Procter & Gamble

Good Essays
1. Introduction
Procter & Gamble (P&G) is an American multinational corporation founded in 1837 headquartered in downtown Cincinnati, Ohio and manufactures a wide range of consumer goods. P&G’s annual sales are $50 billion and it has about 54 percent of consumer product business in United States. P&G sells more than 300 brands including soap, pet food, Tide, Pampers, Crisco, and Folgers. They exist in 160 countries.
2. Analysis
When they started to open up to the world, their business strategy was localization, which is the process of adapting a product or service to a particular language, culture, and desired local "look-and-feel." Ideally, a product or service is developed so that localization is relatively easy to achieve. In contrary, after 1990’s profit growth at P&G was slowing because of high costs such as extensive duplication of manufacturing, marketing, and administrative facilities in different national subsidiaries, high tariffs and global retailer’s demanding price discounts. After 1999, P&G has changed his business strategy and turned into transnational business strategy that involves self-contained global business unit. Each business unit is responsible for generating profits from its product, manufacturing, marketing, and product development. “Each business unit was told to rationalize production, concentrating it in fewer larger facilities; try to build global brands wherever possible, thereby eliminating marketing difference between countries; and to accelerate the development and launch of new products” (McGraw, p. 423)

3. The Organizational Problems of Implementing Transnational Business Strategy
Changing and implementing a new organizational structure to company is complex and a challenging task. Because of existing distribution of affect and power, the culture, manager’s approaches about the proper business criteria of model, it can be difficult to change. Also implementing transnational strategy, firms might face with some

You May Also Find These Documents Helpful

  • Powerful Essays

    Procter and Gamble

    • 2956 Words
    • 12 Pages

    Procter and Gamble Case Project Assignment 1 Company Overview 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.…

    • 2956 Words
    • 12 Pages
    Powerful Essays
  • Good Essays

    Procter and Gamble

    • 922 Words
    • 4 Pages

    The Procter & Gamble Company, incorporated in 1890, has continued to be one of the leading manufacturers in the consumer home goods industry. A large portion of their success is attributed to the sales of their light-duty liquid detergents (LDLs) in the Packaged Soap & Detergent Division (PS&D). Procter & Gamble’s three main LDLs, Ivory, Dawn, and Joy, maintain a 42% market share in the industry. As consultants, we will explore new growth opportunities to increase profits and…

    • 922 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Procter & Gamble

    • 869 Words
    • 4 Pages

    Procter and Gamble Case Study Procter & Gamble Executive summary: Procter and gamble is one of the most successful companies in the world. the company markets its brands in more than 140 countries, and had net earnings of $1.6 billions in 1990.the Canadian subsidiary contributed $1.4 billion in sales and $100 million in net earnings in 1990.it was recognized as a leader in the Canadian packaged-goods industry, and its customers brands led in most of the categories in which the company competed…

    • 869 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Procter and Gamble

    • 1887 Words
    • 8 Pages

    William Procter and James Gamble formed Procter & Gamble (P&G) to manufacture and sell candles and soap. Being that Cincinnati was booming from its hog butchering trade the suggestion for the partnership apparently came from their mutual father-in-law, Alexander Norris, who pointed out that Gamble's trade, soap making, and Procter's trade, candle making, both required use of lye, which was made from animal fat and wood ashes. P&G began operations out of a small storeroom with Procter running…

    • 1887 Words
    • 8 Pages
    Good Essays
  • Better Essays

    Procter and Gamble

    • 5902 Words
    • 24 Pages

    PROCTER AND GAMBLE (P&G) 1. Company Profiles The name P&G combines William Procter with James Gamble - Procter & Gamble. On April 12, 1837, they started producing and selling their soap and candles. On August 22, they formalized their business relationship by pledging $3,596.47 a piece. The formal partnership agreement is signed on October 31, 1837 what began in 1850 as a small, family-operated Soap and Candle Company now provides personal care of superior quality and value to consumers…

    • 5902 Words
    • 24 Pages
    Better Essays
  • Good Essays

    Procter and Gamble

    • 829 Words
    • 4 Pages

    Procter & Gamble: Competing with Itself – and Winning Procter & Gamble is one of the world’s [premier consumer-goods companies. Some 99 percent of all U.S. households use at least one of P&G’s over 300 brands, and the typical household regularly buys and uses from one to two dozen P&G brands. P&G sells multiple brands of laundry detergent, bath soap, shampoo, dishwashing detergent, tissues and paper towels, deodorant, fabric softener, cosmetics, and disposable diapers worldwide. Moreover, P&G…

    • 829 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Procter and Gamble

    • 327 Words
    • 2 Pages

    Procter and Gamble HISTORY American multinational consumer goods co. Headquarters: Cincinnati, OH Founded 1839 2012 $83.68B dollars in sales High 3Q 2010 earnings made analysts question if it was attributed to P&G lowering product prices. There are consistent price increases and decreases within the markets of Procter and Gamble. Reverts to pre-crisis 2008 when in inflation in central and Eastern Europe was still climbing. P&G raised prices during this time to off-set inflation…

    • 327 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Procter and Gamble

    • 604 Words
    • 3 Pages

    and regulatory. Political Influence and Litigation from Responsible Shopper: "Procter & Gamble donated more than $80,000 to the Coalition Again$t the Costly Labeling Law, a group of companies that worked against Oregon’s Measure 27, which would have required the labeling of GMO products sold in that state. The Coalition was successful in defeating the measure." from Greenpeace: "Procter & Gamble was among the corporations criticized by Greenpeace for working to weaken European laws governing…

    • 604 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Procter and Gamble

    • 2091 Words
    • 9 Pages

    Creating innovation for competitive advantage: A Procter & Gamble case study Introduction Companies must innovate in order to keep ahead of their competitors. If an organisation wants to create a business strategy that keeps it at the forefront of innovation, it must develop ways of making that strategy work. Being innovative does not just involve using the expertise of market researchers, scientists and product developers to create new products. It also involves using the capabilities…

    • 2091 Words
    • 9 Pages
    Better Essays
  • Satisfactory Essays

    procter & gamble

    • 250 Words
    • 1 Page

    US based Procter and Gamble (P&G), one of the largest fast moving consumer goods (FMCG) companies in the world, was in deep trouble in the first half of 2000. The company, in March 2000, announced that its earnings growth for the financial year 1999-2000 would be 7% instead of 14% as announced earlier. The news led P&G's stock to lose $27 in one day, wiping out $40 billion in its market capitalization. To add to this, in April 2000, P&G announced an 18% decline in its net profit for January -…

    • 250 Words
    • 1 Page
    Satisfactory Essays