Procter and Gamble
Case Project Assignment 1
For our company we have chosen Procter and Gamble. Procter and Gamble’s primary source of income is through branded consumer packaged goods such as Tide, Dawn and Gillette. Since their founding they have had three core elements that have remained intact since the foundation of the company. These elements are: purpose, values and principles. The first element is purpose and this is basically their mission statement. With all their brands their mission is to provide products and services of superior quality and value that improve the lives of the world’s customers (P&G). P&G is an enormous company and as such their products reach a tremendous amount of people. They seek to influence their customers by using purpose driven innovation. This is when you let the product develop itself from people’s needs. This is different from many companies in the sense that P&G doesn’t necessarily try to think of new products, entirely new rather they observe people to find issues they are having with products in their life and then think of ways to improve the products and make them better. Their next element is values. They have five core values that they follow. The first value they follow is integrity. This means they always to try to do the morally right thing and be true to what the company is about. The next value they use is leadership. This guides them to choose the best leaders so they can develop the best strategies for the company to be successful. The next value they have is ownership. With this value they believe in taking responsibility for the actions of the company. Individuals will treat the company as their own and will take care of it as if it was a sole proprietorship. Their passion for winning is the next value. This value helps them foster and maintain their competitive advantage. Adherence to this value has helped P&G maintain its position as one of the biggest companies in the world. The last value element is trust P&G has fostered an atmosphere of trust with their employees. This helps build employee moral with the end result being happier employees. This naturally leads to a more successful company. The last element they use is their principles. There are eight principals they use in management of their company. They are: we show respect for all individuals, the interests of the company and individual are inseparable, we are strategically focused in our work, innovation is the cornerstone of our success, we value personal mastery, we seek to be the best, we are externally focused, and mutual interdependency is a way of life. P&G’s steadfast adherence to their core elements of purpose, values and principles has played a major role in P&G’s ability to create sustainable competitive advantages. Product and Geographical Markets
As a global manufacturer and marketer of consumer products, Procter & Gamble has five reportable segments: Beauty; Grooming; Health Care; Fabric Care and Home Care; and Baby Care and Family Care. Under the Beauty segment, P&G provides antiperspirant and deodorant, cosmetics, hair care, hair color, personal cleansing, prestige products, salon products, and skin care. Primary brands include Head & Shoulders, Olay, Pantene, SK-II, and Wella. P&G is a global market leader in the beauty category. Most of the beauty markets in which it competes are highly fragmented with a large number of global and local competitors. In the Grooming segment, P&G provides blades and razors, electronic hair removal devices, hair care appliances, pre and post shave products under primary brands such as Braun, Fusion, Gillette, and Mach3. Under the Health Care segment, P&G is engaged in oral care, feminine care and personal health with brands primarily including Always, Crest, Oral-B, and Vicks. In oral care, there are several global competitors in the market, and P&G has the number two market share position...
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