P&G company review
Procter & Gamble Co. is a Fortune 500 American multinational corporation. This company headquartered in USA - Downtown Cincinnati, Ohio. Few numbers indicate this company size, influence to the world and at the same moment to the world’s society. P&G holds 22nd position in Fortune 500 companies list by their revenues (which are approximately 79,697.0 million dollars). P&G market capitalization is bigger than many countries GDP. Furtermore P&G profit is 13,436.0 million dollars, when in comparison number one Fortune 500 company Wallmart has just a “little“ bit bigger profit of 14,335.0 million dollars. This company serves to the customers to more than 180 countries. Even at Baltic states is sold more than 7 millions P&G products every month. Procter & Gamble manufactures a wide range of consumer goods. They can be divided into 3 types – Beauty and Grooming (Head and Shoulders, Gillette, Pantene, Hugo Boss Fragrances brands), Health and well being (Oral B, Crest brands) and Household care (Tide, Pampers, Ariel). Operations are divided into three business units. Each Global Business Unit divided into "Business Segments" according to the company's March 2009 earnings release: •
Beauty & Grooming
Baby Care and Family Care segment
Fabric Care and Home Care segment
Health and Well-Being
Health Care segment
Snacks and Pet Care segment
It is interesting fact, which probably will make this project and company analysis more challenging that P&G holds 6th place in Fortune‘s most admired companies 2010 list.
P&G company development stage analysis
Framework is made of 6 parts and by analyzing them it will be possible to decide where P&G is now. It will be analysis of every framework part, answering the questions - why every part is important and what information every part gives considering P&G lifecycle position. The parts of the framework are:
What interest P&G has in conquering new markets?
What P&G focus is on innovations?
What profit, revenues and other financial numbers of P&G are telling? What are the company expectations for growth? •
What about P&G costs reduction strategy?
Is company acquiring other companies and in this way also their technologies, brands and markets? It is important to mention that it can be considered just two P&G development stage positions – Prime and Aristocracy. P&G is professionally managed, it is global and one of the Fortune 500. So it can not be in Go-Go or Adolescence stage, as it is too successful. Also it can not be in Bureaucracy stage, as its success indicates that it could not be such with Bureaucracy stage business problems. So whole analysis and framework will be based on considering either it is Prime or Aristocracy stage company.
P&G is interested in conquering new markets
Prime stage companies have huge interest in conquering markets. While Aristocracy companies otherwise – very little. First main aspect which comes from analyzing P&G company 2010 years annual report is that this company strategy lies in expanding to more markets, as it is said in their 2010 annual report - “to build our business with unserved and underserved consumers; to touch and improve the lives of more consumers in more parts of the world, more completely“. Important facts comes from 2010 years annual report :
In 2010 P&G expanded to a new markets and reached 200 million new consumers •
Started Olay’s facial skin brand in Mexico
Expanded Always brand product distribution in Africa, which reached 450,000 outlets in Africa. Improved the commercial availability of Always, not just in big capital cities, but also in some smaller towns and rural areas. The first impression is that P&G is in Prime stage, as they conquerors new markets and this is P&G business strategy heart. Interesting that it looks like P&G intention to conquer new markets is not the natural...
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