Bussiness Environment Strategic Manag

Topics: Strategic management, Innovation, Marketing Pages: 21 (3989 words) Published: January 2, 2015
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) .......................................................... 9 Figure 6: Colgate Palmolive’s sale 2011 .................................................................................... 9 Figure 7: Ten-year share prices of Unilever and P&G (Forbes, 2013) ...................................... 10 Figure 8: Market share in emerging markets (The Motley Fool Blog Network, 2013) . ............ 16

LIST OF PICTURES
Picture 1: Fast-Moving Consumer Goods landscape .................................................................. 3 Picture 2: P&G slogan ............................................................................................................... 4

LIST OF TABLES
Table 1: Igor Ansoff’s product-market matrix ........................................................................... 8 Table 2: comparison Unilever and Colgate Palmolive ............................................................... 9 Table 3: SWOT analysis.......................................................................................................... 10 Table 4: Porter’s five forces model .......................................................................................... 13 Table 5: TOWS assessment .................................................................................................... 14

2

I. INTRODUCTION
According to global financial crisis which make big changes in today’s market, big companies are facing with many difficulties on the way to keep moving and developing. There is a question to board managements that “Is it necessary to have a change in their corporate strategy and how it should be?” The change is a solution not only to adapt new-perception customers but also to maintain the prestige of “big guys” in their industry.

Fast-Moving Consumer Goods is one of the biggest industries effecting by recession due to the change of consumer behavior in many categories such as food and beverages, beauty and...

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)
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