Procter & Gamble: A Company with Global Operations
December 16, 2013
Procter & Gamble: A Company with Global Operations
Procter & Gamble (P&G) is a leading manufacturer of personal and home care products. P&G is an international company that operates in 40 different countries. This paper will examine the environmental factors that affect how effective P&G’s global marketing efforts are. These factors known as environmental forces include social and economic forces, as well as technological, regulatory, and competitive forces.
Any business operating internationally is impacted by these environmental factors which affect how the company will market its product. Understanding how these forces impact its operations will help P&G understand the interworkings of the economy both globally and domestically and the trends that currently impact its marketing efforts, which will help P&G, create and successfully implement its marketing plan. Operating Globally:
In this day and age, globalization has allowed companies to operate internationally. According to Panayotou (2000), “Globalization is an on-going process of global integration that encompasses economic integration through trade, political interaction, information technology, and culture. Globalization brings people, culture, and information together. Globalization has helped P&G operate globally because it lowers trade barriers and increases the dependence between countries for goods and services, which means there is a bigger market for the goods that companies like P&G offers.
Globalization came about as countries saw that other countries could produce products better and cheaper than another country could (comparative advantage), so countries began producing what they had an advantage in and selling it to other countries. This trading of products became an accepted practice and eventually spurred economic growth. This caused countries and businesses to begin operating in the global market because it allowed companies to tap into this greater demand and new market for goods and services, which would expand their customer base and profit potential. Procter & Gamble: The Importance of Demographics & Physical Infrastructure
P&G knows that when operating globally the company needs to market its product, and this means you have to have a clear understanding of the market of people that will be using the product. This means understanding the people and their different cultures. Every country has a different culture. Culture tells a story about where people come from, who they are, and what is socially acceptable. Culture affects the way people perceive the world around them, and this means it will affect the way products should be marketed. A significant part of our culture is our background, characteristics, and demographics.
Demographics provide vital information about a country’s people. Information about a country's demographics help P&G to determine the right people to market its products to and how to appeal to them in its marketing plan. P&G manufacturers and sells its products world-wide including nations outside North America, Western Europe, Japan and Korea where there is a growing demand for its products. These countries represent places with high populations of people who are aging and take care of themselves, which means they need basic household items which P&G manufacturers such as detergents and grooming products.
P&G is well- positioned in the industry segments and markets in which it operates. P&G’s success is a result of its ability to adapt its marketing mix to the standards and culture of the country in which it operates. It does this by having a good understanding of the country’s demographics and its physical infrastructure which help facilitate the development and operations of its companies. A countries physical infrastructure helps marketers determine how products will go from the manufacturer, to...
References: Boundless. (2013). Global Trade Inequalities and Conflict. Smart Notes. https://www.boundless.com/sociology/understanding-economy/the-transformation-of-economic-systems/global-trade-inequalities-and-conflict/
Chavis, J. (2013). Different Economic & Political Systems When Doing Business. eHow. Demand Media. http://www.ehow.com/about_5335760_different-political-systems-doing-business.html
Finch, B.J. (2008). Operations Now: Supply Chain Profitability and Performance (3rd ed.). New York, NY: McGraw-Hill.
Nebraska Department of Education. (2013). Global Interdependence. http://www.education.ne.gov/SS/CSSAP%20Modules/CSSAP%20First%20Phase%20Modules/GlobalTrade/index.html
Panayotou, T. (2000).Environment and Development Paper No.1: Globalization and Environment. Center for International Development at Harvard University. http://www.hks.harvard.edu/var/ezp_site/storage/fckeditor/file/pdfs/centers-programs/centers/cid/publications/faculty/wp/053.pdf
Procter & Gamble. (2013). The Power of Purpose. http://www.pg.com/en_US/company/core_strengths.shtml
Please join StudyMode to read the full document