Strategic Recommendation Memo

Expanding the Organization

Agenda

• Analysis of the Kenyan market by considering the four aspects of the Diamond of National Advantage: • Analysis of forces • Evaluate the four adjustments leaders must make when expanding

internationally (Burkus, 2012). • Recommendations

Kenya

• Sub-Saharan Africa famously knows as the entry point with a rapidly growing middle class. • High levels of literacy. • Increased support for manufacturing as the government aims to take

advantage of the African continental free trade area. • Vibrant financial services and the largest mobile money services in the

world are supported by the local brand MPESA.

Factor conditions

• These aspects and elements give a sector and its businesses a competitive edge. • Contrary to natural resources, meanwhile, factor conditions are typically

developed by the nation as a whole. • The following are the factor conditions for Procter & Gamble:

Natural resources Capital resources Human resources

Related and supporting industries

• Players are subjected to healthy competition and are inspired to achieve success and growth through internationalization and innovation when firms in the market support and compete with one another. • This environment is created when firms in the market support and compete with one

another. • Additionally, the supporting and allied sectors have been particularly useful for Procter &

Gamble in directing the brand toward achieving greater levels with each passing year. • This has been the case because these sectors have helped the brand achieve greater

success. • This has occurred as a natural consequence of the company's continued growth over the

years.

Strategy, structure, and rivalry

• This is a basis for the management emphasis and the firm's operational and strategic focus. • A firm's organizational structure and management are two of the most

important factors to consider when deciding whether or not it will expand worldwide. • The strategic goal, organizational structure, and setting of Procter &

Gamble, together with their judgments, have significantly impacted the company's success and international expansion.

Demand conditions

• These occurrences, circumstances, and conditions are all factors that contribute to the success of an organization in a certain market. • Demand on a regional and domestic level is essential in driving a company

towards expansion and growth potential and exposing the company to the challenges of operating in a wider market.

Analysis Of The Forces

• Fast growing middle class • Wholesale and Retail Trade • The liberalized and strong East and Central African economy is a region

with a population exceeding 300 million people. The East African region is a duty-free market and works in tandem with the African continental free trade area, which allows for a huge market for P&G products.

Forces That Will Hinder The Organization

• Corruption: Kenya ranks 128 out of 180 most corrupt nations n the world. • Extreme poverty, as approximately a third of Kenyans, live in extreme

poverty. Kenya has one of the largest social divides in the world.

Leadership actions

• To implement Burkus' (2012) recommendations, leaders must use a variety of leadership measures (2012). These actions include; • Creativity and open-mindedness. • Ability to listen to others, especially those well conversant with the local culture and

operations of the new market. • The need for extensive consultation with local competitors to fully understand the

local market.

Recommendation And Rationale

• Procter & Gamble should expand its services into the Kenyan market. • The company should also consider setting up a national production plant to

take advantage of Kenya's bilateral agreements and the African Continental Free Trade Area.

Conclusion

• Proctor & Gamble's expansion to Kenya is its best bet to take advantage of the free trade area within Africa. • It will help the company expand into developing markets and gain market

share within them.

References

• Fainshmidt, S., Smith, A., & Judge, W. Q. (2016). National competitiveness and Porter's diamond model: The role of MNE penetration and governance quality. Global Strategy Journal, 6(2), 81-104. • Mann, M., & Byun, S. E. (2011). Accessing opportunities in apparel retail

sectors in India: Porter's diamond approach. Journal of Fashion Marketing and Management: An International Journal. • Sahile, S. W. G., Tarus, D. K., & Cheruiyot, T. K. (2015). Market structure-

performance hypothesis in Kenyan banking industry. International Journal of Emerging Markets.