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Management
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MANAGEMENT
“Proctor & Gamble”
Project Report
Osama Mir
11/28/2010
William Procter, a candle maker, and James Gamble, a soap maker, immigrants from England
and Ireland, respectively, who had settled earlier in Cincinnati, who met as they both married sisters, Olivia and Elizabeth Norris, formed the company initially. Alexander Norris, their father-in law, called a meeting in which he persuaded his new sons-in-law to become business partners. On October 31, 1837, as a result of the suggestion, Procter & Gamble was born.
1
PROCTOR AND GAMBLE
TABLE OF CONTENTS
1. Mission Statement ............................................................................................................ 3
2. History ................................................................................................................................. 3
3. Introduction........................................................................................................................ 4
3.1 P&G IN PAKISTAN ................................................................................................... 4
3.2 Products......................................................................................................................... 5
3.3 Picture view of P& G products ............................................................................... 6
4. Functions of Manager ...................................................................................................... 7
4.1 Planning......................................................................................................................... 7
4.2 Organizing .................................................................................................................... 8
4.3 Leading .......................................................................................................................... 9
4.4 Controlling.................................................................................................................... 9
5. Organizational culture, learning & Types of organizational strategy ............. 10
5.1 P&G culture ................................................................................................................ 11
5.2 Learning....................................................................................................................... 11
5.3 Types of organizational strategy .......................................................................... 11
2
6. SWOT Analysis of Proctor and Gamble Company............................................... 12
6.1 Strength........................................................................................................................ 13
6.2 Weaknesses................................................................................................................. 13
6.3 Opportunities ............................................................................................................. 13
6.4 Threats ......................................................................................................................... 14
7. Develop the plans for the company to deal with following threats. ................ 14
7.1 Threats of other company product ...................................................................... 14
7.2 Threats of unilever companies’ products .......................................................... 15
7.3 Threat from Swine Flu............................................................................................. 15
7.3.1 Animal testing .................................................................................................... 15
7.3.2 According to CNN ............................................................................................ 16
7.3.3 According to WHO ........................................................................................... 16
8. What type of plans would be applicable? ................................................................ 16
8.1 How much concerned should Business Be? ...................................................... 17
8.2 Business Continuity Management Implications .............................................. 17
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1.MISSION STATEMENT
“We will provide branded products and services of superior quality and
value that improve the lives of the world's consumers. As a result,
consumers will reward us with leadership sales, profit, and value creation,
allowing our people, our shareholders, and the communities in which we
live and work to prosper”.
2.HISTORY
William Procter, a candle maker, and James Gamble, a soap maker, immigrants
from England and Ireland, respectively, who had settled earlier in Cincinnati,
who met as they both married sisters, Olivia and Elizabeth Norris, formed the
company initially. Alexander Norris, their father-in law, called a meeting in
which he persuaded his new sons-in-law to become business partners. On
October 31, 1837, as a result of the suggestion, Procter & Gamble was born.
In 1859, sales reached one million dollars. By this point,
approximately eighty employees worked for Procter & Gamble. During the
American Civil War, the company won contracts to supply the Union Army with
soap and candles. In addition to the increased profits experienced during the
war, the military contracts introduced soldiers from all over the country to
Procter & Gamble's products.
4
3.Introduction
roctor & Gamble (P&G) started their business by
producing candles on small scale. It was founded
in 1837. Its head quarter is situated in America. It
produces the consumer goods. As of 2008, P&G is
the 6th largest corporation in the world by market capitalization and 14th largest
US Company by profit. It is 10th in Fortune's Most Admired Companies list (as
of 2007). P&G is credited with many business innovations including brand
management, the soap opera, and "Connect & Develop" innovation. It has
138,000 employees to perform their work. Worldwide they have 386 products but
in Pakistan due to less purchasing power and political instability they have
introduced only 36 products.
3.1 P&G IN PAKISTAN
Proctor &Gamble started their business in Pakistan in 1992. At that time it
was not a famous brand. But now it is one of the most trusted brands in Pakistan
and has great good will.
In paper category their main products are Pampers and Always. Their
shampoos are also available in market i.e. Head & Shoulder, Pantene and pert
plus are their some famous brands. They are producing the greatest anti germ
soap by the name of safeguard. It is manufactured in Pakistan and they export it
to other countries. There are also different kinds of shaving materials available in
market. They are the owner of the most famous shaving company i.e. Gillette.
They also produce surf. Arial is their famous brand which is one of the best
company f Pakistan.
P
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3.2 Products
Proctor & Gamble produce 386 Products in world.
Here we will mention some of their famous products.
a) It is famous on producing Shampoo. Their main products on this field are
Head Shoulder, Pantene and Pert plus.
b) They also produce soap. Worldwide Safeguard and Camay are their
famous soaps. They produce all kind of shaving materials named as
Gillette.
c) Pringles is one of the best chips in the world and it is produced by P&G.
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3.3 Picture view of P& G products
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4.FUNCTIONS OF MANAGER
There are four management function perform by a manager.
1. Planning
2. Organizing
3. Leading
4. Controlling
4.1 Planning
According to the book planning is define defining goals, establishing
strategy, and developing plans to coordinate activities. The management of P&G
in Pakistan performs this function in this way.
• By setting sales target:-
They set their sale target on daily basis and plan how to achieve
it. Normally daily sale target is four million.
• Area focusing:-
Some time there are some specific areas where they need to
focus. In their planning they discus that. For example Faisalabad takes lead of
100000 sales. After focusing on one product (GILLETE) take the lead of 2700000.
• Volume updates:-
They up-date the volume and plan for it after specific period. They
plan that how they will use the existing stock and when will the update it.
• Expert’s reports:-
They take the reports of their experts and plan according to it.
• Demand & Supply:-
Every time they get information about market and plan
supply according to it for the best output.
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4.2 Organizing
According to the book organizing means what need to be done, who it will
be done and who will do it. Here is the information that how they organize
the work of organization.
I. Divide the areas:-
i. Lahore1, Lahore2, Lahore3. They have divided the Lahore in
three parts for better competition and for more sales. Because
whenever there is some competition then there will be good
outcome.
II. Divide the team:-
i. There are different teams who control their specific areas and
field of distribution.
III. Daily meeting:-
i. There is daily meeting of all staff at 9:00 am in their main
office of Lahore.
IV. Visiting the warehouse:-
1. Before meeting they visit the warehouse at 8:45 am to
check the availability of stock.
V. Quantity of product:-
i. They check the quantity of every product to know that did
they have enough quantity to distribute their products to
fulfill the demand.
VI. Supply:-
i. After checking the quantity of every product they make their
supply to the customers.
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4.3 Leading
According to the book leading means motivating, leading, and any other
activity involves in dealing with people. Manager of P&G leads their
employees in following ways.
I. Target achievement:-
i. They set their daily target of sale. Normally they set their
daily target of Rs 40, 00,000. Then at the end they check how
much of their target they have achieved.
II. Up-grade the team:-
1. They up-grade their teams (on daily basis) by providing
them some specific information about the market.
III. Motivate the team:-
1. They motivate their teams in different ways.
4.4 Controlling
The monitoring activity to ensure that they are accomplished as planned.
Total salary
30% variable
10% attendance
10% Target achievement
10% perfect score
70 % fixed
Surprize gifts
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I. Monitor the Hard work:-
1. He randomly checks his workers. He checks their
performance and working abilities.
II. Skills checking:-
i. He checks that how many skills a person has. If a person has
good selling skill or other skill then he motivates him.
III. Attendance :-
1. He checks the Attendance of their workers,
IV. Target achievement:-
a. After setting the target he noticed that how many
persons have achieved our target of 4 million
sales.
V. Weekly sales checking:-
a. He checks their sale every week.
VI. Work done:-
i. This is also need to check that the work which workers have
done is correct. And we are going according to the plan or not.
5.ORGANIZATIONAL CULTURE, LEARNING
& TYPES OF ORGANIZATIONAL STRATEGY
It’s shared values, principles, traditions and ways of doing things that
influence the act of organizational members. Management is concerned with
high production but this can only be achieved by treating their employees
rightly.
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5.1 P&G culture
In Pakistan, proctor and gamble have also organizational culture which
affects the employee’s working there. Culture has been taught to them by giving
training to their employees. Motivating them and giving them all the necessary
incentives. Managers have a faith on their employees and they work as a team
and team members are encouraged to interact with people across functions and
authority levels. Employees talk positively about the competition between teams.
Individuals and teams have goals, and bonuses are based on achievement on
outcomes. According to manager “they are team oriented.
5.2 Learning
When they hire their employee for the job then they notice that how well
this employee can adjust on their environment after selecting the employee they
provide him special training. So that employee can easily understand their
culture.
5.3 Types of organizational strategy
As mentioned above that an organization has three main types of strategies. Out
of these three strategies an organization selects the one best suitable strategy for
them. The three main strategies are Corporate, Business, and Functional strategy.
According to our point of view P&G are following the corporate strategy.
Corporate strategy means that determine what business a company is in, should
be in, or want to be in and what it wants to d with those businesses. Corporate
strategy is further divided I to three types: Growth, Stability, and renewal. P&G
is leading in its business and it is not stable. So, it is following the growth
strategy for its business because it wants to grow more and more.
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Growth strategy is further divided into five kinds.
1. Concentration
2. Vertical integration
3. Horizontal integration
4. Related Diversity
5. Unrelated Diversity
Proctor & Gamble use the concentration strategy. They are concentrating and
increasing the products on the same line of business. They are producing
consumer goods. They are making different products on the same
line for example Pantene and Head & Shoulder.
As we can see that they are making the same shampoo with
many different qualities.
6.SWOT ANALYSIS OF PROCTOR AND
GAMBLE COMPANY SWOT analyses are analysis of a organization’s internal strengths and
weaknesses and external opportunities and threats .we visited the manager of
Proctor & Gamble and according to us their SWAT analysis are these.
Strength (S)
Weaknesses (W)
Opportunities (O)
Threats (T)
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6.1 Strength
Proctor & Gamble has great strengths. They have very large business. They
have 386 products which makes it different from others. Moreover its ability to
reach almost every nation of the world provides it great strengths. It has very
good name on the market and majority of the people trust on the name or
Proctor & Gamble. Its many products like Safeguard, Head shoulder and
Pampers are leading product of the market.
6.2 Weaknesses
There are some weaknesses which a proctor & Gamble has. There some
products are the seasonal products. For example Pampers are more used in
winter season and anti-dandruff shampoos are more used in summer season. On
other days of the year their sale kept low. Some time they have to take their sale
back from the market. There in another weakness which proctor & Gamble has is
that they are not able to establish their plant on every country. Because of that
they have to pay the heavy duty on their products which increases their cost and
price. Due to increase in price their competitors get advantage on them on their
some products. The major weakness which P&G has is that they are not able to
create any differential advantage on their competitors.
6.3 Opportunities
There are always many opportunities available for every large
organization. Their many products are the market leaders. So they have great
opportunities to improve their organization size. Due to large amount of capital
they are able to get the customer attraction. They have the opportunity to
maximize the size of organization by producing so many things in Pakistan.
They have opportunity to create good will in Pakistan because they have very
large capital available for advertisement.
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6.4 Threats
Proctor & Gamble has 386 products. But on their every product there are
many competitors which are their threats. They have many leading products on
Pakistani market. So it is the threat for them to not to lose the top position. Arial
was the market leader but now due to their competitors no Arial is on 3 rd
position. So they have to protect their products from their competitors and have
to maintain their customers.
7. DEVELOP THE PLANS FOR THE COMPANY
TO DEAL WITH FOLLOWING THREATS.
Answer:
Every organization that exists in the market there are lots of threats
occurs. The competitors are providing the best quality products and add some
features in the products where the other company has not been providing in the
existing products.
P&G has facing the threats of their competitors in the some products.
7.1 Threats of other company product
For example: The company facing the threats of the Arial and surf excel of the
other company product. The price of the surf excel is much lower to the Arial in
the Pakistani markets.
When this situation creates the sale of the Arial is down .so the external threats
can creates for the product. The price of the surf excel per kg bag is 195 and the
price of the Arial is per kg is 260 rupees. When the price of the Arial is high to his
15
competitors there can be threat creates. And the sale of the product is down. This
type of threat can creates a big hurdle of the existing product of the company.
7.2 Threats of unilever companies’ products
For example: Another product of the P&G and the unilever companies’ products
are safe guard and lux. The price of the competitors soap is 36 rupees per bar
and the price of the safeguard soap is 38 rupees per bar. Where the lux is beauty
soap but safeguard is the anti bacterial soap where there is no comparison of the
both product. So once again threat can create for the P&G Company so the
solution is that the company can reduce the 5% trade off their product so the
price of the safeguard soap is 36 approximately.
This type of threats can creates for many problems of the existing products of the
well known companies.
7.3 Threat from Swine Flu
7.3.1 Animal testing
P&G conducts research using animals to demonstrate safety or efficiency of their
raw materials and products. This has led to a worldwide campaign to raise
public awareness and to stop P&G being involved in animal testing. The
campaign is led by un-caged Campaigns in the UK and Stop Animal Exploitation
Now in the USA. In 2002 P&G was recognized by the Humane Society of the
United States for "advancing alternatives to animal testing".
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7.3.2 According to CNN
Companies in the United States like Gartner, Sprint Nextel, Microsoft, General
Electric, IBM, and Dell already have plans in place to deal with potential
outbreaks. Yes, everyone is jumping on the worry bandwagon, but because we
just don't know what's ahead and how this will pan out, it's better to be
prepared.
7.3.3 According to WHO
WHO reported due to swine flu virus (A/H1N1), the cost of lost GDP for East
and South East Asia was $US18 billion ($A24.7 billion). Along the way, there
were 8000 cases and 800 deaths. Swine flu strain appears to be weakening,
although people are still being infected, notably in New York City. At posting,
the Centers for Disease Control and Prevention had reported 5,123 cases of swine
flu in 48 states, and five deaths, while the World Health Organization put the
official toll at over 8,480 diagnosed cases in 39 countries.
8.WHAT TYPE OF PLANS WOULD BE
APPLICABLE?
Answer:
Define the goals of the organization established the overall strategy for
achieving those goal why we use plans in the organization. The planning is for
the stating of the organization and also facing some problems in the organization
for the products.
When the problem is create in the P&G organization.
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8.1 How much concerned should Business Be?
1. Supply chains will be affected as the virus spreads particularly where
suppliers are from countries with denser populations and face more
restricted access to health care. Many organizations have already activated
contingency plans to ensure a flow of goods and reduce the threat of a
pandemic to their operations.
2. Workforce availability and employees’ access to work locations could be
severely impacted.
3. The psychological impacts could be widespread as the outbreak worsens.
4. Public events or promotion parties will be cancelled, and many people are
staying at home and away from work.
5. Customer
8.2 Business Continuity Management Implications
1. Small-business owners need contingency plans when employees call in sick or stay home to take care of children or loved ones.
2. Remote work and telecommuting options nowadays are numerous, affordable and reliable. The trick can be used in such a crisis.
3. Keep the workplace clean - “Good housekeeping equals good health”.
4. Retailers can switch to taking payment via credit card over the phone and dry cleaners can ask customers to drop off clothes in a bag.
5. Educate workers about what’s called “respiratory etiquette.” That is,
cough or sneeze into sleeves or handkerchiefs and properly dispose of tissues.