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EXECUTIVE SUMMARY:
Proctor and Gamble® was founded in 1837 by William Proctor and James Gamble in Cincinnati, Ohio. Today the company is the world’s largest producer of consumer goods with over 300 brands in over 180 countries. The company has a significant advantage over its competitors because of market position and brands that everyone knows such as Tide®, Pampers®, Gillette®, Olay® and many more.
The company’s purpose is to “provide branded products and services of superior quality and value that improve the lives of the world’s consumers now and for generations to come. As a result, consumers will reward us with leadership sales, profit and value creations, allowing our people, our …show more content…
This includes laundry products, cleaning supplies, batteries, and pet products. This portion could be considered the company’s “bread and butter”. More capital is allocated to R&D in this segment to continue making the products better than they were.
With improvements on already popular brands, consumers will continue to use. Prior consumers that weren’t happy with the product may also be tempted to try again which will increase customer base as well as increase profits.
Capital should also be invested in locating supply chains closer to major hubs. While this investment may be costly, it could generate large returns because shipping costs would decrease which would allow the company to maintain competitive with the pricing of it’s products.
2. RECOMMENDATION #2: Should the firm increase growth by acquiring other companies for synergies or grow internally? Do they have the infrastructure to grow internally? If they buy a competitor, how will the merger be integrated in regards to culture, overlapping businesses, etc.
The firm should look into acquiring other companies. An acquisition will help expand the firms product line, team, market share as well as the possibility of greater geographic presence depending on where the acquired company has been doing business. Finding young companies that are producing innovative products that will enhance their current brands is a smart move. Doing this early in the company’s or