2
W4 Complex organizational structure. 0.1 3 0.3
W5 Limited agility and significant amount of 0.02 3
bureaucracy and processes that can make it 0.06
difficult.
Total 1 3.25
❑ Comment, Sum of the Weighted score > 2.5 (Internal environment is Perfect and
favorable to P&G and it can deal with its strengths and weaknesses.
67
6.2.8 SWOT Analysis
Strengths Weaknesses
S1- Huge Number of SKUs (About 150,000). W1- Relatively high-cost structure.
S2- Extensive R&D capabilities. W2- Limited diversification of product portfolio
S3- Strong brand portfolio. (10-Category Portfolio).
S4- Highly efficient supply chain and logistics W3- Talent retention and development challenges.
system. W4- Complex organizational structure.
S5- Focus on innovation and product leadership. W5- Limited agility and significant amount of
S6- Strong financial performance. bureaucracy and processes that can make it difficult.
S7- Global presence and extensive distribution
network.
S8- Strong customer relationships and loyalty.
S9- Sustainability initiatives and commitment.
Opportunities Threats
O1- Governmental and Political Stability. T1- Russian invasion of Ukraine.
O2- Growth of e-commerce and direct-to- T2- Foreign Exchange Rate.
consumer sales. T3- Economic Disruptions in Large Markets which
O3- Technology, Artificial Intelligence and R&D. can change consumer preferences and trends.
O4- Growth Domestic and National Product, (GDP T4- Fluctuating Prices of Raw Material and input
& GNP). costs.
O5- Growing demand for eco-friendly, Carbon T5- Intense competition in the FMCG industry.
Footprint and sustainable products. T6- Supply chain disruptions and logistics
O6- Social and Gender Inclusion. challenges.
O7- Increasing demand for personal and home care T7- Cyber Security Breaches.
products. T8- Regulatory challenges and compliance
O8- Growing demand for premium and high- requirements of various countries.
margin products. T9- Complying with Competition Laws.
O9- Expansion into emerging markets. T10- Imports and Exports Laws.
O10- Partnerships and collaborations with external T11- Taxation Laws.
stakeholders. T12- Pressure Groups / Lobbies.
O11- Health and Hygiene Laws. T13- Boycotts and Restricted Countries.
O12- Patent Law. T14- Child Labor and Human Rights Abuse.
68
6.2.9 SFAS Analysis

No. SFAS
Factors Weight Rating Weighted
Score
Opportunities
O3 Technology, Artificial Intelligence and R&D 0.1 4 0.4
O5 Growing demand for eco-friendly, Carbon
0.1 4 0.4
Footprint and sustainable products
O9 Expansion into emerging markets 0.1 4 0.4
Threats
T5 Intense competition in the FMCG industry 0.07 2 0.14
T7 Cyber Security Breaches 0.1 2 0.2
T8 Regulatory challenges and compliance
0.04 3 0.12
requirements of various countries
T9 Complying with Competition Laws 0.06 3 0.18
Strengths
S1 Huge Number of SKUs (About 150,000). 0.06 4 0.24
S2 Extensive R&D capabilities 0.05 4 0.2
S6 Strong financial performance 0.1 4 0.4
S8 Strong customer relationships and loyalty 0.06 3 0.18
Weaknesses
W2 Limited diversification of product portfolio (10-
0.05 2 0.1
Category Portfolio)
W3 Talent retention and development challenges 0.05 2 0.1
W4 Complex organizational structure 0.06 3 0.18
Total 1 3.24
❑ Comment, Sum of the Weighted score > 2.5
P&G has a strong strategic position, with a total weighted score of 3.24 out of 4.
By continuing to leverage its strengths and address its weaknesses, while taking
advantage of its opportunities and managing its threats, P&G can maintain its strong
market position and drive growth and profitability over the long term.
69
MATCHING PHASE
STRATEGIC FORMULATION / GENERATION, 5 MODELS
70
7. TOWS Analysis
WT Strategy (Mini-Min), The aim of the WT strategy is to minimize both weaknesses and threats.
WO Strategy (Mini-Max), The second strategy attempts to minimize the weaknesses and to maximize tile
opportunities.
ST Strategy (Maxi-Min), This strategy is based on the strengths of the organization that can deal with threats
in the environment. The aim is to maximize the former while minimizing the latter.
SO Strategy (Maxi-Max), Any company would like to be in a position where it can maximize both, strengths
and opportunities.
Internal Factors Strengths Weaknesses
(IFAS) S1- Huge Number SKUs (About W1- Relatively high-cost
150,000). structure.
S2- Extensive R&D capabilities. W2- Limited diversification of
S3- Strong brand portfolio. product portfolio (10-Category
S4- Highly efficient supply chain Portfolio).
and logistics system. W3- Talent retention and
S5- Focus on innovation and development challenges.
External Factors product leadership. W4- Complex organizational
(EFAS) S6- Strong financial performance. structure.
S7- Global presence and extensive W5- Limited agility and
distribution network. significant amount of
S8- Strong customer relationships bureaucracy and processes that
and loyalty. can make it difficult.
S9- Sustainability initiatives and
commitment.
Opportunities SO (Maxi-Max) WO (Mini-Max)
O1- Governmental and Political
Stability. S1+O9 W2+O9
O2- Growth of e-commerce and Use available Huge Number of Address P&G's dependence on key
direct-to- consumer sales. brands portfolio and SKUs and brands by investing in new product
O3- Technology, Artificial Intelligence Strong financial performance to development and line extensions.
and R&D. Expand into new and emerging (Product Development, Intensive
O4- Growth Domestic and National markets, such as Asia and Africa, to Strategy)
Product, (GDP & GNP). drive future growth.
O5- Growing demand for eco-friendly, (Market Development, Intensive
Carbon Footprint and sustainable Strategy) W3+O3
products. Use Technology, Artificial
O6- Social and Gender Inclusion. S2+O5+O9 Intelligence and R&D to overcome
O7- Increasing demand for personal Leverage P&G's extensive R&D Talent retention and development
and home care products. capabilities to develop the new challenges.
O8- Growing demand for premium products for the growing demand for (Product Development, Intensive
and high- margin products. eco-friendly, Carbon Footprint and Strategy)
O9- Expansion into emerging markets. sustainable products and to expand
O10- Partnerships and collaborations into new and emerging markets.
with external stakeholders. (Diversification)
O11- Health and Hygiene Laws.
O12- Patent Law.
71
Threats ST (Maxi-Min) WT (Mini-Min)

T1- Russian invasion of Ukraine.
T2- Foreign Exchange Rate. S6+S8+T5 W4+T8
T3- Economic Disruptions in Large Leverage P&G's strong brand Address P&G's complex
Markets which can change recognition and reputation and organizational structure to
consumer preferences and trends. Strong financial performance to increase agility and
T4- Fluctuating Prices of Raw acquire against smaller, more responsiveness to regulatory
Material and input costs. agile competitors in the FMCG challenges and compliance
T5- Intense competition in the industry. requirements of various
FMCG industry. (Acquisition, Horizontal countries.
T6- Supply chain disruptions and Integration Strategy) (Market Penetration, Intensive
logistics challenges. Strategy)
T7- Cyber Security Breaches.
T8- Regulatory challenges and
compliance requirements of S2+T7+T9
various countries. Continue to invest in R&D to stay
T9- Complying with Competition ahead of emerging trends, comply
Laws. with competition laws and
T10- Imports and Exports Laws. technologies and to avoid cyber
T11- Taxation Laws. security breaches.
T12- Pressure Groups / Lobbies. (Product Development,
T13- Boycotts and Restricted Intensive Strategy)
Countries.
T14- Child Labor and Human
Rights Abuse.
❑ Comment, Strategies concluded after performing the TOWS analysis are,

either Market Development, Product Development, Market Penetration and Acquisition.
72
8. BCG (Boston Consulting Group) Matrix (Product Portfolio Analysis)
Relative Market Share

(1) High (0.5) (0.5) Low (0)
Stars Question Marks (wild Cat, Problem Child)
High (20%)
P&G has a number of star products in its P&G has a relatively small number of question
portfolio, including its Tide laundry mark products in its portfolio, as the company
detergent, Crest toothpaste, and Pampers tends to focus its resources on products and
diapers. These products have a strong business units that have strong growth
market share in high-growth markets and are potential.
key drivers of the company's growth and
profitability.
Market Growth Rate
(0)
Cash Cow Dog (Pets)

(0)
P&G has a number of cash cow products in P&G has a relatively small number of dog
its portfolio, including its Gillette razors products in its portfolio, as the company tends
and blades and its Olay skincare products. to divest or discontinue products or business
These products have a high market share in units that are not generating sufficient returns.
mature markets and generate significant
cash flow for the company.
(-20%) Low
❑ Comment, The BCG Matrix and P&G's product portfolio are well aligned. The
company's growth and profitability are largely attributed to a handful of star and cash
cow items. P&G can keep a strong competitive edge in the FMCG sector and foster
long-term development and profitability by investing in its star brands and improving
its cash cow items.
73
9. IE (Internal – External) Matrix
Grow & Build,

Expand, Invest:
Backward,
Forward or
Horizontal
integration
Market penetration
Market
development
Product
development
Defensive (Harvest &
Divest):
Retrenchment
Divestiture
Hold & Maintain:
Market penetration
Market development
IE (internal external) matrix based on the total weighted scores from the IFAS and EFAS
analysis, as follows:
Total Weighted Score (IFAS): 3.25

Total Weighted Score (EFAS): 2.96
4
External High 1 2 3
Factor
Industry Evaluation Total
Attractiveness Weighted Scores Medium 4 5 6
(EFAS)
Low 7 8 9
1 Weak Average Strong 4
Internal Factor Evaluation Total Weighted

Scores (IFAS)
Business Strength / Competitive Position
❑ Comment, P&G fits well into the IE Matrix's Grow and Build quadrant thanks to its
solid internal position and abundant external growth opportunities. P&G can create
growth and profitability over the long term and retain a strong competitive position in
the FMCG business by utilizing its strengths to seize these possibilities.
74
10. SPACE (Strategic Position & Action Evaluation Matrix) 2-Dimensional

Matrix
No. Factor Score (From 1 to 6)

Internal Dimensions
Financial Strength, FS (+ve y-axis)
1 ROI, Return on Investment 6
2 Liquidity 4
3 Working Capital 4
4 Cash Flow 3
5 Inventory Turn Over 6
6 EPS, Earnings Per Share 5
7 Price Earnings Ratio 5
Average Score = Sum of Scores / 7 4.71
Competitive Advantage, CA (-ve x-axis)
1 Market Share 6
2 Product Quality 6
3 Product Life Cycle 5
4 Customer Loyalty 5
5 Competition’s Capacity Utilization 4
6 Technological Know How 6
7 Control Over Suppliers & Distributers 4
External Dimensions
Industry Strength, IS (+ve x-axis), (External Part of the Microenvironment)
1 Growth Potential 5
2 Profit Potential 6
3 Financial Stability 6
4 Technological Know How 6
5 Resources Utilization 5
6 Ease of Entry into Market 5
7 Productivity, Capacity Utilization 6
Environmental Stability, ES (-ve y-axis), (From the PESTEL)
75
1 Technological Changes 6
2 Rate of Inflation 4
3 Demand and Supply Variability 5
4 Price Range of Competing Products 4
5 Barriers to Entry 4
6 Competitive Pressure 4
7 Price Elasticity of Demand 5
8 Ease of Exit from Market 4
9 Operation Risk Involved to Business 6
❑ Calculations
Average Score 1 2 3 4 5 6
On Chart 1 2 3 4 5 6
FS (+ve y-axis) = 4.71
On Chart -6 -5 -4 -3 -2 -1
CA (-ve x-axis) = 5.14 = -1.86
On Chart 1 2 3 4 5 6
IS (+ve x-axis) = 5.57
On Chart -6 -5 -4 -3 -2 -1
ES (-ve y-axis) = 4.67 = -2.33
IS (+ve x-axis) = 5.57

CA (-ve x-axis) = -1.86
X-Axis = 3.71
FS (+ve y-axis) = 4.71

ES (-ve y-axis) = -2.33
Y-Axis = 2.38
❑ Comment, This SPACE matrix tells us that P&G should pursue an aggressive
strategy, As P&G has a strong competitive position it the market with rapid growth. It
needs to use its internal strengths to develop a market penetration and market
development strategy. This can include product development, integration with other
companies, acquisition of competitors, and so on.
76
DECISION PHASE
STRATEGIC SELECTION
77
11. QSPM (Quantitative Strategic Planning Matrix)

Product Market Market Acquisition
Weight Development Development Penetration
Key Factors AS TAS AS TAS AS TAS AS TAS
S1- Huge Number of SKUs (About 150,000). 0.07 4 0.28 4 0.28 3 0.21 2 0.14
S2- Extensive R&D capabilities. 0.09 4 0.36 4 0.36 4 0.36 4 0.36
S6- Strong financial performance. 0.09 4 0.36 4 0.36 4 0.36 4 0.36
S8- Strong customer relationships and loyalty. 0.09 4 0.36 3 0.27 3 0.27 4 0.36
W2- Limited diversification of product 3 0.15 3 3 3
0.05 0.15 0.15 0.15
portfolio (10-Category Portfolio).
W3- Talent retention and development 2 0.16 2 2 3
0.08 0.16 0.16 0.24
challenges.
W4- Complex organizational structure. 0.05 3 0.15 3 0.15 2 0.1 2 0.1
O3- Technology, Artificial Intelligence and 4 0.36 4 4 4
0.09 0.36 0.36 0.36
R&D.
O5- Growing demand for eco-friendly, Carbon 4 0.2 4 4 2
0.05 0.2 0.2 0.1
Footprint and sustainable products.
O9- Expansion into emerging markets. 0.05 3 0.15 4 0.2 4 0.2 3 0.15
T5- Intense competition in the FMCG industry. 0.09 4 0.36 3 0.27 2 0.18 4 0.36
T7- Cyber Security Breaches. 0.05 3 0.15 2 0.1 2 0.1 3 0.15
T8- Regulatory challenges and compliance 4 0.2 3 3 3
0.05 0.15 0.15 0.15
requirements of various countries.
T9- Complying with Competition Laws. 0.1 4 0.4 3 0.3 3 0.3 3 0.3
Sum Weights 1
Sum Total Attractiveness Score 3.64 3.31 3.10 3.28
78
Where, Attractiveness Scores = AS and Total Attractiveness Score = TAS
❑ Comment, After performing the IE and SPACE Matrixes, then taking final
decision by the QSPM Matrix, I concluded the following;
Since the “Sum Total Attractiveness Scores” of “Product Development Strategy

(Intensive Strategy)” is 3.64, for Market Development Strategy (Intensive Strategy)” is
3.31, for “Market Penetration (Intensive Strategy)” is 3.10 and for “Acquisition Strategy
(Horizontal Integration Strategy)” is 3.28,
Therefore, P&G shall go for the Intensive Strategy, “Product Development” in the
upcoming three years, as for the market development, market penetration and acquisitions
strategies, they shall be postponed due to the world’s economic situation.
79
12. SMART Strategic Objectives
❑ First Objective
Developing 3 existing leading detergent products by enhancing the current formula to better
target tough stains and improve the overall cleaning performance to achieve an increase of
10% in customer satisfaction ratings in comparison to the previous formula by conducting
an extensive research by P&G’s R&D through applying new pipelines technologies,
innovations and using the latest AI to reach a formula to save the environment and to
cope with the growing demand for eco-friendly, carbon footprint and sustainable products to
increase the company’s revenue by 30% during the upcoming 3 years (Starting July,
2023 till July, 2026).
❑ Second Objective
Innovating and launching a new line of environmentally friendly cleaning products (new
pipelines) for households within 12 months to achieve sales of 60M $ in the first year of
launch by conducting extensive research by P&G’s R&D to identify and obtain
sustainable ingredients and packaging materials, and design effective cleaning formulas,
this is due to the increase in demand for eco-friendly products, the new line will offer a
competitive advantage and align with P&G's sustainability goals.
P&G will adopt developing both objectives that will help maintaining and enhancing
its position inside the market.
13. Annual / Tactical Objective (Short Term)
❑ Increase market share 10% and in customer satisfaction rating by10% per year
(From July 2023 till July 2026).
❑ Innovating and launching the new product in 12 months (First year) and to
achieve sales of 60M $ first year of launch (Second year).
80
14. Selected Corporate (Directional / Grand) Strategies
Board of Directors and CEO Level
After performing the IE and SPACE Matrixes, then taking final decision by the QSPM
Matrix, P&G shall go for the Intensive Strategy, “Product Development” (Sum Total
Attractiveness Score 3.64) Strategy in the upcoming three years.
❑ Product Development Strategy is New Product in the Same Market (Increasing sales,
improving present products, innovating new products), P&G shall use,
1. Products in maturity stage of life cycle.

2. Utilizing the strong R&D department by applying new technologies, pipelines
innovations, robotics, 3D printing and using latest AI.
3. Confronting competitors offering better-quality products at comparable prices.
4. Compete in high-growth industry.
81
15. Selected Business Strategies (Competitive / Cooperative Strategies)
Middle Management Level, How to Compete in the Chosen Direction.
Based on Michael Porter’s Competitive Strategies, P&G shall follow the following
“Competitive Strategies”,
❑ Differentiation Strategy as primary strategy for competitive advantage. Differentiation

involves developing the uniqueness of the business and its products to attract target
customers.
P&G shall highlight quality and value in its consumer goods. P&G has already built
strong brands, such as Tide, Pampers, and Gillette, that are recognized around the world
for their quality and effectiveness at affordable prices.
Based on this generic competitive strategy, a suitable strategic objective is to maintain,

innovate new products and improve existing ones by focusing on understanding
consumer needs and preferences P&G’s high investments for R&D by applying new
technologies, pipelines innovations, robotics, 3D printing and using latest AI to ensure
high-quality and valuable products.
Another strategic objective based on the generic strategy of differentiation is to maintain

effective marketing strategies that emphasize the uniqueness of such products. Such
product uniqueness determines pricing and promotional activities.
❑ The Cost Leadership Strategy shall be partially applied as secondary on some of P&G’s
products, focusing on cost or pricing throughout its supply chain to achieve competitive
advantage. For example, Pantene hair care products are priced relatively lower compared
to competitors like Unilever’s Dove hair care products.
A strategic objective based on the cost leadership generic strategy is to develop P&G’s
competitive advantage based on cost-minimization approaches. For example, automation
is increasingly used to minimize cost and maximize efficiency in P&G’s production
processes.
The company has also implemented lean manufacturing practices and has invested in
automation and digital technologies to improve its efficiency and reduce costs and it shall
develop and keep it on.
82
IMPLEMENTATION AND
INTERNAL POLICIES
PHASE
FUNCTIONAL STRATEGIES
83
16. Functional Objectives - Implementation Matrix

First Line Managers Level
❑ First Objective:
Product Development Strategy (First Objective)
Strategy
Developing 3 existing leading detergent products by enhancing the current formula to better target tough stains and improve the overall cleaning performance to
Strategic Objective achieve an increase of 10% in customer satisfaction ratings in comparison to the previous formula by conducting an extensive research by P&G’s R&D through
(Long Term) applying new pipelines technologies, innovations and using the latest AI to reach a formula to save the environment and to cope with the growing demand for eco-
friendly, carbon footprint and sustainable products to increase the company’s revenue by 30% during the upcoming 3 years (Starting July, 2023 till July, 2026).
Annual / Tactical
Objective (Short Increase market share 10% and in customer satisfaction rating by10% per year (From July 2023 till July 2026).
Term)
Functional Functional Actions / Procedures / Policies Required
Objectives Resources KPI's
Area
- Increase Marketing budget - Specify the goals for the product development - People: Qualified - Volume of sales
Marketing
by 10% each year. plan, such as developing a new product that marketing team - Revenue the product brings in.
- Create revenues for new satisfies consumer wants, enhancing an existing - Cost: 7M $ - How much of the market the product competes
Pull/ Push sustainable products by product, or entering new markets. - Time: 3 years in.
Growth strategies 20%. - Market research to understand client demands - Info: Marketing Plan - Customer satisfaction
STP - Increase Customer and preferences as well as the competitive - Return on investment (ROI)
7Ps satisfaction by 10% each environment, conduct market research.
year. - Develop a product development strategy that
covers product design, testing, production, and
launch.
- Develop a pricing strategy that is aggressive and
in line with the value proposition of the product.
- Specify the product's positioning and messaging.
- Develop a promotion strategy.
84
- Develop a distribution strategy.

- Develop a launch plan with a timeframe.
- Monitoring and evaluating the effectiveness of
the product development plan on a regular basis.
- Increase the budget of the - Develop a budget for the strategy for product - People: cost control - Gross margin percentage
Finance
marketing department by development, considering R&D, testing, product and financial team - Sales growth
5% design, production, marketing, and launch. - Cost: Self-financing - Cost per unit
Sales of company - Increase the financial - Calculate product's cost of goods sold (COGS), - Time: 3 years - Return on investment (ROI)
patents allocation of the - Determine the break-even point for the product. - Info: Financial Plan - Cash flow
Stock price Technology (R&D) - Calculate the product's return on investment
department by 10 % of their (ROI).
current budget. - Develop a sales prediction for the product.
- Develop a cash flow prediction for the product.
- Develop an inventory management strategy.
- Develop pipelines products - Specify the product development strategy's R&D - People: R&D team - Track the quantity of new goods created through
R&D
to contribute by 10% of the objectives, such as creating new products or - Cost: 10M $ the R&D plan.
Pipelines total company’s portfolio by enhancing existing ones. - Time: 3 years - Length of time taken to create and introduce new
Technological applying new technologies, - Carry out market research to understand customer - Info: R&D goods to make R&D plan is efficient and
leader innovations, robotics, 3D preferences and demands to develop new innovation plan effective.
printing and using latest AI products or improve current ones to satisfy those - Customer Satisfaction
to satisfy unmet customer’s needs. - Adoption Rate
needs. - Develop a product roadmap outlining the R&D - Intellectual Property
- Update and modify the tasks necessary to meet the firm's objectives for
current products/services to the product development plan.
fix any reported problems - Allocate the resources required to support the
and update and add new R&D plan, including staff, supplies, and money
features to the existing new pipelines.
products/services to keep - Regularly assess the R&D plan's development
the user engaged. and make necessary modifications to make sure it
is in line with the overall strategy and objectives
of the business.
85
- Develop and update more - Develop an IT infrastructure strategy, including - People: IT team - System Availability
IT and
secured and strict measures the necessary hardware, software, and - Cost: 5M $ - Data Security
Privacy &
and procedures to protect networking needs, to support the product - Time: 3 years - Compliance to prevent potential legal problems,
Security
users from cybercrime and development strategy. - Info: IT plan during the product development process.
attacks. - Put the necessary privacy and security - Compliance with pertinent laws and regulations
Intranet - Ensuring on following the safeguards, such as encryption, access controls, relating to data privacy and security.
Extranet privacy policies and and employee training, to safeguard the - Incident Response
APIs procedures agreed on with company's data and information during the
both users and customers. product development process.
Follow the
- Propose new cyber security - Develop a disaster recovery and business
sun strategy method. continuity strategy to make sure that, in the case
of a significant IT or security catastrophe, the
company's operations can continue while the
product is being developed.
- Assure that the company's IT systems and
processes are operating successfully and
efficiently throughout the product development
process by providing continuing IT support and
maintenance.
- Increase efficiency of - Outline the roles and responsibilities, reporting - People: Qualified HR - Employee Retention
HR
quality staff by 20% chains, and communication channels required to team - Time-to-hire
- Hiring talented innovative support the product development plan. - Cost: 7M $ - Employee engagement
Recruitment employees. - Develop a strategy for attracting and hiring the - Time: 3 years - Performance metrics
(assessment centers) - Reassess the organizational talent required to support the product - Info: HR Plan - Diversity and inclusion
Appraisal (360 design of Technology development strategy. - Talent development
degrees) (R&D) department. - Develop a training and development strategy.
- Recruit new employees and - Develop a performance management strategy to
calipers in the R&D make sure that the team is performing up to
department. expectations and advancing the strategy for
product development.
- Develop a compensation plan.
- Develop an employee engagement strategy.
- Keep a regular monitor on the effectiveness of
the human resource strategy and Analyze the
data, modify the strategy as necessary, and keep
up with the most recent developments and
86
industry best practises in human resource

management.
- Ensure that any update of - Develop an intellectual property (IP) strategy. - People: Legal - Protection of the patents, trademarks, and
Legal
product/ service does not - Regulatory compliance strategy to make sure that department team copyrights that the product has obtained.
violate any existing rules. the product complies with all relevant rules and - Cost: 2M $ - Regulatory compliance.
- Design and review all regulations, create a regulatory compliance plan. - Time: 3 years - Effectiveness of the contract management
contractual issues. - Develop a contract management strategy. - Info: Legal team procedure.
- Contracts with manufacturers, distributors, performance - How well the risk management strategy reduces
suppliers, and other business partners. legal risks.
- Keep monitoring on how the legal plan is - How well you handle legal disputes and control
performing and how it affects the strategy for legal expenses.
product development.
- Analyze the data, modify the strategy as
necessary, and keep up with the most recent legal
changes and industry best practices.
Operation - Increase production rate by - Specify the goals for the product development - People: Operation - How long it takes to sell the product.
10%. plan. team - The overall expenses related to creating the
Mass production - Develop update and modify - Develop a research and development plan that - Cost: 5 million $ product.
Mass customization the current products/services covers idea generation, concept development, - Time: 3 years - Product's quality using a variety of indicators,
Job shops to meet the rising customer prototyping, testing, and validation. - Info: Operation plan including defect rate, client complaints, and
JIT expectations and fix any - Develop a product design strategy that includes warranty claims.
reported issue. choosing materials and components, generating - Effectiveness of the manufacturing process using
specific product specifications, and constructing a metrics like production yield or cycle time.
product prototype. - Volume of sales the product has produced.
- Develop a plan for testing and validating the - How much of the market the product competes
product. in.
- Develop a manufacturing strategy.
- Develop a supply chain plan.
- Develop a launch plan with a timeframe.
- Monitoring and evaluating the efficiency the
product development plan on a regular basis.
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❑ Second Objective:
Product Development Strategy (Second objective)

Strategy
Innovating and launching a new line of environmentally friendly cleaning products for households within 12 months to achieve sales of 60M $ in the first year of
Strategic Objective launch by conducting extensive research by P&G’s R&D to identify and obtain sustainable ingredients and packaging materials, and design effective cleaning
(Long Term) formulas, this is due to the increase in demand for eco-friendly products, the new line will offer a competitive advantage and align with P&G's sustainability goals.
Annual / Tactical
Objective (Short Innovating and launching the new product in 12 months (First year) and to achieve sales of 60M $ first year of launch (Second year).
Term)
Functional Functional Actions / Procedures / Policies Required
Objectives Resources KPI's
Area
- Study and analyze the - Determine the precise client segment that is most - People: Qualified - Amount of money made from the new innovative
Marketing
customers unmet needs. and likely to require the innovation and then focus the marketing team product and the number of units sold.
what segments of customers marketing efforts on meeting their wants and - Cost: 7M $ - Quantity of new customers attracted by
Pull/ Push exist with different unmet preferences. - Time: 3 years marketing initiatives.
Growth strategies needs. - Make sure that the innovation stands out from the - Info: Marketing Plan - Proportion of customers who continue to buy the
STP - Increase Marketing budget competition in terms of value and benefits. novel product.
7Ps by 10% each year. - Develop a marketing message that explains to the - Target market's level of brand and product
- Create revenues for new target market the advantages of the innovation. recognition using surveys and social media
innovative products by 20%. - Choose the best marketing channels. analytics.
- Increase Customer - Execute the marketing strategy by developing
satisfaction by 10% each marketing materials, initiating campaigns, and
year. gauging the success of each marketing strategy.
- Increase the budget of the - Calculate the capital needed for R&D, - People: cost control - Monetary ROI for the new product invention.
Finance
marketing department by production, marketing, and other costs related to and financial team - Portion of sales that is left over after subtracting
35% introducing the new innovative product. - Cost: Self-financing the cost of the goods sold.
Sales of company - Increase the financial - Identify prospective funding sources if needed. - Time: 3 years - Amount of sales necessary.
patents allocation of the - Develop a budget outlining the anticipated costs - Info: Financial Plan - How quickly cash is being spent in comparison to
Stock price Technology (R&D) and revenue sources related to the innovation how quickly revenue is being made.
department by 10 % of their product. - How long it will take for the sales of the new
current budget. - Monitor the cash flow to make sure that the innovative product to make up for the initial
budget is being followed and that there is enough investment and launch-related costs.
money to cover expenses.
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- Modify the budget as necessary to maintain the

financial viability of the innovation product.
- Develop & create new - Come up with and assess concepts for the novel - People: R&D team - How long it takes to develop and release the new
R&D
products to contribute by product. - Cost: 10M $ product.
10% of the total company’s - Develop the concept for the innovation product. - Time: 3 years - Innovation Pipeline, track the quantity of
Pipelines portfolio by applying new - Include the product's features, advantages, and - Info: R&D concepts created, ideas generated, and prototypes
Technological technologies, innovations, target market in the concept. innovation plan put to the test.
leader robotics, 3D printing and - Develop a prototype of the new innovative - Money spent on R&D for the novel product.
using latest AI to satisfy product, test it, and make any necessary design - Tests, validation, and customer feedback are used
unmet customer’s needs. adjustments to make sure it satisfies user to gauge the product's quality.
- Update and modify the requirements. - Quantity of innovation product patents that have
current products/services to - Testing and validation of the innovation product. been applied for and granted.
fix any reported problems. - Start the manufacturing process and increase
- Update and add new production as necessary.
features to the existing
products/services to keep
the user engaged.
- Develop and improve the
current services and
products
- Develop and update more - Take actions to protect client data, including - People: IT team - Frequency and seriousness of security
IT and
secured and strict measures encrypting it both in transit and at rest and - Cost: 5M $ occurrences such data breaches and cyber-
Privacy &
and procedures to protect putting access controls in place. - Time: 3 years attacks.
Security
users from cybercrime and - Network security, use firewalls, intrusion - Info: IT plan - How well the novel product complies with
attacks. detection systems, and routine security audits to applicable laws and standards.
Intranet - Ensuring on following the make sure the network infrastructure is secure. - How well customers and workers responded to
Extranet privacy policies and - Software security, use secure coding techniques security awareness training.
APIs procedures agreed on with and routine code reviews to find and fix software - Amount of time it takes to locate and address
both users and clients. vulnerabilities. security incidents.
Follow the - Propose new cyber security - Develop an incident response strategy, test it
sun strategy method. frequently, and update it as necessary to handle
security issues like data breaches and
cyberattacks/breaches.
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HR - Increase efficiency of - Determine the skills, abilities and knowledge - People: Qualified HR - Employee Satisfaction
quality staff by 20% necessary for the creation and introduction of the team - How long it usually takes to fill vacancies.
Recruitment - Hiring talented innovative novel product. - Cost: 7M $ - Retention Rate
(assessment centers) employees. - Find and hire workers with the necessary abilities - Time: 3 years - Employee Productivity
Appraisal (360 - Reassess the organizational and skills. - Info: HR Plan - Company's level of innovation culture.
degrees) design of Technology - Provide staff with the training and development
(R&D) department. opportunities they need.
- Recruit new employees and - Establish a performance management system.
calipers in the R&D - Develop a succession plan to make sure that
department. important jobs are filled in case of turnover or
- Asses the employees’ need other interruptions.
for training on areas of
creative thinking and idea
creation and provide
training as needed.
- Ensure that any update of - Ensure that the new innovative product does not - People: Legal - Number of patent applications that have been
Legal
product/ service does not violate any existing intellectual property rights, department team submitted for the new product invention.
violate any existing rules. conduct a thorough search of the existing patents - Cost: 2M $ - Quantity and seriousness of legal issues involving
- Design and review all and trademarks including those governing data - Time: 3 years the novel product.
contractual issues protection, product safety, and privacy. - Info: Legal team - Compliance to which pertinent legal and
- Ensure that all agreements pertaining to the performance regulatory obligations are being complied with.
creation, production, and distribution of the new - Efficiency of the processes involved in managing
innovative product are valid under law and contracts.
safeguard the company's interests. - Efficiency of risk management procedures.
- Develop a strategy for resolving any legal
challenges that may surface throughout the
creation and introduction of the new product.
Operation - Increase production rate by - Develop a supply chain to make sure that the - People: Operation - Effectiveness of production processes.
10%. innovation product is produced and distributed in team - Supply chain's efficiency.
Mass production - Develop update and modify a way that is effective, economical, and upholds - Cost: 5 million $ - Speed at which inventory is sold and replaced.
Mass customization the current products/services quality requirements. - Time: 3 years - Innovation product's quality.
Job shops to meet the rising customer - Develop a method for managing the inventory to - Info: Operation plan - Efficiency of customer service procedures.
JIT expectations and fix any reduce the risk of stockouts and waste while
reported issue. ensuring that you always have the completed
goods, components, and raw materials you need
when you need them.
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- Develop a production schedule that streamlines

operations and cuts down on waste.
- Develop quality assurance procedures in place to
make sure the innovation product satisfies client
expectations and quality requirements.
- Create a customer service plan to handle
questions, grievances, and feedback from
customers regarding the new innovation product.
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EVALUATION AND
CONTROL MECHANISM
PHASE
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Methods are, Balanced scorecard / Benchmark, Quantitative & Qualitative KPIs, Lead
(Short term KPIs, Activities) or Lag (Long term KPIs, Results) KPIs
I will choose the balance scorecard
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17. Balance Scorecard
❑ First Objective:
Targets
Functional Objective Measures Initiatives
FY1 FY2 FY3
⁃ Boosting sales through current channels.
⁃ Rate at which sales are growing over time.
⁃ Cutting production and material costs.
⁃ Profitability of the product development
⁃ Improving the logistics and supply chain.
1. Revenue growth strategy.
⁃ Making sure the product development plan is in line with the
2. Gross margin percentage ⁃ Overall return on investment of the
60% 100% overarching business strategy by identifying and prioritizing
Financial
3. Return on investment (ROI) product development strategy. 40%

high-ROI projects.
4. Development costs ⁃ Total costs associated with developing the
⁃ Cutting down on waste and inefficiency items.
5. Manufacturing costs product.
⁃ Making use of new tools and technologies to increase
6. Marketing costs ⁃ Total costs associated with manufacturing
productivity.
the product.
⁃ Adopting lean manufacturing techniques.
⁃ Costs associated with promoting and
⁃ Carrying out market research to learn more about consumer
launching the product.
preferences and demands.
- Level of satisfaction customers has with ⁃ Offering user-friendly product features and user interfaces.
the product. ⁃ Providing excellent customer support.
- Likelihood that customers would ⁃ Implementing customer retention programs and providing
1. Customer satisfaction recommend the product to others. superior customer experiences to encourage repeat business.
2. Number of new customers ⁃ Creating new features and goods to fulfil the demands of both
Customer
- Value of a customer over the course of

acquired. their relationship with the company. existing and potential customers.
3. Market share 50% 80% 100% ⁃ Putting money into marketing and advertising to build brand
- Company's share of the market in which it
4. Customer retention rate competes. recognition and boost sales.
5. Net promoter score (NPS) - Level of brand awareness among the ⁃ Focusing on social media and content marketing to reach the
target audience. target audience.
⁃ Engaging in public relations and media outreach to raise brand
awareness
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- Shortening the time required for decision-making processes.

- Increasing team collaboration and communication.
- Time taken to bring a new product to
- Holding monthly project status meetings to monitor progress.
market.
- Standardizing development processes.
1. Time-to-market - Time it takes to complete each stage of the
Internal Processes
- Spotting and fixing development process bottlenecks.

2. Development cycle time product development process, from ideation
- Wherever possible, automated manufacturing processes.
3. Manufacturing efficiency to product launch.
- Giving production teams regular opportunity for training and
4. Quality metrics (such as - The efficiency of the manufacturing 50% 75% 100% development
defect rate or warranty process, including the time and resources
- Standardizing manufacturing procedures to cut waste and
claims) required to produce each unit of the product.
maximize efficiency.
5. Supply chain efficiency - Quality of the product, including defect rate,
- Carrying out a root cause analysis to find and fix quality
warranty claims, and customer complaints
problems.
- Measures the efficiency of the supply chain.
- Improving supply chain and logistics management through
technology
- Giving staff members regular feedback and appreciation
- Level of engagement and satisfaction of
- Promoting employee involvement in product development and
employees involved in the product
input
development process, including developers,
- Giving workers regular opportunity for training and
1. Employee engagement designers, engineers, and other team
development
2. Employee training and members.
Learning & Growth
- Establishing a culture of ongoing learning and improvement

development - Level of investment in employee training
encouraging them to pursue certifications and other chances for
3. Innovation metrics (such as and development programs, including in-
professional growth.
number of patents or new house training, external training, and skill
70 % 85% 100% - Tailoring education and training initiatives to the unique
product ideas) development programs.
requirements of the product development cycle.
4. Process improvement metrics - Level of investment in innovation programs,
- Investing in R&D projects and pipelines to find innovative
(such as cost savings or including research and development,
product concepts and characteristics.
efficiency gains) product ideation, and prototyping.
- Cross-functional innovation teams should be established to
5. Diversity and inclusion metrics - Level of investment in process improvement
promote cooperation and creativity.
programs, including lean manufacturing, Six
- Lean manufacturing and Six Sigma approaches should be used
Sigma, and other process improvement
to optimize processes. Employees should be encouraged to
methodologies.
submit suggestions for process enhancements.
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❑ Second Objective:
Targets
Functional Objective Measures Initiatives
FY1 FY2 FY3
- Conduct market research to determine consumer
preferences and demands, as well as to determine rivals
⁃ Sales revenue generated by the innovation and their market share.
product. - Develop a marketing strategy to market and sell the
⁃ Cost of goods sold (COGS) for the innovation product successfully.
1. Revenue Growth
innovation product. - Form agreements with important merchants and
2. Cost Management
Financial
⁃ ROI for the innovation product distributors to broaden the product's appeal.
3. Return on Investment (ROI) 40% 60% 100%
⁃ Gross profit margin for the innovation - Examine the product development process to find places
4. Profitability
product where expenses might be minimized.
5. Market Share
⁃ Market share for the innovation product - To reduce production costs, optimize the supplier chain.
6. Cash Flow
⁃ Cash flow for the innovation product - Implement a cost-control cash and management procedure
7. Break-Even Point
⁃ Break-even point for the innovation procedures.
product - Track development towards the break-even point and
modify the plan as necessary to maintain the financial
viability of the innovative product.
- Conduct market research to identify customer needs and
⁃ Customer satisfaction ratings for the preferences and develop a marketing plan.
innovation product - Develop a customer feedback program to gather feedback
⁃ Quality ratings for the innovation product on the innovation product.
1. Customer Satisfaction
⁃ Number of new features or innovations - Analyze customer feedback.
2. Product Quality
added to the innovation product. - Develop a quality assurance program to ensure that the
3. Product Innovation
Customer
⁃ Customer retention rates for the innovation product meets quality standards and customer
4. Customer Loyalty
innovation product 50% 80% 100% expectations.
5. Market Share
⁃ Market share for the innovation product - Establish a product development process that encourages
6. Customer Acquisition
⁃ Number of new customers acquired for the innovation and the incorporation of new features.
7. Customer Lifetime Value
innovation product. - Conduct regular testing and validation.
⁃ Lifetime value of a customer for the - Develop a product roadmap that includes new features and
innovation product innovations to be added to the innovation product.
- Develop a customer loyalty program to reward and retain
loyal customers.
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⁃ Product development cycle time ⁃ Develop a project management strategy that outlines
⁃ Production cycle time and throughput deadlines and milestones for the creation and introduction
1. Product Development ⁃ Supplier performance and delivery time of the innovative product.
Process Efficiency ⁃ ⁃ Increase optimize the production process.
Internal Processes
Defect rate and customer satisfaction

2. Production Efficiency ⁃ Number of new ideas generated and ⁃ Apply lean manufacturing techniques to save waste and
3. Supply Chain Management implemented. boost productivity.
4. Quality Control Innovation ⁃ Project completion rate and on-time 50% 75% 100% ⁃ Develop a supplier performance and delivery time-focused
Culture delivery supply chain management program.
5. Project Management ⁃ Rate of process improvement and waste ⁃ Develop quality control, testing, and validation programs.
6. Continuous Improvement reduction ⁃ Develop an innovation-friendly workplace environment.
⁃ Put a procedure for managing risks.
⁃ Develop a continuous improvement program with a focus
on waste reduction and process improvement.
⁃ Develop a performance management procedure that
incorporates ongoing coaching and feedback to assist staff
in developing their abilities.
⁃ Develop a program for employee engagement and training
that promotes input from and participation from
⁃ Employee training hours and skill
1. Employee Skills employees.
development
Development ⁃ Implement measures for employee retention to keep top
⁃ Employee satisfaction and retention rates
Learning & Growth
2. Employee Engagement talent and lower turnover.

⁃ Knowledge capture and transfer rates
3. Knowledge Management ⁃ Develop a program for knowledge transfer and capturing
⁃ Number of new ideas generated and
4. Innovation Culture relating to the new innovative product.
implemented.
5. Collaboration and 70 % 85% 100% ⁃ Develop a communication strategy to make sure that
⁃ Collaboration and communication
Communication everyone in the team is aware of the objectives and status
effectiveness
6. Technology and of the project.
⁃ Technology and infrastructure upgrades
Infrastructure ⁃ Develop a continuous improvement program with a focus
and implementation
7. Continuous Improvement on waste reduction and process improvement.
⁃ Rate of process improvement and waste
⁃ Develop a roadmap for process improvement that identifies
reduction
opportunities for improvement and establishes waste
reduction objectives.
⁃ Develop procedure for monitoring and measuring the
advancement of waste reduction and process improvement
objectives.
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THE BUSINESS PLAN
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18. Executive Summary
Procter & Gamble (P&G) is a multinational consumer goods company headquartered in

Cincinnati, Ohio. P&G was founded in 1837 and has since grown to become one of the
largest and most successful consumer goods companies in the world.
Many household and personal care brands, including Tide, Crest, Gillette, Pampers, and
many others, are represented in P&G's product portfolio. The business is active in more
than 180 nations and is well-represented in both developed and developing markets.
P&G has concentrated on accelerating expansion through product development, innovation,

and smart acquisitions in recent years. The organisation has made sustainability and social
responsibility a priority, and by 2030, it hopes to have 100% renewable electricity and net
zero greenhouse gas emissions.
Due to an emphasis on productivity and cost reduction, P&G has recently produced solid
financial performance. In addition, the business has significantly rewarded shareholders
through dividends and share buybacks.
With a solid portfolio of brands, a dedication to innovation and sustainability, and a focus
on providing value to customers and shareholders, P&G is well-positioned to continue its
success in the future.
19. Situational Analysis
As stated, before by PESTEL, Porter’s 5 Forces & SWOT analysis.
20. Industry/Company Description
P&G is a part of the consumer goods sector, which includes businesses that
manufacture and market goods for consumers' home and personal use. There is
fierce competition for market dominance in this sector, which is dominated by
numerous major international corporations.
The consumer goods sector is broken down into a number of categories, such as:
1. Household goods: Items in this category include air fresheners, paper goods,
and cleaning supplies.
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2. Personal care items: Items like shampoo, soap, deodorant, and oral hygiene
items fall under this category.
3. Food and beverage products: This category include items like packaged foods,
drinks, and snacks.
4. Beauty products: Items in this area include cosmetics, skincare, and hair care
items.
P&G engages in business across a number of these sectors, including Baby, Feminine and
Family Care, Beauty, Grooming, and Health Care. The company's wide range of products,
which include several well-known and reputable brands, aid in the maintenance of a solid
market position.
Numerous factors, such as shifting consumer preferences and behaviours, prevailing

economic conditions, and governmental regulations, have an impact on the consumer
goods industry. To stay competitive, businesses in this sector must have the flexibility to
quickly adjust to shifting market dynamics and consumer preferences.
The consumer goods sector is a sizable and very competitive one, and P&G's success is
largely a result of its capacity for innovation, flexibility in response to shifting market
dynamics, and great brand portfolio maintenance.
21. Organization And Management
P&G is divided into business units that concentrate on product categories, such as Baby,
Feminine & Family Care, Beauty, Grooming, and Health Care. It is the responsibility of
each business unit to create and promote its own portfolio of brands.[11]
The CEO and the board of directors, who oversee and operate the business, are at the top
of the organization. The CEO is in charge of determining the company's overall strategy
direction and making sure P&G is providing value to its customers and shareholders. [11]
The chief financial officer, chief supply chain officer, chief human resources officer, and
other top executives are listed underneath the CEO. These executives closely collaborate
with the CEO to carry out the company's strategy and manage day-to-day operations.
[11]
P&G is dedicated to the growth of its workers and has a strong culture of innovation.
The business makes significant investments in R&D and offers regular opportunities for
employee training and advancement. In addition, P&G places a priority on diversity and
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inclusion, with the aim of reaching gender parity in managerial positions and boosting
diversity throughout the company. [11]
In general, P&G's management and organizational structure are built to support the
company's emphasis on innovation, expansion, and providing value to its clients and
shareholders. [11]
22. Product Line
P&G provides a large selection of goods in several categories, 65 brands that are sold in over
180 countries and a huge number of SKUs (stock-keeping units) for each brand varies widely
depending on the category and market (About 150,000), such as: [11]
1. Fabric and Home Care: P&G offers laundry detergents (like Tide and Gain), fabric
softeners (like Downy), and home cleaning products (including Mr. Clean and
Swiffer) under the Fabric and Home Care brand.
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2. Baby, Feminine and Family Care: P&G's Baby, Feminine and Family Care products
include diapers and training pants (like Pampers and Luvs), baby wipes (like Pampers
and Water Wipes), feminine care items (like Always and Tampax) and tissue paper
items (like Charmin and Bounty).
3. Beauty: P&G's beauty goods include cosmetics (like CoverGirl and Max Factor),
skincare (like Olay and SK-II), and hair care (like Pantene and Head & Shoulders).
4. Grooming: P&G's grooming products include deodorants like Old Spice and Secret,
shaving products like Gillette and Venus, and oral care items like Crest and Oral-B.
5. Health Care: P&G's health care offerings consist of over-the-counter medicines like
Pepto-Bismol and Vicks, vitamins and dietary supplements like Metamucil and Align,
and items for personal care like Braun thermometers and Vicks humidifiers.
The wide range of products offered by P&G include numerous reputable and well-known
brands. As the needs of its customers have changed, the company has been able to
continuously introduce new and improved products thanks to its focus on innovation and
product development. [11]
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23. Market Analysis
P&G competes against both bigger, multinational consumer products corporations and
smaller, regional brands in the increasingly competitive worldwide market. Despite the
competition, P&G has remained competitive and has maintained a dominant market position
in several of its product categories. [11]
North America is the company's biggest market, accounting for over 44% of net sales for
P&G. Along with Asia Pacific, where it generates about 18% of its net sales, the company
also has a significant presence in Europe, where it generates about 23% of its net sales.
P&G has concentrated on growing its footprint in emerging areas including China, India, and
Latin America in recent years. These markets offer the organisation substantial growth
potential due to their sizable populations, rising disposable incomes, and increased consumer
spending. [11]
The market success of P&G is influenced by a number of things. The business maintains a
devoted consumer base because to its broad array of reputable and well-known brands.
Additionally, P&G places a high priority on product development and innovation, which
enables it to launch new and improved products in response to changing consumer demands.
[11]
In general, P&G competes in a worldwide market that is expanding and competitive, and the
company is well-positioned for future success thanks to its emphasis on innovation and
development into emerging markets. [11]
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24. Marketing Objectives
❑ First Objective
Strategic: Developing 3 existing leading detergent products by enhancing the current

formula to better target tough stains and improve the overall cleaning performance to achieve
an increase of 10% in customer satisfaction ratings in comparison to the previous formula
by conducting an extensive research by P&G’s R&D through applying new pipelines
technologies, innovations and using the latest AI to reach a formula to save the
environment and to cope with the growing demand for eco-friendly, carbon footprint and
sustainable products to increase the company’s revenue by 30% during the upcoming 3
years (Starting July, 2023 till July, 2026).
Tactical / Annual: Increase market share 10% and in customer satisfaction rating by10% per
year (From July 2023 till July 2026).
❑ Second Objective
Strategic: Innovating and launching a new line of environmentally friendly cleaning

products (new pipelines) for households within 12 months to achieve sales of 60M $ in
the first year of launch by conducting extensive research by P&G’s R&D to identify and
obtain sustainable ingredients and packaging materials, and design effective cleaning
formulas, this is due to the increase in demand for eco-friendly products, the new line will
offer a competitive advantage and align with P&G's sustainability goals.
Tactical / Annual: Innovating and launching the new product in 12 months (First year) and
to achieve sales of 60M $ first year of launch (Second year).
25. Marketing Strategies
P&G shall go for the Intensive Strategies, “Product Development” Strategy in the upcoming
three years.
26. Competitive Strategy
Competitive strategies “Differentiation Strategy”, as primary strategy for competitive

advantage and “Cost Leadership Strategy” as secondary on some of the products.
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27. Competitive Advantage
P&G has several competitive advantages over rival companies that have helped it succeed
in the consumer goods sector.
1. Diverse portfolio of trusted and well-known brands: P&G has several brands in its
portfolio that consumers all over the world rely on. Because of their well-established
reputations for excellence, these brands enjoy greater brand recognition and client
retention.
1. Strong focus on innovation and product development: P&G places a lot of emphasis
on innovation and product development, which enables the business to consistently
produce new and enhanced products to fulfil the shifting needs of its clients. P&G has
maintained its market position and kept ahead of the competition because to this
emphasis on innovation.
2. Wide-ranging distribution networks: P&G has a wide-ranging distribution network

that enables it to reach clients all over the world. This helps to make sure that P&G's
products are broadly accessible and simple for customers to buy.
3. Strong commitment to sustainability and social responsibility: P&G is strongly

committed to sustainability and social responsibility, which helps to increase brand
loyalty and customer trust. The corporation has established challenging sustainability
objectives, such as producing 100% renewable electricity and net zero greenhouse gas
emissions by 2030.
4. Effective operations: P&G places a high priority on productivity and efficiency, which
enables the company to compete successfully in a very cutthroat sector. This emphasis on
efficiency aids in cost-cutting and boosts revenue.
P&G's broad distribution networks, vast brand portfolio, emphasis on innovation,

dedication to sustainability and social responsibility, and effective business practices all
contribute to the company's competitive advantages. These benefits put the business in a
strong position for long-term success.
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MARKETING PLAN
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28. Plan
28.1 S.T.P. (Market Segmentation, Targeting and Positioning)
28.1.1 Segmentation
Market segmentation by P&G shall be based on a variety of variables, including

demographics, psychographics, location, and behaviour. The company's consumer goods
are marketed to a range of demographics, including millennials, families with small
children, and people who place a high value on sustainability and environmental
friendliness.
Type of Segmentation Segmentation Criteria Example of Target Segment
Tide brand may offer different

Dividing the market based on
formulations of laundry detergent for
Geographic geographic factors such as region, city
customers in different regions or
size, and climate.
climates.
Pampers brand targets parents with
young children, while its Olay brand
Demographic demographic factors such as age,
targets women who are concerned
gender, income, and education level.
about aging.
Gillette brand may target men who
value a clean-shaven appearance and
Psychographic psychographic factors such as
are willing to pay more for premium
lifestyle, personality, and values.
shaving products.
P&G may target customers who
regularly purchase its products with
Behavioral consumer behavior and buying
loyalty programs or special
patterns.
promotions.
P&G may create customised marketing campaigns and product offerings that appeal to
particular consumer groups by using these segmentation criteria. As a result, the business
may more successfully reach its target market and boost sales and profitability.
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28.1.2 Targeting
P&G targets particular client segments with various products and marketing messages based
on its segmentation analysis. For instance, the company's Gillette brand is marketed to men
who value grooming and personal care, while its Pampers brand is aimed at young families
with infants. With its eco-friendly product lines, such as its Tide Purclean detergent, P&G
also caters to consumers who are concerned about the environment.
Product Target Group How to Target?

Pampers, a brand of baby diapers Targeting parents with young The brand uses targeted
and wipes. children who are looking for high- marketing campaigns,
quality and reliable baby care Advertising, Social media, In-
products. store promotions, Direct
Beauty and Grooming segments, Gillette brand targets men who marketing and product features,
P&G targets different consumer value a clean-shaven appearance such as hypoallergenic materials
groups with specific needs and and are willing to pay more for and wetness indicators, to appeal
preferences. premium shaving products. to its segments in the market.
Meanwhile, the company's Olay
brand targets women who are
concerned about aging and are
looking for skincare products that
can reduce the signs of aging.
Different geographic regions with Tide brand may offer different
specific product offerings. formulations of laundry detergent
for customers in different regions
or climates.
28.1.3 Positioning
P&G shall emphasize innovation and sustainability while positioning their products as
being of a high caliber, trustworthy, and reasonable price. Through its robust brand
portfolio, research and development capabilities, and dedication to sustainability, the
company seeks to set itself apart from rivals. While P&G's positioning strategy varies
depending on the product and target market, the company generally aims to satisfy the
needs and preferences of its clients while keeping a competitive edge in the market.
108
The main component of P&G's market positioning strategy is "more for more",which
entails providing premium items at a high price to entice customers who are prepared to pay
more for an improved product.
Because of its emphasis on innovation, product quality, and brand reputation, P&G is able
to present its products as premium options that offer consumers superior performance and
value. P&G invests substantially in advertising and marketing to convey to consumers the
value proposition of its premium brands, which include Tide, Pampers, and Gillette and
fetch higher pricing in the market.
P&G does, however, provide some items that are marketed as providing "more for less",
such as its lower-priced brands or economy packaging choices. These goods are made to
appeal to budget-conscious buyers who demand quality and affordability.
For the most part, P&G's market positioning approach is "more for more", but the
corporation also sells some items positioned as "more for less" to appeal to a wider
spectrum of consumers.
P&G's segmentation, targeting, and positioning strategy is intended to increase its market
penetration and effectiveness while promoting brand recognition and boosting sales. P&G
can preserve its competitive position, drive growth and profitability over the long term, and
109
continue its commitment to innovation and sustainability by targeting particular customer

groups with customized goods and marketing messages.
28.2 Marketing Mix
Marketing mix consists of the four Ps: product, price, promotion, and place. Here's how P&G
shall implement each element of its marketing mix:
28.2.1 Product
P&G has 65 brands that are sold in over 180 countries and a huge number of SKUs (stock-
keeping units) for each brand varies widely depending on the category and market (About
150,000).
P&G shall offer a wide range of consumer products, including personal care, household
cleaning, and beauty products. The company is known for its strong brands, such as Tide,
Pampers, and Gillette, and for its focus on innovation and product development.
110
28.2.2 Price
P&G shall use the pricing strategies depending on the product and market. For example, the
company may use premium pricing for its high-end products, while using value pricing for
its more affordable products.
28.2.2.1 Pricing Strategies for Existing Products
1. Premium pricing: P&G uses premium pricing for its high-end goods, including its
Gillette and Olay brands, which are marketed as premium offerings with greater
performance and quality. Premium pricing enables P&G to set its products apart from
rivals and preserve the reputation of its brand.
2. Economy pricing: To cater to consumers who are price conscious and seeking value and
affordability, P&G also offers economy-priced items, such as its lower-priced brands or
larger size packaging options.
3. Promotional pricing: To boost sales and encourage product trials, P&G shall use
promotional pricing strategies like discounts, coupons, and special offers. These
promotions are frequently utilized to boost sales at seasonal or holiday times or for the
introduction of new products.
111
4. Dynamic pricing: To optimize pricing and maximize profitability, P&G uses dynamic
pricing, which entails changing prices in response to customer demand and market
conditions. This enables the business to respond to market developments and preserve its
competitiveness by instantly changing prices.
These policies for P&G’s current products to keep its reputation as a premium brand while
appealing to a wide variety of customers with various demands and preferences. To optimize
price and boost profitability for its products, the corporation employs a variety of pricing
tactics.
28.2.2.2 Pricing Strategies for New Products
To ensure the effective launch of new goods and increase profitability, P&G shall follow
the following pricing techniques for new products, such as:
1. Skimming price: For new products that are highly inventive or offer special benefits,
P&G may use skimming pricing. This entails initially setting a high price to maximize
revenue from early adopters, followed by a steady price reduction as demand stabilizes.
2. Penetration pricing: For new products with a lot of market competition, P&G may
adopt penetration pricing. This entails initially setting a low price to obtain market share
and raise brand recognition quickly.
3. Competitive pricing: P&G may apply competitive pricing to new goods that are
comparable to already-available items. To stay competitive and increase market share,
this entails setting a pricing that is comparable to that of rivals.
4. Psychological pricing: P&G may employ psychological pricing for new products to
change how consumers view the worth of the item. To make the price appear smaller and
more enticing to customers, this involves setting prices that end in specific digits, such as
$9.99 instead of $10.
5. Bundle pricing: For new items that complement its existing product line, P&G may
adopt bundle pricing. To promote trial and adoption, the new product is offered at a
lower rate when combined with other products.
Pricing plans for new goods are created to maximize profitability while grabbing market
share and ensuring a successful launch. Depending on the distinct characteristics of the
product, the level of competition, and the target market, the corporation employs a variety
of pricing techniques.
112
28.2.3 Promotion
P&G shall employ a range of marketing techniques to increase sales and brand recognition.
The business spends a lot of money on advertising, which includes sponsorships, in-store
promotions, and print, television, and digital ads. To reach its target market, P&G also uses
influencer marketing and social media, as follows,
1. Couponing: frequently publishes coupons for its products online, in magazines, and in
newspapers. At the point of sale, these coupons can be used to save money on P&G
products.
2. Sampling: Use product sample to promote the use of current products or to introduce
new ones to consumers. Online offers, direct mail, and in-store sampling are all viable
methods for doing this.
3. Loyalty programs: Provide rewards for P&G product purchases through loyalty
programs like P&G Good Everyday. By performing tasks or scanning receipts, customers
can receive prizes.
4. Co-marketing: Collaborate with other businesses to market its goods. For instance, P&G
might run a promotion where customers who purchase P&G goods can get a deal on
goods from a partner company.
113
5. Social media: Promote its products and interacts with customers on social media sites
like Facebook, Instagram, and Twitter. To increase participation, P&G frequently holds
social media contests and giveaways.
6. Sponsorship: To advertise its brands, P&G supports organizations and events. For
instance, P&G uses its sponsorship of the Olympic Games to advertise its brands to a
large global audience.
Depending on the product and market, P&G employs push and pull promotional techniques
in its marketing campaigns.
P&G shall use a push strategy to entice shops to stock and sell P&G products by offering
them promotional materials and rewards like trade discounts and allowances.
Moreover, P&G shall use a pull strategy to promote its goods using a variety of media
outlets, including print, television, and social media, to raise customer demand and brand
awareness.
In order to efficiently reach intermediaries and end users and sell its products, P&G
generally combines push and pull promotional techniques.
114
28.2.4 Place
Products from P&G are distributed through a range of channels, including brick-and-mortar
stores, internet merchants, and direct-to-consumer sales. To make sure that its products are
accessible when and when customers need them, the company maintains a robust
distribution network and works closely with its retail partners.
P&G shall use a supply chain management system that unites suppliers, manufacturers,
distributors, and retailers to ensure effective distribution. To enhance the effectiveness of its
supply chain and optimize its distribution network, P&G also makes use of technology and
data analytics.
P&G's distribution and place strategy, in its entirety, focuses on giving customers easy
access to its products through a variety of channels and venues. P&G's extensive supply
chain management system and distribution network allow the business to access a large
consumer base and successfully compete in the market.
1. Traditional retail outlets: P&G products are available in a variety of retail

establishments, including pharmacies, mass merchandisers, convenience stores, and
supermarkets. P&G has supply chain agreements with large retailers including Walmart,
Target, and Walgreens through which its products are distributed.
2. E-commerce: P&G products are sold on its own e-commerce platform as well as through
online merchants like Amazon and Walmart.com. To address the rising demand for
online purchasing, the company has made investments in its digital capabilities and
created an e-commerce infrastructure.
3. Direct-to-consumer channels: To offer its products directly to customers, P&G has also
established direct-to-consumer channels like subscription services. The Tide Cleaners
app and the P&G Good Everyday program are two examples of P&G's direct-to-
consumer platforms.
The overall goal of P&G's distribution strategy is to give customers easy access to its
products through a variety of channels and places. The company can efficiently reach a
large customer base and successfully compete in the market thanks to its substantial
distribution network and supply chain management system.
In general, P&G's marketing mix is crafted to satisfy consumer preferences and demands
while promoting brand recognition and boosting sales. P&G can sustain its competitive
position and foster long-term development and profitability by concentrating on product
quality and innovation, utilizing a variety of pricing methods, investing in promotional
activities, and utilizing its robust distribution network.
115
OPERATIONAL PLAN
116
29. Operational Strategy
P&G is adopting the prospector strategy.
30. Operational Objective
Customer Satisfaction higher than 99%.

Zero defects in the sold products.
Increase the market share in 30% in the upcoming 3 years.
Increase the number of products that use eco-friendly material to 80% in the upcoming 3 years
Reduce the CO2 emission by 15% by 2026.
31. Plan
In order to accomplish its strategic aims and objectives, P&G would need to develop an
operational plan that outlined the precise steps the corporation intended to follow. An
illustration of what a P&G operations plan might contain is as follows:
1. Research and development: To promote innovation and product leadership, P&G will
continue to prioritise investment in research and development for new pipelines. This
entails raising the R&D budget, strengthening partnerships with other parties, and utilising
cutting-edge technologies and data analytics to guide product development.
2. Supply chain and logistics: In order to lower costs and accelerate delivery times, P&G
will concentrate on enhancing supply chain and logistics efficiency. Process
simplification, inventory management optimisation, and the use of cutting-edge
technology like automation and artificial intelligence are all part of this.
3. Advertising and marketing: To increase brand recognition and boost sales, P&G will
keep making significant investments in marketing and advertising. This entails raising the
advertising budget, utilising social media and influencer marketing, and creating focused
marketing campaigns for particular goods and clientele groups.
4. Sustainability initiatives: In order to meet consumer demand for environmentally

friendly products and lessen its environmental effect, P&G will focus more on
sustainability projects. This entails creating fresh, environmentally friendly product lines,
using more recycled materials in packaging, and cutting carbon emissions across the
supply chain.
117
5. Talent development and retention will be given top priority by P&G to create a solid,
diversified workforce that can foster innovation and commercial success. This entails
making investments in training and development programs for staff members, fostering a
welcoming and inclusive workplace culture, and expanding chances for professional
growth and mobility.
P&G's operational strategy is created to optimize operations, promote growth, and

profitability while remaining aligned with its strategic goals and objectives. P&G can
maintain its competitive position and achieve long-term success by giving priority to
research and development, enhancing the efficiency of the supply chain and logistics,
investing in marketing and advertising, putting more emphasis on sustainability initiatives,
and prioritizing talent development and retention.
118
FINANCIAL PLAN
119
32. Historical Financial Statements
❑ P&G’s Income Statement
❑ P&G’s Balance Sheet
❑ P&G’s Cash Flow Statement
TTM = Trailing Twelve Months. MRQ = Most Recent Quarter
120
33. Financial Projections & Plan
❑ P&G’s Revenue:
• Procter & Gamble revenue for the quarter ending March 31, 2023 was $20.068B, a 3.54%
increase year-over-year.[14]
• Procter & Gamble revenue for the twelve months ending March 31, 2023 was $80.968B,
a 1.7% increase year-over-year.
• Procter & Gamble annual revenue for 2022 was $80.187B, a 5.35% increase from 2021.
So, our target is to increase the upcoming revenues by 5% each year.
121
❑ P&G’s Net Income:
• Procter & Gamble net income for the quarter ending March 31, 2023 was $3.328B,
a 1.25% increase year-over-year.[14]
• Procter & Gamble net income for the twelve months ending March 31, 2023 was $14.038B,
a 1.93% decline year-over-year.
• Procter & Gamble annual net income for 2022 was $14.461B, a 3.04% increase from 2021.
• Procter & Gamble annual net income for 2021 was $14.035B, a 9.96% increase from 2020.
• Procter & Gamble annual net income for 2020 was $12.764B, a 251.24% increase from
2019.
❑ P&G’s Earnings Per Share
• Procter & Gamble EPS for the quarter ending March 31, 2023 was $1.37, a 3.01%
increase year-over-year.[14]
• Procter & Gamble EPS for the twelve months ending March 31, 2023 was $5.74,
a 0% increase year-over-year.
• Procter & Gamble 2022 annual EPS was $5.81, a 5.64% increase from 2021.
Moreover, P&G shall increase the budget of the marketing department by 5% and the
financial allocation of the Technology (R&D) department by 10 % of their current budget
every year of the upcoming 3 years till Y2026.
122
34. Conclusion
As a conclusion, Procter & Gamble (P&G) has a clear strategic and business plan that aims
to promote sustainability, innovation, and growth. The strategy plan of P&G is based on its
mission to enhance people's lives through its brands and products. The business plan for the
company is created to accomplish this goal by giving customers improved products and
experiences while streamlining processes and minimizing environmental effect.
The five key pillars of supremacy, productivity, constructive disruption, core strength, and
balance serve as the foundation of P&G's strategy plan. These principles direct the
business's decisions and allow it to maintain its competitiveness and react to shifting market
conditions.
The goals of P&G's business plan are to increase top line revenue while reducing costs. The
company's operational goals include enhancing the effectiveness of its supply chain,
investing in innovation and R&D, and optimizing its distribution network. P&G places a
strong emphasis on sustainability and has established high standards for lowering its
environmental effect.
P&G's strategy and business plans are created to promote long-term growth and provide
value for all stakeholders, and they are generally in line with the company's mission and
core values. P&G can keep innovating, competing, and thriving in the very competitive
consumer goods market by properly carrying out its strategies.
P&G might consider the following suggestions to grow its company:
1. Put an emphasis on invention.

2. Place a strong emphasis on sustainability.
3. Improve e-commerce capabilities.
4. Put an emphasis on employee development.
5. Discover new markets.
123
35. References
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2. "Duracell leaves P&G fold". Cincinnati.com, (Alexander Coolidge, March 01, 2016).
3. "Social Grade: A Classification Tool", Ipsos, (Dawn Collis, 2016).
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December 03, 2018).
5. "Procter & Gamble board meets amid CEO reports", (Herald Boston, May 5, 2012).
6. "Procter & Gamble names Jon Moeller as new CEO, will replace current chief David
Taylor in November", (Mangan Dan, July 29, 2021).
7. "Procter & Gamble Agrees to Sell Beauty Brands". The Wall Street Journal, (Ng, Serena,
July 09, 2015).
8. "Procter & Gamble just sold 43 of its brands for $12.5 billion". Business
Insider, (Oyedele Akin, July 09, 2015).
9. "P&G renames Merck Limited as Procter & Gamble Health Ltd". Mint, (Teena Thacker,
May 07, 2019).
10. “P&G turns to AI to create digital manufacturing of the future”, (Thor Olavsrud, Sep 30,
2022).
11. www.procterandgamble.com, (accessed on May 01, 2023, at 09:00 am).
12. www.tradingeconomics.com, (accessed on May 01, 2023, at 11:21 am).
13. www.worldbank.org, (accessed on May 01, 2023, at 12:30 pm).
14. www.macrotrends.net, (accessed on May 01, 2023, at 01:15 pm).
15. www.investing.com, (accessed on May 01, 2023, at 01:30 pm).
16. www.hofstede-insights.com, (accessed on May 01, 2023, at 02:00 pm).
17. www.statista.com, (accessed on May 01, 2023, at 02:15 pm).
18. www.doingbusiness.org, (accessed on May 01, 2023, at 03:00 pm).
19. www.law.cornell.edu/wex/environmental_law, (accessed on May 01, 2023, at 05:00 pm).
20. www.whitehouse.gov/climate/#, (accessed on May 01, 2023, at 05:15 pm).
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(accessed on May 01, 2023, at 05:30 pm).
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24. www.lexology.com, (accessed on May 01, 2023, at 08:00 pm).
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to boost sales" (02 August 2014), (accessed on May 01, 2023, at 09:00 pm).
26. www.cincinnatienquirer.com, "P&G brand sales, restructuring will cut jobs up to 19%"
(03 March, 2016), (accessed on May 01, 2023, at 09:15 pm).
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Business" (October 3, 2016) , (accessed on May 01, 2023, at 10:00 pm).
28. www.reuters.com,"P&G restructures operations, creates six business units", (November
8, 2018), (accessed on May 01, 2023, at 10:30 pm).
124
29. "World Intellectual Property Indicators 2021" (PDF). WIPO, (accessed on May 01, 2023,
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43. MBA Booklet Guide, 2022 (Version 2)
44. MBA Lectures and Materials
THANK YOU
125

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Comprehensive Exam Reg. No.

Arab Academy for Science, Technology and Maritime Transport

Comprehensive Exam, May 2023

Registration Number: 20221734

Major: Strategic Management

Group L: Procter & Gamble Co. (P&G)

Turns to AI to Create Digital Manufacturing of the Future

6.1.1.4.1 Technology (Opportunity)......................................................................... 26

6.2.1.1 Income Statement........................................................................................... 51

22. Product Line ............................................................................................................... 101

1. Introduction, Company Profile and Timeline

In March 2015, VapoSteam was divested to Helen of Troy, part of a brand-restructuring

Jon Moeller Vittorio Cretella

❑ Smart manufacturing at scale

❑ Data and AI as digital fundamentals

❑ The power of people

THE STRATEGIC PLAN

2.1 Current Vision Statement

No. Vision Shall Be Fulfilled or Not Criticizing

2.3 Proposed Vision

3.1 Current Mission Statement

3.2 Mission Criticizing

No. Mission Components Component is Criticizing

7 Self-Concept (The No Strong R&D

8 Public Image (Social No CSR to save our planet

3.3 Proposed Mission

4.1 Current Core Values

P&G Core Values are [11]:

4.2 Core Values Criticizing

No. Main Core Values Selected or Not

1 Integrity and Honesty (FCPA foreign corruption Yes

4 Creativity (thinking) and innovation (execution) Personal health and hygiene

5 Team Spirit not Silo Mentality Yes

6 Assertiveness (decision making, problem Yes

9 Certain degree Transparency Yes

10 Environmental protection Responsibility to make the world better

11 Customer focus Yes

4.3 Proposed Core Values

We have a responsibility to make the world better. P&G is committed to positively

P&G’s “Ambition 2030” goals include [11]:

❑ Brands: P&G’s 20 leadership brands including Always, Ariel, Dawn, Fairy,

6. External Environment Assessment

6.1.1 PESTLE Analysis, USA (Macro Environment, Not Controllable)

❑ Comment, Governmental and political stability support the investment opportunity.

6.1.1.1.2 Russian invasion of Ukraine (Threat)

tensions or changes in the business environment of these countries significantly affect

❑ Comment, this war has negative impact on the investment.

6.1.1.1.3 Taxation Laws (Threat)

❑ Comment, Changes in tax regulation will negatively impact the investment.

6.1.1.1.4 Pressure Groups / Lobbies (Threat)

❑ Comment, PETA and Environmental groups will negatively impact the

Related Last Previous Unit Reference

USA GDP Per Capita

Economic Growth, Growth Probable Impact on Corporation

6.1.1.2.2 USA Growth National Product, GNP (Opportunity)

Growth National Product, GNP Probable Impact on Corporation

6.1.1.2.3 Foreign Exchange Rates (Threat)

❑ Comment, Foreign exchange rate will have a negative impact on the

Foreign Exchange Rate Probable Impact on Corporation

6.1.1.2.4 Economic Disruptions in Large Markets (Threat)

❑ Comment, Economic disruptions in large markets will have a negative impact

Economic Disruptions in Large Probable Impact on Corporation