Strategic Management: Analysis of Proctor and Gamble

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Background information of Proctor and Gamble.........................................................................3
TASK 2............................................................................................................................................6
Using strategic theories and models to analyse the company and discuss the tactic currently in
operation......................................................................................................................................6
Task 3.............................................................................................................................................10
Advantages and Disadvantages of Market development strategy for the organization.............10
TASK 4..........................................................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................16

INTRODUCTION
Strategic management is an ongoing process of planning, monitoring and analysis of
necessities that companies require to accomplish goals (Fuertes and et.al., 2020, p.157). This
present study is based on Proctor and Gamble that is an American multinational consumer goods
corporation. It was founded in the year of 1837 by James Gamble and William Procter. It is
specialised in providing qualitative cleaning agents, skin care products as well as personal care
products. This study is going to discuss financial performance of Procter and Gamble as well as
its internal capabilities by which it can take advantages. Further, it will discuss effectiveness of
SWOT and PESTLE analysis model. These models help out companies in identifying internal
and external environmental factors and their impact on business performance. Porter’s five
forced analysis also plays a vital role as it also enables managers and employers in knowing
current competitive situation of market and their position in competitive market.
This study will discuss critical impacts of internal capabilities and strategies that Proctor
and Gamble use. Both advantages and disadvantages can help out companies in knowing
effectiveness of strategies and accordingly, they can make changes in strategies. Stakeholder
analysis also makes companies able in knowing interest level of stakeholders and as per this
analysis, they can make changes in their internal strategies as well as policies. This study will
discuss ways of analysis stakeholders and their impact on organisational performance.
TASK 1
Background information of Proctor and Gamble
Before discussing growth and success history of Proctor and Gamble, it is important to
discuss about its background information. Proctor and Gamble is an American multinational
consumer goods corporation. It is specialised in selling qualitative personal care and hygiene
products. Along with hygiene products, it deals in grooming beauty, home care and baby care
products. Food, beverage and snacks are some other product portfolio of this brand.
Number of employees and stakeholders: Proctor and Gamble employs around 101,000
people. Key stakeholders of this company who help it out in accomplishing goals include:
customers, suppliers, governments of countries and diverse employees who work for them.
David Taylor is the largest shareholder as he holds around 12 million common shares. On
November, 2021, Jon Moeller succeed David and became CEO of Procter and Gamble. On the
basis of this, it can be said that this company is public.

Social responsibility: The main aim of P&G is to improve living standard and lives of
customers by providing them with qualitative hygiene products (Han and et.al., 2019, p.169).
Their main focus is on improving lives of children and people who are living in deprived areas.
Vision: Its vision statement states that it wants to become the market leader and the first
choice for its customers. After covid-19, vision of this company has changed and now it wants to
focus on protecting health and wellbeing of people all over the world and allowing them to
improve a better life (Quezado, Fortes and Cavalcante, 2022, p.2962). It does not focus on
increasing profit margin as it wants to help out people by providing them qualitative products
and services as well.
Mission: Mission of this company is “To provide qualitative as well as branded personal
care products that add value and improve the lives of the world’s consumers”.
Values and integrity: It encourages employees to do the right things.
 It is an honest brand and all employees are straightforward as they provide validate and
reliable information to customers.
 It operates within the letter and spirit of the law.
 It upholds values as well as principles of P&G in every action as well as decision.
 It is honest and data based in advancing proposal (Gopinath, 2021, p.198).
5 years of growth and changes: Within 5 years, Proctor and Gamble has taken growth to the
great extent.