Strategic Business

1 . Task 1

Procter and Gamble (P G , the Cincinnati based US multinational overtook the Anglo-Dutch conglomerate , Unilever , to become the world 's largest consumer goods company , after its acquisition of Gillette , in 2005 . Founded in 1837 by William Procter and James Gamble in Cincinnati the company rose steadily through much of the twentieth century to become an easily recognizable global name with sales in over 140 countries and billions of customers . Current sales are slightly short of 70 billion USD . Obviously , this growth path has involved the exploration and adoption

of many ideas , products , processes , organizational structures and marketing strategies . A number of Chief Executives , given authority to run the company during this phenomenal growth process , have contributed in their own way to bringing the company to its present status

The subject case study on

G , prepared by Ravi Madapati of the ICFAI knowledge centre , in 2003 , deals with one such situation in the very recent history of the company . In 1998 ,

G , though nowhere near its current sales turnover of 70 billion USD , was still one of the world 's largest FMCG (Fast Moving Consumer Goods ) multinationals . While it trailed Unilever in sales , its numerous product lines , assortment of brands , global presence and strong earnings combined to make it a very formidable global entity

In late 1998 ,

G announced a complex strategic plan , involving the reorganization of several operational areas , to improve the competitiveness of the company , and drive growth to significantly higher levels . The brainchild of the company 's brand new CEO , Durk Jager , who took over in early 1999 , the plan , codenamed Operation 2005 , arose out of Jager 's assessment of the strengths and weaknesses of the company , as well as existing market opportunities and threats . It aspired to achieve significant restructuring of the company 's organization , cut jobs and costs , open new areas of activity , drive growth and push earnings to significantly higher levels . In Jager 's words

Success is defined first and foremost in terms of growth . Unless a company grows at an acceptable rate- year in , year out- it can 't sustain its organization . Success also means growing profitably . Otherwise , it can 't produce the resources and capability to invest , to take risks seizing new opportunities . The program we lay out here today is designed to deliver that growth , at a consistently higher level . Just come back in a couple of years and take a look . I believe that the best way to accelerate growth is to innovate bigger and move faster consistently and across the entire company (Madapati , 2003

This assignment aims to carry out a SWOT (Strengths , Weaknesses Opportunities and Threats ) analysis of the company , as it existed in 1998

Organizational Strengths

The company , during its steady rise , over more than one and a half centuries , had built up a number of strengths that combined to drive its worldwide operations and achieve year on year growth in sales and earnings .

G had an extensive global presence with...