Company description and its businesses
P&G is a multinational firm that offers a wide variety of products globally. The firm products can be categorized into three major categories, which include: health and wellbeing products, beauty and grooming products, and household items. The products are sold in different merchandises across the world. The firm had previously produced Crisco Shortening, peanut butter, Folgers coffee, and orange drink products, however, the firm stopped producing them due to low stock turnover. The firm was founded in 1837 in Ohio by James Gamble and William Procter to produce quality products in the market (Badal 546).
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P&G Company is rated as one of the best performing firms due to its high profit and a high growth rate. Also, its products such as soaps have been rated highly due to their quality. The firm success has been attributed to its innovation strategy, which ensures that the firm produces new brands in the market to address the need of the consumers (Badal 546).
The firm has twenty-four main products that contribute to high returns due to its huge sales in the market. Besides, the company has a 17% market share in the U.S., which shows that the company if performing well in the market. The main product that has the highest sales in the market is pampers, which has an annual sale of over $9 billion in the market (Badal 546).
P&G does not have any set vision statement, however, the firm has a mission statement, which states,
We will provide branded products and services of superior quality and value that improve the lives of the world’s consumers, now and for generations to come. As a result, consumers will reward us with leadership sales, profit and value creation, allowing our people, our shareholders, and the community in which we live and work to prosper (Badal 546).
The mission statement provides information about the company, its products, the goals to be achieved, and ways of achieving the goals set. The firm objective is to ensure that the consumers are satisfied with the products they offer. Also, the objective states what the stakeholders in the firm will achieve after the realization of the goals.
Proposed Vision Statement
The firm can adapt the following vision statement; we intend to be the leading provider of: Always, Wella, Tide, Pampers, Olay, Crest, Charmin, Bounty, Whisper, Braun, Downy, Gillette, Pantene, Lenor, Iams, Fusion, Febreze, water filters, Glade, Air Wick, soap opera, Glade, Aerial, and baby care products on the market, by providing products that match our values and the consumers’ needs in the market. The reward created will be shared among the company stakeholders.
The new vision statement shows the products that the company provides in the market. Besides, it shows ways the customers will benefit from the goods and services provided in the market. The vision statement also shows ways the company stakeholders will benefit from the business involvement in the industry.
Mission statement analysis
P&G has yet to develop a vision statement, however, the mission statement is effective since it shows the intentions of the company and acts as a public relation tool since the public understand the purpose of the firm.
The firm can improve its mission statement by adopting the following mission statement, quality and precision are in our heart as we ensure that we provide products that create value for the consumers all over the world. We strive to produce quality products using current technology that meets our set historical values. Also, we intend to achieve our objective by taking care of the firm employees since they are the foundation of the firm.
|Current Mission Statement||Proposed Mission Statement|
|P&G has customers around the world since it is a global company. The current mission statement targets the consumers of different products produced by the company||The proposed mission statement targets consumers who are concerned about products’ quality.|
|The firm has over twenty-four major products based on its sales level.||The proposed mission purpose is to increase the market share of the twenty-four products in the market|
|The firm main market is the U.S.A., however, it has diversified its market to other geographical positions in the world.||The proposed mission aims at improving the firm’s product penetration and diversification in the market.|
|The current mission of the firm does not specify its technology||P&G will use modern technology to produce, market, and distributes its products in the market|
|The firm is committed to growth since it has invested in its innovation strategy.||The proposed mission indicates the firm commitment to growth by providing new products using modern technology.|
|The firm values are to ensure quality and customer satisfaction through the provision of products that create utility for the consumers||The proposed mission affirms the company’s commitment to its values.|
|The main competitive advantage of the company is its brand name and its quality products.||P&G proposed mission ensures that the firm develops a positive public image through the provision of quality products|
|The current mission statement states the firm’s concern to its stakeholders by ensuring that the revenue collected will enable them prospers.||The mission statement ensures that the employees and other stakeholders are taken care of by the organization through an appropriate reward system.|
|The current mission statement fails to address employee welfare in the firm.||P&G’s proposed statement ensures that the employees are valued the firm.|
The firm has various opportunities, which if utilized can lead to increased profit level and growth. The opportunities include improved international trade laws, improved consumer purchasing power, technological development, a relatively stable political environment across the world, the competitive position of the firm, and cultural factors (David 127). Trade laws have improved due to the formation of the trading bloc that enhances business. Besides, the company can invest in Japan and China, which are open to international businesses. The firm can also invest more in Africa and other Asian countries due to political stability.
The firm faces the following external threats, changing internal laws, changing consumer behavior, political instability in some countries, rapid technological changes, cultural barriers, and competition. The threats affect the firm’s ability to reach its objectives (David 122). For instance, the firm faces high competition from Unilever. Technological change has affected the company brand products since they have to manufactured using new technology. This means that the management has to keep on changing its technology.
Competition profile matrix
Critical success factors are issues that are important to the firm for it to be successful. The factors include technology adaptability, competition strategy, financial management, legal requirements, marketing strategy, and the firm’s brand name. The firm needs to adopt innovative competitive strategies to reduce the level of competition from other businesses. The level of competition is high in the market, hence the firm has to ensure that its marketing strategy wins more market share than its competitors do in the industry. P&G also has to ensure that it can adapt to the changing technology to ensure that they use it to their advantage (David 182).
The technological change is essential to the firm since failure to adapt to the change can lead to failure. The firm has to ensure that it complies with the legal requirements in each country to avoid legal suits. This is crucial in ensuring that the firm’s brand name is protected. P&G has to ensure that its available capital is effectively managed to fund its project, hence ensuring the growth of the firm. The firm is rated highly by consumers due to its quality products and its ability to provide products that create utility for the consumers (David 95).
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The firm main competitors include Unilever, Colgate-Palmolive, Johnson & Johnson, Clorox, and Kimberly. P&G is one of the market leaders in the industry due to its high market share in the global business. Also, the firm has a positive brand name due to its quality products, which creates customer loyalty. The firm innovation strategy has ensured that it remains one of the market leaders since it produces new products for the market. From the above case analysis, it is possible to conclude that the firm is a market leader in the industry since it has a high market share (David 113).
External Factor Evaluation matrix enables a firm to determine the risks faced by the firm and develop measures to deal with the threats. Besides, it allows the management to determine the organization’s opportunities in the market and determine, which opportunity to fund (David 78). P&G has various opportunities in the market, however, the main challenge is to determine which to fund first. The firm needs to weigh the opportunities and risks based on a weight of 0-1. The next step is to rate the threats and opportunities based on current strategies. The final approach is calculating the sum of the scores. The following table is an evaluation of the firm threats and opportunities based on the EFE matrix.
|Changing Internal Laws||0.05||2||0.10|
|Political Instability In Some Countries||0.05||2||0.10|
|Competitive Position Of The Firm||0.9||3||0.27|
Badal, Alen. “Procter & Gamble Company”. The Union Institute (2011): 546-555. Print.
David, Fred. Strategic Management Concepts: A Competitive Advantage Approach. Boston: Pearson, 2013. Print.