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Chapter 9 & 10 - Assignment Example

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Chapter 9 & 10

Question # 2: P&G has now realized the importance of the social media and already shifted its advertisement budget towards social media. The company needs to increase its budget for social media such as face book, twitter as this media has great influence in the mind of people. P&G should also involve in social causes to attach customers emotionally towards it and to build strong brand images. For that purpose, It can offer scholarships to needy and meritorious people, and help needy people. Question # 3: The world is facing economical crises and the buying power of the consumer is reducing which can be worst in future. This is a significant situation which might affect P&G badly. Moreover, the R&D and marketing cost of P&G is increasing with the passage of time which can be problematic for the company as the world is now searching new techniques to reduce cost. In addition to that, increasing competition in FMCG industry is also the major risk which P&G can face in the future. Case 2: McDonald’s Question # 2: The core brand value of McDonald is its high quality food for customers with speed and convenience. Initially, McDonald was offering quality Hamburger but it expanded its menu with other dishes like Happy Meal, Big Mac, Egg, McMuffin etc. The company started expanding its business domestically as well as internationally due to its premium quality of food. However during 1990s company lost its direction i.e. high premium food. It focused to further expand its network of restaurants. It was not focusing to train employees properly and thus customer faced poor services and started losing the interest from the company. The company realized this situation and refocused its 5Ps and adopted the policy to offer different dishes for different region according to their culture and environment. Through this plan McDonald refocused on food and service quality. It also started offering healthy food due to the increasing concern of customers regarding obesity. It also included ice-cream and coffee in its menu. Question # 2: McDonald should not change its strategy because the strategy worked well for it. It has refocused on its core values which it lost and had negative response from consumers. Therefore it will be a great risk for McDonald to change its strategies. McDonald has expanded its menu and added great varieties in it. Though its core product was Hamburger but it included new food to attract new segments of the market. Moreover, they have included healthier food in the menu and offer to health conscious people at a premium price. The strategy to offer different food for different markets according to their culture and environment has also worked in favor of McDonald. In addition to that, $1 menu was also the marvelous strategy of McDonald which targeted lower income people and teenagers. Question # 3: McDonalds might face several risks in the future. It is a multinational company which can face treasury risk due to the variation in US Dollars against major currencies. Global instability in the economical crises might also affect McDonald’s business. Another greater risk that it might face is the entrance of new players in the market. The living standard of the people is increasing and they are going to more delicious and quality food. Therefore, the ...Show more


Case 1: Procter & Gamble Question # 1: Being a market leader in several categories is not an easy task for P&G. The major challenge is to maintain the market share as a market leader for all the categories. In a globalization era where consumer demands are changing rapidly and the players are coming up with new innovative products, threat to maintain its position as a market leader have increased…
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