analysis
CONTENT
1. Introduction 1
2. Brief History and Strategic Challenges 1
3. PESTLE Analysis 3
4. Five Forces Analysis 4
5. SWOT Analysis 6
6. Generic Strategy 8
7. Recommendations 9
8. Conclusion 10
9. Bibliography 11
1.0 Introduction
For the fiscal year of 2010, Procter & Gamble witnessed an increase on net sales by 3% to $78.9 billion and a 4% increase in unit volume (Deloitte, 2010). Under the unfavourable environment of global recession, P&G has successfully retained positive increases since the Financial Crisis and kept the position of world’s largest consumer products manufacturer. In Fortune’s list of most admired companies for the year of 2010, P&G is ranked as 6th among the world’s corporations (Fortune, 2010). Products of P&G serve 4.2 billion of the 6.5 billion people in the world from everyday morning (P&G, 2010c). The aim of this report is to undertake a detailed in-depth research centred on the company of Procter & Gamble with a number of theoretical frameworks. In the beginning of the report, a brief history of P&G will be presented and point out some strategic challenges facing the firm. Secondly, there will be a PESTLE analysis of the current external environmental conditions for the firm. Then, the company’s effectiveness and sustainability of current strategies will be examined, followed by recommendations for P&G’s strategies, accompanied by appropriate explanation and justification.
The concentration industry of this report will be the SIC code 2844 Perfumes, Cosmetics and Other Toilet Preparations (OSHA, 2010). It will be defined as Personal Products Industry throughout this report. The world personal market will be regarded as a whole and the market can be categorized into six segments, encompassing hair care, make-up, skincare, personal hygiene, oral hygiene, and fragrances (Graul et al, 2006).
2.0 Brief History and Strategic Challenges
P&G was founded by Willian Procter (a candle maker) and James
1. Introduction 1
2. Brief History and Strategic Challenges 1
3. PESTLE Analysis 3
4. Five Forces Analysis 4
5. SWOT Analysis 6
6. Generic Strategy 8
7. Recommendations 9
8. Conclusion 10
9. Bibliography 11
1.0 Introduction
For the fiscal year of 2010, Procter & Gamble witnessed an increase on net sales by 3% to $78.9 billion and a 4% increase in unit volume (Deloitte, 2010). Under the unfavourable environment of global recession, P&G has successfully retained positive increases since the Financial Crisis and kept the position of world’s largest consumer products manufacturer. In Fortune’s list of most admired companies for the year of 2010, P&G is ranked as 6th among the world’s corporations (Fortune, 2010). Products of P&G serve 4.2 billion of the 6.5 billion people in the world from everyday morning (P&G, 2010c). The aim of this report is to undertake a detailed in-depth research centred on the company of Procter & Gamble with a number of theoretical frameworks. In the beginning of the report, a brief history of P&G will be presented and point out some strategic challenges facing the firm. Secondly, there will be a PESTLE analysis of the current external environmental conditions for the firm. Then, the company’s effectiveness and sustainability of current strategies will be examined, followed by recommendations for P&G’s strategies, accompanied by appropriate explanation and justification.
The concentration industry of this report will be the SIC code 2844 Perfumes, Cosmetics and Other Toilet Preparations (OSHA, 2010). It will be defined as Personal Products Industry throughout this report. The world personal market will be regarded as a whole and the market can be categorized into six segments, encompassing hair care, make-up, skincare, personal hygiene, oral hygiene, and fragrances (Graul et al, 2006).
2.0 Brief History and Strategic Challenges
P&G was founded by Willian Procter (a candle maker) and James
Bibliography: Ailawadi, K., Lehmann, D. and Neslin, S. (2001) “Market Response to a Major Policy Change in the Marketing Mix: Learning from Procter & Gamble’s Value Pricing Strategy”. Journal of Marketing. Vol. 65 (January 2001), 44-61 Bartlett, C., Beamish, P Baxter J. (ed) (2010a) “Market Report Plus 2010: Cosmetics & Fragrances”.23rd Edition March 2010. Key Note Ltd. Baxter J. (ed) (2010b) “Market Report Plus 2010: Toiletries”. 23rd Edition June 2010. Key Note Ltd. Concordia, M., Levine, D., Martyn P, and Sandholm, T. (2006) “Changing the Game in Strategic Sourcing at Procter &Gamble: Expressive Competition Enabled by Optimization”. Interfaces. Vol. 36, No. 1, January-February 2006, pp. 55-68. Datamonitor (2009) “Global Personal Products: Industry Profile”. Datamonitor Co. Farasyn, I., Perkoz, K., and Velde, W. (2008) “Spreadsheet Models for Inventory Target Setting at Procter & Gamble”. Interfaces. Vol. 38, No. 4, July-August 2008, pp 241-250. Fortune (2010) “World’s Most Admired Companies” Galbraith, J (2009) Designing matrix organizations that actually work: how IBM, Procter & Gamble, and other design for success. San Francisco. Calif: Jossey-Bass, 2009. Graul, L., Henricks, S., Olp, S. and Strohecker, C. (2006) “Procter & Gamble, Unilever and the Personal Products Industry”. University of Maryland, University College. Holt, D. and Wigginton (2002) International Management (2nd ed). US: Thomson South-Western. OSHA (Occupational Safty & Health Administration) “Industry Group 284: Soap, Detergents, And Cleaning Preparations; Perfumers, Cosmetics, and Other Toilet Preparations”. Available at [10 December 2010] P&G (2010a) “P&G 2010 Annual Report” P&G (2010b) “Brand”. Availble at [8 December 2010] P&G (2010c) “Purpose & People: The Power of Purpose” Peng, M. (2009) Global Strategic Management (2nd ed). South-Western. Wartzman, R