BUS - 102 (Case Study Sample)
the task entailed developing a case study for Procter & Gamble. Indeed, the paper illustrates the applicant's acumen when writing case studies, especially due to the inclusion of a chart and historical anecdotes.source..
Procter & Gamble: An Analysis
Procter & Gamble: An Analysis
As an ancient company, Procter & Gamble (P&G) has several elements that reflect the perennial standards of multidivisional and global organizations. While initially established to produce candles and soap, the firm has expanded its product portfolio through innovations, mergers, and acquisitions. Further, ingenious operational processes, evidenced through the use of advertising, brand management, marketing research, and direct distribution have eased the costs of maintaining supply chains. Indeed, to manage its brand, the firm has had to shift focus from quick profits and target long-run value maximization that enhances equity and generates customer loyalty. More importantly, having internal and external networks for developing innovations cause incremental productivity within the firm and higher stock valuations. Despite aiming to maintain global value chains, P&G should retain its preference for customer value and incorporate new technologies and logistic systems.
While established in 1837 within Cincinnati, Ohio by William Procter and James Gamble, both American immigrants with British and Irish origins, Procter & Gamble has metamorphosed into a reputable firm. Since then, the company has initiated operations that premise on core values including, new constructions, future investments, and research and innovation. Presently, the organization produces goods such as Duracell, Head & Shoulders, Pampers, Oral-B, Always, pampers, and Ariel within 180 countries and regions. Doing so requires that the company incorporates merchandisers, drug stores, distributors, e-commerce, grocery stores, pharmacies, and high-frequency stores into the supply chain while being supported by more than 110, 000 employees. As a publicly-traded company, P&G is listed on the New York Stock Exchange (NYSE) with price shifting according to its core business segments of health care, family and feminine care, fabric and home care, beauty, and grooming. Since 1837, Procter & Gamble has transformed into a reputable firm that acknowledges the consequences of business and designs effective sustainability strategies.
Based on core economic principles, P&G seeks to maintain and improve its market share and revenues. To that end, the company often attempts to measure profitability as estimated using earnings per share (EPS) and net profit margin, both of which show after-tax income generated for every quantity of common stock and after-tax profits accrued per each sale. Accordingly, Procter & Gamble assigns its business units along with a four-dimensional industry segmentation, but reports using five sectors that reflect American corporate law. For instance, in the beauty, personal, and hair segment, P&G has a total market share of 50.39 %, probably due to the global dominance of brands such as Olay, Head & Shoulders, and Pantene. Regarding its influence within the Home Care and Fabric sector, Cervantes et al. (2015) state:
Generally, P&G holds the number one, or number two share positions for fabric care. However, in 2014, the Firm became the global market share leader wielding 25% of the global share, which can be attributed to the growth in its Tide, Ariel, and Downy brands. (4)
Other sectors in which the firm competes reflect similar evidence, with the company ranking first or second among key markets and ensuring consistent improvement in market share and profitability.
To maintain its EPS, P&G incorporates a mission and vision statement that espouses core values, ethos, and beliefs, which guide business operations. For instance, Cervantes (2105) posits:
Procter & Gamble’s mission statement is as follows, “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 communities in which we live and work to prosper.” (6)
Similarly, the author highlights the firm’s vision as “Be, and be recognized as, the best consumer products and services company in the world” (6). Therefore, the company incorporates mission and vision statements that prioritize increasing consumer utilities, thereby guaranteeing incremental growth within its local communities, employees, and shareholders. Even then, the mission statement reflects how P&G has operations in global markets, necessitating a continuous change in the brand portfolio. Such elements ensure that the company maintains its EPS growth while delivering products that offer superior value and quality.