《PG宝洁strategicanalysis》由会员分享，可在线阅读，更多相关《PG宝洁strategicanalysis（14页珍藏版）》请在金锄头文库上搜索。
1、CONTENT1. Introduction12. Brief History and Strategic Challenges13. PESTLE Analysis34. Five Forces Analysis45. SWOT Analysis66. Generic Strategy87. Recommendations98. Conclusion109. Bibliography111. IntroductionFor the fiscal year of 2010, Procter & Gamble witnessed an increase on net sales by 3% to
2、 $78.9 billion and a 4% increase in unit volume (Deloitte, 2010). Under the unfavourable environment of global recession, P&G has successfully retained positive increases since the Financial Crisis and kept the position of worlds largest consumer products manufacturer. In Fortunes list of most admir
3、ed companies for the year of 2010, P&G is ranked as 6th among the worlds corporations (Fortune, 2010). Products of P&G serve 4.2 billion of the 6.5 billion people in the world from everyday morning (P&G, 2010c). The aim of this report is to undertake a detailed in-depth research centred on the compa
4、ny of Procter & Gamble with a number of theoretical frameworks. In the beginning of the report, a brief history of P&G will be presented and point out some strategic challenges facing the firm. Secondly, there will be a PESTLE analysis of the current external environmental conditions for the firm. T
5、hen, the companys effectiveness and sustainability of current strategies will be examined, followed by recommendations for P&Gs strategies, accompanied by appropriate explanation and justification. The concentration industry of this report will be the SIC code 2844 Perfumes, Cosmetics and Other Toil
6、et Preparations (OSHA, 2010). It will be defined as Personal Products Industry throughout this report. The world personal market will be regarded as a whole and the market can be categorized into six segments, encompassing hair care, make-up, skincare, personal hygiene, oral hygiene, and fragrances
7、(Graul et al, 2006). 2. Brief History and Strategic ChallengesP&G was founded by Willian Procter (a candle maker) and James Gamble (a soup maker) in 1837 in Cincinnati, Ohio, the US. The company was responsible for supplying soap and candle to the Union Army in the American Civil War and enjoyed the
8、 companys growth based on military contracts in that period. In 1911, the company started to open factories in other places in the US due to rising demand for its products and its products began to diversify. In 1920s and 1930s, the company sponsored many radio programs that were later known as “soa
9、p operas”. P&G began its international operation in 1930 by acquisition of a UKs company called Thomas Hadley Co. Thereafter, through its own products diversification and numerous acquisitions, the company gained capabilities to offer consumers with a wider range of consumer products and its size ke
10、pt growing as its expansion to different nations. By 1980, the company had operated in 27 countries besides America and sales in these countries made up a quarter of the companys $11 billion total sales (Bartlett et al, 2008). In 2005, P&G acquired the UKs prestigious razor producer, Gillette, repla
11、cing Unilever as the worlds largest consumer products brand. Nowadays, P&G has become a company operating in America, Europe and Asia, with 135,000 employees, more than 300 brands covering cosmetic, home, baby, toiletries, and fragrance industries (Datamonitor, 2010). The annual sale of the company
12、equals to the GDP for some small countries and hence it is even called “P&G Empire”.Facing enormous benefits from its extremely large size and profits, P&G has to deal with strategic challenges inevitably at the same time. First of all, the most outstanding issue exactly results from its size, i.e.
13、issues of “too big”. With its dominance in various industries and hundreds of brands, issues on its industry and brand management are prominent for the company to deal with. For instance, a particular strategy designed for one product to increase its sales might somehow cannibalize the companys anot
14、her products sales as a result. On the other hand, operations in a number of countries pose significant challenges to maintain its worldwide operation efficiency. P&G has a matrix organizational structure (Galbraith, 2009). The company deployed numerous country subsidiaries in those regions it opera
15、ted and global business units (GBU) are charged with particular products and brands operation. P&G categorized its global business into three GBU, consisting of beauty & grooming, health and well-being, and household care. The matrix structure did help the companys multinational management and boost
16、 its worldwide expansion by 1990s. However, since competing in more than 75 countries by the mid-1990s, the overseas expansion opportunities left rather limited for the company. The company consistently treated innovation as its core strength and pressures from distinctive markets local responsiveness also required the company to develop its research capability. Nevertheless, incremental coordination was needed to innovative ne
