What is Procter & Gamble's corporate strategy? Do the company's businesses seem to be related or unrelated? Are Gillette's businesses closely related to Procter & Gamble's businesses? How will a merger with Gillette provide a 1 + 1 = 3 effect for Procter & Gamble?
William Procter, who emigrated from England, and James Gamble, who emigrated from Ireland, met when they married sisters. Procter was a candle maker and Gamble was a soap maker. Their father-in-law insisted that they become business partners and in 1837 Procter & Gamble was born. Throughout Procter & Gambles history and development, the company has grown to be divided into five business segments: healthcare, beauty care, baby and family care, snacks and beverages and fabric and home care. The company's headquarters are located in Cincinnati, Ohio and employs around 110,000 people in nearly 80 countries and markets over 300 products worldwide with a net income of $5.66 billion.
From Boston to Bangkok, Johannesburg to Mexico City to Berlin, the modern traveler encounters a Gillette product portfolio far broader, and a worldwide presence far stronger, than any envisioned by the Company's founder. The Gillette Company today is the global market leader in nearly a dozen major consumer products categories, principally in the grooming, alkaline battery and oral care businesses.
In the more than 100 years since the Company was founded, Gillette has gained, held and strengthened leadership positions through the Company's strategy of managing its business with a long-term, global perspective. This demonstrated ability to generate long-term, profitable growth in a changing global marketplace rests on several fundamental strengths. These include a constantly increasing accumulation of scientific knowledge in core businesses, innovative products that embody meaningful technological advances and an immense manufacturing capability that produces billions of flawless products every year ? reliably, efficiently and cost-effectively. Transforming innovative ideas into useful daily products sold at a fair price engenders another fundamental Gillette strength ? strong and enduring consumer brand loyalty around the world. Skillful marketing of superior technology to achieve worldwide leadership is the goal of The Gillette Company. It is a goal pursued in global businesses that are large and healthy, with tremendous potential derived from normal market development, as well as from growth stimulated by new products. Nowhere are these qualities more evident than in the Company's powerful grooming, battery and oral care franchises.
As its exceptional performance throughout the 20th century has shown, Gillette is without peer in the grooming business. The Company has the scientific knowledge to create, and the technical ability to develop and produce, hair removal products that deliver a superior shave, whether wet or dry, whether for men or women. An array of premium quality shaving preparations and after-shaves complements the shaving process and rounds out the Gillette grooming franchise. Additional market presence and support is provided by the Company's well-established deodorant/antiperspirant brands.
Batteries are another thriving worldwide business in which the Company competes successfully. Duracell, the most popular brand of alkaline batteries in the world, is the clear global leader in the growing alkaline battery market.
Corporate Social Responsibility (CSR) is about how companies manage their business processes to produce a positive impact on society. Companies introduce new products in markets, usually after testing concludes that the product is safe for use or consumption. It is nearly impossible for a company to truly know all of the potential risks a brand new product may have, even after thorough testing. However, once a company receives reports that its product may be causing harm to consumers, it is their responsibility to conduct more research and tests to rule-out any possible truth in the reports. This is what a socially responsible company would do, one who is preoccupied not only with their bottom-line, but one that is also worried about its customers.
Today, consumers around the world are embracing a growing number of portable digital electronic devices. Enhancing its growth prospects, Duracell offers strategic power-consulting services to leading device manufacturers to further the inclusion of alkaline batteries as a power source in these increasingly popular consumer devices.
Another large global business offering sizable growth opportunities for the Company is oral care. It has been Gillette's fastest-growing business in recent years.
The Company's Oral-B brand holds the global leadership positions in manual and power toothbrushes. Within its powerhouse businesses of grooming, batteries, and oral care, the Company has a formidable portfolio of global brands. These seem poised for growth as Gillette products across a spectrum of product performance and price points continuously attract new consumers. In the grooming business, for example, the great majority of male Gillette shavers in developing markets use double-edge blades. The first step up the performance/price ladder for these consumers is to advance to Gillette twin-blade shaving systems or disposable razors. In more developed markets, the movement may be entirely within the systems category, as consumer's trade up from twin-blade to triple-blade shaving. Similarly, more than 75% of the world's consumers of batteries use less costly zinc carbon batteries, rather than better performing alkaline. Once converted to Duracell alkaline batteries, these consumers can then trade up to the advanced technologies and top ...
In this solution, P&G's Corporate Strategy is detailed over 9 Pages, 3222 Words and 95 Paragraphs. 17 References are also provided for validation and further review.