B205A - Innovation & Entrepreneurship: Procter & Gamble Case Analysis

This case study analyzes innovation and entrepreneurship at Procter & Gamble (P&G), highlighting the company's strategies for maintaining a competitive advantage through new product development and organizational culture. It discusses the relevance of innovation, the importance of clear objectives and goals, and the role of organizational culture in fostering creativity. The analysis covers P&G's approach to proactive improvement, knowledge sharing, and sustainable business development. It identifies sources of innovation, including salespeople and blue-sky laboratories, and explores different types of innovation, such as disruptive, incremental, architectural, and radical. Examples like Swiffer and Flash antibacterial wipes illustrate P&G's innovation in action. The study emphasizes the role of entrepreneurs in promoting organizational success by fostering an innovative culture and driving new product development. The case study solution can be found on Desklib, along with other resources for students.

Running Head: EXPLORING INNOVATION AND ENTREPRENEURSHIP 0
Procter and Gamble
EXPLORING INNOVATION AND ENTREPRENEURSHIP
(student name)
11-11-2018

EXPLORING INNOVATION AND ENTREPRENEURSHIP 1
Contents
Answer one......................................................................................................................................2
Answer two......................................................................................................................................3
Answer three....................................................................................................................................5
Answer Four....................................................................................................................................7
Answer five......................................................................................................................................8
Answer six.....................................................................................................................................11
References......................................................................................................................................12

EXPLORING INNOVATION AND ENTREPRENEURSHIP 2
Answer one
Innovation has due relevance for the organization. Innovation is introducing any new idea
related to product, service, or process in an organization, which is helpful in developing unique
concepts while providing the innovator a confident attitude, a proactive towards risk-taking and
getting things done (Okpara, 2017). Procter and Gamble is an international corporation, serving
around five billion customers worldwide, operating in more than fifty countries, and selling its
products and services in 140 nations. The relevance of innovation at this enterprise is very much,
as outlined by the chief executive and the president of the company.
The major motive of the company includes the development of the organization, where
“big ideas attract the capital and talent they need,’ which leads to the equation of innovation. For
such objective, innovation in products is necessary, the idea generation is key to success for an
enterprise, especially when the company is serving a range of diverse brands such as snacks,
shampoos, juice drinks, laundry detergents, which contributes in making this brand “world’s
largest consumer goods company.” Through innovation, a company can gain a competitive
advantage, by introducing new product development, or product differentiation. Through an
innovative process, the operating cost can be reduced and gain a competitive advantage for
product’s price. Therefore, to increase the company’s market share and net profits, innovation is
important in the workplace (Hafenbrack, Lu, & Wang, 2017).

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Answer two
Clear objectives and goals of an organization affect its innovation capability, if the goals
of a company are not clear, the creativity and innovation cannot be promoted in an organization.
There must be a clear direction for the employees of a firm to generate new ideas and bring
creativity to their work. Procter and Gamble's goal are to “embrace its future” for which
explosion of technology and globalization it relevant. Recently, the goal has been restructured as
enhancing the creation of new products, set goals, quick decision making speed, and stretching
targets for business development (Coulson-Thomas, 2017).
The goals are responsible for the stimulation of innovation in an organization, as it is
helpful in keeping creative people active and challenged, and guiding them on the correct path.
Moreover, it provides a purpose, and all together leads to innovation. This can be done by setting
deadlines, hard goals, to keep employees challenged, and make the employees committed to
innovation in the organization. Setting goals for creativity can also be helpful while evaluating
employee’s performance, to check whether the performance of an employee or its innovative
idea is compatible with the set goals of the organization. Setting goals will be helpful to build
and inspire employee confidence. Goals help in provide attention to what requires to be done and
affect several cognitive activities required for creativity (Gilson, Lim, & Gilson, 2015).
The reflection of innovation through clear objectives and goals are done through various
principles provided to employees to help them in setting a base for the activities performed. The
goals include:
 Respect for all individuals

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Both company and employees work for their mutual advantage, for which the
objectives of the company and its employees need to be inseparable. The employee’s
uniqueness and contributions must be valued.
 Strategically work focused
The company can gain a competitive advantage among other competitive
organization through product development
 The cornerstone of organizational success is innovation
The organization is proactive in prominent the portion of product development, it
the product which will eventually attract new customers and innovation in the product is
the only key to retain existing customer.
 It is focused externally
The company is indulged in listening to consumers and analysis the markets. It
the market where A company is existing, the goals need to be set as per the
environmental change
 Personal mastery is valued
The company nurtured its employee’s skills
 A mutual interdependence is an approach to life
The organization is dependent upon consumers, markets, and employees

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Answer three
It is the culture of the organization, which is held responsible for the growth of
employees in the enterprise and integration of innovation. For example, if sharing new ideas and
bring creativity is rigid in the organization or the organization believes more of the centralized
way of communication in the hierarchy, innovation is not possible, whereas a culture of an
organization where sharing thoughts and ideas with superiors and others freely, chances of
innovation is increased (Nyberg, Dentchev, & Van Hoof, 2016).
At Procter and gamble, organizational culture plays an important role while developing
the innovative capability. Organizational culture is useful in showing what an enterprise stands
and presented through its rituals, actions, meanings, beliefs, norms, valued and language. P&G’s
human resource is focused on linked vitality in an organization, which is considered by all the
departments. It is helpful in removing barriers that are responsible for holding individual back. It
will help employees to be energized and utilize their integrity, expertise, hunger, and drive to
contribute maximum for development of new product. This will usually involve in utilizing
creativity and innovation power to go beyond conventional ideas to create better methods of
delivering enhanced results. This will result in accepted creative skills, and drive around 100,000
individuals within the company, which will evaluate if the enterprise can make a difference in
the international market. Organization culture that supports innovation, is more prone to risk, and
uncertainty, but at the same time, chances of success of the company also increase, as it is said,
more risk, more profit (Libaers & Burkemper, 2015).
P&G human capital is responsible for the growth and development of individuals towards
higher competency, level of skills, fulfillment, and creativity, which will eventually support each

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employee. Within the organization of P&G, the major focus is over people involvement across
all department, either by developing their ideas or is involved in making those ideas implement
and work. The heart of P&G culture involves innovative use of networks, concerned customer
needs, and expectations; the energy is applied for innovation, which will support the process of
research and development. This will be responsible to foster employee’s improvement in the
enterprise, with an opportunity to increase work satisfaction, as every individual is capable to
utilize her abilities and skills to the maximum.

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Answer Four
Three major characteristics exist at the organization that is created for innovation that is a
flow of innovation is made free throughout the organization; the possibility to learn from
consumers is made quickly; possibility to develop creative ideas additionally within the span of
time.
Procter & Gamble has innovated with the aid of introducing proactive improvement
throughout the organization. This comprises of building connections among international
locations, across product levels, via unique markets and by shifting technologies utilized from
one product series to other. A brand new product can also decently be made out of a minor
change concerning an extension, or the improvement of a completely new product idea. One
major factor is people’s ability to grasp knowledge from one another by exchanging expertise or
better product innovation practice, developed in one nation to other.
Innovation took place if the customer is will to meet new ideas created by employees. In
business development in a way that it integrates development with environmental concern and
social development of rapid changing society, improvement sustainably is a major element.
Diminishing environmental influence and improving production efficiency and manufacturing
through approaches to innovation can help in developing business opportunities and enhance
products (Amabile & Rigolizzo, 2015).

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Answer five
Sources of innovation at Proctor & Gamble include:
 Salespeople – these are the members of the company who are closely related to customers
and retailers, and can easily understand the need or requirements of consumers, for which
new ideas can be provided by them
 Blue-sky laboratory- it is a laboratory that is working for new product development, and
concepts that are new to the market and have never been explored yet.
 Combination of two products- another idea generation is through combining two different
products or technologies for the development of a single new product like conditioner
and shampoo
 Technology transfer- it includes transferring from one range of processes and products
technologies to another series of processes and products
 Extension of products already exist- making the existing product more convenient for the
consumers through innovation
 Improving current concepts- for products to constantly developing to fulfill the
sophisticated customer needs increasingly (Knight & Cavusgil, 2015)
Types of innovation at Procter and Gamble are:
1. Disruptive innovation – it is also said as stealth innovation, which involves the
application of new processes or technology to the current market of the company. The
new technology involved is generally more expensive and is difficult to use, with fewer
features and it is not pleasing aesthetically (Dewald & Osiyevskyy, 2015).

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2. Incremental innovation – according to this form of innovation, the company add new
characteristics or feature to existing services or products or diminishing some features,
that is value through simplification. It is one of the most common types of innovation. It
uses technology and enhances value to the customer in form of design change or some
features within the current market (Camison & Fores, 2016).
3. Architectural innovation – this innovation involves taking skills, lessons, and technology
while applying within the non-existing market. This innovation is helpful for increasing
new consumers until a new market is receptive. The risk involved in this type of
innovation is low because of reintroduction and reliance on proven technology. Majority
of the time, the requirement of tweaking to compliment the new market requirements is
essential (Park, Ro, & Kim, 2018).
4. Radical innovation – this innovation includes giving birth to a new market or industry
and creating revolutionary technology, it can even swallow existing industry (Norman &
Verganti, 2014)
New product development examples at Procter and Gamble are:
 Swiffer – it considers listening to the customer, understanding their needs, and
develop a product that is quite unexpected features, that were for a cleaning system,
said as Swiffer. If an individual’s immune system is very sensitive, allergies occur
due to harmless substances are known as allergens. This system was designed to
capture dust particles, which use to spread while using traditional methods of dusting.
This product is the result of radical innovation form. As per independent testing,
Swiffer has been considered to remove allergens from indoor more efficiently than
other traditional cleaning methods of households.

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 Flash antibacterial wipes – the concept of baby wipes turned out to be very
successful, that those were based for the launch of flash antibacterial wipes that are
reliable for killing germs for 12 hours or more. The technology and concept after this
product were used in wipes for baby. Consumers are highly influenced with this wipe,
and they use them for providing protection and cleanliness both inside and outside the
home. This product indicated incremental innovation form. This product is available
in different packaging to attract different customer segment, in both refill and tub
pack, the utility includes usage in cars, rooms, and kitchen.

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Answer six
Entrepreneurs play important role in promoting organizational success through
innovation at Proctor and Gamble. Most importantly, entrepreneurs of P&G have created the
innovative organizational culture, where everyone can contribute in providing ideas for new
product development. Moreover, research and development team has always focused on vitality
and commitment towards their role in the organization. Various successful innovations by
entrepreneurial teams at P&G were Pampers, which is disposable nappy for kids, development of
Flash, which was a revolutionary brand (Spigel & Malecki, 2017).
A major example for the role of entrepreneurial teams at Proctor and Gamble is a
research by “Dr. David Francis” focused over calcium ions that based for the groundwork for
various other opportunities for product, including toothpaste improvements known as Crest. The
first product that is the result of innovation, the product was “Osteoscan,” used as a bone-
scanning agent.

EXPLORING INNOVATION AND ENTREPRENEURSHIP 12
References
Amabile, T., & Rigolizzo, M. (2015). Entrepreneurial creativity: The role of learning processes
and work environment supports. The Oxford handbook of creativity, innovation, and
entrepreneurship, 61.
Camison, C., & Fores, B. (2016). Does incremental and radical innovation performance depend
on different types of knowledge accumulation capabilities and organizational size?
Journal of Business Research, 831.
Coulson-Thomas, C. (2017). Stimulating creativity, enabling innovation and supporting
entrepreneurship. Management Services, 2017(Summer), 26.
Dewald, J., & Osiyevskyy, O. (2015). Explorative versus exploitative business model change:
the cognitive antecedents of firm‐level responses to disruptive innovation. Strategic
Entrepreneurship Journal, 58.
Gilson, P., Lim, H., & Gilson, L. (2015). 11 Creativity in Teams: A Key Building Block for
Innovation and Entrepreneurship. The Oxford handbook of creativity, innovation, and
entrepreneurship, 177.
Hafenbrack, A., Lu, J., & Wang, D. (2017). “Going out” of the box: Close intercultural
friendships and romantic relationships spark creativity, workplace innovation, and
entrepreneurship. Journal of Applied Psychology, 1091.
Knight, G., & Cavusgil, S. (2015). The born global firm: An entrepreneurial and capabilities
perspective on early and rapid internationalization. Journal of International Business
Studies, 3.

EXPLORING INNOVATION AND ENTREPRENEURSHIP 13
Libaers, D., & Burkemper, A. (2015). Examining the relationship between creativity and
innovation: A meta-analysis of organizational, cultural, and environmental factors.
Journal of business venturing, 714.
Norman, D., & Verganti, R. (2014). Incremental and radical innovation: Design research vs.
technology and meaning change. Design issues, 78.
Nyberg, T., Dentchev, N., & Van Hoof, B. (2016). Embracing the variety of sustainable business
models: social entrepreneurship, corporate intrapreneurship, creativity, innovation, and
other approaches to sustainability challenges. Journal of Cleaner Production, 1.
Okpara, F. (2017). The value of creativity and innovation in entrepreneurship. Journal of Asia
Entrepreneurship and sustainability, 1.
Park, W., Ro, Y., & Kim, N. (2018). Architectural innovation and the emergence of a dominant
design: The effects of strategic sourcing on performance. Research Policy, 326.
Spigel, B., & Malecki, E. (2017). Innovation and entrepreneurship. Elgar companion to
innovation and knowledge creation, 625.