P&G Case Study Sm
Question 1 : What are firm’s most important external opportunities and threats?
External opportunities and threats are events and trends that are beyond the control of the organization. It can be divided into five broad categories which are economic forces; social, cultural, demographic, and natural environment forces; political, governmental, and legal forces; technological forces; as well as competitive forces.
From this article, there are some external opportunities that can be pointed. One of the opportunities is P&G desires to accelerate its growth in developing markets, such as Brazil and India. This activity will create job opportunities and at the same time, it also helps to reduce unemployment rate at the countries involved. Every percentage point less in unemployment makes good economic sense by not only reducing the budget deficit, but also reducing the human deficit that we see in the economic insecurity, growing poverty, hunger, homelessness and many more.
Other than that, made Asia as a primary target for growth. Asia consists of Japan, China, and ASEAN/ Australia/ India/ Korea (AAIK). Asia is a good for choice because over three billion consumers populate Asia, representing more than half of the world’s population. It will contribute more benefits and opportunities for the growth, profitability and productivity of the P&G Company and at the same time, it helps in changing the fundamental structure of the economy of that country.
However, there are also some threats that might affect the company. When entering the new market, a company needs to be aware that the gains may not be seen in the short term. It may be many years before they start reaping the rewards of their efforts. Besides, they have to hire additional staff to help launch their company in the new markets they expand into.
Apart from that, company need to know the regulations and tax laws in foreign countries, which takes time and money, and they may need to hire
External opportunities and threats are events and trends that are beyond the control of the organization. It can be divided into five broad categories which are economic forces; social, cultural, demographic, and natural environment forces; political, governmental, and legal forces; technological forces; as well as competitive forces.
From this article, there are some external opportunities that can be pointed. One of the opportunities is P&G desires to accelerate its growth in developing markets, such as Brazil and India. This activity will create job opportunities and at the same time, it also helps to reduce unemployment rate at the countries involved. Every percentage point less in unemployment makes good economic sense by not only reducing the budget deficit, but also reducing the human deficit that we see in the economic insecurity, growing poverty, hunger, homelessness and many more.
Other than that, made Asia as a primary target for growth. Asia consists of Japan, China, and ASEAN/ Australia/ India/ Korea (AAIK). Asia is a good for choice because over three billion consumers populate Asia, representing more than half of the world’s population. It will contribute more benefits and opportunities for the growth, profitability and productivity of the P&G Company and at the same time, it helps in changing the fundamental structure of the economy of that country.
However, there are also some threats that might affect the company. When entering the new market, a company needs to be aware that the gains may not be seen in the short term. It may be many years before they start reaping the rewards of their efforts. Besides, they have to hire additional staff to help launch their company in the new markets they expand into.
Apart from that, company need to know the regulations and tax laws in foreign countries, which takes time and money, and they may need to hire