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Week 3 Assignment 1

Felicia Griffin

Strayer University

BUS499 Business Administration Capstone

Professor Joseph Keller

July 26, 2020

Procter & Gamble

Introduction

Procter & Gamble (P&G) is an American multinational company with its headquarters in Cincinnati, Ohio. Proctor & Gamble was founded by William Procter and James Gamble in 1837. The company primarily specializes in a wide variety of consumer goods, including consumer health, personal care, and hygiene products. These products are categorized into various segments, such as health care, beauty, grooming, Fabric & Home Care, and Feminine, & Family Care (Us.pg.com, 2020). The paper addresses how various factors such as globalization, technology, the company’s mission, vision, and stakeholders have impacted its overall success.

Globalization

Globalization has significantly impacted Procter & Gamble. For instance, globalization has led to the expansion of P&G into different emerging markets in various countries globally. Today, the company operates in about 80 different countries globally, touching the lives of consumers in more than 180 countries. P&G operates in the U.S market, Asia, Brazil, Russia, United Kingdom, European countries, and Africa. The U.S market generates about 35.4% of the company's total sales. Due to global expansion, P&G retail sales in its top global markets, including China, Brazil, U.K, Russia, and Germany, grew by over 40% between 2009 to 2013, amounting to $29.4 billion almost equal to sales in the U.S market. China has become one of the largest markets for P&G, generating profits closer to the U.S and Western Europe markets (Coolidge, 2014). Therefore, Procter & Gamble's expansion to the global world has significantly impacted its growth and success through increased market share and profitability. However, P&G faces stiff global competition from different foreign company's dealing with similar products. The P&G global key competitors in the various company products segments include Unilever, Colgate-Palmolive, Church, and Dwight Co., Revlon, Avon, and Ecolab, among other companies (Financial News, 2019).  For instance, in the Fabric and Home Care, the company faces stiff competition from companies, such as Colgate-Palmolive, Unilever, and the Church and Dwight Co. In the beauty segment, Avon is the key competitor to P&G.  Therefore, globalization has negatively impacted P&G through increased competition from different global, resulting in reduced sales. However, the company continues to perform well in the worldwide market due to its highly competitive edge. For instance, in the fiscal year 2017, P&G generated $65 billion in total revenue (Financial News, 2019). 

Technology

Technological changes have a significant impact on companies. For instance, some technology changes help companies achieve increased competitiveness, efficiency, and effectiveness in their operations. P&G relies heavily on innovation and modern technology to improve its competitive advantage in local and global markets. For instance, digital technology has significantly impacted P&G. Digital technology has allowed the company to integrate and synchronize its supply chain. This technology enables P&G to connect with its suppliers and consumers, leading to efficiency in the supply chain digitally. It also leads to the creation of relationships between the company, its suppliers, and its customers. Digital technology has also facilitated effective marketing and advertisement of P&G products to its target markets across the globe through various digital platforms. For instance, P&G uses multiple social media platforms, such as Facebook, Twitter, and Instagram, among other platforms, to advertise its products. Moreover, social media platforms allow the company to engage and communicate effectively with its customers, resulting in improved services and good relationships. P&G handles enormous amounts of data; hence the introduction of cloud computing and data analytic technologies has helped the company achieve better storage and data analysis. Cloud computing has also helped the company ensure the increased security of their stored data (Watson, 2019). Ecommerce technology has also enabled P&G to improve its sales through online selling. Ecommerce technology has played a significant role in boosting the company’s global business since customers from different regions worldwide can easily access the company’s products over the internet and buy online. Moreover, automation or the use of modern machines and equipment in the manufacturing process has led to increased productivity and improved quality of products at P&G.

Industrial Organization Model

External factors such as competition, technology, customers, marketing and advertisement, and economic factors may significantly affect P&G revenue. For instance, the company faces stiff competition from different competitors, reducing its income. Also, technological changes and failure to cope with modern technology may negatively impact the company, resulting in reduced revenue. Marketing and advertisement play an essential role in enhancing a company's revenues; hence inappropriate marketing may affect P&G revenues. Therefore, to achieve above-average returns, P&G should develop proper strategies that address all the external factors that may affect its operations, hence impacting its revenues negatively. For instance, the company should focus on improving its competitive advantage in the market to outdo its competitors. Increased competitive edge can be achieved by producing innovative and quality products, effective marketing, advertising, and creating a positive brand image, among other things. P&G should also invest heavily in scientific research, innovation, and modern technology to ensure increased efficiency in its operations, improve productivity, and enhance the production of original and quality products that satisfy customer needs. The satisfaction of customer needs results in improved customer loyalty and better relations, hence leading to increased revenues. Therefore, these strategies may help P&G increase their sales volumes and revenues above average by effectively addressing external factors.

Resource-Based Model

Various unique internal resources increase P&G's competitive advantage. Some of these resources include brand, reputation, corporate culture, and employee expertise, among others. For instance, P&G enjoys a remarkable reputation from its customers, which results in increased loyalty better competitive advantage in the market (Thompson, 2017).  P&G corporate culture revolves around good leadership, integrity, quality products, teamwork, innovation, ethics, and social responsibility, among other elements that enhance its performance and success. Again, the company offers a wide variety of brands that are highly valued by customers. Moreover, P&G focuses on employing highly qualified and competent employees. As a result, this has led to continued innovation, quality brands, and high productivity, and increased P&G competitiveness. To ensure the achievement of above-average revenues, P&G must effectively utilize these unique resources that give it a competitive advantage.

Vision

Vision statements play an essential role in influencing a company's overall success. A good vision statement is future-oriented, reflects the company's values, clarifies the company's purpose and direction; it's ambitious and sets excellence standards, among other aspects. P&G's vision is to "To be the best consumer products and services company in the world" (Pg.com, 2003).  This mission statement clearly states why the company exists; hence, it inspires and motivates employees to focus on achieving the company's mission. To be the best, P&G focuses on providing its customers with the best quality products to ensure optimal satisfaction. The company employs innovation and modern technology to discover new products and enhance the production of quality products. Also, the company invests heavily in market research to identify customer needs and preferences, thus providing them with what they need. The P&G's focus and ambition to be the best consumer company globally has enabled it to achieve greater success.

Mission

A mission statement provides a clear explanation of why a particular company exists and its overall purpose. It defines the company's scope of operation, the kind of products and services it offers, the target market, and the values it adheres to (Hitt, Ireland, & Hoskisson 2020) The P&G's mission states that the company will provide its customers with branded products and services of superior quality and value that improve the world's consumers' lives. With this, the customers will reward them through increased sales, profits, and value creation, leading to the company's prosperity, the shareholders, the communities, and people around it (Pg.com, 2003).  This mission statement has significantly contributed to the success and growth of the P&G company. For instance, the production of superior quality products has helped the company build its brand reputation, leading to an improved competitive edge. The provision of quality products has also helped the company win its customers' loyalty, resulting in increased sales and profits. As a result, improved brand reputation, customer loyalty, and increased competition have significantly contributed to the PG's success and growth of P&G over the years.

Stakeholders

Various stakeholders, including customers, suppliers, managers, employees, and shareholders, significantly impact P&G's overall success. For instance, customers buy P&G products, leading to increased sales, profits, and success. They also give valuable information and feedback desired by the company to continue producing better products that satisfy customer needs. The suppliers supply P&G with all the necessary raw materials and resources needed to facilitate the manufacture and production of the company's products. The suppliers help ensure continued production, leading to increased productivity to meet the market demand and ensure that goods are always available to customers. Managers facilitate proper management, planning, and coordination of all organization's activities to ensure that everything runs smoothly. They also engage in developing appropriate strategies and making sound decisions that enhance the efficiency of operations, increased productivity, and profitability of P&G. Employees play an essential role in carrying out the company's day-to-day activities that facilitate the manufacture of the company products and proper functioning of all activities. The employees facilitate the production of superior quality products and provide quality customer services, resulting in P&G success. Moreover, the shareholders provide funding and make critical decisions, such as appropriate investment decisions meant to enhance P&G's success.

References

Coolidge, A. (2014). Procter & Gamble's global reach changing. Retrieved 26 July 2020, from https://www.usatoday.com/story/money/business/2014/09/07/procter--gambles-global-reach-changing/15205713/.

Financial News. (2019). Who are Procter & Gamble's main competitors? | Financial News. Retrieved 26 July 2020, from http://financialnewsspot.com/archives/5034.

Hitt, Ireland, & Hoskisson. 2020. Strategic management: Concepts and cases: Competitiveness and globalization (13th ed.). Mason, OH: South-Western Cengage Learning

Pg.com. (2003). Our Purpose, Values and Principles. Pg.com. Retrieved 26 July 2020, from https://www.pg.com/translations/pvp_pdf/english_PVP.pdf.

Thompson, a. (2017). Procter & Gamble PESTEL/PESTLE Analysis & Recommendations - Panmore Institute. Panmore Institute. Retrieved 26 July 2020, from http://panmore.com/procter-gamble-pestel-pestle-analysis-recommendations.

Us.pg.com. (2020). Procter & Gamble Company. Retrieved 26 July 2020, from https://us.pg.com/.

Watson, B. (2019). P&G revitalizes innovation for the digital age. CIO. Retrieved 26 July 2020, from https://www.cio.com/article/3340362/pandg-revitalizes-innovation-for-the-digital-age.html.