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Procter and Gamble Strategic Analysis

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Procter and Gamble Strategic Analysis
Procter & Gamble is a company with more than 100 years on business, and is a clear example of a successful company. Procter and Gamble was founded in 1837 and incorporated in Ohio on May 5, 1905. It began as a small family operated soap and candle company, and now provides products and services of greater quality and value to consumers in over 180 countries. Procter and Gamble, in conjunction with its subsidiaries provides branded consumer goods products.
Procter and Gamble also makes pet food, water filters, snacks and beverages. More than 20 of Procter & Gamble's brands are billion-dollar sellers. These include Actonel, Always/Whisper, Braun, Bounty, Charmin, Crest, Downy/Lenor, Folgers, Gillette, Iams, Olay, Pampers, Pantene, Pringles, Tide, and Wella, among others. In 2001 Procter & Gamble bought Clairol and in 2003 also bought the majority of Wella. Its purchase of Gillette in late 2005 was its biggest buy in company history.
Procter and Gamble’s structure or operation matrix is divided in three main global business units:
1. Beauty
2. Health & well being
3. Household Care

Procter & Gamble has seven reportable segments:
1. Beauty: Includes cosmetics, deodorants, fine fragrances, hair care, personal cleansing and skin care products, primarily under Head & Shoulders, Olay, Pantene, CoverGirl and Wella brands.
2. Health Care: Includes oral care, personal health care and pharmaceuticals.

3. Fabric Care and Home Care: Includes laundry detergents, fabric enhancers, dish care, surface care, air care and commercial products.
4. Snacks, Coffee and Pet care: Includes snacks, coffee and pet food.
5. Baby Care and Family Care: Includes diapers, baby wipes, bath tissue, and kitchen towels.
6. Blades and Razors: Includes men’s and women’s blades and razors.
7. Duracell and Braun: Includes batteries, electric razors and small appliances.
The household care segment accounts for twenty seven percent of Procter & Gamble’s net earnings, the greatest contribution from any of

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