Procter and Gamble is an organization which produces diverse products, and its ambition is to reach the consumer’s demand. P&G began in the 1911; with the theme of innovation by producing every time a different product. For every product they go through three stages. The first stage was to make innovative needed products; the second was to proceed with the successful products with suitable quantities; and the third is to have more investments of capital to enlarge the company. These three stages preserve the success of P&G.
P&G is a multinational corporation with 156 branches in more than 70 countries. There are three main development centers, the first center is in Germany in which paper products like 'Always' and 'Pampers' are developed. The second is in Brussels, used to develop detergents. The last center is situated in the United Kingdom where soap and shampoos are developed.
P&G’s environmental science department plays a unique role to ensure that their products are safe to use for the consumer as well as for the environment. Environmental safety is an internal part of the quality that P&G builds into its every product. The Company is committed to produce best quality of products to refine the consumers of whole world.
The company's actual performance could be deduced by looking at its 2009 Annual Report. Its worldwide net earnings for the year 2009 were 13,436 million dollar, which is 13.61% increase over the prior year. It has total assets of $134,833 million and liabilities of $71,451 million. P&G has been paying a dividend for 120 consecutive years since its incorporation in 1890 and has increased its dividend for 54 consecutive years at an annual compound average rate of approximately 9.35%.This is an evidence of how much consumers demand P&G’s product and how this initiates the company to develop 300 brands to satisfy five billion consumers all over the world.
Alan G. Lafley became chairman of P&G in 2000, he made it clear that he wanted innovation “across the spectrum”—in how the company invents, markets, manufactures, and distributes its products.
2.1 Data collection methods
We get the data from the documentary analysis of the P&G which come from the website of the P&G. The data is easy accessed in the internet. P&G’s annual plans are useful in the research. At the same time, we keep contact to P&G via emails. They give us information on the plan of the company's development.
2.2 Issues and challenges
Biases – different comments of P&G in massive aspects, often find data from some organization within the P&G. that circumstances may cause biases, which influence comments to become less objective and even flattery. It is significant to distinguish the information because possibly comments on one aspect could go opposite and cause dilemma.
Detailed resource constraints – it is not difficult to find general information about P&G. However, it was not easy to search details and depth objections. Although, connecting P&G for details may work, yet it cannot be certain that the opinions gained from P&G are 100% objective and real.
Collecting from dispersive information – a majority of resources is dispersive. It means much time consuming and less efficiency. Also some information may mislead ideas to somewhere wrong.
Through the analysis of company's annual report, we know the performance of P&G. according to the structure and culture of P&G, we can forecast the development foreground. We evaluate the approaches to management and leadership. We use the view of a manager, trying to give out a better way. We are based on management principles and analysis the existing business model. P&G has a unique pattern in the business management which was widely praised by consumers.
3. Business strategy, mission and goals
P&G products touch the lives of people around the world billion times a day. This…