P&G Strategic Plan

Topics: Strategic management, Strategic planning, SWOT analysis Pages: 26 (8319 words) Published: October 13, 2013

Procter & Gamble Strategic Plan


Executive Summary4
Introduction 5-7
Mission and Vision Statements6-7
Strategic Assessment7-21
External Forces Evaluation Matrix8-13
Internal Forces Evaluation Matrix13-18
Financial and Operational Analysis18-21
Strategic Recommendations21-31
The Grand Strategy Matrix21-24
Internal-External Matrix24-27
SWOT Matrix27-28
Strategy Selections29-31
Action Plan31-32
Implementation Activities 31-32
Implementation Risks and Mitigation 32
Appendix A Strategic Assessment
IFE Matrixi
EFE Matrixii
Debt Ratiosiii
Liquidity Ratiosiv
Activity Ratiosv
Asset Managementvi
Profitability Ratiosvi
Dividends Chartvii
Business Analysisvii
Growth Ratiosviii
Profitability Ratiosix-x
Appendix B Strategic Recommendations
Grand Strategy Matrixxi
Internal-External Matrixxii
SWOT Matrixxiii
Appendix C Action Plan
Implementation Activities and Schedulexv-xvi
Project Gantt Chartxvii
Implementation Risks and Mitigation Strategiesxviii

Executive Summary
Our Procter & Gamble Strategic Plan makes available an investigation and assessment of the current and prospective opportunities for the company based on in-depth market and company research. Analyses are based on standard business strategy analysis tools, which are: Strengths, Weaknesses, Opportunities & Threats (SWOT) analysis, External and Internal Factors Evaluation (EFE/IFE) Matrices, and standard financial analyses including competitive comparison with Procter & Gamble’s industry. Strategic alternatives were evaluated with the use of the Internal-External (IE) Matrix and the Grand Strategy Matrix which fed into the Quantitative Strategic Planning Matrix (QSPM). The results of the QSPM validated the best strategy to pursue. The best strategy for Procter & Gamble is the production of less expensive, yet same quality consumer goods, which we plan to implement without compromising our belief in quality and effectiveness.

In order to begin a strategic plan for a company it is important to understand what that business does. Since 1837, P&G has built a rich heritage of touching consumers’ lives with brands that make life a little better every day (“Company Heritage,” 2011). P&G believes that innovation will sustain them. They have a broad range of brands and are known as the world’s leading branded consumer company since their products are sold in 180 countries (“Global Structure & Governance,” 2011). Buhovac, Epstien, and Yuthas, in their book Implementing Sustainability: the role of leadership and organizational culture, wrote: “P&G managers have widened their organizational perspective to see the broader picture and capture benefits beyond a particular issue or cost. They strive to create products that enable consumers to be more environmentally sustainable. Improving efficiency of the entire product life cycle from cradle to grave is a major focus of P&G’s sustainability efforts” ( p. 44.). A brief look at the history of P&G and their mission/ vision statements will provide a better understanding of what type of company P&G is and wants to be. History

According to Procter and Gamble’s website, P&G was created on October 31, 1837 by brother-n-laws, William Procter and James Gamble. Each one had their own skills; William made candles and James produced soap. They formed Procter and Gamble to make and sell candles and soap (“P&G: A Company History,” 2006). The two entrepreneurs were successful in making it through the financial difficulties of the time. The largest impact on the company at this time was the civil war in which...

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