Innovation and Sustainable Business Development Report: P&G Analysis

This report provides a comprehensive analysis of Procter & Gamble's (P&G) innovation and sustainable business development strategies. It begins with an executive summary highlighting P&G's innovation-focused business model, emphasizing the importance of quality and value proposition development. The report then delves into P&G's business model canvas, value proposition, business operations, supply chain management (including the role of IT), and financial value capture. It identifies P&G's competitive advantages, particularly their high-quality products and differentiated growth strategies. Strategic fit is examined using a model canvas. The report also addresses potential risks, such as competition from local firms, and proposes phased development plans to manage uncertainties. The analysis covers ten areas of decision-making and supply chain development. The report concludes by emphasizing P&G's commitment to innovation and its impact on achieving higher sales and market success.

RUNNING HEAD: Innovation and Sustainable Business Development
Innovation and Sustainable Business Development
[Type the document subtitle]
Laptop04011
[Pick the date]

Innovation and Sustainable Business Development 1
Executive Summary
Innovation has become the key to success for any organisation. In this environment P&G also
has developed a model that promotes innovation. This report will provide the description about
the business model canvas of P&G which suggests that most of its elements are in favour of
innovation. This report also address that by improving quality, this company is working towards
value preposition development. Ten areas of decision making process have been illustrated.
Supply chain development for P&G has also been illustrated which suggests that information
technology is playing a major role in this. Financial value capture illustrates that P & G has
different brands that help them to capture profitability from the environment. High quality
products are their biggest competitive advantage. All the models suggest that this company has
best quality products and they are bringing products as per the users demand in the market and
hence they have higher probability to achieve higher sales. Competing with local firms is the
biggest risk for this company. Phased development plan to address uncertainties will be used to
over this risk. More use of technology is suggested by the company.

Innovation and Sustainable Business Development 2
Introduction
The objective of the report is to analyse the value proposition of the organization P&G in the
business environment. The company is operating its activities successfully in the consumer
goods industry, however addition in the value proposition will successfully help the business to
capture the interest of the customers in better ways. Below mentioned is the explanation business
model of company along with the analysis of operations, innovation develop and reflection on
the innovation concept. More details about the report are discussed below:
Business model description
There are several products delivered by this company in different consumer goods segment. This
is done for different consumer groups. This firm manufacture markets and distributes all these
products. The value preposition for this suggests that they have differentiated range of personal
care with high quality products. In order to be successful they maintain higher customer
relationship. Key resources of this firm includes high brand image, human resource, bigger
distribution network, and at the same time the channels that P&G includes for this are retailers,
stores, grocery store, baby shops etc. In all these the cost structure that needs to be used for this
includes costing for different things such as production, logistics, marketing, raw material and
supply. On the other hand they have generated a revenue stream for this where they earn from
online and offline stores along with licensing.
Value proposition development
Procter & Gamble Company provides value to its consumers using material available to them.
The company should aim to increase the value proposition by introducing innovation aptitude in
the business. This will help the organization to increase the quality of the goods and serve the
customers in better ways. The company has expanded its division in different parts of the world,
so they should make use of innovation to attain better value proposition from such brands in the
market. The organization performs several acquisition activities in the environment to expand its

Innovation and Sustainable Business Development 3
scope of business in different directions. The expansion strategy helps P & G to provide a
diversified range of personal and health care goods to the customers in the environment (von
Delft, 2018).
Business operations development
P & G is a multinational consumer goods company therefore the business operations and the
scope of functioning of the company is also high. The operations development activity of P & G
involves setting up goals and achieving them in the environment to as to increase consumer
satisfaction. The company has ten areas of operations decision making that are mentioned below:
 Designing of goods and services
 Management of quality
 Designing of process and its capacity
 Location strategy
 Layout strategy and design (Maheshkar, & Sharma, 2018)
 Job design and human resource management
 Supply chain management
 Inventory management
 Scheduling
 Maintenance
The management sets the target and uses several evaluation tools to identify that whether the
operational activities are productive or not. Regular analysis of the productivity of the company
helps the organization to identify that whether the employees are working efficiently on not. The
company has defined different production standards for different activities in the environment
(Fares, 2019).
Supply chain development
The company P & G focuses on implementing consumer centric supply chain process that
focuses on delivering the goods to the customers with the fast route without any external
hindrance. The supply chain activities of the company works with a regular pace of 24*7 that
aims to show the customers the levels at which the product has reached. This helps the customers
to expect the right time delivery of the product and get information whether the product is in
manufacturing stage or is dispatched (Motohashi, 2015). The company works with around

Innovation and Sustainable Business Development 4
118000 employees in nearly 180 countries that illustrate large extended supply chain activities of
the business as well. The company focuses on innovating the supply chain activities in the
environment because it affects the revenue as well as the productivity of the business. Regular
innovation makes the organization competent in the target market (Lee, & Vachon, 2016).
Financial value capture
P & G has different brands that help them to capture profitability from the environment. These
brands of the company are diversified in different parts of the world. Being present in a
consumer good industry, the demand of such products is high. The company attain profitability
by serving total 21 brands in the worldwide market. The company earned net sales of $ 16.5
billion in previous year of 2018 that shows increment by 3% from the previous year sales.
Further, it should be noted that the financial value capture analyse that the company earns
optimum revenue in the market because it spends high amount of their reserves in the field of
research and development that helps them to be innovative and differential in the target market
(Hall, Chang, & Hall, 2015).
Competitive advantage
The core strength of the company P&G is that they focuses on providing the best products and
services to the consumers in the target market. All the strategies of the company are implemented
to increase the level of satisfaction of the customers. Further, the company also makes use of
differentiated growth strategy in the environment to drive through competition and achieve
success in the target market (Larson, 2017). The company highlights value as well as quality in
its goods and services that increases the attention of the customers towards the brand. The
differentiated strategy of P & G helps them to provide unique and the best goods to the
customers in the target market. Further, this strategy also helps the customers to identify the
brand against the competitors in the target market and implement sales accordingly. The market
penetration strategy is also applied by the organization achieve competence in the market. The
organization makes use of marketing campaign to achieve the focus of the customers and build
brand awareness in the market as well (Braithwaite, & Christopher, 2015).

Innovation and Sustainable Business Development 5
Strategic fit
Strategic fit is the degree to which an organization is working according to the resources and
capabilities available to them along with the opportunities present in the target market. The
organization P & G works with a mission statement that is to improve the lives of the people and
the next generation by serving them best quality products and services in the market. This
strategy of the company helps the management to make effective use of available resources and
satisfy the needs of the consumers accordingly. The products and services offered by P & G have
increased the expectations of the consumers in the market that shows that the organization is
working effectively in the target market (Charles, Schmidheiny, & Watts, 2017). According to
the strategic fit, they can use model canvas which is as follows.
Key Partners
 Several products
offered in the
brand like Olay,
Tide, and
Gillette etc.
 Direct
manufacturers
 Suppliers
 Public relation
and ad agencies
 Retailers and
distributors
 Media
 Sponsorships
Key Activities
 The company
manufactures
several consumer
goods of different
brand under single
head.
 Marketing and
advertisement
 Research and
development
activities
 Distribution
(Clinton, &
Whisnant, 2019)
 Branding
 Quality analysis
 Business
expansion
Customer
Relationships
 Brand
awareness
 After
sales
service
for
customers
 Word of
mouth
marketing
strategy
 Direct
communi
cations
and
personal
selling
with
customers
 Coupon
and gift
vouchers
available

Innovation and Sustainable Business Development 6
 Recomme
ndations
 Discounte
d coupons
and offers
 Online
sales of
goods
Key Resources
 20 manufacturing
sites in 20 parts of
the world.
 Huge brand
portfolio
 Network of
distribution
 Retail stores
 Human Resources
 Extensive
distribution
channels
 Facilities
 Connect with
different people to
increase
productivity
Channels
 Shopping malls
 Retailers
 E-commerce
 Trade partners
 Drug stores
 Promotion and
advertisement
 Grocery Stores
 Baby shops
Cost Structure
 Cost of production
 Supply chain and logistics
 Taxes (Scott, Lundgren, & Thompson,
2018)
 Marketing
 Salaries of Staff
 raw materials
Revenue Streams
 retail from good present at stores
 Online sales from website
 Licensing (Venkataraman, & Pinto, 2016)
According to this the disciplined entrepreneurship canvas is as follows:

Innovation and Sustainable Business Development 7
Customer Acquisition
 The window of
opportunity suggests
that this company can
attract all those
customers in the new
markets that are
demanding for high
quality products.
 The process for
acquiring consumer is
by making targets in
the niche market and
then they are doing
marketing of that
product.
 Possible triggers for
this company is low
cost high quality
products.
Overall Economics
 Estimated R&D
expense is $2 billion
dollar.
 General and
administrative
expenses will be low
as they have
streamlined most of
their operations.
 The LTA/COCA ratio
for the company is on
the higher side.
Design & Build
 Key test assumption in
the production of the
product is that it
should have higher
value.
 Test key assumption in
this regards is that it
will enhance the
customer’s base.
 The tracking metrics in
this regards is the
quality assessment
tools used by the
company.
Product unit economics
 The short term LTV is
higher and COCA is
lower.
 The medium term LTV
is also higher and
COCA is lower.
Sales
 The preferred sales
channel is through
offline stores.
 Its short term sales mix
suggests that its
product beauty
Scaling
They have a product plan for
beach head as they look into
the problems faced by the
people in that local market and
according they design their

Innovation and Sustainable Business Development 8
 The Long term LTV is
lower and COCA is
higher.
products are more
profitable then
compared with other
products. Medium
term and long term
sales mix suggest that
their household
products are more
successful.
new products.
They are also aim to expand in
developing markets.
Value preposition canvas
Value preposition Customer profile
Innovation readiness analysis
This has three areas on the basis of which analysis is done. These are:
 Leadership support: Their leaders are always ready to support any innovation.
 Organisation design: They have a streamlines their organisational design that improves
the overall efficiency of the organisation hence supporting innovation.
Beauty
products
High quality products High quality
products
All
professional
background
Negative experience
from other firms
Better ingredients used in
their products.

Innovation and Sustainable Business Development 9
 Innovation practice: They are always providing training to their employees so that they
are ready for any situation.
Identification and assessment of assumptions and uncertainties
Expansion strategies implemented by the company are always uncertain for every because the
management do not know about the environment of the country and details about the people
before entering in it. Therefore, business expansion strategy implemented by P & G can be
regarded as one of the biggest threat or risk for the company in the business environment. In a
new and diverse environment, the organization needs to compete with the local brands that can
reduce its effectiveness in that market (Ivanov, 2015).
Phased development plan to address uncertainties
Activity Time Period
(in months)
Manager Growth
Objective
Concerned
Department
Analysis of
internal and
external
environment
2 Marketing Head Attaining
important industry
information
R&D
Analysing of
country to launch
products and
services in new
markets
1 Marketing Head Evaluating the
favourableness of
the country or the
market for the
P&G
R & D
Evaluation of
opportunities to
work upon
1 Management Head Creation of
mission and vision
Management
Development of
supply chain
management
strategies in the
1 Operations Head Defining supply
chain for the
product on the
basis of business
Operations

Innovation and Sustainable Business Development 10
environmental requirement
Targeting segment
and analysing
potential buyers
3 Marketing Head Defining target
groups and people
Marketing
Obtaining of
resources to meet
needs of clients
present in
consumer goods
industry
4 R & D Head Attaining
Resources
R & D
Development of
online and offline
promotion tools
and strategies
6 Manager Performing social
media and
physical media
activities to
promote the
product
Management
Development of
communication
channels
1 Sales Head Development of
communication
tools to make
better sales
Sales
Development of
sales through
different channels
12 Manager Initiation of sales
of the P & G
product in new
market
Management
Selection of innovation tools and techniques
As discussed above that the organization effectively make use of brainstorming ideas to initiate
active supply chain activities in the business so as to increase the satisfaction level of the
customers, therefore the business should aim to introduce innovation and technology in the
supply chain activities of the company. The company should make use of IoT technology in the

Innovation and Sustainable Business Development 11
supply chain so as to increase its efficiency. P & G should make use of sensors and networking
to add several features in the supply chain infrastructure of the company. This will share the
information to the concerned department without implementing human interaction. Introduction
of Big Data technology will help the organization to involve the productivity of employees in
various directions and increase effectiveness of the decision making process of the company.
Artificial intelligence will also support the supply chain activities of the company in the business
environment and will make it more competitive as well (Grayson, & Hodges, 2017).
Candid and critical self-analysis
My personal opinion in the given case of the company P & G is that the organization is
extremely successful in the business and they can increase the capabilities by introducing above
mentioned innovation and technology features in it. Further, I believe that innovation is a crucial
part of the business lifecycle and in the professional lifecycle of a person as well. In my
professional career, innovation will help me innovate the ways in which I will conduct several
activities and implement brainstorming storming ideas as well. My strength is that I have
adequate leadership capabilities in my behaviour that help me to overcome several barriers in the
environment. Whereas, my weakness in the given case is that I take time to dissolve with people
and communicate with them.
Conclusion and recommendation
Thus, in the limelight of above mentioned events, the fact should be noted that the paper
highlighted details about the innovation and sustainable business develop activities of the
company P&G. The report highlighted the business operations and innovation development
activities of the company P & G. Further, it is recommended to the company that they should
implement activities to support the interest of employees in the business environment. The
organization is working at a worldwide level, therefore it requires to manage the interest of the
employees in the business environment. So, the organization should provide differential
incentive plan to attract the interest of employees in the business environment.