Proctor and Gamble

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Proctor and Gamble (DRAFT)

Case Discussion Questions
What strategy was Proctor and Gamble pursuing when it first entered foreign markets in the period up until the 1980’s? •In 1915 opened a plant in Canada to produce Ivory Soap and Crisco •In the 1970’s P&G entered Japan and other Asian Nations. •Strategy- P&G entered a nation by acquiring an established competitor and its brands. i.e. case of Great Britain and Japan. •Strategy- the Company developed new products in Cincinnati and then relied on semiautonomous foreign subsidiaries to manufacture market and distribute those products in different nations. In many cases. Foreign subsidiaries had their own production facilities and tailored the packaging, brand name, and marketing message to suit local taste and preferences. (NB. This took away the stress of research and development in foreign countries, thus took away unnecessary costs). •In the early twentieth century, Procter & Gamble continued to grow. The company began to build factories in other locations in the United States, because the demand for products had outgrown the capacity of the Cincinnati facilities. The company's leaders began to diversify its products as well and, in 1911, began producing Crisco, a shortening made of vegetable oils rather than animal fats. •Throughout the twentieth century, Procter & Gamble continued to prosper. The company moved into other countries, both in terms of manufacturing and product sales, becoming an international corporation with its 1930 acquisition of the Newcastle upon Tyne-based Thomas Hedley Co. Procter & Gamble maintained a strong link to the North East of England after this acquisition. In addition, numerous new products and brand names were introduced over time, and Procter & Gamble began branching out into new areas.

Why do you think this strategy became less viable in the 1990’s? •P&G’s costs were too high because of extensive duplication of manufacturing, marketing, and administrative...
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