International Business Case Study: P&G

This report analyzes Procter & Gamble's (P&G) international business operations, focusing on its strategies for managing global competition and innovation. It examines P&G's strengths and weaknesses, including its diverse product portfolio, innovative workforce, and efficient distribution network. A cultural analysis of Canada, a key market for P&G, is conducted using Hofstede's model, highlighting the importance of understanding cultural nuances for effective business operations. The report then delves into P&G's strategies, such as product diversification and sustainable innovation, evaluating their effectiveness in achieving the company's objectives. The conclusion emphasizes P&G's success in leveraging innovation and cultural understanding to gain a competitive edge in the global market.

International Business
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Table of Contents
Introduction..........................................................................................................................2
Strengths and Weaknesses of P&G.................................................................................2
Cultural Analysis of P&G................................................................................................3
Strategies of P&G............................................................................................................5
Effectiveness of the Strategies.........................................................................................6
Conclusion...........................................................................................................................6
References............................................................................................................................7

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Introduction
Being a global organization, it becomes difficult for Procter and Gamble, widely known
as P&G, to compete in the market in terms of innovation. However, the reports of the company
states that it has been selected as one of Canada's Best Diversity Employers in the year 2019
(Mediacorp Canada Inc., 2019). Founded over 18 decades ago, the business has now turned into
largest global consumer goods company with $23 Billion Brands, thereby serving almost 5
billion people across the globe (P&G, 2019).
This report provides an overview of the competence of the firm to manage its operations
as well as hand le market competition through its innovative approach.
Strengths and Weaknesses of P&G
P&G Inc. is the largest consumer goods manufacturers in the world with diversity in its
product ranges (P&G, 2019). The major strengths of the company include its product range for
all age people. In addition to this, the businesses of the company in each sector are focused on
common consumer benefits, which in turn also shares common technologies in 4 major groups of
products namely fabric and home care products, beauty products, family and feminine care as
well as baby products, health and grooming (P&G, 2019). The other strength of the company is
its innovative workforce, which have led to the establishment of the brand image of the firm.
The company employs almost thousands of human resource in each sector all over the
world which enables it to gain competitive edge through innovative minds. Moreover the
company has efficient product distribution network involving company-owned facilities along
the third-party service provider. However, the products manufactured by the company are easily
imitable therefore, increasing the chances of substitute goods. The company has limited online

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presence which full-fledged operates merely in the US. This in turn limits the benefits which
could be gained through online sales.
The company is highly engaged in innovation through its products as well as diversity in
workforce as well. From the reports of the organization it has been found out that in the history
of the company there has been an Innovation Challenge to re-imagine how individual would take
showers in the future (Forbes, 2012). Keeping this in mind, the company has manufactured
world class home care products for the new generation group. The company has invested almost
$2 billion per annum in research and development. In addition, the company has hired candidates
with greater innovative potentials so as to attain its target objectives in the innovative field.
Some of the best leader of the company is its Chairman of the Board, President and also
the CEO, A.G. Lafley, through whose leadership, the company has been able to establish
business in the world market (P&G, 2019).
Cultural Analysis of P&G
According to the point of view of the scholars Krosinsky et al (2011), it is essential for the
investors to have a complete knowledge with regard to the cultural aspects of the new market so
as to make informed investment decisions. Using the Hofstede ‘s model, the cultural analysis of
Canada is as follows:
Image 1: Hofstede’s Insight: Canada

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(Source: Hofstede’s Insight, 2019)
From the above image it can be analyzed that the Canadian culture is highly marked by
interdependence among the populations as well as a highly normative society with a positive
attitude for their leisure time. With reference to communication, the people in Canada are much
straightforward. However, they are not rule oriented. In addition, Canadian’s are of individualist
culture which indicates that they are self-reliant (Hofstede’s Insight, 2019). It has a moderately
masculine society with a score of 52. Moreover, the people in Canada are more of innovative
minds and accept new ideas as well.
The dominant cultural belief that the investors must be aware of is communication among
people which might have a significant impact on their business relation. On the contrary, they are
not rue oriented, which indicates compliance issues that might have a negative impact on the
investments.

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Strategies of P&G
Due to the rise in competition and globalization all over the world, the organizations are
compelled to improve their approach towards gaining competitive edge in the market. According
to the point of view of the scholars Coulter and Ellins (2007), though hard work and
management are important factors that must be considered while ensuring effectiveness in
operations, however, approach towards innovativeness and acceptance of new ideas are equally
significant.
There is a strong competition rising for the company in the new market where it operates
from the existing companies as well as threats from the new entrants. In order to overcome the
threats and challenges posed by market competition, the management team of P&G has
diversified its product lines into different categories based on the demographics of people. For
instance, the beauty products have been manufactured from all age groups, for both male and
female subject to the need. For instance, the shampoo range of Head & Shoulders were earlier
manufactured for single range but now the product depends on the requirements of users, such as
for silky smooth hair, dry intense, classic clean and many more. Thus, by providing customized
products to the customers, it becomes one of the strengths of the firm to deal with the market and
competitive challenges.
Besides this, the company no introduces clinically proven products that attract the
customers with confidence in the products. Furthermore, the company urges for the use of
recycled packaging materials for the products which is again an innovative approach to handle
the market challenge. Thus, it can be said that diversification in the products as well as approach
towards sustainable innovation are the major steps towards threats and challenges.

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Effectiveness of the Strategies
Coulter and Ellins (2007), emphasized that in order to evaluate the effectiveness of the
strategies, it is essential to determine whether the strategies are able to meet the desired
benchmark or has it been able to generate revenues for the firm. In the present case, the
diversification of the products of P&G has marked an era of revolution for the firm which in turn
has a positive impact on its bottom line too. In addition to this, the approach towards the use of
recycled packaging for its products, is an innovative approach, therefore much liked by the
investors in the project who are fond of eco-friendly approach of firms in the world market.
Conclusion
With its innovative approach towards organizational operations, the company has been
able to reach its target objectives with supreme performance level. The company has been able to
gain much attention of the customers from the world market that has enabled it to gain much
wider platform for its products. The diversity of its product range as well as the human resource
with innovative minds and skills have enabled the firm to foster competition and gain
competitive edge in the market.
Studying the Canadian culture, it is evident that the people here appreciated innovation
and are of individualistic nature, this makes it easier for the investors to make an informed
investment decision.

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References
Coulter, A., & Ellins, J. (2007). Effectiveness of strategies for informing, educating, and
involving patients. Bmj, 335(7609), 24-27.
Forbes (2012). How Procter & Gamble keeps its innovation edge? Retrieved from
https://www.forbes.com/sites/innovatorsdna/2012/04/12/how-procter-gamble-keeps-its-
innovation-edge/#1549729b15cb
Hofstede’s Insight (2019). Canada. Retrieved from
https://www.hofstede-insights.com/country/canada/
Krosinsky, C., Robins, N., & Viederman, S. (2011). Evolutions in sustainable investing:
strategies, funds and thought leadership (Vol. 618). New Jersey: John Wiley & Sons.
Mediacorp Canada Inc. (2019). Procter & Gamble Inc. Retrieved from
https://content.eluta.ca/top-employer-procter-&-gamble
P&G (2019).About us. Retrieved from https://news.pg.com/about/core_strengths