A Case Study of Procter & Gamble

Procter and Gamble was formed in 1837 and has grown to be one of the fortune 500 companies by William Procter a candle maker and James Gamble who was a soap maker. The two were emigrants from England and Ireland and had settled in Cincinnati in the state of Ohio where the head office of the corporation still sits today. The company as five key divisions, which are categorized by products. These are food and beverage, beauty care, health care, paper product and laundry and cleaning. In the first quarter of 2007, the corporation was the 18th largest by profit and in the top 50 largest by revenue. Moreover, the company is amongst the top 20 most admired companies in the world. With a work force of more than 140,000, the company has been able to live its motto of “touching lives, improving life”. Being the world’s largest consumer goods corporation with the presence in more than 180 countries and a brand portfolio of about 300 it can be referred as a global corporation. It has managed to remain as the market leader through innovation and being aggressive by clearly designing policies and implementing them. This is what helped it win the heavy competition it was experiencing in the last three decades (Davila, Epstein, & Shelton, 2006). By ensuring high-quality products P&G as ensured a large customer royalty worldwide. The strategy has been to create a conducive environment for fast and quality innovations.

The management planned to fast track the commercialization of new products so as to accelerate growth and widen their margins. The play to win strategy adopted by the company through the 80s enabled it to be aggressive and acquisition of its local and foreign competitors was the driving force. After the acquisitions of these companies, they were re-structured to fit into the corporation’s processes and they contributed to an increase in profits (Davila, 2006). The companies acquired included but not limited to Noxell, forger’s coffee¬†¬† , shultons old spice and Richardson-Vicks. The dominance of P & G in the consumer goods market is as a result of its keen interest to promote talent. Through empowerment programs, the company strengthens employee morale. Employees are united by the company’s values, culture and goals. The mid management is empowered so as to make it easier for it to customize products based on their immediate environment and consumer needs. This has been a powerful tool to optimize resources as well as encouraging decentralized decision-making. The management can implement projects without seeking approval and funding from head office. This participatory and empowerment kind of leadership is key to the success of this global corporation.

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