Procter and Gamble

QUESTION 1

Procter and Gamble’s strategy for success in the market place is to focus on core business and on P&G’s leading brands. In a recent industry survey of U.S. retailers, P&G was ranked #1 in six of eight categories: clearest strategy, most innovative, most helpful consumer and shopper information, best supply chain management, best category management, and best consumer marketing. This amazing success is due to its clear strategies, core strengths, balance, and leadership. As well they are continuing to focus on core businesses and on P&G’s leading brands, countries, and customers. Another opportunity is they have been investing in growth with lower-income consumers in developing markets. P&G’s growth is not dependent on any one channel or customer, their objective is to serve all consumers and to grow with all customers. For all of this we can see why P&G has been in the market place for long time.

P&G rely primarily in product leadership. Leadership is important because it creates opportunities to grow, to sustain growth over the long term, and to earn superior returns from consistent growth. P&G aspires to be the leading consumer products company in sales, profitability, market capitalization, shareholder return, and the most important in each of their core strengths. Also they are creating sustainable leadership advantages in branding, innovation, go-to-market capability, and scale.

QUESTION 2

Protect and Gamble have many different risks in which they have to compete such as: the difference in costs, economic pressures, the inability to meet its business plans and all environmental regulations that change daily. Also it is important to note that its market environment is highly competitive, with both global and local competitors, this cause that they have to reduce their prices and consequently their profit margin will be low. For example in the beauty markets in which they compete comprise approximately $200 billion in...