20220910-Strategic Management

STRATEGIC MANAGEMENT 20220910
5/5/23
STRATEGIC PLAN
Strategic Management
20220910
STRATEGIC PLAN
0|P age
Contents
Section 1 ...................................................................................................................................................3
Introduction, Vision, Mission, and Core Values .................................................................................................... 3
1. Introduction .................................................................................................................................................. 4
1.1 Introduction .......................................................................................................................................... 4
1.2 Vision ..................................................................................................................................................... 5
1.3 Mission .................................................................................................................................................. 5
1.4 Core values ............................................................................................................................................ 6
Section 2 ...................................................................................................................................................7
External Environmental Scanning ......................................................................................................................... 7
2. External Environment Scanning .................................................................................................................... 8
2.1 PESTEL Analysis ..................................................................................................................................... 9
2.1.1 Political ........................................................................................................................................ 10
2.1.2 Economic ..................................................................................................................................... 10
2.1.3 Social Factors...................................................................................................................................... 13
2.1.4 Technological Factors......................................................................................................................... 14
2.1.5 Environmental Factors………………………………………………………………………………………………………………….15
2.1.6 Legal ................................................................................................................................................... 16
2.2 Porter 5 forces Analysis....................................................................................................................... 17
2.2.1 Threat of New Entrants ...................................................................................................................... 18
2.2.2 Bargaining Power of Suppliers ........................................................................................................... 18
2.2.3 Bargaining Power of Buyers ............................................................................................................... 19
2.2.4 Threat of Substitute Products or Services.......................................................................................... 19
2.2.5 Rivalry Among Existing Firms ............................................................................................................. 19
2.3 Summary of all opportunities and threats .......................................................................................... 20
2.4 Issue priority Matrix ............................................................................................................................ 22
2.5 EFAS..................................................................................................................................................... 24
2.6 CPM ..................................................................................................................................................... 27
Section 3 ....................................................................................................................................................
Internal Environmental Scanning ........................................................................................................................ 28
3. Internal Environment Scanning ................................................................................................................... 29
3.1 Porter’s Value Chain Analysis of Nestle .............................................................................................. 29
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3.1.1 Primary Activities ............................................................................................................................... 29
3.1.2 Secondary Activities ........................................................................................................................... 31
3.2 VRIO .................................................................................................................................................... 33
3.3 McKinsey 7S…………………………………………………………………………………………………………………………………..34
3.4 Value Discipline Triad……………………………………………………………………………………………………………………..37
3.5 Financial statement ............................................................................................................................. 39
3.6 IFAS...................................................................................................................................................... 43
Section 4 ................................................................................................................................................. 45
Strategy generation and selection ...................................................................................................................... 45
4. Strategy generation and selection .............................................................................................................. 46
4.1 SFAS ..................................................................................................................................................... 46
4.2 SWOT Analysis..................................................................................................................................... 49
4.3 TOWS Analysis..................................................................................................................................... 51
4.4 QSPM................................................................................................................................................... 53
Section 5 ................................................................................................................................................. 58
Strategic objectives ............................................................................................................................................. 59
5. Strategic Objectives..................................................................................................................................... 59
Section 6 ................................................................................................................................................. 60
Implementation, Evaluation and Business plan .................................................................................................. 61
6. Implementation .......................................................................................................................................... 62
6.1 Managerial policies ............................................................................................................................. 62
6.2 Operational policies ............................................................................................................................ 62
6.3 Human resources policies ................................................................................................................... 62
7. Evaluation.................................................................................................................................................... 63
7.1 Control Matrix……………………………………………………………………………………………………………………………….63
7.2 Balance score card for Market Development ..................................................................................... 66
8. Business plan ............................................................................................................................................... 68
8.1 Executive Summary ............................................................................................................................. 68
8.2 Company Overview ............................................................................................................................. 68
8.3 Organizational Chart……………………………………………………………………………………………………………………….69
8.4 Business Model canvas ....................................................................................................................... 70
8.5 Marketing & Sales Plan………………………………………………………………………………………………………………….71
8.6 Operational Plan……………………………………………………………………………………………………………………………72
9. References................................................................................................................................................... 74

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(Strategic Management)
Section 1:
Introduction, Vision,
Mission, and Core
Values

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1.1 Introduction
Procter and Gamble was established in 1837 by William Procter and James Gamble, an English candle maker
and an Irish soap producer. Initial P&G Civil War sales to the united troops included soap and candles. Once
the was over, they began selling their goods to the public and continued to grow.
Since then, it has advanced and developed various essential items that have raised the standard of living for
people all around the world. Among its initial offerings were Pampers, which were debuted in 1961, Ivory
soap, introduced in 1879, VapoRub, introduced in 1894, Crisco shortening, introduced in 1911, Tide, the first
synthetic laundry detergent, introduced in 1946, and Joy, the first synthetic liquid detergent, introduced in
1949. These inventions set the path for the partners to begin their worldwide expansion, where Procter and
Gamble will be a driving force by upholding and putting their mission, vision, and core values into practice on
a global level.
And our Strategic plan will be applied on the American Market and what strategy are we going to
implement.

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1.2 Vision
P&G already has an existing vision below and I commented on it
“To be recognized as the best consumer products and services company in the world”
Comment:
P&G vision is imaginary, forward, looking motivating and inspirational and from the company’s
launch till today it is expanding its portfolio and broadening globally.
Yet the vision is missing some specificity in its activity and the definition of being “the best.”
1.3 Mission
P&G already has an existing mission below and I commented on it
“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."
Comment: Upon looking over the mission it is nearly fulfilling most of the mission elements from
customers, service, survival growth market: worldwide, self-concept: superior quality and value
products and services, shareholders, and its role in community social responsibility.
However, to make it ideally representing the company technology and to cope with the world digital
revolution and technological innovations, I would adjust the mission to be:
Alternative: “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 through our outstanding
R&D team and through AI technology. 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."

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1.4 Core values & Purpose:

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.
OUR PRINCIPLES
We Show Respect for All Individuals

We believe that all individuals can and want to contribute to their fullest potential.
We value differences.
We inspire and enable people to achieve high expectations, standards, and challenging goals.
We are honest with people about their performance.
The Interests of the Company and the Individual Are Inseparable

We believe that doing what is right for the business with integrity will lead to mutual success for both
the Company and the individual. Our quest for mutual success ties us together.
We encourage stock ownership and ownership behavior.

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We Are Strategically Focused on Our Work

We operate against clearly articulated and aligned objectives and strategies.
We only do work and only ask for work that adds value to the business.
We simplify, standardize and streamline our current work whenever possible.
Innovation is the Cornerstone of Our Success

We place excellent value on big, new consumer innovations.
We challenge convention and reinvent the way we do business to better win in the marketplace.
We Value Mastery
We believe it is the responsibility of all individuals to continually develop themselves and others.
We encourage and expect outstanding technical mastery and executional excellence.
We Seek to Be the Best

We strive to be the best in all areas of strategic importance to the Company.
We benchmark our performance rigorously versus the best internally and externally.
We learn from both our successes and our failures.
We Are Externally Focused

We develop superior understanding of consumers and their needs.
We create and deliver products, packaging and concepts that build winning brand equities.
We develop close, mutually productive relationships with our customers and our suppliers.
We are good corporate citizens.
We incorporate sustainability into our products, packaging, and operations.
Mutual Interdependency is a Way of Life

We work together with confidence and trust across business units, functions, categories, and
geographies.
We take pride in results from reapplying others’ ideas.
We build superior relationships with all the parties who contribute to fulfilling our Corporate
Purpose, including our customers and suppliers, universities, and governments.

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Section 2:
External Environmental
Scanning

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2. External Environment Scanning

2.1 PESTEL Analysis
Political
Econ-
legal
omic
s
Pestel
Enviro-
mental Social
Techno-
logical

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2.1.1 Political
Political stability in the United States has improved during the past few years. Due in large part to the
Joe Biden administration's recent deficient performance in many domestic and foreign issues, the
public is divided between him and Donald Trump.
The Russia-Ukraine conflict, which has led to rising oil costs, inflation rates, and unemployment rates, is
to blame for this instability. This puts further pressure on the nation because Donald Trump will
succeed the current administration as president if these figures are not changed soon. The main
problem is that he is a Republican and, if elected, will roll back many of Joe Biden's reforms and
programmed, thus changing the course of the nation in all spheres.
Some companies view that as a threat, while others see it as a huge opportunity. In conclusion, the US
is placed 96th globally, which is lower than many important countries, and the current political climate
is unstable.
Political Stability Ranking: 96th
Corruption Rank: 27th with score 67
2.1.2 Economic
According to the information in the table above, the Russia-Ukraine conflict will have a significant
role in the US government's economic underperformance in 2022 and 2023. However, compared to
other major nations, the interest rates, DGP, and GNP are not as bad. The present administration
made use of the protracted conflict for the US economy's benefit. By increasing interest rates, they
are luring investors from around the world to pour cash into the US financial system.
GDP
The above graph shows GDP fluctuation along years 2013 till Q1 2023 with remarkable drop in 2020
due to covid-19 and remarkable from 2020 to date
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GNP:
• U.S. GNI for 2021 was $23,539.92B, a 9.83% increase from 2020.
• U.S. GNI for 2020 was $21,432.32B, a 1.29% decline from 2019.
Gross National Income figure shows drop in 2020 due to covid-19 and continuous growth between
2021-2022
Employment Rate:
Employment Rate in United States is almost stable as shown in the graph below.
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Inflation Rate:
The figure above shows inflation rate fluctuation between March 2020 till March 2023 with a good
improvement from July 2022 till March 2023
Interest Rate:
The FOMC members observed that inflation remained much too high and that the labor market remained
tight and as a result, they anticipated that some additional policy firming may be appropriate to achieve a
sufficiently restrictive policy stance to return inflation to 2%, according to the minutes from the meeting
held on March 21-23. The failure of two regional banks would send the country into a recession later this
year, according to many participants, who observed that they had lowered their estimates of the rate
target range due to the expected effects of recent banking sector developments on inflation and
economic activity. While some members thought it was appropriate to keep interest rates unchanged in
March, others stated that they would have thought about raising them by 50 basis points if the recent
changes in the banking industry hadn't occurred. The fed funds rate was increased by 25 basis points
(bps) to 4.75%–5% in March, setting a record high for borrowing costs since 2007.
Summary for economic factors:
2018 2019 2020 2021 2022 2023
Q1
$20.125 $20.013
$18.61 $19.038 $18.508 $19.61
trillion trillion
Average GDP trillion trillion trillion trillion
$23,539.92B
GNP $ 20,739.77B $21,713.40B $21,432.32B, $
National Income $20.9B $21.8B $21.5B $23.6B
Interest rate 2.25-2.50% 1.5-1.75% 0-0.25% 0.08% 425-4.5% 4.5-5%

Inflation Rate 2.44% 1.81% 1.23% 4.7% 6.5-9.1% 5-6.4 %
Employment 60.6% 61% 56.8% 58.4% 60.025% 60.27%
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Comment:
The country's GDP growth rate has been steady then dropped in 2020 due to covid-19 then raised through
out 2020 to-date which gives a good indication about Economic power in USA
Interest Rate is raising through years till year 2023 which is not a good indication for economy status in
USA, yet it is still mild compared to other countries.
Inflation Rate is increasing which erodes purchasing power in a way.
Employment rate is considered stable.
2.1.3 Social Factors

Population Growth:
The above figure shows the population growth from year to year since 2011 which shows remarkable
decrease in population growth in 2021 compared to 2020however trend in U.S is population increase
and the drop was due to covid-19.
Age distribution:
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This statistic depicts the age distribution in the United States from 2011 to 2021. In 2021, about 18.24
percent of the U.S. population fell into the 0–14-year category, 65.08 percent into the 15-64 age group
and 16.68 percent of the population were over 65 years of age.
Career Distribution:
In 2022, the education and health services industry employed the largest number of people in the
United States. That year, about 35.4 million people were employed in the education and health services
industry.
Information career employed only 2. million people and for wholesale and retail trade19.5 million which
had impact on P&G industry.
Social Class Distribution:
From the above figure e conclude that the targeted social classes by P&G are more that 50% of the
population.
Lifestyle of Americans:
Americans are sometimes named “champion consumers” due to their high purchasing behavior.
Americans are fond of offers, promotions.
American consumers tend to prefer traditional products and brands, which could impact P&G's ability to
market and sell new products.
The country's young population presents an opportunity for P&G to cater to changing consumer
preferences, especially in terms of digital marketing and social media.
Gender roles and open society could have a good impact on P&G products and let the creativity takes
place in some products and marketing them.
2.1.4 Technological Factors

Technology can give a competitive edge. Technology is necessary to create packaging, labels, and
the production role as well. With technology advancing, it helps corporations reach consumers
in new and easier methods. We even have online groceries which deliver fresh produce to
customers quickly.
One of the main forerunners of technological development in the contemporary era is the United States.
Since it can accommodate some of the most complex and cutting-edge companies, including TESLA,
NASA, META, AMAZON, and many others, the nation's ICT infrastructure may be considered among the
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best in the world.

In addition, the US government has always prioritized infrastructure modernization regardless of the
administration in power because it was a strategy for drawing in foreign investment and as a result, it is
at the forefront of technical development.
The country's technological infrastructure is improving, with a growing number of consumers using the
internet and smartphones, presenting an opportunity for P&G to leverage digital marketing and e-
commerce.
The government's focus on developing the technology sector has the potential to create new
opportunities for P&G in terms of product development and innovation.
The ability of a country to innovate is influenced by its spending in R&D as well as the growth of a
workforce capable of performing technologically complex tasks. From $726 billion in 2000 to a projected
$2.4 trillion in 2019, global R&D spending have tripled. Despite spending the most on R&D of any nation
in 2019, the United States' global share has decreased as R&D growth in several middle-income nations
has outpaced that of the United States. The corporate sector is responsible for the increase in R&D
funding and output in the United States. Despite being the second-largest funder of R&D activity, the US
government's share of global R&D has decreased.
Concerning AI technology with many of the world's top AI firms and research institutions situated there,
the United States is at the forefront of artificial intelligence (AI) research and development. The ethical
and social ramifications of AI are also a source of worry, and there is continuous discussion about the
best ways to control and manage its creation and application which is a particularly good opportunity for
P&G to enter this world.
Cybersecurity is a major problem as technology becomes more and more integral to many facets of daily
life and business. Because of the several high-profile cyberattacks that the US has experienced recently,
there is continuous discussion about the best ways to safeguard sensitive data and key infrastructure
online which also has an exceptionally good impact on P&G.
2.1.5 Environmental Factor:
Climate Change:
Temperatures are rising, snow and rainfall patterns are shifting, and more extreme climate events – like
heavy rainstorms and record elevated temperatures – are becoming more common which might lead to
loss of houses and consequently the insurance decrease and lowering citizen standard of living.
Also, it has a significant impact on health and quality of life.
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The Animal Welfare Act (AWA) was signed into law on August 24, 1966. It is the only Federal law in the
United States that regulates the treatment of animals in research, teaching, testing. exhibition,
transport, and by dealers. The Act is enforced by USDA, APHIS, Animal Care.
2.1.6 Legal
The legal system in the United States is renowned for being intricate and multidimensional, with a
substantial body of case law and statutes that cover everything from business conflicts to criminal law.
As a result of differing legal interpretations, which frequently result in conflicts and court proceedings,
the legal system is a source of constant discussion and controversy.
The U.S. legal system's emphasis on individual rights and liberties is one of its advantages. In addition to
safeguards against arbitrary search and seizure, self-incrimination, and harsh and unusual punishment,
the U.S. Constitution grants several rights, including freedom of speech, religion, and the press.
There are, however, difficulties with the American judicial system as well, particularly regarding issues of
access to justice and inequality. Low-income people may find it challenging to seek justice through the
legal system due to the high expense of legal counsel and court costs, and there are worries regarding
racial and socioeconomic inequalities in the judicial system.
Additionally, there are ongoing political and ideological influences on the American legal system, with
various political parties and interest groups frequently pushing for different legal interpretations and
outcomes. As a result, the legal system may become inconsistent and unpredictable, which may be
unsettling for both people and businesses.
Patency Law in U.S:
Patents in the United States are governed by the Patent Act (35 U.S. Code), To obtain protection under
U.S. law, the applicant must submit a patent application to the USPTO, where it will be reviewed by an
examiner to determine if the invention is patentable. U.S. law grants to patentees the right to exclude
others from making, using, or selling the invention
This law protects huge multi-national companies like P&G from the copying their innovative products by
small companies.
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2.2 Porter 5 forces Analysis:
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2.2.1 Threat of New Entrants

The economies of scale are difficult to achieve in the industry in which P&G operates. Thismakes it easier
for those producing large capacitates to have a cost advantage. It also makes production costlier for new
entrants. This makes the threats of new entrants a weaker force.
The product differentiation is strong within the industry, where firms in the industry sell differentiated
products a standardized product. Customers also look for differentiated products. There is a strong
emphasis on advertising and customer services as well. All these factors make the threat of new entrants
a weak force within this industry.
The capital requirements within the industry are high, therefore, making it difficult for new entrantsto
set up businesses as high expenditures need to be incurred. Capital expenditure is also high because of
high Research and Development costs. All these factors make the threat of new entrants a weaker force
within this industry.
The access to distribution networks is easy for new entrants, which can easily set up their distribution
channels and come into the business. With only a few retail outlets selling the producttype, it is easy for
any new entrant to get its product on the shelves. All these factors make the threat of new entrants a
formidable force within this industry.
Procter and Gamble is a multinational company Specialized in a wide range of segments, including
beauty, grooming, healthcare, personal care, snacks, etc. They have around sixty-five individual brands,
which are organized into ten product categories. The new Entrant may be able to compete in a single
segment or category, launching a massively huge company with same or quite near number of brands
requires huge capital investment and it would be a tremendous task that can be hardly achieved.
Not Only this but also P&G produces high quality goods therefore the threat of a new entrant competing
with all segments and brands of P&G is a weak force
2.2.2 Bargaining Power of Suppliers

Procter and Gamble has more than 80,000 suppliers throughout the world, and it also recognizes the
best business partners. In FMCG products, the distribution network is typically extensive and plays a
significant role in the company's sales.
The key services offered by the suppliers are raw materials, manufacturing methods, and packaging
materials. It also does not cost much to swap vendors. They are unable to affect prices as a result. If the
business encounters a problem with its suppliers and they raise prices, increasing the company's costs,
P&G can easily replace the suppliers as and when necessary, if the supplier switched to is part of the list
of approved suppliers after quality inspections and pilot batches. Then It is a weak force too
Also, P&G can make backward integration because the technologies used in Raw Materials
Manufacturing is primary compared to the technologies used in finished good.
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2.2.3 Bargaining Power of Buyers

In the Procter and Gamble (P&G) Porter Five Forces Analysis the bargaining power of the customers can
be explained as:
Procter & Gamble's clients come from all diverse backgrounds. They might be wholesalers, distributors,
supermarkets, drugstores, and online retailers. The corporation has low switching costs due to its fast-
moving consumer products industry. In this instance, there is hardly any product differentiation. Due to
this, the products are also less price sensitive yet the economic state in Egypt and unemployment forces
the citizens to decrease their consumption and be wiser.
American Customers have a wide selection to choose from because each sector has many products.
P&G has been effective in developing brands that are ingrained in consumers' thoughts to the point
where it even leads the market in several areas.
This is a concern because most P&G brands in U.S are more expensive due to their superior quality. P&G
must rely on mass manufacturing through digitization and expanding the market segment using AI-
guided market analytics to compete in that market.
Thus, bargaining power of customers is a formidable force.
2.2.4 Threat of Substitute Products or Services

Each segment has its own set of competitors and market leaders too. There are some segments like
soaps, shampoos, and personal care where there is significantly less threat of substitute because for
example substitute could be natural products aiming for the minimized use of chemicals and additives
yet the switch to such substitutes would be costly and not affordable to most of P&G consumers
example for this is “The Body Shop” & “Plum Island Soap”.
Additionally, P&G operates multiple brands in some market segments. As a result, the possibility of one
internal brand eating into the other exists. P&G might set two goods at two separate pricing points.
They might compete for customers by allowing them to swap between them based on needs and price.
Sometimes product placement on the shelf space also plays a huge role in creating visibility among
customers. The brand image and perception that buyers develop in their brains because of various
taglines and commercials is reflected in their purchases. Therefore, there might be straightforward
imitations of distinct brands that, if placed on the same shelf as the market leader, could boost their
sales.
2.2.5 Rivalry Among Existing Firms

The main Competitors for P&G are Johnson & Johnson, Colgate-Palmolive, and Unilever.
Each firm has a large variety of segments under them & products have truly little differentiation which
makes it easy for customer to switch from product to the other. The very few competitors have a large
market share. This means that these will engage in competitive actions to gain position and become
market leaders. This makes the rivalry among
Therefore, it is considered a powerful force.
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2.3 Summary of all opportunities and threats of micro & macro environment:
Opportunities Threats
1 Good corruption rank The Russia-Ukraine conflict and its consequences for
global supply chains, logistics, energy prices, and inflation
rates have had a negative impact on USA.
2 Increasing population in a high consuming people. American consumers tend to prefer traditional products
and brands, which could impact P&G's ability to market
and sell new products.
3 Noticeable drop-in crime rates over the past few years which Each firm has a large variety of segments under them &
indicates that the country is general safer, as a result it products have very little differentiation which makes it
impacts political stability positively as well. easy for customer to switch from product to the other.
4 The country's young population presents an opportunity for Information career employed only 2. million people.
P&G to cater to changing consumer preferences, especially in
terms of digital marketing and social media.
5 High purchasing power of Americans. Climatic Changes and catastrophic events lead to homes
destruction.
6 Gender roles and open society could have a good impact on The Animal Welfare Act (AWA) was signed into law on
P&G products and let the creativity takes place in some August 24, 1966. It is the only Federal law in the United
products and marketing them. States that regulates the treatment of animals in
research, teaching, testing.
7 Americans are fond of offers, promotions. The pandemic COVID-19
8 The high demand of e-commerce usage technology Increasing interest rates, they are luring investors from
around the world to pour cash into the US financial system
9 One of the main forerunners of technological development in Cybersecurity is a major problem as technology
the contemporary era is the United States becomes more and more integral to many facets
of daily life and business
10 The US government has always prioritized infrastructure The competitors have a large market share.
modernization regardless of the administration in power
because it was a strategy for drawing in foreign investment
and as a result, it is at the forefront of technical development.
11 The government's focus on developing the technology sector

has the potential to create new opportunities for P&G in terms
of product development and innovation.
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12 The product differentiation is strong within the industry .
13 Concerning AI technology with many of the world's top AI

firms and research institutions situated there, the United
States is at the forefront of artificial intelligence (AI) research
and development.
14 There are very few substitutes available for the products
that are produced in the industry in which P&G operates,
but are way more expensive
15 The quality of the products is important to the buyers, and
these buyers make frequent purchases. This means that the
buyers in the industry are less price sensitive
16 P&G might set two goods at two separate pricing points.
They might compete for customers by allowing them to swap
between them based on needs and price.
17 P&G can easily replace the suppliers as and when necessary, if
the supplier switched to is part of the list of approved
suppliers after quality inspections and pilot batches. Then It’s
a weak force too
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2.4 Issue priority Matrix
Concerning Opportunities:
Opportunities Impact on P&G

High Medium Low
High High Priority High Priority Medium
Priority Probability
Medium High Priority Medium Low Priority
Factors of
Priority
Occurrence
1,2,4,5,6,7,8,9,10,11, Low Medium Low Priority Low Priority
Priority
17
Opportunities Impact on P&G
High Medium Low
Factors of
Priority
Low Medium Low Priority Low Priority
Occurrence
3,12,13,14,15,16
Priority
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Concerning Threats:
Threats Impact on P&G

High Medium Low
Factors 1,3,5,8,10 of
Priority
Occurrence
Priority
High Medium Low
Factors 9 of
Priority
Occurrence
Priority
High Medium Low
Factors 6 of
Priority
Occurrence
Priority

High Medium Low
Factors 2,4,5,7 of
Priority
Occurrence
Priority
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2.5 EFAS
S.
Factor Weight Score Weighted Score Comment
N
Opportunities
Ease investment in
1 Good corruption rank 0.025 3 0.075
Country
Increasing population in a high
2 0.053 4 0.212 Directly increase profit
consuming people.
Noticeable drop-in crime rates
over the past few years which
indicates that the country is
3 0.03 3 0.09 Encourage investors
general safer, as a result it
impacts political stability
positively as well.
The country's young population
presents an opportunity for P&G
to cater to changing consumer
4 0.085 3 0.255 Increase Market Share
preferences, especially in terms of
digital marketing and social
media.
High purchasing power of Increase Profit and thus
5 0.07 4 0.28
Americans. revenue
Gender roles and open society
could have a good impact on P&G
Enhance Advertising
6 products and let the creativity 0.062 3 0.186
Options
takes place in some products and
marketing them.
Americans are fond of offers,
7 0.05 4 0.2 Attract Customers
promotions.
The high demand of e-commerce
8 0.045 4 0.18 Opens Markets
usage technology
One of the main forerunners of

technological development in the
9 0.055 3 0.165 Encourage AI technology
contemporary era is the United
States.
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S.
N
The US government has always
prioritized infrastructure
modernization regardless of the
administration in power because
10 0.045 3 0.135 Encourage AI technology
it was a strategy for drawing in
foreign investment and as a
result, it is at the forefront of
technical development
The government's focus on

developing the technology sector
has the potential to create new New Opportunities and
11 0.04 3 0.12
opportunities for P&G in terms of markets
product development and
innovation.
There are very few substitutes

available for the products that are
Guarantee Customer
12 produced in the industry in which 0.1 3 0.3
loyalty
P&G operates but are way more
expensive.
P&G can easily replace the

suppliers as and when necessary,
if the supplier switched to is part
Guarantee Production
13 of the list of approved suppliers 0.045 3 0.135
continuity
after quality inspections and pilot
batches. Then It’s a weak force
too
P&G might set two goods at two

separate pricing points. They
14 might compete for customers by 0.12 4 0.48 High market share
allowing them to swap between
them based on needs and price.
Threats
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S.
N
The Russia-Ukraine conflict and its
consequences for global supply
Affects purchasing
15 chains, logistics, energy prices, 0.045 3 0.135
power
and inflation rates have had a
negative impact on USA.
Increasing interest rates, they are
luring investors from around the
16 0.05 2 0.1 Threaten investment
world to pour cash into the US
financial system.
Cybersecurity is a major problem

as technology becomes more and
17 0.035 3 0.105 Decrease in profit
more integral to many facets of
daily life and business
The competitors have a large

18 0.045 2 0.09 Threatens market Share
market share.
Total 1 3.243
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Conclusion
From the table above and the Score obtained the company proves to be in a very good position and
competing strongly in the market, yet P&G must consider new technologies to gain a bigger market
Share and have the control in FMCG market.
2.6 CPM
Johnson&
P&G Colgate-Palmolive Unilever Johnson
Critical Weighed Weighed Weighed Weighed
Weight Score Score Score Score
Success Factor Score Score Score Score
Advertising 0.15 4 0.6 2 0.3 3 0.45 3 0.45
Product Quality 0.09 3 0.27 4 0.36 3 0.27 3 0.27
Price Competitiveness 0.05 3 0.15 2 0.1 2 0.1 3 0.15
Place 0.1 3 0.3 2 0.2 3 0.3 3 0.3
Customer Loyalty 0.1 3 0.3 3 0.3 4 0.4 3 0.3
Global Expansion 0.2 3 0.6 2 0.4 4 0.8 3 0.6
Management 0.16 3 0.48 2 0.32 4 0.64 1 0.16
Market Share 0.15 3 0.45 3 0.45 4 0.6 2 0.3
Total 1 3.15 2.43 3.56 2.53
Comment on CPM:
P&G is a strong corporate in terms of Market share and financial state and customer loyalty however
the real strong competitor is Unilever a strong reason for this is its high market share and high
management power, and we can agree that having benefit from the states strong technological situation
and infrastructure P&G can enhancing digitalized systems and introduce AI technologies to its
operations including marketing, production, quality, and logistics.
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Section 3:
Internal Environmental
Scanning
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3. Internal Environment Scanning
3.1 Porter’s Value Chain Analysis of Nestle

Through the value chain lens, Proctor & Gamble can pinpoint various internal and external linkages
between activities. External links are relationships between business units of the same or different
organizations,
whilst internal linkages are relationships between operations inside the same organizational units.
Analyzing these interactions can assist a business in taking advantage of coordination and shared
optimization.
3.1.1 Primary Activities
The primary value chain activities of P&G are directly involved in producing and selling the productsto
targeted customers (whole retailers mostly). The organization may be able to find and seize new
possibilities and lessen external dangers with the better information flow. Continuous Value Chain
review can lead to the timely closure of significant gaps that might have an impact on a company's
production level. Procter & Gamble's successful Value Chain Analysis deployment can enhance material
and product flow thanks to boost demand and sales forecasting. By monitoring activity across the whole
supply chain, Procter Gamble can minimize delays, which refines inventory management.
Modern consumers give prompt service and easy access to crucial product-related information a high
priority. The connection between the buyer and the seller may be impacted by the unforeseen
interruption in the information flow. The Procter & Gamble Value Chain Analysis and its application can
identify and eliminate information flow bottlenecks, this is an opportunity for AI technologies to invade
the world of logistics.
Analyzing of primary value chain activities can improve the performance of P&G can be explained as the
following:
3.1.1.1 Inbound Logistics

Building trusting connections with suppliers is crucial since they provide the assistance needed to
acquire, store, and distribute the product. Without looking at in-bound logistics, Procter & Gamble may
run into several issues during the product development process. An organization must analyze all facets
of transformation, from raw materials to completed goods, when doing in-bound logistics analysis.
Retrieving raw materials, keeping the inputs, and internally dispersing the raw materials and
components to begin production are some instances of inbound logistics.
3.1.1.2 Operations
When raw materials are delivered and Procter & Gamble is prepared to transform them into finished
goods and market them, the significance of analyzing operational activities increases. Machine work,
packing, assembling, and testing are a few instances of operational activities. This includes servicing and
maintaining equipment as well. Operations in both manufacturing and services are included. Analysis of
operational operations is crucial for boosting productivity, increasing efficiency, and assuring Procter &
Gamble's competitive success. Procter & Gamble may be able to boost profitability, generate steady
economic growth, and establish a strong competitive edge with the support of the increased
productivity
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3.1.1.3 Outbound Logistics

The operations involved in delivering a product to a client after going through various intermediaries are
referred to as outbound logistics. Material handling, warehousing, planning, order processing,
transportation, and delivery to the destination are some examples of outbound logistics activities. To
identify potential sources of competitive advantage and meet its goals for company expansion, Procter
Gamble can study and optimize the outbound logistics.
Because customers are more satisfied and there are more prospects for the company to grow when
outbound activities are timely managed with optimal prices and minimal negative effects
on product quality. When its products are perishable and need to be delivered quickly to the end user,
Procter Gamble should give special attention to the activities in its outbound value chain.
3.1.1.4 Marketing and Sales

Procter & Gamble will now emphasize the advantages and points of differentiation of the items offered
to convince clients that its offering is superior to those of rivals. Procter & Gamble must invest in its
marketing and sales efforts before a high-quality product with reasonable prices and unique features
can generate value. Here, sales representatives and marketers are crucial.
The sales force, advertising, promotional activities, pricing, channel selection, quoting, and fostering
relationships with channel participants are a few examples of Procter & Gamble's marketing and sales
activities. The business can organize its marketing and sales activities using the marketing funnel
strategy. Depending on the corporate goals, brand image, competition dynamics, and Procter &
Gamble's existing market position, the marketing methods may be push or pull in nature.
Procter &Gamble can build its brand equity and set itself out from the competition with smartly
integrated marketing strategies. Procter & Gamble must refrain from making fictitious promises about
product features that the production team cannot provide. It suggests that coordination between
various value chain operations is necessary.
3.1.1.5 Services
Customer loyalty will be influenced by the pre- and post-sale services provided by Procter & Gamble.
Post-sale services are just as crucial to today's consumers as marketing and promotional efforts.
In the modern, technologically enabled world, the influence of bad e-WOM (electronic word of mouth)
brought on by subpar support services cannot be understated. To protect the reputation of the brand
and to promote positive word-of-mouth through prompt, effective, and timely support services, the
company must examine its support activities and of course this will be completely facilitated when using
AI technologies.
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3.1.2 Secondary Activities

The primary value chain activities are coordinated and made easier by the support activities. Analyzing
Procter & Gamble's assistance initiatives can also be advantageous.
3.1.2.1 Firm infrastructure
The infrastructure of the company refers to a variety of tasks, including quality control, resolving legal
issues, accounting, financing, planning, and strategic management. Procter Gamble may be able to
maximize the value of the entire value chain with the help of effective infrastructure management.
Procter & Gamble can manage infrastructure expenditures, often known as overhead expenses, to
improve its competitive posture in the market.
3.1.2.2 Human resource management
By assessing several HR factors, such as hiring, choosing, training, rewarding, performance management,
and other people management operations, Procter & Gamble may study human resource management.
Based on the motivation, commitment, and skills of its staff, Procter & Gamble may be able to lessen the
pressure from the competition with good HR management. By comparing the expenses of hiring and
training with their respective returns, the business can also achieve its cost-minimization goals. The
importance of this value chain support activity will expand due to Procter & Gamble's substantial
reliance on employee talent.
3.1.2.3 Technology development

Every activity along the value chain is dependent on technology in today's modern, technologically
advanced world. Procter & Gamble must recognize the significance of technology development given
the technological integration in the company's operations related to production, distribution, marketing,
and human resources. It includes technological development activities for both products and processes.
Examples include data analytics, automation software, customer service assisted by technology, and
product design research. Procter & Gamble's research and development division falls under this
heading, as long as U.S supports the technological evolution and AI modern technology P&G will be able
to develop innovative technologies either in production process or quality control and even more
important in R&D and logistics.
3.1.2.4 Procurement
The activities involved in acquiring the inputs, which can include machinery, supplies, raw materials,
equipment, and other items required for making the finished product, are referred to as procurement in
the value chain. Procter & Gamble should carefully analyze its procurement efforts to optimize the
inbound, operational, and outgoing value chains given its links to numerous value chain activities.
As was already established, comprehension of the significance of each activity is a prerequisite for
applying the Porter Value Chain model. Procter & Gamble should emphasize areas where value can be
added, cost efficiency can be achieved, differentiation foundation can be set, or processes can be
streamlined after understanding the relative relevance of identified value chain activities.
Commenting on this:
P&G can benefit from the cost advantages by reducing the costs associated with the value chain activities.
However, it requires the company to firstly map the activities and then associate costs to make necessary
adjustments. The connection between the value chain and cost leadership strategy reflects a parallel focus
on the low-cost operational activities. If Procter & Gamble aims to obtain cost advantage, it needs to
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identify each element within the value chain can be optimized to get the whole effect
A Value Chain Analysis Example for Procter Gamble is that it can use the analysis as a tool to negotiate the
best prices and maximize the in-bound and out-bound transportation processes, by building firms of raw
material and to be close to the main firm as per requirements.
Another Value Chain Analysis Example is using the value chain information to make modest advertising
budget that can reduce marketing costs and offer the product at an affordable cost this can be achieved
in an amazing way using digital marketing because already many of P&G consumers are from youth and
will be directly affected by social media ads.
If Procter Gamble aims for the low-cost, the Value Chain Analysis can optimize the profitability. If product
differentiation is the aim of Procter Gamble, Value Chain Analysis will help the company in maximizing the
efficiency and enhancing the product quality by improving processes so whatever the strategic plan will
be it has to focus on the correct technologies to optimize product by lowering cost with same quality.
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3.2 VRIO
VRIO analysis: The VRIO analysis of P&G Company is a broad range analysis providing the organization
with a chance to acquire a viable competitive advantage against its competitors in FMCG.
Valuable: The resources used by the P&G company are valuable for the company or not. Such as the
resources like finance, human resources, management of operations and experts in marketing. This are
some of the key valuable factors of for the identification of competitive advantage.
Rare: The valuable resources utilized by P&G are even rare or expensive. If these resources are
commonly fthat it would be easier for the rivals and the new competitors in the industry to effortlessly
move in competition.
Imitation: The imitation process is costly for the rivals of P&G Company. However, it can be done only in
two different techniques that’s product duplication which is produced and manufactured by P&G firms
and launching of the substitute of the products with switching cost. This increases the threat of
disruption to the recent structure of the industry.
Organization: This component of VRIO analysis deals with the compatibility of the company to position
in the market making productive use of its valuable resources which are difficult to imitate. Frequently,
the development of management is dependent on the firm’s execution strategy and team. Thus, this
polishes the skills of the firm by time based on the decisions made by firm for the progression of its
strategic capitals.
Resources Valuable Rare Inimitable Organization Competitive
Network Flexibility Yes No Close sharing yes Used
of supply chain some same competitive
suppliers’ chain advantage
Market position Yes Yes yes Yes Sustainable
competitive
advantage
Leadership team Yes Yes Yes Yes Strong
competitive
advantage
Awareness of Yes Yes No Yes Sustainable
brand competitive
advantage
Pricing Strategy Yes No Compatible Yes competitive
with all rivals advantage
R&D Team Yes Yes Yes Yes Benefit in

pipeline
products
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3.3 McKinsey 7S Model:
Strategy:
1-Clearly defined as follows:
All the stakeholders and employees of Procter Gamble Co. A are aware of the strategic direction and
overall business strategy. As a result, the organization is better able to oversee performance, direct
actions, and develop various strategies that are in line with the company's goals. Additionally, by clearly
defining and communicating the business strategy, Procter & Gamble Co. A has more transparent
operations and aligned roles and deeds.
2- Guiding behavior for goal attainment:
The strategic direction for Procter & Gamble Co. A. is crucial in assisting the company in directing
stakeholder, employee, and staff conduct towards goal-achievement. According to the company plan,
SMART Goals are established with short- and long-term deadlines. Employees use the business strategy
to determine methods and behaviors that will assist them meet the objectives specified to advance the
company.
3-Competitive pressure:
The strategy of Procter & Gamble Co. A. also considers the demands of competition and competitor
activity. The strategy responds to these competitive challenges by suggesting measures and taking
competitive action through strategic tactics and activities that ensure Procter & Gamble Co. A's
sustainability by adjusting to market developments and changing consumer preferences.
4-Changing Consumer demand:
Procter Gamble Co. A's strategy is significant in that it always considers shifting consumer trends and
wants, as well as shifting consumer market patterns and consuming behavior. This is a crucial
component of Procter & Gamble Co. A's strategic orientation since it enables the business to maintain
its competitiveness and relevance with its target consumer groups. It also enables the business to spot
demand gaps in the consumer market.
The firm then proactively closes these gaps through its product offerings and marketing initiatives,
giving it the competitive edge over other market trends.
5-Flexibility & Adaptability:
Procter & Gamble Co. A.'s approach is adaptive and versatile. This is a crucial component of Procter &
Gamble Co. A's strategic orientation and strategy setting. Rigidity in strategy prevents a firm or
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corporation from progressing with the changing consumer markets and frequently causes it to become
stagnant.
The Procter Gamble Co. A may profit from flexibility and adaptation by not just being able to respond
swiftly to shifting consumer trends on a worldwide scale, but also by being able to modify its goods
regionally and culturally through localization for various nations and areas. Additionally, the business
frequently has the foresight to anticipate changes in the consumer market and develop strategic
changes in line with those trends.
Structure:
1-Organizational hierarchy:
A flatter organizational hierarchy is encouraged by progressive and learning organizations at Procter &
Gamble Co. The employees feel more comfortable and confident and have more access to information
when there are fewer managerial layers between them and more access to senior management and
leadership. Additionally, the flatter hierarchy speeds up decision-making for Procter & Gamble Co. And
increases employee commitment to the company.
2-Inter-Departmental coordination:
There is excellent departmental synergy at Procter & Gamble Co. When working on projects or tasks
that call for a variety of skills, the company's departments frequently form cross-departmental teams.
All cross-departmental coordination is efficient and well-planned. To promote efficient work operations,
processes, and goal achievement, Procter Gamble Co. A has a methodical methodology for starting and
overseeing departmental collaboration.
3-Internal team dynamics {Department specific}:
Procter & Gamble Company A promotes group projects and collaborative efforts. The organization
additionally gives individual duties and work assignments where occupations call for individualized
attention and scope. However, Procter & Gamble Co. A expects all employees to be team players who
can collaborate effectively with and through other individuals and who get along well with others. Under
the Procter Gamble Co. A designed strategy and values, the teams at Procter Gamble Co. A are
supportive of all members and work in synch with synergy towards achieving the larger team objectives
and goals.
4-Centralization vs. decentralization:
The organizational structure of Procter & Gamble Co. A is a combination of decentralization and
centralization. Like many progressive organizations, Procter Gamble Co A largely supports decentralized
decision making. At Procter & Gamble Co. A job responsibility is intended to be fulfilled responsibly, and
staff members frequently develop goals in consultation with their managers. However, Procter Gamble
Co A is also centralized in making sure that supervisors oversee, and approve of the various efforts, and
tactics that employees choose to ensure that they are aligned with the organizational strategy ad
values.
5-Communication:
Procter & Gamble Company A has a sophisticated and complex system in place to guarantee
communication between managers and employees at all levels. Procter Gamble Co. A's communication
methods improve the overall organizational structure. The organized, defined, and systematic
communication promotes smooth information flow and guarantees that organizational tasks and
objectives are not jeopardized by a lack of communication or miscommunication.
Systems:
1-Organizational systems in place:
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Procter & Gamble Co. A. has established clear-cut methods to guarantee efficient management of
corporate operations and the absence of conflicts or disagreements. Procter Gamble Co. A's systems are
primarily departmental in nature, and they include: Human resource management, Finance, Marketing,
Operations, Sales, Supply chain management, Public Relation Management, Strategic leadership.
2- Defined controls for systems:
At Procter & Gamble Co. A, each clearly defined system has controls that were created specifically to
assess performance and goal attainment. Based on the unique activities and responsibilities of each
department, these controls and measures have been developed. Additionally, each department creates
unique controls for its employees' performance reviews as well as for tasks and responsibilities that
cross departmental boundaries.
3- Monitoring and evaluating controls:
Procter & Gamble Co. A continuously assesses its systems using the controls that were put in place.
Continuous and continuing performance monitoring is being done. The majority of this is accomplished
through casual conversations and observation. Informal feedback is often provided as needed to
employees and department managers in general. Formal performance reviews are also carried out every
two years or every three months, depending on the urgency of the projects and duties that have been
given to the employees. Supervisors and managers engage in this formal procedure to guarantee the
identification of performance gaps and recommended strategies for improvement.
4- Internal processes for organizational alignment:
Additionally, Procter & Gamble Co. A has unique procedures and techniques for making sure that all
organizational divisions and systems are coordinated and contributing to the achievement of the
organization's overall objectives. This is made feasible by ensuring that all systems are creating and
working towards objectives under the larger corporate vision and strategy that are relevant to their
areas of competence. Additionally, Procter Gamble Co. A's strategic leadership makes sure that
resources are allotted to each system and that targets are set to accomplish comparable business
objectives within a given time frame.
Shared Values:
1-Core Values:
To develop a flexible and encouraging organizational structure that will enable workers to perform at
their best as well as increase their motivation and organizational commitment, Procter Gamble Co. A.
has defined and conveyed its fundamental values. Procter Gamble Co. A's fundamental principles
include but not limited to: Creativity, Honesty, Transparency, Accountability, Trust& Quality Heritage.
2- Corporate culture:
Procter & Gamble Company A promotes an open-minded environment that values diversity. Procter
Gamble Co. A makes sure that its organizational culture is supportive of diversity and has internal
procedures to reduce instances of prejudice because the firm has an international presence and
production facilities that are dispersed across different nations.
The corporate culture of Procter Gamble Co. A. also promotes innovation and creativity by giving teams
and individuals freedom to develop, which helps them improve both their personalities and careers.
Finally, Procter Gamble Co. A. has a supportive leadership that strives to boost employee motivation and
job satisfaction by promoting visibility and accessibility.
Management style:
P&G adopts participative leadership style which allows all employees to participate their ideas and way
of working leading to their inspiration and encouragement to give more and to create more because
their opinion and feedback is appreciated and by this style the organization can achieve its goals and
objectives and reach the vision.
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Staff:
P&G has a diversified skilled staff, they are also trained internally to be familiarized with the company
vision and values plus external training to upskill employees so they’re up to the tasks and assignments.
Human resources unit in P&G has a systemic process and aligns all other departments to identify skills
gap and what exactly the job needs.
Skills:
P&G has a commendable workforce with high skills and capabilities, they are chosen after a measurable
assessment to ensure every employee is performing the job that fits.
One of the competitive advantages in P&G is the Human resources team.
3.4 Value Discipline Triad
Product Leadership Operational Excellence Customer Intimacy
1-P&G has a strong R&D 1-P&G has a wide range of 1-P&G excel in responding to
team, and they are always diversified products. customer’s needs,
innovating new products and 2-One of the competitive some examples for this is:
techniques advantages in P&G is the HR Surveys done at their site
to satisfy their customer and team, employees are with points for next
win their loyalty. qualified and caliber of doing purchase-
2-P&G are change initiator their job and excel. Also when you scan your
for example female razors 3-P&G has a modernized and receipt the earnings goes for
"Gillette Venus" which made digitalized way of purchasing charity
a revolution in the feminine and established system for -the developed program for
world. suppliers "Tungsten you to know hair type and
3-P&G never compromised Network"-"Coupa"-"Ariba". choose the suitable hair
quality for their products. 4-Optimized system in P&G routine from their collection
leads to decreasing cost of 2-P&G gametize application
overheads and thus increase 3-Offering gift cards and
value of P&G products. coupons which is something
Americans are fond of as
mentioned in social scanning
in PESTEL.
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Unilever
Product leadership
P&G
Johnson & Johnson

EA
Colgate-Palmolive
Johnson & Johnson

Johnson & Johnson
Colgate-Palmolive
Unilever
P&G Colgate-Palmolive
Unilever P&G
Operational Excellence Customer intimacy
Comment:
When we grade P&G as per the value discipline triad the grading will be as follows:
1-Operational Excellence (3).
2-Customer Intimacy 3).
3-Product leadership (2).
Due to digitization, it is possible to (to some extent) become competent in all three disciplines over the
long term, when historically businesses were only allowed to concentrate on mastering one. The
Customer Intimacy problem can be resolved thanks to fantastic AI technology. Automation in the supply
chain and advanced technologies are both necessary to achieve operational excellence. Of course,
digitization may be used to produce top-notch goods. One of the main drivers of digital disruption has
been the ability to avoid having to decide, which has facilitated more effective strategic concentration.
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3.5 Financial Analysis:
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2022 2021 2020 Comment

Financial Ratios
Liquidity Ratios
Current Ratio= 0.6545 0.6969 0.8487 It could be difficult for the
Current assets/ corporation to fulfil its immediate
Current Liabilities responsibilities. If the company's
current ratio is less than 1, it can be
a sign that it will be challenging to
cover its current liabilities with its
current assets.
Quick Ratio = (21653- 23091- 27987- Reveals a downward trend over

(Current Assets- 6924)/ 5983)/3 5498)/ time, demonstrating a decline in
Inventory)/Current 33081 3132 32976 the company's capacity to satisfy
Liabilities =0.445 = 0.516 =0.681 short-term obligations without
using inventories.
Inventory Turnover 6.0885 6.2022 6.4114 The inventory turnover

= COGS / Average percentages are very
Inventory steady throughout the
course of the three years,
showing that the business
is managing its inventory
well.
Average Age of 365/6.0 365/6.2 365/6. Over the past 3 years, the
Inventory = 365 / 885 022 4114 avg age of the company's
Inventory Turnover inventory has risen,
=59.94 =58.85 =56.92 indicating it is taking the
days days days business longer to sell its
stock. This can be a sign
of production-process
inefficiencies or problems
with inventory control.
Account Receivable 15.591 16.1096 16.9818 The fact that the account
Turnover = receivable turnover ratio has
Net Sales / Av.net Acc. marginally decreased from
Rev. 15.59 in 2022 to 16.98 in 2020
suggests that the business is
taking longer to collect
payments from its consumers.
Average Collection Period = 365/15.591 365/16.1096 365/16.9818 From 2020to2022, the Avg.
365/ Account receivable Collection Period grew, indicating
turnover =23.41 days = 22.65 days =21.49 days that the business is taking longer
to collect its receivables. This may
impair the company's cash flow
and liquidity situation, to worry
about.
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2022 2021 2020 Comment

Financial Ratios
Profitability Ratios
Gross Profit Margin = 47.426 51.249 50.317 Between 2020 and 2021, the
Gross Profit/Sales company's gross profit margin
remained stable, but in 2022, it
shrank. The firm may be
dealing with rising expenses of
products sold or losing pricing
power if the gross profit margin
is declining.
Operating Profit Margin 22.214 23.629 22.136 The operational profit margin
ratio = Operating income ratio has shrunk, which
/ Net sales indicates a rise in operating
costs.
Net Profit Margin = 18.034 18.438 17.990 P&G net profit margin has
Net Profit/Sales stayed consistent over the past 3
years, demonstrating the
company's ability to efficiently
control its costs and produce
profits from its activities.
Assets turnover = Net 0.684 0.638 0.587 Over the past three years, the
sales/Average assets company's assets turnover ratio
has been steadily rising, showing
that the company is becoming
more effective at using its assets to
produce revenue.
12.621 12.029 10.855 The company's ROA ratio has
Return on Assets = steadily improved over the years,
Net Profit /Total Assets showing that it has been utilizing
its assets to create profits in an
efficient manner.
Debt Ratios
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Debt ratio = 65% 69% 84% The company's debt ratio has
Total Liabilities /Total dropped dramatically over time,
Assets which shows that it is depending
less on debt financing and is
becoming less hazardous in terms
of debt payment
Debt/Equity ratio= 0.672 0.685 0.740 It has been better over the last
Total liabilities/Total three years, showing less reliance
equity on debt financing and more
equity.
Comment:
The financial situation of P&G in 2021/2022 is still in excellent shape, as demonstrated in the financial
statement above, despite a little decline. From the above table, we can see that sales climbed by around
4% from 2021 to 2022; while it is financially solid, it does not meet the required sales percentage.
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3.6 IFAS
S. N Factor Weight Score Weighted Comment
Score
Strengths
1 Having a potent brand name ease the process of 0.12 4 0.48 A strength point for
marketing. the firm
2 Strong R&D team and it could excel if we used AI 0.06 2 0.12 AI technologies will
technologies. raise the score if
correctly implemented
3 P&G has a diversified portfolio so you’re able to see its 0.07 3 0.21 In every American
products in the living room in the kitchen and in the home you’ll find P&G
bathroom. products, and this
indicates high market
share
4 Strong Customer Intimacy and high loyalty of customers. 0.1 3 0.3 Directly keep Revenue
or even raise.
5 Operational excellence leading to optimizing value of 0.09 3 0.27 Leads to optimizing

products. Cost and thus
revenue
6 P&G is quickening the pace of digitalization by 0.06 2 0.12 Strong point
embracing data and technology to open prospects to optimize
for development. process and
thus revenue
7 Having digitalized logistics inbound and developing 0.06 3 0.18 Optimize process and
technology for outbound. able to increase
revenue
8 P&G has ensured that appropriate 0.045 3 0.135 Enhance customer
environmental practices are being implemented intimacy.
throughout its firm.
9 P&G has a huge role in community 0.045 4 0.18 Enhance customer
CDSW program for example “Children drinking intimacy and taxes
safe water” reduction.
Weaknesses
10 High upkeep of assets. 0.05 4 0.2
11 Slow Decision making. 0.07 3 0.21 Directly affects
operation
12 Turnover rate is increasing. 0.08 2 0.16 Bad influence on
operation
13 Lack of AI in production and analytics. 0.05 3 0.15 Affects operation
negatively
14 Averagely High product prices 0.03 3 0.09 Due to complicated
operations processes.
15 Some processes are not digitalized optimally 0.07 2 0.14 Increase Costa and
decrease revenue
Total 1 2.945
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Comment:
The firm is in a strong position, as indicated by the overall weighted score of 2.945, however it must
keep it that way by enhancing its digital system and implementing AI in operations (production and
Quality Control), marketing, and analytics.
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Section 4:
Strategy generation and
selection
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STRATEGIC PLAN
4. Strategy generation and selection

4.1 SFAS
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Weighted 5/5/23
S. N Factor STRATEGIC PLAN Weight Score
Score
O1 Good corruption rank 0.01 2 0.02
O2 Increasing population in a high consuming people. 0.02 3 0.06
O3 Noticeable drop-in crime rates over the past few years which indicates that the 0.01 2 0.02
country is general safer, as a result it impacts political stability positively as well.
O4 The country's young population presents an opportunity for P&G to cater to changing 0.02 3 0.06
consumer preferences, especially in terms of digital marketing and social media.
O5 High purchasing power of Americans. 0.03 4 0.12
O6 Gender roles and open society could have a good impact on P&G products and let the 0.02 3 0.06
creativity takes place in some products and marketing them.
O7 Americans are fond of offers, promotions. 0.02 3 0.06
O8 The high demand of e-commerce usage technology. 0.03 4 0.012
O9 One of the main forerunners of technological development in the contemporary era is 0.04 3 0.12
the United States.
O10 The US government has always prioritized infrastructure modernization regardless of 0.04 3 0.12
the administration in power because it was a strategy for drawing in foreign
investment and as a result, it is at the forefront of technical development.
O11 There are very few substitutes available for the products that are produced in the 0.03 3 0.09
industry in which P&G operates but are way more expensive.
O12 P&G can easily replace the suppliers as and when necessary, if the supplier switched 0.05 3 0.15
to is part of the list of approved suppliers after quality inspections and pilot batches.
Then It’s a weak force too.
O13 P&G might set two goods at two separate pricing points. They might compete for 0.03 3 0.09
customers by allowing them to swap between them based on needs and price.
O14 The government's focus on developing the technology sector has the potential to 0.045 3 0.135
create new opportunities for P&G in terms of product development and innovation.
T1 The Russia-Ukraine conflict and its consequences for global supply chains, logistics, 0.02 2 0.04
energy prices, and inflation rates have had a negative impact on USA.
T2 Increasing interest rates, they are luring investors from around the world to pour 0.03 3 0.09
cash into the US financial system.
T3 Cybersecurity is a major problem as technology becomes more and more integral to 0.03 2 0.06
many facets of daily life and business.
T4 The competitors have a large market share. 0.03 3 0.09
S1 Having a potent brand name ease the process of marketing. 0.045 4 0.18
S2 Strong R&D team and it could excel if we used AI technologies. 0.045 4 0.18
S3 P&G has a diversified portfolio so you’re able to see its products in the living 0.055 3 0.165
room in the kitchen and in the bathroom.
S4 Strong Customer Intimacy and high loyalty of customers. 0.03 3 0.09
S5 Operational excellence leading to optimizing value of products. 0.04 3 0.12
S6 P&G is quickening the pace of digitalization by embracing data and technology to 0.04 3 0.12
open prospects for development.
S7 Having digitalized logistics inbound and developing technology for outbound. 0.045 3 0.135
S8 P&G has ensured that appropriate environmental practices are being 0.02 2 0.04
implemented throughout its firm.
S9 P&G has a huge role in community CDSW program for example 0.025 2 0.05
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STRATEGIC PLAN
Weighted
S. N Factor Weight Score
Score
W1 High upkeep of assets. 0.02 3 0.06
W2 Slow Decision making. 0.025 3 0.075
W3 Turnover rate is increasing. 0.025 3 0.075
W4 Averagely High product prices. 0.02 2 0.04
W5 Lack of AI in production and analytics. 0.05 3 0.15
W6 Some processes are not digitalized optimally. 0.03 3 0.09
1 3.075
Total
Comment:
Weighed Score=3.075
It means the organization is in a healthy position, yet it can promote its position from operational
excellence and customer satisfaction upon using more advanced digitalization and AI technology in its
operation.
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4.2 SWOT Analysis
Strengths Weakness
1. Having a potent brand name ease the process 1. High upkeep of assets.
of marketing. 2. Slow Decision making.
2. Strong R&D team and it could excel if we 3. Turnover rate is increasing.
used AI technologies. 4. Averagely High product prices.
3. P&G has a diversified portfolio, so you are 5. Lack of AI in production and analytics.
able to see its products in the living room 6. Some processes are not digitalized optimally
in the kitchen and in the bathroom.
4. Strong Customer Intimacy and high loyalty of
customers.
5. Operational excellence leading to optimizing
value of products.
6. P&G is quickening the pace of digitalization by
embracing data and technology to open
prospects for development.
7. Having digitalized logistics inbound and
developing technology for outbound.
8. P&G has ensured that appropriate
environmental practices are being implemented
throughout its firm
9. P&G has a huge role in community CDSW
program for example
1. Good corruption rank. 1. The Russia-Ukraine conflict and its
2. Increasing population in a high consuming consequences for global supply chains,
people. logistics, energy prices, and inflation rates
3. Noticeable drop-in crime rates over the past have had a negative impact on USA.
few years which indicates that the country is 2. Increasing interest rates, they are luring
general safer, as a result it impacts political investors from around the world to pour cash
stability positively as well. into the US financial system.
4. The country's young population presents 3. Cybersecurity is a major problem as technology
an opportunity for P&G to cater to becomes more and more integral to many facets
changing consumer preferences, especially of daily life and business.
in terms of digital marketing and social 4. The competitors have a large market share.
media.
5. High purchasing power of Americans.
6. Gender roles and open society could have
a good impact on P&G products and let
the creativity takes place in some products
and marketing them.
7. Americans are fond of offers, promotions.
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8. The high demand of e-commerce usage

technology.
9. One of the main forerunners of
technological development in the
contemporary era is the United States.
10. The US government has always prioritized
infrastructure modernization regardless of
the administration in power because it was
a strategy for drawing in foreign
investment and as a result, it is at the
forefront of technical development
11. There are very few substitutes available
for the products that are produced in the
industry in which P&G operates but are
way more expensive.
12. P&G can easily replace the suppliers as
and when necessary, if the supplier
switched to is part of the list of approved
suppliers after quality inspections and pilot
batches. Then It is a weak force too
13. P&G might set two goods at two separate
pricing points. They might compete for
customers by allowing them to swap
between them based on needs and price.
14. The government's focus on developing the
technology sector has the potential to
create new opportunities for P&G in terms
of product development and innovation.
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4.3 TOWS Analysis
Strategy
SO, &ST Strategies WO&WT Strategies
S1, S3 with O5&O11: W4 with O2:
P&G being a potent brand and having a because P&G products are of high
diversified portfolio and Americans quality and so high price
being champions of purchase made it a yet American population is getting
strong point to implement market high so this can be an opportunity to
penetration strategy this can also be increase consumption of existing
Market Penetration: implemented through coupons and users and turn inactive users to
offers because Americans are known for active ones
being fond of offers and promotions.
S2, S6, S7 and O9, O10, O14: W5 with O14:

Strong digitalization in P&G that has still P&G having moderate AI technology
a good opportunity to develop because in operations still can develop so will
of the strong infrastructure in U.S and AI be able to develop new pipeline
Product Development revolution in U. S products as per customers’ needs by
the help of AI technologies.
W6 with O9:
Some operations are still not
S4with O6: optimally digitalized however this
Being Loyal customers to P&G and can be mitigated by the help of
Market Development having strong marketing team along modern technologies in U.S and will
with the opportunity to create implement AI in marketing processes
advertising to attract people in U.S P&G for example being aware of every
can develop new markets and to make market need and what to advertise
new indications for existing products. where.
W2 with O11:
democratic leadership style in P&G
S1 with T4: makes the slowing in decision
Being a potent name and still other making a big issue that can be
Horizontal Integration organizations have a decent market mitigated with the opportunity of
share so P&G might think about having small companies selling
acquiring other organization like substitute products that can merge
Johnson Johnson, so it'd have a bigger with P&G and benefit from the
market Share. brand name.
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4.4 IE Matrix
Using IE Matrix as follows:
EFAS Weighed score=3.243
IFAS weighed score=2.945

Comment:
Therefore P&G grand strategy lies in growth area: Integration either horizontal or vertical, Intensive
strategy (market penetration, product development, market development), diversification, however
from TOWS Analysis it’s concluded that horizontal integration, market penetration, product
development and market development are the best choices.
Based on TWOS analysis & IE matrix QSPM will be used to select the strategy for P&G.
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4.5 QSPM:
Horizontal Integration Market Penetration Product Development Market development

S. N Factor Weight Attractiveness TAS Attractiveness TAS Attractiveness TAS Attractiveness TAS
O1 Good corruption 0.01 4 0.04 3 0.03 2 0.02 3 0.03
rank
O2 Increasing 0.02 2 0.04 2 0.06 3 0.06 4 0.08
population in a high
consuming people.
O3 Noticeable drop-in 0.01 3 0.03 3 0.03 3 0.03 4 0.04
crime rates over the
past few years
which indicates that
the country is
general safer, as a
result it impacts
political stability
positively as well.
O4 The country's young 0.02 2 0.04 3 0.08 4 0.08 3 0.06
population presents
an opportunity for
P&G to cater to
changing consumer
preferences,
especially in terms
of digital marketing
and social media.
O5 High purchasing 0.03 4 0.12 4 0.09 3 0.09 4 0.12
power of
Americans.
O6 Gender roles and 0.02 3 0.06 4 0.06 3 0.06 3 0.06
open society
could have a good
impact on P&G
products and let
the creativity
takes place in
some products
and marketing
them.
O7 Americans are 0.02 2 0.04 4 0.08 2 0.04 2 0.04
fond of offers,
promotions.
O8 The high demand 0.03 3 0.09 4 0.12 2 0.06 4 0.12
of e-commerce
usage technology.
O9 One of the main 0.03 2 0.06 3 0.09 4 0.12 3 0.09
forerunners of
technological
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development in
the contemporary
era is the United
States.
O10 The US 0.04 2 0.08 3 0.12 2 0.08 4 0.16
government has
always prioritized
infrastructure
modernization
regardless of the
administration in
power because it
was a strategy for
drawing in foreign
investment and as
a result, it is at the
forefront of
technical
development.
O11 There are very few 0.03 4 0.12 2 0.06 4 0.12 4 0.12
substitutes
available for the
products that are
produced in the
industry in which
P&G operates but
are way more
expensive.
O12 P&G can easily 0.05 4 0.2 4 0.2 2 0.1 4 0.2
replace the
suppliers as and
when necessary, if
the supplier
switched to is part
of the list of
approved suppliers
after quality
inspections and
pilot batches. Then
It’s a weak force
too.
O13 P&G might set two 0.03 4 0.12 4 0.12 2 0.06 2 0.06
goods at two
separate pricing
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points. They might
compete for
customers by
allowing them to
swap between
them based on
needs and price.
0.13 The government's 0.045 2 0.09 3 0.135 3 0.135 4 0.18
5O1 focus on developing
40.0 the technology
4 sector has the
potential to create
new opportunities
for P&G in terms of
product
development and
innovation.
T1 The Russia-Ukraine 0.02 2 0.04 4 0.08 2 0.04 3 0.060.
conflict and its 06
consequences for
global supply
chains, logistics,
energy prices, and
inflation rates have
had a negative
impact on USA.
T2 Increasing interest 0.03 2 0.06 4 0.12 2 0.06 4 0.12
rates, they are
luring investors
from around the
world to pour cash
into the US financial
system.
T3 Cybersecurity is a 0.03 4 0.12 4 0.12 2 0.06 4 0.12
major problem as
technology
becomes more and
more integral to
many facets of daily
life and business.
T4 The competitors 0.03 4 0.12 4 0.12 2 0.06 4 0.12
have a large market
share
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S1 Having a potent 45 4 0.18 2 0.09 2 0.09 4 0.18
brand name ease
the process of
marketing.
S2 Strong R&D team 0.045 2 0.09 4 0.18 4 0.18 4 0.18
and it could excel if
we used AI
technologies.
S3 P&G has a 0.055 4 0.22 3 0.165 2 0.11 4 0.22
diversified portfolio
so you’re able to
see its products in
the living room in
the kitchen and in
the bathroom.
S4 Strong Customer 0.03 4 0.12 4 0.12 2 0.06 2 0.06
Intimacy and high
loyalty of
customers.
S5 Operational 0.04 4 0.16 2 0.08 2 0.08 4 0.16
excellence leading
to optimizing value
of products.
S6 P&G is quickening 0.04 2 0.08 3 0.12 4 0.16 4 0.16
the pace of
digitalization by
embracing data and
technology to open
prospects for
development.
S7 Having digitalized 0.045 4 0.18 2 0.09 2 0.09 4 0.18
logistics inbound
and developing
technology for
outbound.
S8 P&G has ensured 0.02 4 0.08 4 0.08 2 0.04 3 0.06
that appropriate
environmental
practices are being
implemented
throughout its firm.
S9 P&G has a huge role 0.025 4 0.1 3 0.075 2 0.05 3 0.075
in community CDSW
program for
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example.
W1 High upkeep of 0.02 4 0.08 2 0.04 2 0.04 3 0.06

assets.
W2 Slow Decision 0.025 4 0.1 2 0.05 2 0.05 2 0.05

making.
W3 Turnover rate is 0.025 4 0.1 2 0.05 2 0.05 4 0.1
increasing.
W4 Averagely High 0.02 4 0.08 3 0.06 2 0.04 4 0.08

product prices.
W5 Lack of AI in 0.05 2 0.1 4 0.2 2 0.1 4 0.2

production and
analytics.
W6 Some processes are 0.03 2 0.06 3 0.09 2 0.06 2 0.06
not digitalized
optimally.
2.905 3.005 2.475 3.605
Comment:
Based on QSPM results shown above the strategy selected will be Market development using aggressive strategy.
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Section 5:
Strategic objectives
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5. Strategic Objectives
Our objectives are planned to be implemented from 2024-2027 market development strategies will
start implementation targeting the following SMART objectives.
Objective 1:
In 2024, P&G increase production plan activities.
Objective 2:
In 2024-2025, Increase in profits and decrease process cost.
Objective 3:
In 2024, implement a new organizational structure to overcome the tall span of control that will
help in workforce reduction and invest in IT & marketing team.
Objective 4:
By 2025, the new packages will replace all old packages in all markets 100% coverage.
Objective 5:
In 2025, implement a new inventory system that will enhance the operation and production process
cutting cost with 25% and increasing the sales with 30%.
Objective 6:
Increase by 5% in market share by 2026 compared to the two previous years 2025 and 2024.
Objective 7:
Increase brand awareness by the end of the year 2025.
Objective 8:
In 2027 will enhance the sustainability programs and the company vision towards the climate
change and though upgrade the company position and market reputation.
Objective 9:
By the year 2026 ROI Increase.
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Section 6:
Implementation, Evaluation
and Business plan
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6. Implementation
6.1 Gantt Chart
Time Duration Start Date End Date Responsible

Activity
4 weeks June 1, 2023 June 28, 2023 Strategy team
Internal analysis for (Calendar
production, QC, marketing day)
3 weeks June 30, 2023 July 21, 2023 Strategy team

Identify gaps and areas that (Calendar
need AI technology days)
Implementation
4 weeks July 22, 2023 Aug. 22, 2023 Strategy team
Develop implementation plan (Calendar
for embedding IA technology days)
in targeted areas.
Align plan with stakeholders 1 week 22 Aug., 2023 30 Aug., 2023 Strategy team
(Calendar with department
Days) heads
Allocate necessary resources 3 weeks 1 Sept., 2023 21 Sept, 2023 CFO and
for integration plan (Calendar Procurement
Days) manager, IT
manager.
Implement changes to 8 weeks 22 Sept, 2023 23 Nov., 2023 Department
organizational structure and (Calendar heads and cross
processes Days) functional
implementation
team
Implement new IT 15 weeks 24 Nov., 2023 10 March, 2024 IT department
infrastructure to support and
integrated operations implementation
team
Monitor and evaluate Ongoing 11 March, Ongoing Strategy team
effectiveness of integration 2024 and department
plan heads
(Marketing, CFO,
Production, QC)
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6.2 Policies
6.2.1 Managerial Policies
 Reduce the stakeholders’ dividends and giveaways to reassign it for IT & marketing team.
 Update a budget proposal and financial plan for the Technology information and
marketing department.
 Measure and track the current budget effectiveness to spot any gap in need for
modification.
 Restructure of the organization to be able to adopt innovative technologies and
implement AI instead of obsolete methods.
6.2.2 Operational policies
 Develop the inventory process to be totally digitalized.

 Develop new e-commerce technologies.
 Manufacturing system to be fully automated and using digitalized technologies.
 Using AI technology work on final packaging to be the most attractive for the targeted
products.
 Prevention of product pre-mature failure through smart and touchless technologies.
 Optimized customer satisfaction through availability of products in all stores.
 Improved product performance due to conformance to technical specifications.
 Implementation of ERS.
6.2.3 Human resources policies
 Strong retention program for top performers.

 Potent program for haunting top performers in AI technologies from all over the world.
 Re-structuring organization.
 Marketing team to be under continuous assessment
 Attractive rewards to encourage innovation, creativity and maximize productivity
 Personnel training for effective interaction and superior customer service.
7. Customer service team to be replaced partially with AI/robot.
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7. Evaluation
7.1 Control Matrix
Control Matrix
Functional Functional Possible Corrective
Planned KPI's Achieved KPI's Deviance
Area Objective Reasons action
1-Develope new 1-Development
markets. of 2 untapped
2-Revenue global markets.
generation from 2-25% increase To be
new markets. in Sales revenue. discussed
Marketing 3-Maximize 3-30% Increase To be To be with
& Sales Market Share. in Market Share. measured upon measured upon department
Team 4-Enhance 4-30% increase implementation implementation head after
profitability. in product discussion
5-Increas Sales awareness. with team
Volumes.
6-Increase product
awareness.
1-Budget 1-20% increase
reallocation to IT, in IT budget to
sales and implement AI To be
marketing team. tech. discussed
2-Reduce 2-15% increase To be To be with
Finance
dividends and in Sales measured upon measured upon department
Team
giveaways to marketing for. implementation implementation head after
stakeholders. 3-50% decrease discussion
in giveaways and with team
stakeholders’
dividends.
1-Re-scheduling 1-30% increase
production plan. in production
2-Increas yield.
production yield. 2-15% of the To be
3- production to be discussed
Implementationof selected To be To be with
Production AI technology in products measured upon measured upon department
production. required by new implementation implementation head after
markets. discussion
3-AI technology with team
to be
implemented on
70% of
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Control Matrix
production
machines.
1-Implementation 1-30% Increase

of AI technology in in Released
packaging SKUs. To be
materials. 2- discussed
2-Implementation Implementation To be To be with
Quality
of AI technology of AI technology measured upon measured upon department
Control
to enhance on 50% of the implementation implementation head after
release. QC instruments. discussion
with team
1-embedding AI 1-100%
technology in Implementation
depts. production of the agreed To be
QC Customer plan of AI discussed
service technology on To be To be with
IT coordination. targeted measured upon measured upon department
2-Continuous areas.To be implementation implementation head after
development of AI broken down in discussion
technology in business plan. with team
mentioned areas.
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Control Matrix
1- Organize 1-Downsizing by
Training to All 15% of current
employees on the employees.
new AI strategy. 2-Retention of
2-Retention of top 80% of top
To be
performers. performers to be
discussed
3-Restructuring of ongoing plan.
To be To be with
Human organization. 3-Hiring of 15%
measured upon measured upon department
Resources extra employees
implementation implementation head after
in
discussion
Marketing/Sales
with team
team.
4-Hiring 20% in
IT team (top
world
performers.)
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7.2 Balance Scorecard:
Functional Procedures actions

Functional Objective KPI's
area polices
*Update budgeting
*Increase investment in IT unit by
Financial plan for marketing and *Increase in production yield by
20%.
IT departments.
*Close monitoring for

*Use AI technology to increase customer needs *NPS to be increased by 2 points
customer satisfaction. through AI for 30% of customers.
technologies.
*Extensive advertising
*Through AI technology measure
during and measure
*Measure satisfaction frequently. the increase in number of
how the product
customers to be at 40%.
Customer reaches customers.
*Study Untapped markets to *Use NPS method to

*Acquiring at least 5 new initiatives
analyze market unmet needs in measure customer
for unmet needs of customers.
such markets. satisfaction.
*Product awareness
*Gaining new customers and increase
customers for P&G
*Restructure of the
organization so
enlarging marketing *20% decrease in turnover for top
Internal *Restructure of organization.
team and hire talented performers.
sales and marketing
people.
*Retention plan for top *Job haunting plan for *Increase by 10% in marketing
Process
performers. top performing. team and sales team.
*Retention plan for top

*Acquiring highly talented IT
performers through *20% increase in IT team members.
programmers.
attractive incentives.
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Functional Procedures actions

Functional Objective KPI's
area polices
*Purchase AI solution *20% increase in digitalized

technologies for areas processes at each of the following
*Acquiring new AI touchless
of production, quality departments individually,
technologies.
control, customer production, marketing, quality
service. control, customer service.
Learning &
growth *Detailed technical
training for the *Assessment for employees who
*Improve knowledge for
mentioned undergone the training and no
production, QC, marketing, IT
departments to be able employee to be scored less than
teams.
to deal with new 85% of the technical assessment.
systems.
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8. Business plan
8.1 Executive Summary
The strength of Procter & Gamble is their capacity to generate new goods consistently. Thanks to their
2-billion-dollar annual investments in Research and Development departments, Procter & Gamble has
been able to grow and expand over the past five years. 9,000 employees from 71 different countries
are currently spread across the company's R&D division (EBSCO)
8.2 Company Overview
Procter & Gamble (P&G) is a multinational company that started with candles and soap back
in 1837 only now to be one of the largest corporates globally that sell a variety of products
such as soap, razors, shampoos, and the list goes on and on. Not only that, but P&G expanded
all over the USA and all over the world have their products in more than 180 countries in the
world spanning Europe, Africa, Middle East, Asia and North America. Their R&D department
developed several products that have become worldwide brands such as Pampers and Tide
etc. P&G has undergone restructuring to streamline operations and focus on core brands,
which has resulted in improved financial performance and a stronger market position. P&G is
dedicated to sustainability and social responsibility. Programs like their Ambition 2030 project
seek to lessen their environmental effect and enhance the lives of people all around the
world.
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8.2.1 Organization Chart:
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8.3 Business Model canvas
Comment:
P&G currently uses the model mentioned above. However, with the introduction of AI, it will better
integrate all the processes and produce a much larger output with less waste in time and material.
8.4 Product & Service Line:
Production
Products Services Brand
Line
Skin care, hair care, personal Salon and spa services, Olay, Pantene,
Beauty
care, fragrances beauty consulting SK-II
Shaving products, beard care, Barber services, grooming Gillette, Old
Grooming
grooming kits advice Spice
Oral care, feminine care,
Health Dental check-ups, Crest, Oral-B,
digestive wellness, respiratory
Care respiratory health programs Pepto-Bismol
care
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8.5 Marketing and Sales plan:

A strategy for P&G's marketing and sales efforts, including the items it will emphasize and the new
target
markets, distribution routes, and advertising strategies it will use to do so using the emerging
technology of AI:
Consumer insights: P&G employs consumer insights to comprehend the requirements and tastes of its
intended market. The business will employ AI to carry out in-depth market research to learn about
customer views, trends, and behavior to inform its marketing and sales strategy.
All the results from the above-mentioned plan will be used to select the brands and new markets
and deliver the results to production team.
Also, From the above P&G marketing team can perform STP analysis and develop marketing mix for
each brand.
Marketing Mix:
Determine the 7Ps for each targeted brand: Product-Price-Place-People-Promotion-Process-Physical
evidence
Product:
Sixty-five brands with 10 categories baby care, feminine care, fabrics care, detergents, grooming
segment, hygiene care, personal care.
Products will have new display and new packaging to be attractive to the new segment of customers
targeted in the market development plan.
Place:
Retail stores, online
Price: Because effective pricing tactics may aid in the sale of the items, the company's marketing
strategy makes sure that the price component of the marketing mix is up to par.
Under the umbrella corporation, there are close to sixty-five brands, and P&G has chosen various
pricing strategies based on its product portfolios.
For example: To expand into new areas, introduce new goods, attract more customers, and improve
its market share, Procter & Gamble's marketing strategy has employed a penetration pricing plan. The
business is recognized for lowering pricing to set them apart from those of competing companies. This
kind of pricing plan draws in new clients, boosts sales, and eventually improves revenues.
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People:
P&G is committed to care for its consumers and give back to the community.
Through advertising promotions and coupons P&G is able to evade new markets.
Promotion:
P&G uses a variety of strategies to promote its brands and goods, including advertising, direct
marketing, public relations, and personal selling. Procter & Gamble advertises its brands through TV
commercials, print ads, and web content. Celebrity endorsements are another marketing strategy
used by P&G. By establishing a website where customers can learn more about the goods and make
purchases, it has benefited from internet marketing. The business sells its goods to corporate clients
through direct marketing. When a new brand or a new product of an established brand enters the
market, personal selling is used. P&G supports a variety of TV programs and events as part of their
public relations efforts.
Process:
P&G is committed to new fast and defect free process using AI technologies.
Physical evidence:
Comfortable quick and smart.
Brand management: P&G devotes a specific team to each of its brands, placing a heavy emphasis on
brand development and management. The brand teams oversee formulating brand strategies,
producing marketing plans, and conducting promotional activities. The brand management team will
benefit from the AI once it is set up since it will generate plans and even judgements based on precise
analytics performed by the AI system.
One of the most important plans in Market development strategies is optimizing packaging to be
attractive to customers and thus attract more customers and achieve the market share as per plan.
Digital marketing: P&G has made significant investments in digital marketing, especially when
you consider the possibilities of AI. The AI will advertise its brands and products using social
media, search engine marketing, and other online platforms.
Sales channels
Retail establishments, online shopping portals, and direct-to-consumer channels are only a few of the
distribution methods used by P&G. The business closely collaborates with its retail partners to make
sure that its items are well-marketed and prominently displayed in shops.
Sales force: P&G has a large and dedicated sales force that works to build relationships with retailers
and other partners however the management shall start handing over their works gradually to AI for
assistance. The sales force is responsible for driving sales growth by promoting P&G products,
negotiating deals, and providing customer support.
Controlling marketing and sales through KPIs put by marketing manager:
Sales
Profit
Market Share
ESR
ROI
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6.1 Operation Plan:

A detailed plan for how P&G will manufacture, distribute, and deliver its products and services,
including supply chain management, logistics, and customer service:
Manufacturing: With more than 180 production facilities, P&G has a worldwide manufacturing
network. To handle the production of a wide range of consumer goods, such as laundry detergents,
personal care items, and healthcare items, the firm will rely on AI to increase production yield as per
the market needs.
Supply Chain: P&G has one of the largest global supply chains, with more than 70,000 suppliers and
customers spread across more than 180 nations. The business optimizes its supply chain processes
and ensures on-time delivery by utilizing sophisticated analytics and digital technology.
Quality Control: P&G places a high emphasis on product quality and safety. As such that department
shall be operated totally by AI to allow for zero errors. The company has rigorous quality control
processes in place to ensure that its products meet or exceed regulatory standards and customer
expectations with the highest release rate and perfect outcome.
Needless to mention FEFO technique in SKUs release to market.
Research and Development: P&G makes significant investments in R&D to develop new
products and enhance existing ones. The business collaborates closely with outside partners
to create new technologies and goods and has a network of innovation centers. Additionally,
with AI in use, it will reduce by 50% the time needed to develop new products, even in terms
of packaging material and shape (Artwork).
CSR: P&G is dedicated to sustainability and has established challenging targets to lessen its
environmental impact. The corporation is aiming to lower greenhouse gas emissions, preserve
water, and eliminate waste in its operations. In addition, the company participates in environmental
conservation programs, such as giving water to every slum outside the United States.
IT Team: This team is the star of the coming plan from 2023to 2027 and ongoing.
AI technologies are being introduced and put into use in customer service, marketing, production, and
quality control to streamline operations and boost ROI.
Human Resources: Hire outstanding IT employees from all over the world to be able to introduce the
technologies required in the best way.
Downsizing in all P&G firms due to the implementation of AI technologies so the need for people will
be minimized and people will be for certain functions only.
Draw training program for employees requested to work with the new AI technologies and assess the
success of program quantitatively.
Embed AI culture in the whole company and assess employee’s knowledge in each department.
Financial:
The financial plan for the past three years and forecasting the upcoming years so we can estimate ROI.
Budgeting as per the strategic plan considering the increase in IT and marketing and downsizing
means decrease in salaries budget in some departments.
Consider the seasonal effect in some brands of P&G.
Risk Management: P&G has a comprehensive risk management program in place to identify, assess,
and mitigate potential risks to the company's operations. The program includes measures to manage
supply chain disruptions, cyber threats, and natural disasters.
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9. References:
United States - political stability and absence of violence/terrorism: Percentile rank, lower bound of 90%
confidence interval (no date) United States - Political Stability And Absence Of Violence/Terrorism:
Percentile Rank, Lower Bound Of 90% Confidence Interval - 2023 Data 2024 Forecast 1996-2021
Historical. Available at: https://tradingeconomics.com/united-states/political-stability-and-absence-of-
violence-terrorism-percentile-rank-lower-bound-of-90percent-confidence-interval-wb-data.html
(Accessed: May 5, 2023).
Statista. (n.d.). Attitudes about work among employees U.S. 2021. [online] Available at:
https://www.statista.com/statistics/1260167/employee-work-attitudes/.
2021 corruption perceptions index - explore the results (no date) Transparency.org.
Available at: https://www.transparency.org/en/cpi/2021 (Accessed: May 5, 2023).
United States - political stability and absence of violence/terrorism: Percentile rank, lower bound of 90%
confidence interval (no date) United States - Political Stability And Absence Of Violence/Terrorism:
Percentile Rank, Lower Bound Of 90% Confidence Interval - 2023 Data 2024 Forecast 1996-2021
Historical. Available at: https://tradingeconomics.com/united-states/political-stability-and-absence-of-
violence-terrorism-percentile-rank-lower-bound-of-90percent-confidence-interval-wb-data.html
(Accessed: May 5, 2023).
Procter and Gamble (2022) Procter & Gamble announces results for second quarter of fiscal year 2022,
Procter & Gamble Announces Results for Second Quarter of Fiscal Year 2022. Procter and Gamble.
Available at: https://us.pg.com/blogs/earnings-second-quarter-2022/ (Accessed: May 5, 2023).
Procter and Gamble (2023) Ethics and corporate responsibility, P&G. Procter and Gamble. Available at:
https://us.pg.com/ethics-and-corporate-responsibility/ (Accessed: May 6, 2023).
(no date) Central Intelligence Agency. Central Intelligence Agency. Available at:
https://www.cia.gov/the-world-factbook/countries/united-states/ (Accessed: May 6, 2023).
(no date) EPA. Environmental Protection Agency. Available at:

https://www.epa.gov/climatechange-science/impacts-climate-change (Accessed: May 5, 2023).
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2021 corruption perceptions index - explore the results (no date) Transparency.org. Available at:
https://www.transparency.org/en/cpi/2021 (Accessed: May 5, 2023).
Stefan F.Dieffenbacher Founder ─ Get in touch with Stefan! (2022) Value disciplines: Understanding the
value discipline model, Digital Leadership. Available at: https://digitalleadership.com/unite-
articles/value-disciplines-triangle/ (Accessed: May 6, 2023).
Procter & Gamble Financial Ratios for analysis 2009-2023: PG (no date) Macrotrends. Available at:
https://www.macrotrends.net/stocks/charts/PG/procter-gamble/financial-ratios (Accessed: May 6, 2023).
Procter & Gamble (PG) income statement (no date) Investing.com. Available at:
https://www.investing.com/equities/procter-gamble-income-
statement?utm_source=google&utm_medium=cpc&utm_campaign=19652140256&utm_content=647301
080092&utm_term=dsa-
1944158651713_&GL_Ad_ID=647301080092&GL_Campaign_ID=19652140256&ISP=1&gclid=Cj0K
CQjw0tKiBhC6ARIsAAOXutm5dKQUJQ2Ej5msS9YhX9_Lze0KlaZEDA7uv3m37nUiyJZZX18ZLnoa
AijLEALw_wcB (Accessed: May 6, 2023).
Procter and Gamble (2022) Integrated strategic choices, Procter & Gamble. Procter and Gamble.
Available at: https://us.pg.com/annualreport2022/integrated-strategic-
choices/#:~:text=We%20are%20focused%20on%20delighting,retail%20execution%20and%20value%3B
%20productivity (Accessed: May 6, 2023).
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STRATEGIC MANAGEMENT 20220910

Strategic Management 1|Page

Strategic Management 2|Page

Strategic Management 3|Page

Strategic Management 4|Page

Strategic Management 5|Page

1.4 Core values & Purpose:

Passion for Winning

We Show Respect for All Individuals

The Interests of the Company and the Individual Are Inseparable

Strategic Management 6|Page

We Are Strategically Focused on Our Work

Innovation is the Cornerstone of Our Success

We Seek to Be the Best

We Are Externally Focused

Mutual Interdependency is a Way of Life

Strategic Management 7|Page

Strategic Management 8|Page

2. External Environment Scanning

Strategic Management 9|Page

Interest rate 2.25-2.50% 1.5-1.75% 0-0.25% 0.08% 425-4.5% 4.5-5%

2.1.3 Social Factors

2.1.4 Technological Factors

best in the world.

2.1.5 Environmental Factor:

Patency Law in U.S:

2.2 Porter 5 forces Analysis:

2.2.1 Threat of New Entrants

2.2.2 Bargaining Power of Suppliers

2.2.3 Bargaining Power of Buyers

2.2.4 Threat of Substitute Products or Services

2.2.5 Rivalry Among Existing Firms

11 The government's focus on developing the technology sector

13 Concerning AI technology with many of the world's top AI

2.4 Issue priority Matrix

Opportunities Impact on P&G

Threats Impact on P&G

Threats Impact on P&G

One of the main forerunners of

The government's focus on

There are very few substitutes

P&G can easily replace the

P&G might set two goods at two

Cybersecurity is a major problem

The competitors have a large

3. Internal Environment Scanning

3.1 Porter’s Value Chain Analysis of Nestle

3.1.1.1 Inbound Logistics

3.1.1.3 Outbound Logistics

3.1.1.4 Marketing and Sales

3.1.2 Secondary Activities

3.1.2.3 Technology development

R&D Team Yes Yes Yes Yes Benefit in

3.3 McKinsey 7S Model:

3.4 Value Discipline Triad

Product Leadership Operational Excellence Customer Intimacy

Johnson & Johnson

Johnson & Johnson

3.5 Financial Analysis:

2022 2021 2020 Comment

Quick Ratio = (21653- 23091- 27987- Reveals a downward trend over

Inventory Turnover 6.0885 6.2022 6.4114 The inventory turnover

2022 2021 2020 Comment

5 Operational excellence leading to optimizing value of 0.09 3 0.27 Leads to optimizing

Study Untapped markets to Use NPS method to

Purchase AI solution 20% increase in digitalized