Paper Topic:

international business2-task1

br International Business

2005

International Business

The Export pattern of Proctor and Gamble

P G is one of our major competitor . Their export reveals that they are concentrating on development countries as a major market , without sacrificing the home market . However , there seems to be paradigm shift in their marketing plans . A study of their Annual Report 2005 is quite revealing

Global Operations

Though principally an American organization ,

G is essentially a global company employing over 98 ,000 people and having operations and manufacturing facilities in over

80 countries . At present it is selling in 140 countries . Its marketing strategies are formulated to optimize sales and profitability . As per the 2005 annual report , the sales in North America are just less than half of the geographic split of 2005 sales is

Region Share

North America 48

Western Europe 5

Northeast Asia 23

Developing geographies 24

Sales

The net sales in 2003 were 43 .4 billion dollars . These rose to 51 .4 billion dollars in 2004 and to 57 .1 billion dollars in 2005 . The sales have grown more than 40 in one year . This is a growth witnessed in a time of political uncertainty in many parts of the word . Net sales increased 10 over the same period . The increase was 8 excluding the impact of foreign exchange . It exceeded the target , which was 4 to 6 .The sales volume has increased by 7 , on average , for

G 's 17 billion-dollar brands . It has increased by 6 , on average , for

G 's top 16 countries , and by 7 , on average , for

G 's top 10 retail customers

Manufacturing

P G has organized its operations in 7 geographical areas . These areas are North America , Northeast Asia , Latin America , Central Eastern Europe /Middle East /Africa , Greater China and ASEAN / Australasia /India Accordingly , the manufacturing facilities are not centralized . They are spread over the globe . The major manufacturing hubs have been chosen from economy point . These are San Jose in Costa Rica , Manila in Philippines , and New Castle in U .K . Though the product lines are standardized , there is ample evidence of adjustments according to the tastes of the customers and regulatory measures .

G introduced Tide in India after adjusting the phosphate content and the labeling was redesigned for beauty products . The shampoos in Asia show more brunettes than blondes . It is because the majority of the women there are black haired

There has been consistent growth in

G 's global operations , and they have almost 50 of returns from markets that are either in developing or in growing economies

Bibliography

HYPERLINK "http /www .pg .com /en_US /index .jhtml http /www .pg .com /en_US /index .jhtml

HYPERLINK "http /www .pg .com /investors /sectionmain .jhtml http /www .pg .com /investors /sectionmain .jhtml

HYPERLINK "http /www .pg .com /annualreports /2005 /pdf /pg2005annualreport .pdf http /www .pg .com /annualreports /2005 /pdf /pg2005annualreport .pdf

INTERNATIONAL BUSINESS

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