FINANCIAL ANALYSIS: TEMPLATE
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EXECUTIVE SUMMARY:
Proctor and Gamble® was founded in 1837 by William Proctor and James Gamble in Cincinnati, Ohio. Today the company is the world’s largest producer of consumer goods with over 300 brands in over 180 countries. The company has a significant advantage over its competitors because of market position and brands that everyone knows such as Tide®, Pampers®, Gillette®, Olay® and many more.
The company’s purpose is to “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 creations, allowing our people, our
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SWOT ANALYSIS:
STRENGTHS • Worldwide brand recognition • Leading market position • Diversified product portfolio • Strong focus on research and development • High visibility due to marketing and advertising • Strong financial position
WEAKNESS • Competition from domestic and international brands • Slowdown in global economic condition • No private label products for customers • Majority of health and beauty products are for women
OPPORTUNITIES • New markets in third world countries • More Green Eco friendly products • Additional mergers and acquisitions • Increase penetration of urban areas
THREATS • Competition from unbranded or local products • Rising energy costs • New regulations • Global economic conditions • Counterfeit goods
RECOMMENDATIONS AND JUSTIFICATIONS:
1. RECOMMENDATION #1: Should the firm increase their capital expenditures to increase competitiveness? This will almost always be true but what segments of the business get the most capital allocated to them and why?
Proctor and Gamble may be the leader in its industry, but in order to maintain their status, they need to stay on top of their game if they are going to maintain this ranking. Their biggest competitors, Johnson & Johnson and Kimberly Clark are constantly looking for ways to improve
Procter and Gamble Co. also know as P&G, is an American multinational consumer goods company, founded by William Procter and James Gamble. Its products include cleaning agents and personal care products. It has in its kitty global brands such as Ariel and Tide in the Fabric care segments and Head & Shoulder, Pantene and Rejoice is the Hair care segment. For this case study selects P&G Company as it has an important role in the consumer segment products. As P&G was a popular company, the financials statement shows better performance in the previous year.
Procter & Gamble Co is an American global consumer goods company. P&G have various products that range from personal hygiene products to household products.
Procter & Gamble has strong brands to its name. The company boasts 24 billion dollar brands. It also claims 50 leadership brands that contribute 90% to its overall sales and profit.
They hope to become the most innovative and responsive brand within their market without compromising their values that make them who they are. They strive to commit to providing top quality products at affordable prices,
Procter & Gamble, P&G, is a famous company in the world because it was established in 1837 and made soap and candles to sell in U.S. government during civil war. Its stores located in more than 80 countries and this company has more than 300 brands such as pampers, Tide, and Pantene. Its products include cleaning agents, pet foods, and personal care products, as well as products for beauty and health care. It is very easy to see its products in the stores. In fact, Gillette is also a famous brand and was established in 1901. Its products include personal care and batteries. When I
The Procter & Gamble business strategy is to focus on creating new brands and categories so the company can focus on being the best in branding, innovation and scale. This is what sets this company apart from many of its competitors. The Proctor and Gamble are the global leader in all of their core businesses within the company which consists of laundry, baby care, hair care and feminine protection. This report is designed to understand the company’s business model and strategies, and analysis how the P&G has formulated its business-level strategies to pursue its business model.
RECOMMENDATION#1: Should the firm increase their capital expenditures to increase competitiveness? This will almost always be true but what segments of the business get the most capital allocated to them and why?
Proctor & Gamble co is a consumer goods company which has delivered product innovations such as Tide, Crest, Pantene, Downy, Pampers, Swiffer, Febreze, Olay and Gillette. P&G is also social responsible so they have started innovative programs such as Children’s Drinking water.
The industry and the sector can be classified as being in a mature state. Despite this, many companies in the sector are able to achieve higher profit margins due to strong brand name recognition, innovative products and good marketing techniques. A trend observed in this industry was to focus on primary strengths rather than on diversification strategies, which was the case in 1990s. This allowed many companies to sell off their non-profitable businesses and for others acquiring of cash cows. Procter and Gamble followed the suite when it acquired Clairol.
To inspire moments of optimism through our brands and actions. To create value and make a difference everywhere we engage.
P&G is a large multinational corporation from United States which deals in consumer goods. It has its head quarter in Cincinnati, Ohio. William Procter and James Gamble are the founders of this multinational corporation. William Proctor was a candle-maker and James Gamble was soap-maker. They were married to two sisters and their father-in-law helped them establish this business. In 1837, P&G was born. During fiscal year 1858-59, company was able to achieve the milestone of $1 million with the help of just around 80 employees. Most of the success of the company was based on the innovative products. Currently, company has more than 180 brands but it is currently focusing on just 80 major brands which earn about 95% revenue for the company. In 2014, company reported $83.1 billion revenue in 2014 and it is recognized to be leading global company through consistent performance of most of its brands (Procter and Gamble, 2015).
Procter & Gamble, one of the world's premier consumer goods companies. Some 99 percent of all U.S. households use at least one of P&G's more than 300 brands, and the typical household regularly buys and uses from one to two dozen P&G brands. How many P&G products can you name? Why does this superb marketer compete with itself on supermarket shelves by marketing seven different brands of laundry detergent? The P&G story provides a great example of how smart marketers use segmentation, targeting, and positioning. PROCTER & GAMBLE Procter & Gamble (P&G) sells seven brands of laundry detergent in the United States (Tide, Cheer, Bold, Gain, Era,
Proctor and gamble being a company that is widely spread across many countries such as Asia, Europe, Latin America, India attributes its success to its organizational structure that’s unique and tries to connect with customers at the global as well as tries to address the needs of the local communities. It strives for an organizational structure that has less overlaps and is as efficient as possible. During 1990s after a rapid expansion and growth, the company saw a loss in profitability and growth slowing down. Many research analysts pointed it out to the fact of the company being too conservative and risk averse. It had not launched an important brand since 1984 and the other products that it had launched in the same year such as Dryel (home
While non-investors may not be too familiar with Proctor & Gamble (PG) they have probably heard of one of its many subsidiaries which include Pantene, Old Spice, Head and Shoulders, Gillet, and Crest to name a few. For the most part, P&G competes in the consumer products retail industry. Since its founding in Cincinnati, Ohio in 1837, the company has grown tremendously and today it operates around the globe.
Proctor & Gamble was founded by William Proctor and James Gamble in 1837 as a candle and soap maker company and since then the company has gone down in antiquity with many “firsts” for the business world and prolonged their company with large number of well-known brand names. The Proctor &