Strategic Audit: Procter & Gamble

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Company Background

Proctor & Gamble is one of the market leaders in the field of Fast Moving Consumer Goods (FMCG). The company is working in more than 80 countries all around the globe with more than 138,000 employees. The company was started at small level which used to deal with candle and soap products. In the present scenario, P&G has become one of the market leaders with the help of its values, integrity, leadership style and passion for wining. The product reach of P&G is in more than 180 countries. There are various brands of P&G, such as Ariel, Tide, Olay, Pampers, Crest, Charmin, etc. The treatment of the company with its all internal and external stakeholders is one of the main strengths to achieve this height (P&G, 2008).

1a) Internal Factor Analysis Summary (IFAS)

(see attachment for table)

Strengths

+ Brands: The main strength of the company is large number of brands of Procter & Gamble. Some of the product categories are personal & beauty products, house & home furnishings, tips & tools, health & wellness, baby & family, etc. All the product categories of Procter & Gamble contain a broad product line that satisfies all the demands and requirements of the customers.

+ Diverse portfolio: Diverse portfolio of business is also one of the major strengths of Procter & Gamble. Product innovation and strong brands are some of the competitive advantages for the company. These advantages help the company to become market leader in FMCG industry. The consistent revenue is received by the company with the help of the diverse portfolio (Procter & Gamble: A Classic Investment with Great Potential, 2006).

+ Secret ingredient: All the brands of Procter & Gamble content secret ingredients. These ingredients are not disclosed to any external person or body due to product security. This is one of the main tools of the company to differentiate its products with the competitors (P&G Virtual Campus, 2005).

+ Value to employees: The employees of Procter & Gamble are given high value by the top management. The management people identify whose experience, passion and skills will help the company to achieve its goals and objectives (P&G Virtual Campus, 2005).

Weaknesses

- Access of joint ventures: The higher number of joint ventures is not beneficial for the company. Procter & Gamble has 11 joint ventures which are not good for its long term operations. A joint venture contains some disadvantages also; if a company does not have joint ventures then it can become more flexible in its operations.

- Undifferentiated product: Some of the fast moving consumer products of the company are not completely differentiated with the products of competitors.

1b) External Factor Analysis Summary (EFAS)

Opportunities

+ Healthy brands: The Company should focus on the brands that are suitable for human health. Nutrient packed foods can also be proved one of the main opportunities for Procter & Gamble. It has a well established product development department which can analyze the needs of the customers and ...