Procter & Gamble is a company with more than 100 years on business, and is a clear example of a successful company. Procter and Gamble was founded in 1837 and incorporated in Ohio on May 5, 1905. It began as a small family operated soap and candle company, and now provides products and services of greater quality and value to consumers in over 180 countries. Procter and Gamble, in conjunction with its subsidiaries provides branded consumer goods products. Procter and Gamble also makes pet food, water filters, snacks and beverages. More than 20 of Procter & Gamble's brands are billion-dollar sellers. These include Actonel, Always/Whisper, Braun, Bounty, Charmin, Crest, Downy/Lenor, Folgers, Gillette, Iams, Olay, Pampers, Pantene, Pringles, Tide, and Wella, among others. In 2001 Procter & Gamble bought Clairol and in 2003 also bought the majority of Wella. Its purchase of Gillette in late 2005 was its biggest buy in company history. Procter and Gamble’s structure or operation matrix is divided in three main global business units: 1.
Health & well being
Procter & Gamble has seven reportable segments:
Beauty: Includes cosmetics, deodorants, fine fragrances, hair care, personal cleansing and skin care products, primarily under Head & Shoulders, Olay, Pantene, CoverGirl and Wella brands. 2.
Health Care: Includes oral care, personal health care and pharmaceuticals.
Fabric Care and Home Care: Includes laundry detergents, fabric enhancers, dish care, surface care, air care and commercial products. 4.
Snacks, Coffee and Pet care: Includes snacks, coffee and pet food. 5.
Baby Care and Family Care: Includes diapers, baby wipes, bath tissue, and kitchen towels. 6.
Blades and Razors: Includes men’s and women’s blades and razors. 7.
Duracell and Braun: Includes batteries, electric razors and small appliances. The household care segment accounts for twenty seven percent of Procter & Gamble’s net earnings, the greatest contribution from any of the segments. These sales come from brands such as Ariel, Dawn, Downy, Duracell, Gain and Tide. The beauty segment contributes twenty two percent to their net earnings, and the health and well-being segment a close twenty percent contribution to the total net earnings. According to Procter & Gamble, the primary source of liquidity is the cash generated from operations. Procter and Gamble maintains four bank credit facilities to support their ongoing ‘commercial paper program’. In 2008, Procter & Gamble repurchased $10 billion in shares. The company expects to repurchase up to $24-$30 billion of company shares in the future. As of June 30, 2008, there were approximately 2,231,000 common stock shareholders.
Procter & Gamble has one of the largest and strongest portfolios of trusted brands. Procter and Gamble is the producer of products in nearly 50 categories. Because of this, they have been able to bond technologies within the categories in various astonishing ways. Over the years, Procter & Gamble’s Research and Development team has revolutionized home care. Many breakthroughs originate in the Procter & Gamble’s laboratories. Procter & Gamble operates in more than 80 countries worldwide, which makes for one of the largest global companies around. Procter & Gamble manufacturers their own products, and they do so in different places all throughout the world. These places include the US, Canada, Latin America, China, Asia and Africa.
Procter & Gamble’s strategy is mostly focused on innovation. They use this strategy to approach consumers more easily, and to obtain the most effective results towards the market share in the industry. Procter & Gamble is also strongly committed to the concept of sustainable development, and continues to lead its industry in that regard. The company views sustainability as an opportunity to innovate products that improve the lives of the world's consumers. Procter & Gamble centers its sustainability efforts largely on its...
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