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Financial Analysis Proctor and Gamble

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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 …show more content…

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

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