Procter and Gamble |
Strategic Management |
Table of Content
Company Overview 4
Mission and Vision 5
External Analysis 5
Industry analysis 7
Internal Analysis 8
Corporate level strategy 10
Critique and Recommendation 12
Procter and Gamble, more commonly known as P&G is a company, which offers consumer goods with an impressive portfolio.
Gillette, Duracell, Tampax, Tide, Oral-B and Ariel are so many brands owned by the group that are part of the daily life of consumers. In fact its more than 300 leading brands ...view middle of the document...
Not only these products gain an immediate success on the markets of the western countries, but also in the rest of the world where they manage to build themselves a strong reputation and to meet the needs of local populations.
To strengthen and diversify its activity in the food-processing industry, pet food, hygiene and cosmetic, the group acquires many brands as such Gillette in 2005 and forming the largest consumer goods company and placing Unilever into second place.
World leader on its various strategic global business unit, P&G knew how to distance itself from strong competitors on markets that could be qualified as saturated given how important the offer of products is and the needs for the consumers are harder and harder to detect.
P&G today is a company which weighs several billion dollars in term of turnovers and which is present in 180 countries.
MISSION AND VISION
The mission of the company is to “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”. P&G never change it mission and always try to respect it the best as they can and that is the base of the P&G strategy.
A vision of a company has to change, for Procter and Gamble it’s the case, in fact the new vision provides P&G with a long-term framework to guide all environmental sustainability decisions and goal-setting within the organization.
EXTERNAL ANALYSIS, OPPORTUNITIES AND THREATS
Since P&G evolves in the consumer goods industry, analyzing the environment is very important, especially the social and cultural segment; the company must follow the trend or faces the risk of loosing consumers. A good example for the actual trend is the increase of men’s grooming market. It’s a big part of P&G product and the reason is that the men take more and more care about themselves, they now completely accept to integrate in their beauty routines creams or beauty masks and they realize that they need specific products for men skin.
Another segment is important, the demographic one; indeed an investigation shows that the senior population increase and by 2030 they will be 72.1 million. This growth affect positively the home care segment because the biggest part of consumer in this segment are the seniors, and P&G knows that, the company acquires AmbiPur in 2009.
There are also geographic opportunities such as in Africa where P&G invest 450 million dollar investments in Africa to modernize its factories and build it news one. The company intends to take advantage of the economic growth of the continent, " the most dynamic region of the world for our activities ", according to Michael Yates, Vice-President, Business Development of P*G in East and southern Africa.
The biggest threat for P&G is the increase of raw material costs such as oil for shipping and distribution or cereal for food. This rise can be felt on the finish product costs and...