Email memo to the CEO of Procter and Gamble outlining a plan to create economic, social, and environmental value. ?include the

MGT/576 v1

Porter’s Five Forces Complete the table below. For the company you’ve decided to assess in week 1, determine the strength of each of Porter’s Five Forces and of the complementors. Justify your determination with examples.

Industry force Strength Provide a justifying your determination

with examplesHigh Medium Low

Example x This is why I believe it is medium.

Threat of new entrants X P&G is an established organization with several brands, so new entrants pose no competition to their revenue and customer base.

Power of buyers X Consumers spend billions of dollars on this brand each year, so they help maintain P&G as a leader in the industry.

Power of suppliers X The delivery of products to consumers is based on suppliers being able to fulfill their demand. If there were a supply issue, this could have high potential to negatively affect revenue.

Power of substitutes X There are not many substitutes for P&G products and the ones that are on the market, have no bearing on revenue.

Rivalry among competitors X P&G dominates their industry and there is no rivalry that matches their talent and revenue base.

Complementors X There are several other smaller companies that sell products similar to those available at P&G. However, those complementors have been around for quite some time and have not been able to reduce the dominance of P&G.

References:

Brown, B., & Anthony, S. D. (2011). How P&G tripled its innovation success rate. Harvard Business Review, 89(6), 64-72.

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Porter’s Five Forces MGT/576 v1 Page 2 of 2

Copyright 2020 by University of Phoenix. All rights reserved.

Adding Value to Procter and Gamble

Jeannette Stanley

University of Phoenix

March 4, 2022

Agenda

• The agenda of this discussion is to shed light on both the internal and the external environments for Procter and Gamble.

• This discussion evaluates the SWOT analysis for Procter and Gamble and provides recommendations at the end.

• These are recommendations that can enhance better performance of the company in the market.

Company Description

• Procter and Gamble is a company that sells consumer products.

• The company operates in the FMCG sector.

• The company uses the slogan “touching lives improving lives.”

Strengths

1. Strong presence in global market.

2. Wide variety of products.

3. High annual revenue (Day & Shea, 2021).

Weaknesses

1. Stiff competition from direct domestic competitors (Hussain, Qureshi, Mubeen & Asrar, 2020).

2. Fake products that are sold under the brand name of the chain store.

3. Its online presence is limited in comparison to competitors.

Opportunities in External Environment

1. Merging with competitors.

2. Diversify into more products due to strong, reputable brand name.

3. Increasing consumers’ purchasing power.

Threats in External Environment

1. Ever-increasing local competition.

2. It is affected by the instability of the dollar prices.

3. Competition from foreign brands.

Opportunities of Adding Economic Value

• Increasing diversity for the products.

• Increased marketing to tackle increasing competition (Shi, 2021).

Opportunities to Add Social Value

• Taking care of women going through puberty.

• Raising self-awareness for members of the LGBTQ community.

• Promoting education among racial minority students more so the back students.

Opportunities to Add Environmental Value

• Providing hygiene to victims who are displaced by natural calamities.

• Observing corporate social responsibility in the protection of the environment.

Opportunities to Prioritize

• Consider prioritizing the opportunity to add its social value.

• This would imply a better image for the company due to the protection of society.

• The improved image through social protection translated to increased firm value through customer loyalty and social acceptance of the company’s products.

Opportunities to Prioritize

• It is rare to find companies focusing on social well-being through different social programs.

• Prioritizing this opportunity implies the company is doing what competitors rarely do.

• It is hard to imitate programs like helping ladies in puberty without being noticed and accused of imitation in the market.

Conclusion

• Procter and Gamble is a competitive company that has been in operation since 1850.

• The company operates in the fast-moving sector and is popularly known as P & G.

• As explained above, the company should learn to capitalize on its strengths and improve on weaknesses.

• The company should prioritize increasing its social value, as explained above.

REFERENCES:

Day, G. S., & Shea, G. P. (2021). Innovating how innovation works at Procter & Gamble. Strategy & Leadership.

Hussain, S. W., Qureshi, J. A., Mubeen, M., & Asrar, Z. (2020). Local players giving a run for the share to a global giant: A case study of Pampers brand of Proctor and Gamble Pakistan. International Journal of Experiential Learning & Case Studies, 5(1), 122-134.

Shi, X. (2021). P & G Product Strategic Analysis. International Journal of Frontiers in Sociology, 3(17).

MGT/576 v1

Learning Organizations and Value Creation

Review the 6 key elements of a learning organization (Ch. 11 of Strategic Management, by Dess). Complete the table below. Evaluate the extent to which the company you’ve selected to assess in this course epitomizes each of the 6 elements. Justify your determination with examples.

Learning Organization Element

Extent to which the company epitomizes

this element Provide a sentence justifying your

determination

High Medium Low

Example x [This] is why I believe it is medium.

Inspiring and motivating people with a mission or purpose

X P&G provided millions of liters of safe drinking water to Zimbabwe amid a cholera outbreak (Procter & Gamble, 2009).

Developing leaders X P&G is committed to creating gender equality by spending more than $200 million in businesses owned by women in Asia, Africa, and the Middle East (Zimbabwe Online News, 2021).

Empowering employees X P&G offers discounted child care programs for employees to allow them to work.

Accumulating and sharing internal knowledge

X P&G maintains newsletters and publish information publicly on their website.

Gathering and integrating external information

X P&G is involved with monitoring what is happening in the world as they have suspended operations in Ukraine to focus on humanitarian efforts.

Challenging the status quo and enabling creativity

X P&G offers stem programs to help grow interest in needed careers among diverse populations.

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Learning Organizations MGT/576 v1 Page 2 of 2

Learning Organization Element

Extent to which the company epitomizes

this element

Provide a sentence justifying your determination

Recommend at least 1 step the organization's leaders could take to enhance 1 of the elements and explain how that could help the organization create more value.

References:

Procter & Gamble. (2009). Procter & Gamble and World Vision Equip and Empower Zimbabweans in Fight Against Cholera. Retrieved from: https://news.pg.com/news-releases/news-details/2009/Procter– Gamble-and-World-Vision-Equip-and-Empower-Zimbabweans-in-Fight-Against-Cholera/default.aspx

Zimbabwe Online News. (2021). Procter & Gamble commits to bold action to drive Gender Equality across Asia Pacific, Middle-East and Africa. Retrieved from: https://www.zimbabweonlinenews.com/procter-gamble-commits-to-bold-action-to-drive-gender-equality- across-asia-pacific-middle-east-and-africa/

Copyright 2019 by University of Phoenix. All rights reserved.

EXPANDING P&G Jeannette Stanley

Agenda

■ Chosen Country

■ Diamond of National Advantage Analysis

■ Success Analysis Forces

■ Hindrance Analysis Forces

■ Leadership Actions

■ Recommendation

■ Conclusion

■ References

P&G in Zimbabwe ■ There is no P&G location in

Zimbabwe

■ P&G has a presence in the country

■ Low start up costs

■ Large earning potential

Diamond of National Advantage

Industry Rivalry

■ Multinational companies are eyeing the same market.

■ Locals companies pose a significant threat for Procter and Gamble.

■ Convenient small scale sellers do dominate a significant share of consumer goods in Zimbabwe .

Demand Conditions

■ There is an increase in consumer goods like groceries.

■ People prefer to buy from retailers who are sensitive to their prices.

■ People demand to consume healthy consumer goods and are cautious about being exploited.

Diamond of National Advantage

Supporting Industries

■ The logistic industry is not as reliable as Procter and Gamble could wish.

■ The is banking industry that would support transaction purposes.

■ There is a private security firm that would offer good security to the premises of Procter and Gamble.

Factors Endowment

■ Affordable labour is available from Zimbabwe people.

■ Procter and Gamble have a strong capital base and thus can finance its operations.

■ It is not as hard to set a strategic location to set up stores in Zimbabwe.

Success Analysis Forces

1. Increasing growth of the economy

■ The economy of Zimbabwe is growing faster than that of its neighbours.

■ This increase supports the consumption of more consumer goods for locals.

■ The higher consumption of consumer goods would facilitate the success of Procter and Gamble in Zimbabwe.

2. Increasing purchasing power

■ With increasing economic actions, people's ability to buy is increasing (Bonga & Mugayi, 2018).

■ This implies that people would not mind paying higher prices for goods from Procter and Gamble.

■ Furthermore, they can buy more units per person.

■ This is a basic success factor for Procter and Gamble.

Success Analysis Forces

3. Improving political climate

■ The political climate is stabilizing in the country.

■ For the number of years that Procter and Gamble have operated there, it has operated a steady political climate.

■ This stable climate facilitates a suitable environment to do business from.

Hindrance Analysis Forces

1. Limited online footprint

■ Zimbabwe is growing in terms of digital migration, just like other countries.

■ This limits the ability of Procter and Gamble to reach customers over the digital space.

2. Limited diversity

■ The company has not invested in so many products.

■ This implies it only attars a limited number of customers.

■ This also limits the profitability of the company.

Hindrance Analysis Forces

3. Uncertainty of regulations on foreign companies

■ The country is yet to establish a stable regulation pertaining regulation of foreign companies.

■ This poses risks for a government that would impose strict policies for foreign companies.

■ This would make it hard for Procter and Gamble to operate in Zimbabwe.

4. Limited products

■ This implies that the company is likely to face stiff competition from locals and other foreign companies in the industry.

■ This would also reduce customers the satisfaction they would not find everything they need from one roof.

■ In the long run, these customers are likely to be lost to competitors who have more varieties of consumer goods.

Leadership Action

1. Engage locals at the executive positions

■ This is for a proper understanding of the buying culture (Foss & Pedersen, 2019).

■ Furthermore, this is to understand how locals can be triggered to buy more.

■ This would also create a good image of the company to locals so that they would buy more.

2. Embrace decentralized management

■ The company should consider allowing managers in Zimbabwe to make their decentralized decisions.

■ This makes it more flexible for them to react to different market forces.

■ This would also enhance their proactive preparedness for different market changes.

Leadership Action

3. Engage staff in decision making

■ The company should consider involving different stakeholders in the process of making decisions.

■ This is to have them support decisions made.

■ Their supporting decision would facilitate the effective operation of Procter and Gamble in Zimbabwe.

Recommendation

i.) Engage more locals in strategic management

■ This would incline the strategic decision made and purchasing behaviours of locals.

■ This would also help t protect the interest of locals while doing business simultaneously.

ii.) Consider Diversifying into more variety of products

■ This is to attract more customers (Guyader & Piscicelli, 2019).

■ This is also intended to increase shopping satisfaction since customers can get everything they need under one roof.

Conclusion

■ In conclusion, expanding to Zimbabwe is a good decision by Procter and Gamble.

■ Expanding in this market is as attractive because of different success forces discussed above.

■ However, Procter must consider hardships and possible challenges and be ready for them.

■ Procter and Gamble should incorporate leadership strategies as suggested and discussed above in the expansion strategy.

REFERENCES:

Foss, N. J., & Pedersen, T. (2019). Microfoundations in international management research: The case of knowledge sharing in multinational corporations. Journal of International Business Studies, 50(9), 1594-1621.

Bonga, W. G., & Mugayi, P. (2018). An Explanatory Analysis of the Potential Impact of Citizens’ Purchasing Power on Industry Revival in Zimbabwe. Researchjournali’s Journal of Economics, 6(4), 01-07.

Guyader, H., & Piscicelli, L. (2019). Business model diversification in the sharing economy: The case of GoMore. Journal of cleaner production, 215, 1059-1069.