Procter Gamble P And G Marketing Essay

Procter Gamble P And G Marketing Essay Procter and Gamble (PG) was formed by William Procter a candle maker and James Gamble a soap marker on the 31st of October 1837. It is an American multination consumer good manufacture and one of the largest in the world. It has its headquarters in Cincinnati, Ohio USA and manufactures products ranging from beauty and grooming, pet food and household and fabric care, baby and family home care products. Between 1858 and 1859, PG had about 80 staffs and their sales reached $1million. It won several contacts from the Union Army during the American Civil War to supply candles and soap. Apart from the profit it made during the civil war, it expanded it market by introducing military personals all over the country to PG products. Operation and brands In recent years, PG and become an international corporation be acquiring different companies. PG became an international corporation in 1930 after the acquisition of Thomas Hedley Co based in England. It introduces several new brand names and products like Tide detergent in 1946, Prell Shampoo in 1946 and the first tooth paste to contain fluoride branded Crest in 1955. PG purchased Charmin paper mill in 1957 and started marking products paper products like toilet rolls (Charming). Procter and Gamble operates in about 80 countries and is well known in about 180 countries. It has 50 brands which most of them are well-known products. These brands amounts more than 90% of PGs sales and profit. 26 of its leadership brands produces more than a $1billon each in net annual sales. (PG, 2012). Some of PGs strongest brands includes Always, Ariel detergent, Bounty, Charmin, Crest, Downy, Gillete, Lams, Olay, Pampers, Pantene, and Tide. It used to produce food and beverage products prior to the sales of Pringles to Kellogg Company for $2.7 billion in 2012. Pringles was one of PGs major revenue driver with a sales of about $1.5 billion yearly. It was the only food business after the sales of Jif peanut butter and Folgers coffee to Smuckers in recent years. PG is no longer in the food business, it is laying more focus on personal care and beauty products. (Reuters, 2012) Manufacturing Operation PG manufacturing operation spread around 5 different regions. (PG, 2012) Regions Details Regional Headquarter Countries Asia The world faster growing economy and home to over 3 billion customers Singapore China, Japan, Korea, Hong Kong, India, Australia, New Zealand, Indonesia, Philippines, Singapore, Taiwan, Vietnam, Thailand, Sri Lanka, Malaysia, Bangladesh Central Eastern Europe, Middle East And Africa (CEEMEA). PGs largest Geographic regions. Geneva, Switzerland The Balkans, Central Europe North, Central Europe South, Eastern Europe, Middle East, Sub Sahara, Turkey/Caucasia And Central Asian Republic. Latin America With presence dated back to 60 years. Panama City 14 Countries North America Cincinnati, Ohio, USA Over 25 manufacturing plants Western Europe With presence dated back to 1930. PG has presence in ever western European country. Geneva, Switzerland 4 Countries. United Kingdom, Belgium, Germany and Italy Procter Gamble recorded a sales of $83.68 billion in 2012 and was listed on the spot of Global Top Companies for leaders in Fortune Magazine. It is also at fifth place of the Worlds Most Admired Companies list and named the overall best company for leadership development on the list of the 2012s 40 Best Companies for Leaders by Chief Executive Magazine. It has also received several awards which includes the Worlds Most Admired Companies and Top MBA Employers from Fortune, Worlds Most Respected Companies from Barrons, Best Place to Work from Glassdoor.com, and The Worlds Most Attractive Employers from Universum. (PG, 2013). Case Study Overview. In recent Years, PG has been us The environment is everything happening in the world outside that There are numerous factors that affects the decisions of managers of a company. Examples of macro environments are new laws and government policies, trade barriers, tax changes, social changes. To help examine these factors, I would be using the most popular external environment analysing model known as PESTEL which stand for political, economic, socio-cultural, technological, legal and ecological environment (thus the acronym PESTEL). This coursework will focus on the macro (external) and micro (internal) environments that have major impacts on Procter and Gamble. A PESTEL analysis on PG will be done to the macro environment. Analyse the macro business environment in respect of PG group and identify the factors that will have significant impact on Groups business. The success of any company does not reply only on the efficiency and management methods of the company. There are other factors involved the market performance. The macro environment contains the external and uncontainable influence that might affect the market performance, strategies and decision making of the company. As Baines (2011) describe: The operating environment for all organisations is never static and seldom entirely predictable, and can therefore profoundly affect a companys course of action. Strategic management experts stated that for a company to achieve a competitive advantage, its needs to follow strategies that develops existing capabilities, resources and formulate strategies that develops extra capabilities, resources. (Hill Jones, 2010) PESTLE Analysis All combined the macro environment factors analysis will be known as PESTEL. Macro environment factors are beyond the control of an organization. This is because those factors are    positioned outside the organisational system. Those forces are the prime factors in corporate strategization i.e. determining the objectives of an organisation, its drive for profits, its projection for future sales as well as a protection step in preventing any losses or problems. According to Lowe and Marriott (2006,p. 181),macro factors are the major trends Strengths Verities of business segments (6 operating segments). One of PGs major strength is the large scale on which it operates. It produces over 300 different product and leading globally in different categories of products like beauty and health, fabric, baby, personal and home care products sold in about 180 counties in the world. PG strong brand man is one of the most successful due to its solid branding. Most of PGs products are not for all seasons Leading globally in detergent, diapers, care products. Has industry experience of over 170-year, international operations for over 25 years and extensive experience in personal and oral hygiene products. PG is one of the world best marketers has it has a wide experience in marketing in different market sectors. The acquisitions of leading of beauty and health care companies in the products in Europe. High gross profit margin. PGs profit margin is 15 times the industry average. P G is known for investing greatly in research and development for improving and developing new products. Weaknesses Ability to achieve business objectives dependent on how well can respond to local and global competitors Face risks with significant international operations A failure of a key information technology system, process or site could have a material adverse impact on our business Price paid for commodities and other materials subject to fluctuation 7 Production cost Production capacity for the demand on the first years. Leads times for alternative pack sizes and designs. Work capacity. Different culture, wants and needs of customers. Unable to protect imitation PGs innovative products and marketing strategies of competition Competitors had pre-empted them in national markets where the local subsidiary was constrained by budget or organizational limitations. à ¢Ã¢â€š ¬Ã‚ ¢ Many of the top brands of P G are losing their market share rapidly. In online media leadership and presence P G is lagging behind. à ¢Ã¢â€š ¬Ã‚ ¢ The beauty and health products by P G are mostly for women. à ¢Ã¢â€š ¬Ã‚ ¢ P G does not make and offer any private label products for the retail customers and is, missing an opportunity. à ¢Ã¢â€š ¬Ã‚ ¢ The large scale operation of the company makes the culture heavy and processes slow. This also leads to quality control problems. à ¢Ã¢â€š ¬Ã‚ ¢ P G does not divest its weak or poor brands. à ¢Ã¢â€š ¬Ã‚ ¢ The major customers of P G are located at some of the places and it concentrates heavily as them. à ¢Ã¢â€š ¬Ã‚ ¢ When P G acquired Clairol business in year 2001, it was unable to grow this business. The Clairol Herbal Essence brand failed to enter new markets as the market had access to better and innovative products. This shows weakness of P G in the beauty care division. Opportunities  · Research and development efforts ($2001 million spent on RD in 2011) to develop technology and obtain patents  · Worldwide reach and potential to expand into even more countries The growth of the shampoo and conditioner market. The increase of hair washing products. The undeveloped conditioner market in Europe. The experience and the leader positioning of the new companies that PG bought. The Know-how of the success of Pert Plus in the US market à ¢Ã¢â€š ¬Ã‚ ¢ An opportunity for P G is health and beauty products for men. With the acquisition of Gillette, the company now has several growth opportunities in this market segment. à ¢Ã¢â€š ¬Ã‚ ¢ P G has doubled its Environmental Goals for the year 2012 and thus, promises more value for the environment concerned customers today. à ¢Ã¢â€š ¬Ã‚ ¢ Using the online social networks and internet marketing techniques is also an opportunity for P G. à ¢Ã¢â€š ¬Ã‚ ¢ Divest brands that are not in accordance or do not meet P Gs long-term goals à ¢Ã¢â€š ¬Ã‚ ¢ Company is constantly trying to pursue growth overseas. Threats  · A material change in consumer demand for products could have a significant impact on business  · Business is subject to legislation, regulation, and enforcement in the U.S. and abroad The number of suppliers and brands, the European market was even more crowed as US. The top and bottom price classes was even bigger than the US. Difference between prices for the same quality. Many important competitors. à ¢Ã¢â€š ¬Ã‚ ¢ There is a cut throat competition in the fast moving consumers goods markets today. Companies like Kimberly Clark, Unilever, Johnsons Johnsons and Colgate-Palmolive etc pose a serious threat to itsmarket share in different countries. à ¢Ã¢â€š ¬Ã‚ ¢ The competitors are making their product portfolios diverse day b day and using different marketing and promotional strategies to increase their market share. à ¢Ã¢â€š ¬Ã‚ ¢ In the market many substitutes are available for P G products at cheaper prices. à ¢Ã¢â€š ¬Ã‚ ¢ The private label growth is also a serious threat to the P Gs market share. à ¢Ã¢â€š ¬Ã‚ ¢ Due to recession, the consumer spending has decreased globally. Also, the prices for raw materials are increasing so cost to the company is increasing http://www.reuters.com/article/2012/02/15/us-kellogg-pringles-idUSTRE81E0S620120215

International Financial Reporting Standards Essay

According to Deloitte Touche Tohmatsu (2010, para. 3) â€Å"International Financial Reporting Standards (IFRS) are Standards, Interpretations and the Framework adopted by the International Accounting Standards Board (IASB)†. IFRS was established in 2001 and the conversion of the International Accounting Standards (IAS). The IAS had been functional since 1973 until it was converted to IFRS. More standards and components were added to the new IFRS to enhance professionalism in accounting and to accommodate the changing accounting environment. Many countries have accepted the use of IFRS since they are more comprehensive and cover a wide variety of accounting systems. The changes in technologies cause the adjustments in the accounting standards to ensure no loopholes exist in the accounting profession (Deloitte Touche Tohmatsu 2010). Transition Issues Most of the standards used in the IFRS were adopted from International Accounting Standards (IAS). IAS has been operational between 1973 up to 2001. They were developed by the International accounting standards Committee (IASC). The task of setting international accounting standards was shifted to IASB in 2001. IASB continues to make accounting standards called the IFRS. IFRS is composed of the International Financial Reporting Standards (IFRS) – standards issued after 2001, International Accounting Standards (IAS) – standards issued before 2001, Interpretations originated from the International Financial Reporting Interpretations Committee (IFRIC) – issued after 2001, and Standing Interpretations Committee (SIC) – issued before 2001 and Framework for the Preparation and Presentation of Financial Statement (Deloitte Touche Tohmatsu 2010, para. 10). IFRS vs. , U. S.  GAAP The Generally Accepted accounting Practices (U. S. GAAP) were developed to overlook accounting practices in the economy of the U. S. The U. S. GAAP differs slightly from the IFRS and there has been debate to exchange the U. S. GAAP for the IFRS. The IFRS has been acceptable in the global market and has provided opportunities to the U. S. accounting profession since the U. S. GAAP has been limited within the U. S. More than 100 countries in the world are using the IFRS in their accounting systems and there is concern about the adopting of the IFRS in the US. According to Epstein (2008) the implications for the adoption of the IFRS in US will be Training on the differences between IFRS and GAAP, Financial scrutiny of international joint ventures, Merger & acquisition (M&A) international accounting reviews, Sarbanes-Oxley compliance on corporate governance matters, Analysis of international credit policies for multinationals, and Litigation risk due to inappropriate use of IFRS (para. 3). The global investors will have advantages after the adoption of the IFRS in the US accounting systems. This will provide a better environment for cross-border investment as well as integrating capital markets. Global organizations in the US will save the costs of accounting by the use of a single financial reporting standard. The existing system requires compliance with the domestic accounting standards as well as accounting standards of other countries. This is creating more costs to international firms since they must install all accounting systems and employ personnel from diversified accounting backgrounds. The use of the GAAP has limited the growth and expansion of many companies in the U.  S. Multinational companies and their investors will benefit a lot from the adoption of the IFRS (Malriat, 2009). Accounting for revenues under IFRS IFRS adopted some standards used by the IAS but some additional standards were included. This was done to ensure more accountability in the accounting systems and to ensure revenues are safeguarded within the entity. The assumptions of IFRS are; first, accrual basis, this means that transactions are accounted for when they occur but not when cash is received or paid. Secondly, the going concern; the entity is assumed to continue operating in the foreseeable future. Thirdly, stable measuring unit; nominal monetary units are used in accounting to ensure stability of the purchasing power. The qualitative properties of the financial statements are: â€Å"Understandability, Reliability, Comparability, Relevance and True and Fair View/Fair Presentation† (Deloitte Touche Tohmatsu 2010, para. 14). The elements of financial statements are assets, liabilities and equity. IFRS uses discretion in developing conclusion about the accounting systems of an organization. Approximations and evaluations are not accurate and discretion is required when drawing conclusions about the financial status of an organization. Strict enforcement of accounting standards will provide a better system that will monitor the businesses in the international markets (Deloitte Touche Tohmatsu 2010). Conclusion IFRS developed from IAS to include the changing professional requirements and technologies in accounting. The US GAAP has been criticized for its limitation to the US economy and many accountants require the adoption of the IFRS in the accounting systems. The shift from the use of IFRS to the US GAAP will have several implications on the US financial accountants as well as other users of the accounting standards. Even though there are few differences between IFRS and the US GAAP, there are many limitations accompanied with the use of the US GAAP. Adopting the IFRS will open up the market and reduce accounting costs to multilateral firms in the US. Amendments in the IFRS continue to be made to update the standards according to the changes in technology and the global legal systems.

Irish Culture Essay

My first encounter with Ireland and its culture was rather trivial. I saw some Irish dancing and was fascinated by its rigor, energy, and emotional charge. I am not a dancer myself but Irish dances that I saw on TV made me want to get on my feet and start tap-dancing. Unfortunately, at our English classes at school we mostly study the history and traditions of Great Britain. We have not had any special lessons devoted to Ireland yet. I was surprised to learn that the Emerald Isle is a unique country with its own special culture, traditions and even its own peculiar and mysteriously sounding Gaelic language. The first things I learnt about Irish culture made me want to explore more about this enchanting land of poets, musicians, dancers, saints, and scholars. Not only did I learn about Irish jigs and reels, but I also found out about great Irish poets, writers and playwrights, traditional music and songs, world famous musicians of Irish origin, St Patrick’s parades and parties. I have discovered to my own surprise that here in Russia I have been surrounded by Irish culture without even realizing that it is Irish. I have learnt a new word â€Å"craic† which has no equivalent in the English language. Craic† is a mixture of fun, entertainment, and enjoyable conversation. I suppose that this word alone can explain the nature of the Irish national character and be the answer to the question why Irish culture is so popular around the world. I suppose that the international popularity of Irish culture is closely connected with the history of the country and the national identity of its people. Firstly, the Irish have traditionally been â€Å"one of the biggest wandering peoples of the world. † Due to mass emigration many countries got familiar with Irish cultural traditions a long time ago. Thus, Irish culture is not confined to one piece of land. Secondly, Irish culture is adaptable, pliant, and flexible because of the openness and friendliness which run in the blood of the Irish. For example, anyone can participate in St Patrick’s parades or try Irish dancing. Other reasons of the world-wide obsession with the Irish culture are its beauty, freshness and originality. ‘Original’, ‘fresh’ and ‘beautiful’ are the words which come to my mind when I read a poem by W. B. Yeats, watch an Irish dance, see a colorful St Patrick’s procession or listen to Irish traditional music. Despite its international popularity Irish culture on the whole retains its uniqueness and authentic spirit. That is why people around the world still see Ireland as a spiritual reservoir and turn to Irish culture when they need to feed their souls. In the era of globalization when boundaries between countries and nations are becoming more and more blurred, it is really important to preserve and promote your own culture. The Irish are very good at it. They have managed to make their culture a visiting card. Although some people say that Irish culture is losing its authenticity and is becoming commercialized, I don’t see it that way. By weaving traditional elements into popular culture the Irish make more people familiar with their country. For instance, some popular songs by U2 contain traditional Irish melodies. Songs like ‘In the Name of the Father’, ‘Tomorrow’, or ‘The Ballad of Ronnie Drew’ are really Irish despite their rock and pop style. The Riverdance and shows of Michael Flatley revolutionized Irish dance culture by introducing new elements, colorful costumes and even adding features of other dance cultures into the shows. Some people might argue that it was a change for the worse, but this was the change that made Irish dances so extremely popular around the world. Being a commercial event, St Patrick’s parades popularize Irish traditions among people of all nationalities worldwide. Our first encounter with Ireland may start with a popular thing like a Riverdance show, a traditional song â€Å"Whisky in the Jar†, or a green shamrock leaf on St Patrick’s Day. But these are the things which make us want to explore more. That is why I would like to finish with the Irish slogan, ‘Eire go Brach! ’ Ireland Forever!

Raising a Global Kid in Today’s Modern Society - 949 Words

Raising a Global Kid in today’s Modern Society Peter L. Berger, a renowned American sociologist perceives the study of Sociology as believing that the world is not what it appears to be1, whereby sociology explores the mere surface of social issues plaguing the world today. Studying sociology will see oneself analysing the relationship between an individual and social structures established in the world today, and therefore the possibility of making change in society based upon these drawn relationships. Through an examination of parents raising a â€Å"global kid† – where they move overseas so as to provide their children with a culturally rich and bilingual education – we shall explore an individual’s relationship between social structures†¦show more content†¦Globalisation, as espoused by Thomas Friedman, has made the world a flatter place, as people from many cultures interact and overlap increasingly, especially in modern society. In order for her child to be â€Å"competitive and succes sful in a global economy†, Maribeth decided to school her daughter in China, whereby her child will undergo a unique form of Enculturation5 – the process by which a child learns the ideas and behaviours that constitute his or her culture – as she would learn Chinese apart from just English, and be fully immersed into Chinese culture. The different agents of socialisation of her child, from school to having Chinese friends, are the reasons why Maribeth believes that her child will therefore be â€Å"competitive and successful in a global economy†. Her schooling of her child in China also exemplifies globalisation’s interweaving of the public and private spheres in modern society today, as the private spheres of families are increasingly facing economic and cultural pressures. 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