Professional Documents
Culture Documents
TANYA MEHRA
M22107
SIMSREE
BUSINESS OF THE COMPANY
The Procter & Gamble Company (P&G) is an American multinational consumer
goods corporation headquartered in Cincinnati, Ohio, founded in 1837 by William
Procter and James Gamble. It specializes in a wide range of personal
health/consumer health, personal care and hygiene products; these products are
organized into several segments including beauty; grooming; health care; fabric and
home care; and baby, feminine, and family care. Before the sale
of Pringles to Kellogg's, its product portfolio also included food, snacks,
and beverages. P&G is incorporated in Ohio.
Corporate Structure
P&G operates through five industry-based Sector Business Units or SBUs: Baby,
Feminine and Family Care; Beauty; Health Care; Grooming; and Fabric and Home
Care. We manage our 10 product categories within these SBUs.
In each Focus Market, Market Operations works across the five SBUs on scaled market
services and capabilities, including customer teams, transportation, warehousing, logistics
and representing P&G externally.
The rest of the world is organized into Enterprise Markets—a separate unit with sales, profit
and value creation responsibility. The SBUs provide innovation plans, supply plans and
operating frameworks for the Enterprise Markets to deliver these mutually agreed business
goals. Enterprise Markets are important to the future of P&G because of their attractive
market growth rates, and the intent is to accelerate this growth and value creation.
Supporting the SBUs, Market Operations and Enterprise Markets are key corporate resources
focused on scaled services, governance, stewardship and areas requiring high mastery.
INTEGRATED STRATEGIES
P&G employees have delivered great results over the past four years in a very
challenging macro environment against very capable competition. In those four
years, P&G people have added more than $13 billion in annual sales and roughly $5
billion in after-tax profit—executing our integrated strategies with excellence.
The progress we have made, and our collective commitment to our strategies, give
me confidence we can manage through the challenges we will continue to face. Still,
we are clear-eyed about the trials ahead. The operational, cost and currency
challenges we dealt with over the last two years will continue in fiscal year 2023, and
we begin the new fiscal year with consumers facing inflation levels not seen in the
last 40 years.
The best response to the uncertainties and challenges—double down on the
integrated set of strategies that are delivering very strong results.
We are focused on delighting and serving consumers, customers, society and
shareowners through five strategic and integrated choices: a portfolio of daily-use
products in categories where performance drives brand choice; superiority across
product, package, brand communication, retail execution and value; productivity in
everything we do; constructive disruption across the value chain; and an agile,
accountable and empowered organization.
These are not independent strategic choices. They reinforce and build on each other,
and when executed well, they lead to balanced top- and bottom-line growth and
value creation. There is still meaningful opportunity for improvement and leverage in
every facet of this strategy, and we continue to work to strengthen our execution of
these choices.
Growth Strategy
OUR PURPOSE
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.
OUR VALUES
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.
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 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.
LIQUIDITY RATIO
2021 2022
=1,11,735/83,546 =1,13,376/85,784
= 1.3374 : 1 = 1.3216 : 1
2021 2022
=86,805/83,546 =89,974/85,784
= 1.0390 : 1 = 1.0488 : 1
SOLVENCY RATIO
2021 2022
=8,298/71,427 =8,583/73,757
= 0.1161 : 1 =0.1163 : 1
2021 2022
=1,63,271/8,298 =1,68,124/8,583
= 19.6759 : 1 =19.5880
2021 2022
= 71,427/1,63,271 =73,757/1,68,124
= 0.4374 : 1 = 0.4387 : 1
2021 2022
=86,989/611 =79,014/1,119
=142.37 TIMES = 70.61 TIMES
TURNOVER RATIO
2021 2022
= 1,12,839/22718 = 1,26,034/24,166
= 4.9669 TIMES = 5.21553 TIMES
2021 2022
=3,57,414/14,235
=3,90,092/19,075
= 25.10 TIMES =20.45 TIMES
2021 2022
=4,113/329 = 30,545/316
=12.50 TIMES = 96.66 TIMES
2021 2022
=3,57,414/28,189 = 3,90,093/27,592
=12.67 TIMES = 14.13 TIMES
PROFITABILITY RATIO
2021 2022
= 2,44,544/3,57,414*100 =2,64,058/3,90,092*100
= 68.42% = 67.69%
2. OPERATING RATIO = COST OF REVENUE FROM OPERATIONS +
OPERATING EXPENSES/ REVENUE FROM OPERATIONS *100
2021
=1,12,839+20,186+4,766/3,57,414*100
= 38.54%
2022
=1,26,034+21,343+5,288/3,90,092*100
=39.15%
2021 2022
= 57,575/3,57,414*100 =65,179/3,90,092*100
= 16.10% =16.70%
2021 2022
=2,74,633/3,90,092*100 = 3,13,510/3,57,414*100
= 70.40% =87.71%
ANALYSIS OF RATIOS
1. Revenue from operations of the company shows significant growth each year. Also,
there is a decrease in Gross Profit Ratio and significant increase in Net Profit Ratio.It
means that the company has been able to realise better prices for its purchases
which has resulted in better Gross Profit and Net Profit. It is a good indicator for the
company.
3. Current Ratio is approximately same in the both the years. It is lower than accepted
norm of 2:1 . the company may face difficulty in meeting its short term liabilities on
time. Improvement in Current Ratio is good for the company but need to be
improved further.
4. Liquidity Ratio is also on the same pattern as the Current Ratio . Liquidity Ratio is
approximately same in the first two years , the company should meet its financial
commitment on time .
6. Health Care net sales increased 9% to $10.8 billion in fiscal 2022 on a 4% increase
in unit volume. Unfavourable foreign exchange impacts decreased net sales by 1%.
Favourable mix increased net sales by 3% due to the disproportionate growth in
North America and the Personal Health Care category, both of which have higher
than segment-average selling prices. Higher pricing increased net sales by 3%.
Organic sales increased 10%. Global market share of the Health Care segment
decreased 0.2 points.
7. Personal Health Care net sales increased high-teens. This was due primarily to a low
teens increase in volume, increased pricing, increased trade spend efficiencies and
positive mix (due to the disproportionate growth in North America and respiratory
products, both of which have higher than category-average selling prices), partially
offset by unfavourable foreign exchange impacts. Organic sales increased about
20%.
CSR INITIATIVES
1. P&G Shiksha
In 2005, P&G launched its signature CSR program ‘P&G Shiksha’ with an aim to provide
children from underprivileged backgrounds access to holistic education. We focus our efforts
in three main areas - improving education infrastructure, empowering marginalised girls
through education and improving learning outcomes. Over the years, in partnership with
NGO’s we have built and supported more than 2500 schools across India that will impact
more than 2.3 million children.
In the unfortunate event of a natural disaster, our brands help provide the comforts of home
and a sense of normalcy to make each day a little better for those who need it the most.
3. COVID-19 Support
P&G has a long history of being a force for good and stepping up to help communities in
times of need. Since the outbreak of the COVID-19 pandemic, we have directed our efforts
towards protecting the health and well-being of our employees, serving consumers
uninterruptedly and supporting communities, in the fight against the pandemic through our
holistic response program ‘P&G Suraksha India.’
In the United Kingdom, we donated 1.3 million face masks through our partnerships with
In Kind Direct and the Irish Red Cross. We donated more than $100,000 to the British
Red Cross on World Red Cross/Red Crescent Day to help enable them to continue vital
COVID-19 relief efforts. Specifically, the donation
19z
Provided practical and emotional help to people in need across the UK through its
Coronavirus Support Line offered support to the National Health Service, including patient
transport. Provided ongoing assistance to vulnerable people through the provision of
medicine, food deliveries and wheelchair access.
ENVIRONMENTAL IMPACT OF P&G OPERATIONS
P&G is the largest purchaser of boreal pulp in the United States. It uses tree fibre from the
boreal forest to make its tissue products--including Charmin, Bounty, and Puffs, which are
all made with 100% virgin forest fibre rather than recycled content or sustainable
alternative fibres, which have a fraction of the climate impact. The company’s use of boreal
forest fibre exacerbates the destruction of one of the most carbon-dense forests on the
planet, and one that is vital for Indigenous communities and for threatened species, which
earned all of its tissue products F’s in our latest tissue scorecard.
The impact of the Company's progress can be seen across brands and geographies,
including products like Tide porcelain that include bio-based ingredients and Head &
Shoulders that use beach plastics in packaging; manufacturing changes that power our
plants with wind electricity and steam from biomass; and research innovations that will
transform the recyclability of tons of plastic each year benefitting entire industries, well
beyond the reach of P&G.
P&G is now promising to invest in protecting carbon sinks as a way to offset the rest of
their operations emissions by 2030, while continuing to use climate-critical boreal forest
fibre for its throwaway tissue.
INNOVATION
At P&G, innovation is what we do best. We love finding solutions to problems. With the heart
of a start-up and the resources of a global corporation, we are always looking for ways to
reinvent every aspect of our business. As we innovate, we find inspiration in people - their
needs, values, desires, and passions.
One such example was P&G's partnering with Oral abs to produce a new lip balm
called Covergirl at a time when this market was suddenly exploding.
P&G wanted to develop this new product quickly, which would not have been
possible if it had gone down the lengthy internal research and development route.
And so through Connect and Develop it announced its needs openly to attract
partners with solutions.