Bussiness Environment Strategic Manag
University of Plymouth
PROCTER AND GAMBLE
CURRENT SITUATIONS AND RECOMMENDATIONS FOR
CORPORATE STRATEGY
Module Title:
Business Environment and
Strategic Management
Module Code:
PM106
Program:
MBA
Module lecturer:
Roger Cox
Student’s Name:
TRAN YEN LINH
Student ID:
28891
December 13, 2013
0
CONTENT
I. INTRODUCTION……………………………………………………………………...3
II. THE PROCTER AND GAMBLE COMPANY (P&G, NYSE: PG).....................4
1. GENERAL INFORMATION………………………………………………………4
2. P&G’S OPERATION………………………………………………………………6
2.1 COMMODITY AND INNOVATION BUSINESSES………………………….6
2.2 CURRENT SITUATION………………………………………………………..6
3. KEY COMPETITORS IN THEIR INDUSTRY……………………………………9
4. ENVIRONMENTAL ANALYSIS…………………………………………………10
4.1 SWOT…………………………………………………………………………..10
4.2 PESTEL………………………………………………………………………...11
4.3 PORTER’S FIVE FORCES……………………………………………………13
III. RECOMMENDATIONS IN CORPORATE STRATEGY…………………………14
1. TOWS MATRIX……………………………………………………………………14
2. COMPETITIVE STRATEGY……………………………………………………...15
2.1 FIRM INFRASTRUCTURE……………………………………………………15
2.2 EXPAND IN EMERGING MARKETS………………………………………..15
2.3 TECHNOLOGY DEVELOPMENT…………………………………………….16
2.4 MARKETING AND SALES…………………………………………………...17
2.5 IMPLEMENT TOTAL QUALITY MANAGEMENT………………………….17
IV. CONCLUSION..................................................................................................18
REFERENCES........................................................................................................19
1
LIST OF FIGURES
Figure 1: Net sale by business segments (P&G annual report, 2011).......................................... 4
Figure 2: Net sale by geographic region (P&G annual report, 2011) .......................................... 5
Figure 3: Net sale by market maturity (P&G annual report, 2011) ............................................. 5
Figure 4: Quarterly change in P&G’s global market share (Fortune,2013) ................................. 7
Figure 5: Unilever’s sale by category (Glenboden, 2011)
PROCTER AND GAMBLE
CURRENT SITUATIONS AND RECOMMENDATIONS FOR
CORPORATE STRATEGY
Module Title:
Business Environment and
Strategic Management
Module Code:
PM106
Program:
MBA
Module lecturer:
Roger Cox
Student’s Name:
TRAN YEN LINH
Student ID:
28891
December 13, 2013
0
CONTENT
I. INTRODUCTION……………………………………………………………………...3
II. THE PROCTER AND GAMBLE COMPANY (P&G, NYSE: PG).....................4
1. GENERAL INFORMATION………………………………………………………4
2. P&G’S OPERATION………………………………………………………………6
2.1 COMMODITY AND INNOVATION BUSINESSES………………………….6
2.2 CURRENT SITUATION………………………………………………………..6
3. KEY COMPETITORS IN THEIR INDUSTRY……………………………………9
4. ENVIRONMENTAL ANALYSIS…………………………………………………10
4.1 SWOT…………………………………………………………………………..10
4.2 PESTEL………………………………………………………………………...11
4.3 PORTER’S FIVE FORCES……………………………………………………13
III. RECOMMENDATIONS IN CORPORATE STRATEGY…………………………14
1. TOWS MATRIX……………………………………………………………………14
2. COMPETITIVE STRATEGY……………………………………………………...15
2.1 FIRM INFRASTRUCTURE……………………………………………………15
2.2 EXPAND IN EMERGING MARKETS………………………………………..15
2.3 TECHNOLOGY DEVELOPMENT…………………………………………….16
2.4 MARKETING AND SALES…………………………………………………...17
2.5 IMPLEMENT TOTAL QUALITY MANAGEMENT………………………….17
IV. CONCLUSION..................................................................................................18
REFERENCES........................................................................................................19
1
LIST OF FIGURES
Figure 1: Net sale by business segments (P&G annual report, 2011).......................................... 4
Figure 2: Net sale by geographic region (P&G annual report, 2011) .......................................... 5
Figure 3: Net sale by market maturity (P&G annual report, 2011) ............................................. 5
Figure 4: Quarterly change in P&G’s global market share (Fortune,2013) ................................. 7
Figure 5: Unilever’s sale by category (Glenboden, 2011)
References: Johnson & Scholes K (2011) Exploring Corporate Strategy (9th edition) P&G official website [online] Available at: http://www.colgate.co.uk Financial Times, 2013 Available at: http://www.ft.com/cms/s/0/e1782cc4-e95a-11e2-9f11-00144feabdc0.html#ixzz2mmDBnjel Financial Times, 2013 Available at: http://www.ft.com/cms/s/0/c86c6d34-40c2-11e3-ae19-00144feabdc0.html#ixzz2mmEixqKz Financial Times, 2013 Available at: http://www.ft.com/cms/s/0/d0579dc2-ce2e-11e2-831300144feab7de.html#ixzz2mmFYa2lc Financial Times, 2013 Available at: http://www.ft.com/cms/s/0/b0139a98-1712-11e3-bced00144feabdc0.html#ixzz2mmFh5gKP Financial Times, 2013 Available at: http://www.ft.com/cms/s/3/131f8bd2-adab-11e2-82b800144feabdc0.html#ixzz2mmI2B7hD Financial Times, 2013 Forbes, 2013. Is every one nuts? P&G now a dog? And Unilever a star? [online] Available at: http://www.forbes.com/sites/stevedenning/2013/01/11/pg-now-a-dog-unilever-a-star-arethey-nuts/ CNN, 2013. Can Procter and Gamble CEO Bob McDonald hang on? [online] Available at: http://management.fortune.cnn.com/2013/02/08/procter-gamble-mcdonald/ Daily finance, 2013. Is the emerging market slowdown temporary for these global big boys? [online] Available at: http://www.dailyfinance.com/2013/10/10/is-the-emerging-market-slowdown-temporary-forthes/ Trefis, 2013. A breakdown of P&G’s value and outlook by product segment [online] Available at: http://www.trefis.com/stock/pg/articles/36138/a-breakdown-of-pgs-value-and-outlook-byproduct-segment/2011-01-21 The Motley Fool, 2013. Billionaire Bill Ackman calls for CEOs head [online] Available at: http://beta.fool.com/mhargra/2013/05/16/billionaire-bill-ackman-calls-for-ceos-head/34200/ M&M Global, 2012. FMCG landscape [online] Available at: http://www.mandmglobal.com/community/blog/12-04-27/The-FMCG-landscape-aninfographic.aspx Seeking Alpha, 2012. Don’t jump the gun on procter and gamble. [online] Available at: http://seekingalpha.com/article/317007-dont-jump-the-gun-on-procter-gamble Seeking Alpha, 2012. Colgate Palmolive dividend stock analysis [online] Available at: http://seekingalpha.com/article/923911-colgate-palmolive-dividend-stock-analysis (CP)