Procter & Gamble: A Company with Global Operations
Procter & Gamble: A Company with Global Operations
MKT 421
December 16, 2013 Procter & Gamble: A Company with Global Operations Procter & Gamble (P&G) is a leading manufacturer of personal and home care products. P&G is an international company that operates in 40 different countries.
This paper will examine the environmental factors that affect how effective P&G’s global marketing efforts are. These factors known as environmental forces include social and economic forces, as well as technological, regulatory, and competitive forces. Any business operating internationally is impacted by these environmental factors which affect how the company will market its product. Understanding how these forces impact its operations will help P&G understand the interworkings of the economy both globally and domestically and the trends that currently impact its marketing efforts, which will help P&G, create and successfully implement its marketing plan.
Operating Globally: In this day and age, globalization has allowed companies to operate internationally. According to Panayotou (2000), “Globalization is an on-going process of global integration that encompasses economic integration through trade, political interaction, information technology, and culture. Globalization brings people, culture, and information together. Globalization has helped P&G operate globally because it lowers trade barriers and increases the dependence between countries for goods and services, which means there is a bigger market for the goods that companies like P&G offers. Globalization came about as countries saw that other countries could produce products better and cheaper than another country could (comparative advantage), so countries began producing what they had an advantage in and selling it to other countries. This trading of products became an accepted practice and eventually spurred economic growth. This caused countries and businesses to begin operating in
MKT 421
December 16, 2013 Procter & Gamble: A Company with Global Operations Procter & Gamble (P&G) is a leading manufacturer of personal and home care products. P&G is an international company that operates in 40 different countries.
This paper will examine the environmental factors that affect how effective P&G’s global marketing efforts are. These factors known as environmental forces include social and economic forces, as well as technological, regulatory, and competitive forces. Any business operating internationally is impacted by these environmental factors which affect how the company will market its product. Understanding how these forces impact its operations will help P&G understand the interworkings of the economy both globally and domestically and the trends that currently impact its marketing efforts, which will help P&G, create and successfully implement its marketing plan.
Operating Globally: In this day and age, globalization has allowed companies to operate internationally. According to Panayotou (2000), “Globalization is an on-going process of global integration that encompasses economic integration through trade, political interaction, information technology, and culture. Globalization brings people, culture, and information together. Globalization has helped P&G operate globally because it lowers trade barriers and increases the dependence between countries for goods and services, which means there is a bigger market for the goods that companies like P&G offers. Globalization came about as countries saw that other countries could produce products better and cheaper than another country could (comparative advantage), so countries began producing what they had an advantage in and selling it to other countries. This trading of products became an accepted practice and eventually spurred economic growth. This caused countries and businesses to begin operating in
References: Boundless. (2013). Global Trade Inequalities and Conflict. Smart Notes. https://www.boundless.com/sociology/understanding-economy/the-transformation-of-economic-systems/global-trade-inequalities-and-conflict/ Chavis, J. (2013). Different Economic & Political Systems When Doing Business. eHow. Demand Media. http://www.ehow.com/about_5335760_different-political-systems-doing-business.html Finch, B.J. (2008). Operations Now: Supply Chain Profitability and Performance (3rd ed.). New York, NY: McGraw-Hill. Nebraska Department of Education. (2013). Global Interdependence. http://www.education.ne.gov/SS/CSSAP%20Modules/CSSAP%20First%20Phase%20Modules/GlobalTrade/index.html Panayotou, T. (2000).Environment and Development Paper No.1: Globalization and Environment. Center for International Development at Harvard University. http://www.hks.harvard.edu/var/ezp_site/storage/fckeditor/file/pdfs/centers-programs/centers/cid/publications/faculty/wp/053.pdf Procter & Gamble. (2013). The Power of Purpose. http://www.pg.com/en_US/company/core_strengths.shtml