Evaluation of a Business Model

Topics: Procter & Gamble, Sustainability, Marketing Pages: 7 (2239 words) Published: April 19, 2013
Evaluation of a business model.- Procter & Gamble

The aim of this essay is to build an outline of a business model which will be demonstrated with the help of - “building blocks” template, for a selected enterprise. The enterprise selected for this essay is Procter & Gamble. First this essay will give a brief description of Procter & Gamble and then move on to explaining and evaluating various sections of the template for Procter & Gamble, and finally this essay will conclude by indicating relevant comments on the long term sustainability of Procter & Gamble. * Brief description of Procter and gamble.

William Procter and James gamble from England and Ireland respectively, met by chance on separate journey through the United States, where they married two sisters- whose father then encouraged and convinced them to become business partners and in 1837 a humble bold enterprise called Procter & Gamble was born in Cincinnati, Ohio, where its headquarters are situated. Procter and gamble began as a family- orientated small business enterprise producing soaps and candles. During the American civil war the company witnessed success as they signed a contract with the union army to supply soaps and candles, and this lead to increase in sales by 1 million dollars in 1858 to 1859. By 1880 they marketed an inexpensive soap called ivory, which could float in water. The innovations made by the company and also the increase in sales led to increase in demand of Procter & Gamble products , as a result they began building factories across united states , diversifying products, introduction of new products with dedicated brand name. As radio programmes became popular from 1920s, Procter & Gamble sponsored some of these radio programmes commonly known as “soap operas”.

Procter & Gamble started manufacturing and selling products in other countries, which made them a multinational organisation in 1930; under the acquisition of Thomas Headly co. Procter & Gamble manufactures and produces branded products which are essential for any human being for their day to day living, they now serve consumers and customers in more than 180 countries, producing products in sectors like, beauty, grooming, healthcare, snacks and pet care, home care and family care. Some of their famous brands are Head & Shoulders, Pantene, Olay, Wella, Braun, Gillette, Always, Oral-B, Ariel, Tide, Charmin, Pampers, Duracell, Pringles, Fairy and many more. This has made them the largest fast moving consumers good’s company and how they have built their brand or brands is evaluated in the building block template below.

* Building blocks of enterprise.

Building blocks of an enterprise (also known as the business canvas) guides in designing or describing a business model. “A business model represents the structure that delivers a product/service in a way that adds value to customers, stakeholders and the organisation”. This canvas is designed based on seven sections starting from resources and activities, networks, fit into the market, routes to market, customers, cost structure and finally revenue stream. These sections oppose certain question which will be used in evaluating Procter & Gamble’s business model, bearing in the mind that Procter & Gamble is a massive organisation producing hundreds of products this essay will only use some of their famous brands as examples to evaluate the business model and Therefore based on evaluation the impact on the long term sustainability will be provided. * Key resources and activities.

Just like any other multinational organisation, the key resources of Procter & Gamble are their people, due to the company’s confidence and trust in their employees, they expect and encourage excellent technical expertise and outstanding execution from the employees so that the company is able to produce and...
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