Proctor and Gamble is one of America’s oldest continuously running companies. It was founded in 1837 by two immigrants; one an English candle-maker William Proctor and the other an Irish soap-maker James Gamble . These two men constantly tried to improve their young company by developing new, high quality products their customers needed. In the last 171 years, this small candle and soap making company has transformed into a gynormous global enterprise, operating in more than 80 countries (pg corporate), where its products and brand name are globally recognized and respected. Since its inception, Proctor and Gamble has placed research and innovation as the ‘cornerstone of [their] success’ (PG corporate). We can look at this strategy and see how P&G has been able to build and maintain a positive brand image, growth, and international success.
Company operations are categorized into 3 "Global Business Units;" Beauty Care, Household Care, Health & Well-Being. Each Global Business Unit is divided into "Business Segments;" beauty and grooming segments, baby/family care and fabric/home care segments, and health and snacks/coffee/pet care segments respectively. Acquisitions:
Acquisitions began in the early 20th century for Proctor and Gamble when they acquired the Thomas Bluth Co. in England. Acquisitions are the main instrument companies use to implement a horizontal integration strategy (where two companies join together in the same industry) or a vertical integration strategy (where integration helps diversify the company). Following in the lead of their first acquisition, P&G continued to acquire companies abroad to aid in production, research , and development of new products for the first half of the 20th century. Over the second half, however, P&G saw the opportunities associated with product diversification through acquisitions and vertical integration. They included companies like Folgers Coffee, Old Spice (deodorant), Norwich Eaton...
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