Company is P&G, See attached for previous paper. Will check for plagiarism, only quality work

March 13, 2016

Abstract

This paper addresses the inconsistencies between goals and strategies of Procter and Gamble, how the resources are leveraged and used to explore different business opportunities, how effective the management structure is in an implementation of strategies and the opportunities and concerns of different stakeholders and how they share profit. The paper also focuses on the management system, the organizational structure and P & G capabilities.

Introduction

The (P&G) is one of the multi-billion dollar company that deals with the production of consumer based products. The packaged products range Baby Care, Fast-moving Goods to Beauty & Cosmetics. The P & G operations handle over three billion consumers in more than 180 countries around the world. In the year 2012, the company generated USD$ 84.68b regarding revenue (P&G Newsroom, 2012), which is 1.3 times more than revenue generated by its tough competitor, Unilever (USD$66.33b) (Yahoo Finance, 2010). With more than 25 billion-dollar products (P&G Newsroom, 2012), P&G produces household brands such as Tide, Pantene, and Gilette. P&G isdefinitely a leading firm in the market with the production of various product sets. This gives the reason firms like the 50 Fortune firms that first made to the top list in the past; P&G is the among the only ten firms still operating today. However, from the year 2009, P&G has experienced a gradual decline in its growth rate, and most of the competitors surpassed it regarding the rate of growth.

Through a new CEO A.G Lafley, P&G has employed several strategy to claim its foothold in the potential markets that it did not explore. The company introduced a tough product innovation and development strategy that gave it a better position to regain its market share and achieve its goals (P&G Newsroom, 2012). The firm used its resource to create highly innovative products characterized by unique points of sales, which saw a lot of customers attracted to the new product and switching from other brands of other competitors (Grant, 2012). This gave P&G a greater opportunity to allocate more resources to maintain this competitive advantage. Once the company gains a competitive advantage through the large market share, it introduced new market penetration strategies. This strategy earned the company efforts to increase its current products market share, attain the fast consumer goods market dominance, and power to edge its tough competitors. Such strategies include a mixture of sales promotions, competitive pricing, and advertising strategies. Resource was allocated appropriately to strengthen these efforts, and this has given P&G an enormous success to the current point (P&G Newsroom, 2012).

The P&G organizational structure was also changed to a Seven Global business Units (GBUs) from a geographical based organizational structure (Grant, 2012). . The introduction of the GBUs has helped the company to develop the multi-brand strategies. The global-based structure created new global brand names in different product lines. This strategy has enabled P&G to explore its capabilities through domination of the reseller’s shelf capacity and the market segments with multiple brands names and diversified product differentiation. However, the company faces several drawbacks based on this strategy. For instance, the multiplication of brands may effortlessly affect other product lines through association. As a result, one problem related to one P&G product line or brand may interfere with the existing good customer relations created through other brands with the customers. This effect is highly disastrous, since its shareholders and stakeholders will be affected, and its financial capabilities, resource allocation, and market position will be affected adversely. (P&G, 2012)

P&G has spent a lot of resource on the strategies that may not yield the expected results leading to shareholders and stakeholders concerns. The company has adopted connect and develop the strategic business model. The company should make sure that all the stakeholders and shareholders are involved in every proposed strategy to solve these issues. With the advent of technology, the company has to keep up with the current technology as the backbone of its operations (Grant, 2012). As a result, several strategic concerns are experienced by P&G regarding the organizational structure and the company capabilities. Therefore, there is need to educate the management system about the on the importance of effective communication flow within the organization. When a new technology is employed, the management should communicate with all stakeholders to agree on policies regarding profits and resource allocation (Grant, 2012).

The multiple branding puts P&G's preliminary strategic report the best foot forward. This enables the company to fit in all markets and cultures across the world and penetrates in competitive markets to gain more market share.

References

P&G newsroom, (2012). The strategic issues that affected the success of P&G and its capabilities.

Grant, R. (2012). P&G multiple brand strategy. Development and innovation of new products.

Yahoo Finance (2010). The profitability of companies. The financial success of P&G.