Business Research and Design Report 2022

Running head: BUSINESS RESEARCH AND DESIGN
BUSINESS RESEARCH AND DESIGN
Name of the Student
Name of the University
Author Note

BUSINESS RESEARCH AND DESIGN1
Table of Contents
Company and the industry...............................................................................................................2
Company background..................................................................................................................2
Industry benchmark.....................................................................................................................2
Challenges for the industries.......................................................................................................2
Business enhancement.....................................................................................................................3
Research aimed at understanding customers...................................................................................4
Research aimed at understanding innovations.................................................................................4
Research aimed at understanding the future....................................................................................5
Reflections.......................................................................................................................................6
References........................................................................................................................................9

BUSINESS RESEARCH AND DESIGN2
Company and the industry
Company background
The selected organization is Procter and Gamble. The organization is engaged in the
production and manufacture of consumer goods. The company was founded in 1837 by the
entrepreneurs Willam Procter and his partner James Gamble. It produces a large variety of
products that range from health care to food and cereals. The brand is known more as a personal
care brand focused on health and hygiene. The company has a current revenue of 67.9 billion US
dollars (Procter & Gamble Company 2020). Procter and Gamble have total assets worth more
than 115 billion US dollars. The report is focused on understanding the long-term challenges that
the organization faces in its business environment. Three important articles would be considered
to analyse the developmental path that the organization would need to take. The significance of
these articles in developing business enhancing research for P & G is assessed.
Industry benchmark
The company operates in the consumer goods industry. More specifically P&G can be
said to be working within the FMCG retail industry due to the large number of products that it
provides to consumers. Consumer retail goods market covers a large area of the global retail
trade market. FMCG is an industry that has witnessed significant growth over the years. It is
forecasted to grow to become worth more than 15,350 billion US dollars. The CAGR of the
industry is 5.4% when estimated for the period of 2018-2025 (IBISWorld 2020). Food and
beverage is the segment with the highest growth rate globally. It was followed by the personal
care segment which is the main focus of P&G. The highest market growth on in the last few
years have been witnessed in the emerging markets of the Asia Pacific regions. Some of the
significant demand factors are also present from various businesses. The global industry is one of
the largest industries in the world.
Challenges for the industries
One of the major challenges that is faced by the FMCG industry is the growth of e-
commerce. Various e-commerce websites are being used by the consumers to get the products
that they want. On the other hand the FMCG industry has not been able to effectively adapt to
the e-commerce industry. The issue is threatening the older sales and supply models. However,
there are also other major challenges such as gathering customer information, dynamic shifts in
demand due to social media or supply chain optimization (Edirisuriya, Sandamali and
Rupasinghe 2017). The industry has not been able to make the most of the digital innovation.
P&G faces some of the most important challenges that are currently faced by the FMCG
industry as a whole. The organization has not been able to optimize its digital presence or
functions. It has recently faced diminishing demands in some of the markets where the company
had thrived in the past. Many of the new products of the company failed to gain enough market
share in the recent years. One significant area of concern is the sales revenue increasing at a
much slower rate than the company predicted. Rising costs of the commodities have slowed the
revenue growth of the company to some extent. Some of the rival organizations are growing
more in comparison with P&G (Procter & Gamble Company 2020). Hence, the organization is in
need for more effective strategies.