Strategic Management Audit Report. Procter & Gamble

Table of Contents

Executive Summary

Company Profile
Vision Statement
Mission Statement
Core Values

External Environment
PESTEL Analysis
Industry Definition
Porter Five Forces Model Analysis
External Factor Evaluation (EFE) Matrix
Key Opportunities:
Key threats:
Competitive Profile Matrix (CPM)

Internal Strengths and Weaknesses
Key Strengths:
Key Weaknesses:
VRIO Framework
Value Chain Analysis
Primary Activities:
Support activities:
Internal Factor Evaluation (IFE) Matrix

Matching Analysis and Assessment of alternatives
TOWS Matrix
BCG Matrix
IE Matrix
SPACE Matrix
Grand Strategy Matrix

Recommendation of Strategies
The Quantitative Strategic Planning Matrix (QSPM)

Conclusion and Recommendations

References

Executive Summary

Through strategic management, business organizations manage their objectives and attain their desired results. In contrast to previous decades, markets have fluctuated regularly in recent years. This indicates that businesses should be adaptable in their approach to change in order to cater the requirements and preferences of many stakeholders. Some of the major aspects that impact the attainment of organizational goals include skills, corporate culture, and the management of the personnel base and the human resources available to the company. Proctor and Gamble (P&G) is an example of a company that has effectively used strategic management to achieve organizational goals. The company was established in 1837 by William Proctor and James Gamble and is headquartered in Cincinnati, Ohio, United States of America. From 2015 till the present, David. S. Taylor has served as CEO of the corporation. The corporation creates, manufactures, and promotes a variety of products in 180 countries across five continents, including Egypt.

This strategic audit examines P&G's as one of the top performers in the global FMCG market.

Company Profile

Procter & Gamble (P&G) is an American global consumer products conglomerate based in Cincinnati, Ohio. The company has a history of over 181 years as William Procter and James Gamble formed the company in 1837.¹i It focuses on personal health/consumer health, as well as personal care and hygiene items; these products are divided into numerous categories, including Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine, & Family Care. The company also owned the Pringles' product range, which included food, snacks, and drinks until it was sold to Kellogg's in 2012. P&G is based in the state of Ohio.

P&G had $83.1 billion in revenue in 2014. P&G stated on August 1, 2014 that it would be simplifying the firm, removing a number of brands from its product portfolio in order to concentrate on the remaining brands, which generated 95% of the company's revenues.²ii P&G's future would be "a lot simpler, far less complicated corporation of top The Enquirer. Retrieved from http://www.cincinnati.com/story/money/2015/07/09/pg- spins-off-covergirl-wella-and-fragrance/29903547/ brands that's easier to manage and administer," according to A.G. Lafley, the firm's chairman and CEO until October 31, 2015.³

P&G had a consumer base of 5 billion people in 180 countries and its major 165 brands contributed approximately $65 billion in net sales in 2020.⁴

The company focuses on three main segments:

1. Beauty and Cosmetics
1. Health care
2. Household products

P&G's current chairman and CEO is David S. Taylor.

Vision Statement

“To be the greatest consumer goods and services company in the world and be recognized as such.”⁵v

Mission Statement

“To deliver branded goods and services of high quality and value that enrich the lives of people across the globe, both now and in the future.”

Core Values

Ownership

- Accept personal responsibility for meeting corporate requirements, improving processes, and assisting others in becoming more successful.
- Treat the Company's assets as if they were our own, and act in a way that promotes the company's long-term success.

Integrity

- Attempt to do the correct thing at all times.
- With each other, be honest and genuine.
- Maintain compliance with both the text and spirit of the law.
- Maintain P&G's ideals and principles in all actions and decisions.
- In promoting initiatives, be data-driven and intellectually honest, especially identifying hazards.

Trust

- Respect our P&G colleagues, clients, and buyers, and handle them with the same respect with which we would want to be treated.

- Have faith in one another's talents and motivations.
- Believe that people operate best when they can trust one another.

Winning Mentality

- Dedicated to becoming the greatest at what means the most.
- Have a healthy sense of discontent with the current situation.
- Have a strong drive to grow and succeed in the marketplace.

Leadership

- Leaders in our area of responsibility who are passionate about producing positive results.
- Have a clear idea of where we're headed.
- Our resources should be focused on achieving leadership goals and strategies.
- Enhance our capacity to carry out our plans and remove organizational impediments.

External Environment

PESTEL Analysis

The PESTLEL or PESTLE Analysis of Procter and Gamble (P&G) that follows examines the company's business methods. The PESTEL Analysis of Procter and Gamble (P&G) investigates the numerous external elements that effect its company, such as political, economic, social, and technological (PEST), as well as legal and environmental aspects.

The PESTEL Analysis identifies the many external circumstances in the macro environment that may have an influence on the brand's business.

PESTLE analysis is a methodology that is critical for organizations like Procter and Gamble (P&G) to analyze market dynamics, through environmental scanning, and continually improve their operations.

Political Conditions

Procter and Gamble (P&G) works in a number of countries, thus keeping track of policy changes is essential. The future of goods in a certain location is more or less determined by the region's political situation. The greater the government's stability, the easier it is to operate in that area. P&G can take advantage of a number of chances, turning it into a strength rather than simply a policy to follow. With governments throughout the globe supporting the efficient use of natural resources and P&G aiming to create a sustainable environment, the company has a potential to collaborate with the government for the greater good of society. A political action committee has been formed by the corporation. This committee focuses on topics that have a direct impact

on the company's operations. It's registered with the Federal Election Commission (FEC) in Washington, D.C., as well as several state authorities. It enables workers to pool their personal and voluntary financial contributions to support federal, state, and local politicians in the United States of America. These individuals, elected at various levels, contribute to establish future policies that have a direct impact on the company's day-to-day operations. As a result, P&G ensures that its voice is heard, and political issues are kept to a minimum across all the countries they operate in.

Economic Conditions

When the market changes, wherever in the globe, Procter & Gamble's business is impacted.

The more disposable personal income consumers have, the better it is for the company since more of its goods will be sold due to an increase in purchasing capacity. North America accounts for the majority of P&G's revenue. Any changes in income policy will result in a significant shift in consumption of essential items. Depending on the new policy, it might be higher or lower. Europe comes in second, followed by Asia, both of which are a mix of industrialized and developing nations, demonstrating how an increase in disposable income may help improve sales. Procter & Gamble's prospective development is aided by the opportunity associated with the high growth rate of emerging markets. Increased market penetration into developing nations, for example, may help the company's total worldwide growth. Growth prospects exist in a variety of areas, including feminine products and infant care, which all show signs of increasing in the foreseeable future. These are the prospects that will allow P&G to achieve new heights in terms of brand value and earnings. Maintaining a good marketing mix that reflects these evolving trends should be the primary priority.

Social Conditions

P&G believes in providing a complete product. It understands that customers engage with the product, packaging, and express how they feel about the brand, as well as how they experience it in the shop or online, and if it genuinely offers value for them in comparison to the substitutes available. These aspects must be taken into account in order to achieve good segment development and gain a competitive advantage. People are seeking for improved quality/high quality items at accessible prices as a result of shifting trends. With the addition of Ariel and tide pods to its product line, the firm has shown that societal requirements encourage innovation. P&G has been recognized as the top corporation for social and gender inclusion. P&G has created a name for itself in this market by implementing rules that treat all genders equally. By understanding that shifting trends provide companies the option to mix and match or produce newer and better products, P&G has adapted to such trends while simultaneously assisting society in growing and making life simpler.

Technological Conditions

P&G's operations, along with sales, marketing, and advertising are all reliant on technology. The requirement for analytics to be deployed via its system to understand consumer behavior better is warranted as the internet allowed the online market to grow rapidly. It has been able to streamline distribution, merchandising, shelf sets, targeted sampling, and marketing using this strategy.

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¹ History of innovation. Who We Are | P&G. Retrieved from https://web.archive.org/web/20160215142259/http://us.pg.com/who_we_are/heritage/hist ory_of_innovation

² Coolidge, A. (2015, July 10). P& G brand sales, restructuring will cut jobs up to 19%.

³ Around 100 brands to be dropped by Procter and gamble to boost sales. Cincinnati News. Retrieved from https://web.archive.org/web/20140808055326/http://www.cincinnatinews.net/index.php/s id/224358103/scat/3a8a80d6f705f8cc/ht/Around-100-brands-to-be-dropped-by-Procter- and-Gamble-to-boost-sales

⁴ Annual Report 2020. Procter & Gamble. Retrieved from https://us.pg.com/annualreport2020/

⁵ Purpose, Values, & Principles. P&G. Retrieved from https://en-eg.pg.com/policies-and- practices/purpose-values-and-principles/