Corporate Vision of Procter and Gamble - Term Paper Example

Number Procter and Gamble Introduction to Procter and Gamble Procter and Gamble has been founded in the year1837. The founders of Procter and Gamble are William Procter and James Gamble. The first products that were launched by this organization were soaps and candles. Procter and Gamble is considered one of the top notch organizations in the area of consumer related products (PG.com Home: Sustainability, company, brands, 2011). The statistics of the year 2007 depict that Procter and Gamble had revenues that were amounting up to $68.2 billion. According to these statistics, it also depicts that this organization is ranking on the number 74 in the fortune 500 list that consist of the top most organizations operating in the world. Being in the Fortune 500 list shows that the organization has strong worth and quality while they conduct their business in producing goods and services for the consumers (PG.com Home: Sustainability, company, brands, 2011). The operations of Procter and Gamble are present in above 80 countries worldwide. The brand range of this organization is numbering up to 300. That is 300 brands in the market of around 160 countries at a global level. The brand range of Procter and Gamble consist of beauty care products, the Gillette products and the various types of household care products (PG.com Home: Sustainability, company, brands, 2011). Procter and Gamble have the confidence that 3 billion times a day, the products of P&G touch the lives of the people. The headquarters for this organization is in Cincinnati, Ohio. The number of employees working for this organization is around 138,000 employees. Corporate Vision and market description The corporate vision of Procter and Gamble has been defined in the set purpose of Procter and Gamble that is as follows: To provide products and services to consumers that are branded and possess a high quality level and also give valuable products to consumers so that consumers have a healthy life style and also focus on healthy living for the generations that come ahead. This vision for Procter and Gamble will result in successful sales of the products due to the consumers; this makes the organisation more profitable and valuable, allowing the communities and shareholders to have a successful living and working life as well. Principles of the organization help in framing a strong mission and vision of the organization. The principles of the organization should be embed within the employees so that they perform their work accordingly and produce the best results. The Principles of Procter and Gamble are: To show respect to all individuals. By showing respect, all individuals will tend to work in a sincere and hardworking way. To equally value the interests of the organization and the interests of the individual. If the individual’s interests and the organization’s interest are in alignment with each other then they tend to produce successful results for the organization. To be strategically focused on the work processes. Focusing strategically will allow the organization to work towards the right direction and also in a systematic way so that all work processes are done properly. To focus on innovation and make that the cornerstone of success. Innovation in products and services attracts consumers to a very large extent, therefore constant innovation retains customers from switching to other products and services. To be externally focused. The external environment of the business needs to be focused upon constantly so that Procter and Gamble remains informed about what is happening in the business market. To value personal mastery. Personal mastery allows successful performance from the employees and also allows the organization to become more successful and profitable. To always work upon the best. Aiming to work upon the best results always in the best of everything. Aiming high is the key to success always by businesses. Market Description The range of product provided by P&G is quite diversified. Procter and Gamble has the following range of products that they provide to the market. Personal and Beauty care products—Examples of such products are Olay, Pantene, Wella, and other such types of deodorants, shampoos, and skin care products. House and Home care products-Examples of such products are Fusion, Mach 3, and Braun. Health and Wellness Care Products- Examples of such types of products are Always, Oral B and Actonel. Baby and Family Care Products- Examples of such types of products are Ariel, Downy, and Tide. Pet Care and Nutrition Care products – Examples of such types of products are pampers Charmin and Bounty. SWOT analysis Conducting a SWOT analysis by the organizations is a very important task. The SWOT analysis depicts the present situation of the organization and where they currently stand from their competitors. By analysing the strengths and weaknesses, the organization knows on which areas they should concentrate more so that they can overcome their weaknesses. Strengths The strengths for Procter and Gamble are as follows: It possesses a leading market position. Having a strong market position allows Procter and Gamble in having the confidence of taking certain risks as it has built a strong position in the market. The portfolio range for this organization is huge and diversified allowing the consumers to choose from a variety of choices. Customers are of different nature and types and each customer may have a different choice. Having variety in product ranges allows the customers to choose from a good list and be satisfied with the product according to need. Financially, this organisation is extremely strong as it has been conducting a successful and profitable business that allows it to invest in other strategic business units easily. Being financially strong allows the risk factor to be diversified into many areas and the company comes in a strong position to take different types of decisions easily. Weaknesses The weaknesses for Procter and Gamble are as follows: At times, Procter and Gamble has to face quality control problems in certain belt lines of its products. Quality control issues are a very important problem as quality is a factor that should not be compromised on under any circumstance. The areas in which quality issues arise should be fixed at the earliest level by Procter and Gamble. The revenue figures in the market of Northeast Asia have faced declines that are an alarming sign for this organization. All markets need to earn a good amount of revenues so as to attain the strong market position. Decline in revenues should have specific strategies applied in that market so that the position gets back to normal. Opportunities The opportunities for Procter and Gamble are as follows: One of the biggest opportunities lying with Procter and Gamble are to start their operations in developing markets as the rate of being successful in developing markets is usually high. Developing markets have a lot of potential to attract the consumers towards the product by the various marketing activities. The need of the product needs to be embedding in the minds of the consumers. By analysing the demographic trends around the world, the invention of new products and services can be made for the consumers. Procter and Gamble can therefore accordingly develop new products in the new markets. Threats The Threats for Procter and Gamble are as follows: The main threat to Procter and Gamble are from its competitors. The energy price increases may force the organization to increase the cost of their prices as the cost of production would increase. When cost of production increases, the cost of the product for consumers also increases and this way the demand for certain products may go down due to increase in prices. In the United States, and the Euro Zone area there are signs seen for economic slowdown that will impact the profitability level for Procter and Gamble. The new regulations in certain areas may focus on amending the laws of the organisation according to the suitability of the laws of the country. Organizations have to follow the laws of the country so as to conduct successful operations in all countries. Four P Analyses The model of SIVA is categorized as the demand/customer-centric model. This model has been considered as the alternative to the Four P supply side model of marketing for the organizations. Four P Model SIVA Model Product Solution Price Value Place Access Promotion Information Solution The product element in the Four P model is the Solution element in the SIVA model. The different types of product ranges provided by Procter and Gamble are the solution for the customer demands. Examples for each of the ranges are Head and Shoulders, Gillette, Crest, Pringles, Ariel and Bounty. All these different products serve the purpose of satisfying consumer needs and demands in the respective product categories. Value The price element in the Four P model is the value element in the SIVA model. To remain competitive in the industry, the prices or the value of the product are set according to the ease of the customers so that masses can afford the product easily. Value is maintained while setting the prices of the products by Procter and Gamble. Access The place element in the Four P model is the Access element in the SIVA model. Procter and Gamble is a global organization and it has set up its operations in many of the countries worldwide. They have focused strongly in catering all the target market areas and creating awareness in all the potential areas where buyer purchasing power is present. All developing markets are in the accessibility plans of Procter and Gamble. Information The promotion element in the Four P model is the information element in the SIVA model. Creating the knowledge and awareness of the availability of the products in the market is a very important task by the organization. Customers need to know that certain products are present in the market that may be the solutions of their problems. Therefore information about the products needs to be circulated in the target market areas. Procter and Gamble conduct their marketing activities vigorously so that the customer knows which products are available in the market and which products have promotion packages on them (Dyer, 2004). Competitors The competitors for Procter and Gamble are as follows: Unilever Company This is a multinational organization that is British-Dutch in origin. It offers many consumers related branded products in the category of foods, personal care, beverages and cleansing agent products. It is one of the toughest competitors for Procter and Gamble (About Us | Unilever Global, 2011). Kimberly-Clark Co Kimberly Clark is an American organization. The focus of this organization is towards making consumer products that are usually paper based. The most famous brands for this organization is Kleenex tissues, the hygiene related product Kotex, Kim Wipes, Huggies diapers and other such types of products. The organization is based in Irving, Texas and the number of employees working for this organization is around 56,000 (Our Company | Kimberly- Clark, 2011). Johnson and Johnson Co This one is an American organization that was founded in the year 1886. The nature of Johnson and Johnson business is that they focus on pharmaceutical products for consumers. Medical products and packaged goods are some of the other product portfolio for this organisation. Johnson and Johnson are listed in the 500 fortune organizations of the world (Johnson & Johnson History- Johnson & Johnson, 2011). Corporate position on social responsibility Procter and Gamble has a strong concern towards the social responsibility element. They strive towards the economic well being of the country in which they are conducting their operations, along with conducting social development and environmental development to the country. This way Procter and Gamble ensures that they provide better quality products to the present as well as the future generation of the world. Water, health and hygiene are the concentrated areas by P&G to have a sustainable global development (The Greening of Corporate America #7 Procter and Gamble (P&G), 2008). Procter and Gamble has focused on the investing portfolio that has been devoted towards diversity. This socially responsible step focuses on targeting women and the investors that are present in minority towards their empowerment in terms of economic conditions of the country (Corporate Social Responsibility Profile for Procter and Gamble Company, 2010). Alternatives/contingencies Procter and Gamble has the achievement of consumers giving recognition that Procter and Gamble has a systematic contingency planning element being run in their organization. Procter and Gamble has always focused on the strategy that the Consumer is the Boss. Having such recognition is highly remarkable as all organizations do not achieve this status from the consumers. The Hurricane Katrina storm is one of the well known contingency planning acts done by Procter and Gamble. The contingency planning in this hurricane situation has demonstrated the wise character of its employees. The planning demonstrated that (Harrison, 2006) The employees care for the people and they do whatever is right for them. The hurricane Katrina affect showed the way employees of Procter and Gamble deal with challenges. The strong culture of ownership in business, the in-depth insight of leadership allowed the industry of Procter and Gamble back into the operations immediately in a time period of three weeks after the hurricane had affected the country. Positive organizational cultures allows the work processes to take place successfully in times of emergency as maximum level of cooperation and coordination is found to be present amongst employees. Such successful contingency planning led Procter and Gamble to resume their operations at the earliest possible level after the natural disaster that occurred. Procter and Gamble ensures that its emergency planning is up to date under all conditions (Harrison, 2006). They have plans that focus on reducing the level of interruption in business of all types. The emergency planning segment focuses on the development of the continuity plan for the business that is constantly updated annually so that it works at the time of need under different unexpected situations being observed by the organization. Conclusion The case analysis of Procter and Gamble has been discussed in the report above. Procter and Gamble is one of the successful and profitable organizations around the world. It has also made its presence in the list of Fortune 500 companies list that show the credibility and worth of the organization. It focuses mainly on consumer brands and ensures that high quality products are provided to their customers so as to ensure economic well being in the country in which they are conducting their operations. The principles of Procter and Gamble shape up the strong vision of the organization and allowing them to be successful in the business market. Procter and Gamble concentrate highly towards corporate social responsibility and sustainability development. It is one of their main areas of concern and they take part in activities to remain an active member in the area of corporate social responsibility. Procter and Gamble also focus on the proper implementation of contingency planning in the organization so that in times of emergency situations they are already prepared in dealing with the circumstances. Contingency planning is not done by many of the organizations and those that have such plans tend to resume their operation at an immediate level without having to bear many losses. Works Cited About Us | Unilever Global. Creating a better Future Everyday, 2011. Web. 29 May 2011. Corporate Social Responsibility Profile for Procter and Gamble Company. Social Funds, 2010. Web. 29 May 2011. Dyer, Davis; Frederick Dalzell, Rowena Olegario. Rising Tide: Lessons from 165 Years of Brand Building at Procter & Gamble. Harvard Business School Press. 2004. Print Harrison, Keith. Forces of Business and Forces of Nature – Building an Agile Supply Network. September 2006. Web. 29 May 2011. Johnson & Johnson History- Johnson & Johnson. Our history, 2011. Web. 29 May 2011. Our Company | Kimberly- Clark. Our Company, 2011. Web. 29 May 2011. PG.com Home: Sustainability, company, brands 2011. Web. 29 May 2011. The Greening of Corporate America #7 Procter and Gamble (P&G). The Greening of Corporate America, 5 June 2008. Web. 29 May 2011. Read More