Reread the Management Focus on Procter & Gamble, and Then Answer the Following: What Strategy Was Procter & Gamble Pursuing When It First Entered Foreign Markets in the Period Up Until the 1980s? Why Do You Think This

In: Business and Management

Submitted By mayou55
Words 668
Pages 3
What strategy was Procter & Gamble pursuing when it first entered foreign markets in the period up until the 1980s?
In the year Procter & Gamble 1915 has opened the plant in Canada for producing Ivory Soap & Crisco. In year 1970 Procter & Gamble has entered Japan & rest of the Asian Nations. Procter & Gamble has entered the nation through acquiring the established competitor as well as their brands. That is case of the Great Britain as well as Japan. Organization has developed the newer products in the Cincinnati & then relied on the semiautonomous foreign subsidiaries towards manufacturing the market & distributing those products in separate nations. In initial 20th century, P&G continued to grow. Organization started to build the factories in other situations in US (Hill, Not defined). Organizations leaders started to diversify their products and in the year 1911, they started producing Crisco, the shortening made of vegetable oils than the animal fats. In the whole 20th century, P& G continued to prosper. Organization have moved in rest of the countries, both in terms of the manufacturing as well as product sales, becoming the international corporation among their 1930 acquisition of Newcastle on Tyne dependent Thomas Hedley Co. P&G maintained the stronger link towards North East of the England after such acquisition. Additionally, various newer products as well as brand names had been introduced over a period of time & P&G started branching out in newer areas.
Why do you think this strategy became less viable in the 1990s?
This strategy started lesser viable in year 1990. Procter & Gamble’s costs had been very higher due to the extensive duplication of the manufacturing, the marketing as well as administrative facilities in separate national subsidiaries. Duplication of the assets has made sense if national markets had been segmented from each other through…...

Similar Documents

Management Focus

...Study “Management Focus, “Evolution of Strategy at Procter & Gamble,” August 11, 2012 Summary In the early twentieth century, Procter & Gamble continued to grow. The company began to build factories in other locations in the United States, because the demand for products had outgrown the capacity of the Cincinnati facilities. The Procter & Gamble Company (P&G) is a global force of nature. William Procter and James Gamble formed Procter & Gamble, a partnership in Cincinnati, Ohio, to manufacture and sell candles and soap. The partnership began October 31, 1837, with paid-in capital of $7, 192.24. It has grown to be the leading maker of household products in the United States. According to the company‘s website,, P&G‘s operations are sustainable and go beyond the core of their manufacturing operations, extending to a holistic end-to-end view of opportunities. Throughout the twentieth century, Procter & Gamble continued to prosper. The company moved into other countries, both in terms of manufacturing and product sales, becoming an international corporation with its 1930 acquisition of the Newcastle upon Tyne-based Thomas Hedley Co. Procter & Gamble maintained a strong link to the North East. 3) Reread the Management Focus, “Evolution of Strategy at Procter & Gamble,” and then answer the following questions: a) What strategy was Procter & Gamble pursuing when it first entered foreign markets in the period up until the......

Words: 668 - Pages: 3

Procter and Gamble

...PROCTER AND GAMBLE. INC SCOPE ( MOUTH-WASH BRAND IN CANADA) Procter & Gamble is one of the most successful consumer goods companies in the world. There are many brand names found under the name of P&G INC . Scope, a mouth-wash brand, is a part of P&G. Scope was introduced as part of oral hygiene industry in the year 1967, in Canada. Scope had the highest market growth in Canada. 1. What significant changes have occurred in the Canadian mouthwash market in the past three years? The most important change occurred in the Canadian market in the past three years was the introduction of Plax , a pre-brush mouth-wash. Plax quickly gained 10% of mouth-wash market shares which in turn slightly reduced the market share value of Scope. Apart from that, following are the competitive changes that occurred in the Canadian mouth-wash market:- Listerine, which was marketed as a bad breath strategy, introduced the claim fight plaque and helping prevent the inflamed gums caused by plaque in 1988. Listermint downplayed fluoride and removed the seal from the Canadian Dental Association that they added in 1983. In early 1987, flavors were introduced by many brands including Scope, Listermint and Various store brands. This greatly expanded the market but did not affect ......

Words: 845 - Pages: 4

Procter & Gamble

...The Procter & Gamble Company Jake Rehtmeyer Analyst July 8, 2010 Recommendation: HOLD Pros: • • • • • Ticker Exchange Industry Sector Classification Market Cap. 52 Week Price range Recent Price Current P/E Projected 2012 P/E 2009 EPS Projected 2012 EPS Dividend Yield Debt Rating Beta PG NYSE Household Products Consumer Staples Income & Capital Appreciation $175 B $39.37 - $64.58 $59.38 (7/2/2010) 15.9 15.2 $3.58 $4.26 3.2% AA0.60 • • • • Disciplined cash and cost management Investing in capacity, innovation, and consumer value this year 23 $1 billion brands and 20 $500 million brands Poised to grow in developing markets (low costs, great growth potential) Excellent consumer understanding, marketing, and brand-building Cons: Global economic conditions Regulatory environment (environmental, competitive laws) Currency and debt exposure Critical Issues: Near-term results vs. Long-term growth Growth strategy Cost and price pressures Regulatory environment 1 • • • Brief Overview The Procter & Gamble Company (P&G) is focused on providing branded consumer packaged goods. The Company’s products are sold in over 180 countries worldwide primarily through mass merchandisers, grocery stores, membership club stores, drug stores and in highfrequency stores, the neighborhood stores, which serve consumers in developing markets. As of June 30, 2009, the Company was organized into three Global Business Units: Beauty; Health and Well-Being, and Household Care. The Company had...

Words: 6272 - Pages: 26

Procter and Gamble

...What started out as a two man partnership in Cincinnati, Ohio has grown into the world’s largest manufacturer of consumer packaged goods with operations in 80 countries and markets 300 brands in 180 countries around the world. In 1837 William Procter and James Gamble formed Procter & Gamble (P&G) to manufacture and sell candles and soap. Being that Cincinnati was booming from its hog butchering trade the suggestion for the partnership apparently came from their mutual father-in-law, Alexander Norris, who pointed out that Gamble's trade, soap making, and Procter's trade, candle making, both required use of lye, which was made from animal fat and wood ashes. P&G began operations out of a small storeroom with Procter running the store and Gamble ran the manufacturing which consisted of a wooden kettle with a cast iron bottom that was set up behind the shop. In the early years candles where their most important product, but the enterprising partners soon expanded their operations through innovation and acquisitions of other small companies. The first fifty years laid the foundation for the longevity of the company. With their forward looking approach to the business, during a time of financial panic in the U.S. the company continued to prosper as shipments were moving up and down the river and across the country by rail. During the 1850’s the company grew rapidly and moved operations to a bigger factory. During this time the company created its first......

Words: 1887 - Pages: 8

Evolution of Strategy at Procter & Gamble discusses the history of Procter & Gamble’s foreign business strategy and some of the problems they incurred along the way. It also covers some of their business strategy changes the company introduced in order to become more profitable in a changing world economy along with a more globalized less restrictive trade and business environment. It’s summarized with a detailed discussion regarding P & G reorganization and complete restructuring of the company to control its costs by having European plant closures and layoffs. Questions 3 a, b, c a. What strategy was Procter & Gamble pursuing when it first entered foreign markets in the period up until the 1980s? Procter & Gamble clearly used an international strategy for their expansion into foreign markets throughout a large portion of the 20th century. Not until they began to experience slower growth, profits and sales in the in the early 1990’s did they take a serious look into their business model for international expansion. But up to this pint they were unparalleled by any other competitor as the chart shows below. (2) b. Why do you think this strategy became less viable in the 1990s? I feel there are several defendable reasons that P&G’s business strategy began to lose its effectiveness it has had years prior. First, the changing global market created a better market for companies to expand and compete with less restrictive policies from host nations and more openness to foreign direct investment have......

Words: 584 - Pages: 3

Procter & Gamble:

...Executive Summary In this report, I would state and analyze Procter and Gamble (P&G). In the beginning, P&G had just supply soap and candles to the Union armies, but now it has become to a global manufacturing, distribution, and marketing company focusing on providing branded products with superior quality and value. It provided over 300 brands reaching consumers in about 140 countries. P&G is focusing on provided fashion, high quality products for consumers. In order to satisfy consumers, P&G segment its consumers into different group, such as age, gender, ethnicity, material status, and low income consumers. With the segmentation, P&G could analyze what consumers’ demand. Human’s living standard is improved rapidly. People is getting to pay more attention on cleaning products to keep their bodies clean and looking good. Most of the people thought that beauty/feminine care products were just for females, but actually the number of men spending time in front of the mirror, grooming themselves had increased. With the growing trend for men to use beauty products, P&G started manufacturing more products for them and try to satisfy their needs. For example, they designed the products so that they would attract male consumers, by using dark colors for the packaging so that it looked more masculine. P&G is always try to satisfy needs of consumers. With a company which had more than 100 years history, P&G was strong in brand quality reputation, price competition, scales of......

Words: 3374 - Pages: 14

Procter & Gamble: Global Business Strategy

...Procter & Gamble: Global Business Strategy 1) What are the signs and signals that it is time to make a change in an organization? In today’s world, companies are constantly changing with the hope of gaining a competitive advantage. They must adapt to new technologies, different and improved processes, e-commerce, and new procedures in order to survive and flourish. Managing major and minor organizational changes have always been quite a problematic task for managers but deciding the best time to make these changes is often the most difficult. One of the first signs that a change is necessary is when the company’s industry is rapidly growing. It is essential for companies to adapt to these changes in order to stay in the market competitive. Having unhappy customers is also a sign that a change is needed. Customers often create new demand for newly launched types of products and services and it is the company’s responsibility to provide opportunities to meet these needs. Moreover, a strong economy generates an increase in demand for products and services which means that the company must consider expanding and this change might involve increasing staff and adding new facilities. On the contrary, a weak economy can create financial struggles and sometimes a company finds itself needing to cut expenses, increase low-cost marketing or steering the business in a different direction. Oftentimes, a company chooses to change their processes internally in order to maximize......

Words: 760 - Pages: 4


...Introduction Procter & Gamble (P&G) is one of the largest consumer goods company in the world. The company was first built in 1837 by William Procter and James Gamble. Later in 1890, P&G decided to stop being a private company and became a public company. Now, P&G is a worldwide company which has 126,000 employees and sub corporations in more than 80 countries. Their total revenue are 84.17billion in 2013. Their products range including Beauty, Grooming, Health Care, Fabric Care and Home Care, and Baby Care and Family Care. P&G sell their products in more than 180 countries. Some of 50 Leadership Brands are the world’s most well-known household names. Industry Structure and Global Markets P&G is a global company which manufacture operations in more than 40 countries and sell products in more than 180 countries. Their developed market are North America, Western Europe and Japan. The developing markets includes Asia (excluding Japan), Central & Eastern Europe, Middle East & Africa and Latin America. Although markets outside U.S.A contribute a huge portion of total revenue, there are some risks cannot be ignored. For example, the local regulations, laws and trade barriers can affect transactions. And exchange rates may impact adversely on financial condition. It is also difficult to P&G to protect intellectual property and implement policy immediately. The major competitors of P&G are Johnson & Johnson, Kimberly-Clark Corporation and Unilever. They own a huge percentage......

Words: 1738 - Pages: 7

Procter & Gamble

...Procter & Gamble Strategie: We are focused on strategies that we believe are right for the long- term health of the Company and will deliver total shareholder return in the top one-third of our peer group. The Company’s long-term financial targets are: * Grow organic sales 1% to 2% faster than market growth in the categories and geographies in which we compete, * Deliver earnings per share (EPS) growth of high single digits to low double digits, and * Generate free cash flow productivity of 90% or greater. In order to achieve these targets, we have created one over-arching strategy, inspired by our Purpose. At the heart of this strategy is innovating to win by touching and improving the lives of: * More Consumers. We are improving more consumers’ lives by innovating and expanding our product portfolio vertically, up and down value tiers. We continue to successfully develop and launch premium innovations focused on improving consumer value through enhanced performance. We are also serving consumers who are more price conscious through lower-priced offerings with superior performance versus other mid-tier and value-tier alternatives. * In More Parts of the World. We are improving lives in more parts of the world by innovating and expanding our existing product portfolio geographically into new markets. We are increasing our presence in developing markets and increasing the amount of sales from these markets by focusing on......

Words: 2269 - Pages: 10

Procter & Gamble

...Procter & Gamble First of all, an animal is not a human being, so they will respond differently than us humans. Even if there were bad reactions from a drug taken by the animals, that doesn’t mean it is safe for humans to consume. You can look up many examples of drugs that have been recalled because of the dangerous effects it had on humans, even after animal testing. These experiment and testing situations can make animals suffer severely every year. There are many strict guidelines and standards set by PETA that are supposed to make sure that animals are treated well and to reduce the suffering, but still there are many companies that are violating these rules and still abusing animals. What it all comes down to is ethics and your own ethical behavior. To me, I personally believe that animal testing is unethical behavior and is just plain cruel. Also PETA’s members and supporters are increasing significantly every year. More people are standing up and voicing their opinion against animal testing. With more people acting against animal testing, this is raising the ethical intensity to a new level. Mope people can lead to larger negative consequences, with a clear agreement that the decision to keep animal testing will lead to larger negative consequences and a high ethical intensity. Also you must look at what is socially responsible and who you are to be socially responsible to. Many economists and financial analysts still argue that organizations are only to......

Words: 489 - Pages: 2

Procter and Gamble

...“Companies like P&G are a force in the world. Our market capitalization is greater than the GDP of many countries, and we serve consumers in more than 180 countries. With this stature comes both responsibility and opportunity. Our responsibility is to be an ethical corporate citizen—but our opportunity is something far greater, and is embodied in our Purpose.” Procter & Gamble (P&G) is an American multinational corporation headquartered in downtown Cincinnati, Ohio and manufactures a wide range of consumer goods. Operating in Russia since 1991, P&G Russia is one of the fastest developing subsidiaries of the Procter & Gamble Company. It has in Russia a solid portfolio of over 70 P&G brands, the key of them are Ariel, Tide, Fairy, Blend-a-med, Pampers, Always, Pantene, Head & Shoulders, Wella, Gillette and possesses leading market shares in 3/4 of the categories where it operates, esp. detergents, shampoos and diapers. Strategic problem How P&G Russia can progress and have a bigger penetration into the market? They want to develop market further, but problems come from neighbor countries, because the chairman of each region is different, and has his own strategy to maximize the market. P&G needs to develop market share and enforce the sales, but there are competitors, that distract a lot. Tactical problem P&G Russia haven’t studies the Russian consumers properly, their behavior, way of thinking and the way they spend money. Russian`s consumer behavior is very......

Words: 957 - Pages: 4

Procter and Gamble

...As a trainee working for the laundry detergent brand manager at P&G France, you are being asked the following questions in order to prepare a brand review. Question1: What have been the main changes on that market during the past year? Whatever the financial context in France, we can observe that customers are staying loyal to their own brand. The three major leaders, which are P&G, Henkel and Unilever, are keeping their leading position (respectively 27.2%, 20.7%, and 20.3% volume share in June 2011) and the other brands are fighting at the bottom of the graph. However since last year a new competitor is emerging in the laundry industry. As the first graph shows, Henkel is the challenger that have win market share, in December 2010, Henkel have increase his volume to 24.3% rivalling with P&G (26%) and leaving Unilever (17.7). How can we understand the rise of Henkel last year? We will try to explain this main change by comparing data from value share related to the distribution laundry in France. On graph 1 (figure 1), we can find the laundry market represented by curves. In the past (until 2010) the laundry market was largely dominated by our brand P&G, but during the past year (June 2010 to June 2011), the volume of sales has undergone an earthquake. By analysing this graph we can find an emerging challenger to P&G, which is Henkel. On the second wave we can see a conglomerate of minor challengers that are Colgate, NLN, Reckitt Benckiser and......

Words: 3239 - Pages: 13

Procter and Gamble Business Analysis

...Real-World Business Analysis: Procter and Gamble Arlissa Williams MMBA-6570-9 Business Strategy for Competitive Advantage The Business Model Procter and Gamble is the world’s largest consumer products company that provides “branded products and services of superior quality and value that improve the lives of the world’s consumers, now and for generations to come.”, 2010 - “New CEO Bob McDonald, who assumed office in July, is on the road promoting P&G's ‘purpose-inspired growth’ strategy of ‘touching and improving more consumers' lives in more parts of the world... more completely’"(Kanter, 2009). In 2007, P&G created a five prong business strategy to assist the company in growth, both financially and organically. Its business model focused on innovation in all parts of the company. Using the core strengths of consumer understanding, scale, innovation, go-to-market capabilities, and brand-building, virtually all the organic sales growth delivered in the past nine years has come from new brands and new or improved product innovation. Not only did the company want to ensure that its products were what the customers desired, they wanted to create a lasting positive effect on the community. The five strategies were as follows: Products: “Delight the customer with sustainable innovations that improve the environmental profile of [the] products” (P&G Strategies, Goals and Progress, 2010). In order to provide the most innovative products to the......

Words: 2627 - Pages: 11

Procter & Gamble, Inc. Scope

...CASE Procter & Gamble, Inc. Scope As Gwen Hearst looked at the year-end report, she was pleased to see that Scope held a 32 percent share of the Canadian mouthwash market for 1990. She had been concerned about the inroads that Plax, a prebrushing rinse, had made in the market. Since its introduction in 1988, Plax had gained a 10 percent share of the product category and posed a threat to Scope. As Brand Manager, Hearst planned, developed, and directed the total marketing effort for Scope, Procter & Gamble’s (P&G) brand in the mouthwash market. She was responsible for maximizing the market share, volume, and profitability of the brand. Until the entry of Plax, brands in the mouthwash market were positioned around two major benefits: fresh breath and killing germs. Plax was positioned around a new benefit—as a “plaque fighter”—and indications were that other brands, such as Listerine, were going to promote this benefit. The challenge for Hearst was to develop a strategy that would ensure the continued profitability of Scope in the face of these competitive threats. Her specific task was to prepare a marketing plan for P&G’s mouthwash business for the next three years. It was early February 1991, and she would be presenting the plan to senior management in March. ■ COMPANY BACKGROUND Based on a philosophy of providing products of superior quality and value that best fill the needs of consumers, Procter & Gamble is one of the most successful consumer goods companies in the world...

Words: 5598 - Pages: 23

Case Study: Procter & Gamble Business Strategy

...Case Study: Procter & Gamble Business Strategy Summary: Procter & Gamble, the internationally known company that was founded in 1837, is the producer of various everyday household goods. Over the many years of manufacturing, marketing, and distributing products, the company developed many business strategies and adjusted them accordingly when needed. The first strategy Procter & Gamble used was to have mass production of goods out of their hometown, Cincinnati. Then they would have a group of smaller, independent companies handle the manufacturing, marketing and distributing of those products. During this time, the 1960’s, this way had worked due barriers to cross-border trade. This meant that the company could only supply goods to countries that bordered the one the products were manufactured in. This strategy began to fail primarily because the company’s costs were too high. By the 1980’s though, the barriers began to fall and the once national market slowly become a global market. As this happened the retailers that carried Proctor & Gamble’s products started demanding discounts, which undoubtedly P&G had to somehow provide. The company started off by closing many plants and focusing the manufacturing to exclusive ones they thought would understand the local economies. After this plan failed to lower costs, Proctor & Gamble made specific units to manufacture a certain category of products, for example, body care. Each branch, per se, was in charge of its only production...

Words: 795 - Pages: 4