The aim of this report is analysis P&G’s new strategic—sustainability. In the following text, it will expand the current strategic orientation and through PESTEL mode analysis, Five Forces mode analysis and SWOT analysis to analysis sustainability strategic of P&G. Then I will give some suggestions to future development. In the end, I will give a conclusion for PESTEL mode, Five Forces mode and SWOT analysis.
2. THE CURRENT STRATEGIC ORIENTATION
Procter & Gamble (P&G) released its new sustainability vision along with a detailed list of goals that the company plans to achieve during the next decade. Sustainable business practices are quickly becoming the norm for companies like P&G. The new sustainability vision includes specific goals that P&G wants to meet during the next decade. For example, even though the overall sustainability vision includes the exclusive use of renewable energy to power all of its plants, the company has set an incremental goal of 30% renewable energy use by 2020 (Wartzman, 2011). For the renewable energy availability increases, P&G may be accelerating their adoption rates during following second decade period.
P&G isn’t restricting their sustainability vision to in host operations and also to consumer products and habits. As the owner of several high-profile brands including Dawn, Duracell, and Tide, these changes could have far-reaching effects. The company plans to replace petroleum-based materials with renewable materials. By 2020, the company hopes to be one quarter of the way through this ultimate goal (Wartzman, 2011).
P&G also reached consumers’ solid waste. As manufacturers of consumer goods, waste from their products always ends up in landfills site. P&G plans to start a pilot program to learn more about decrease the amount of consumers’ waste. The pilot program will be exist and develop market in 2020.
Other 2020 goals such as the decreasing about truck transportation, the decreasing of manufacturing waste.
3. EXTERNAL ANALYSIS
1. PESTEL MODE ANALYSIS
Political P&G has it unique business model and has been business in different countries. On one hand, the company has to deal and suit political press from different countries, On the other hand, the company plays important roles to cooperate with and affect local government with regard to the size of the corporations.
Economic In the future years, the economic will present from recession revival in, and the demand of the world will also increase. Hence, P&G can have a positive anticipation and may be a good sale performance.
Social P&G should have to pay attention different social norms during overseas operations due to distinguished cultural background in different markets. For personal products, social need is evolving with time.
Technological As the market size of personal products is huge, major players in this industry invest significantly to gain technological advantage in order to maintain and expand market positions. So, technology applied should develop relatively fast in this industry.
Legal P&G must be comply with different national legislation in production process and business operations.
Environmental P&G should not do bad to environmental in production process, such as sewage discharge, wasting source. So, the sustainable strategy is clever decision,
2. FIVE FORCES ANALYSIS
Buyer Power Buyer industry in the US has been growing these years and presenting an optimistic trend in the future. As figure 1 shows since 2005, the total market for cosmetics and fragrances has witnessed increased by 5.1% in 2006, 6.5% in 2007, 7.2% in 2008, and 6.5% in 2009 than their previous years (Baxter J). By the year of 2009, the total value of cosmetics and fragrances market has reached 2.18 billion (Baxter J). [pic]
(The Total US Market for Cosmetics and Fragrances by Sector by Value at Current Prices, 2005-2009) Buyers in personal products industry can...