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Environmental Analysis on Procter and Gamble

For this assignment, you will be completing an environmental scan and economic analysis on your selected department, group, division, function, or organization (for which you will create a strategic plan), including the remote, industry, and operating environments. Your environmental scan should describe the situation completely and accurately. You should identify any major changes that you expect to affect your remote, industry, or operating environments in the next 5-10 years.

This will include the following sub components:
a. Refine the analysis of the forces and trends you completed for the Week Two assignment.
b. Utilize a macroeconomic forecast of economic indicators that will affect your chosen organization in the future and should be considered part of strategic planning.
c. Analyze the non-economic factors in the remote environment:
1) Social and Cultural
2) Political
3) Technological
4) Demographic
d. Complete a competitive analysis of your organization's position from a micro economic perspective based on the pricing of the organization's primary product or service line, an assessment of its cost structure, and an assessment of the market in which the organization competes. (Note: This should be a discussion, not a spreadsheet.)
e. Develop a summary of the organization's current situation, including its mission or business overview, its current competitive position, and the forces and trends in its industry. Based on this situation, you will identify three to six current opportunities and issues you believe should be addressed through the strategic-planning process.
f. Identify strengths and weaknesses in the organization's operating environment that can be leveraged to capitalize on the emerging opportunities or minimize the threats that you identified in items 1-4.
g. Create three to four strategic long-term objectives that can be measured to determine the success of the strategic plan.
h. Revisit the mission and vision statements you modified in Week One. If necessary, modify or improve them further to align with your long-term objectives.

Solution Preview

This paper deals with the environmental and competitive analysis of P&G. Apart from this, it also provides a brief description of non-economic factors in the remote environment. SWOT analysis forms a critical part in any organization, as it helps in identifying the strength, weakness, opportunity and threat and provides an idea to properly utilizing strength so as to gain competitive advantage. An assessment of Pricing strategy, cost structure and market provides an insight into the microeconomics perspective. This perspective assists in conducting the competitive analysis.

In all, this paper would help the reader in getting the in-depth knowledge of the environmental analysis of P&G.

In the first section of the discussion paper, the current position of the Company is analyzed in detail to make the external and other analysis of the business of the Company much more comprehensible.

Procter & Gamble holds a long duration record of rendering high quality products to accommodate the distinct and ever-changing requirements of customers. It is a multinational consumer product company. At present, the company has developed into a big conglomerate. The company is getting different businesses added to its business portfolio and constituting separate sections of each department. The company mainly concentrates on the employees and assures the employees to keep concentration on the consumers, as consumers are the foundation of the market place (Proctor & Gamble's (PG) Mission Statement, 2005).

Presently, P & G is utilizing 139,600 people world-wide after acquiring different companies. In 2006, its overall income has progressed to $68.2 billion, producing net profits of $8.7 billion from its core businesses. The core competences of the company are development and commercialization. With the assistance of the acquisitions, the company expects to rise and develop quality products for fulfilling the ordinary requirements of the people world wide.

On October 31, 1837, William Procter and James Gamble determined to begin a partnership in cooperation with each other. They started marketing soap and candles with Moon and Stars as their official brand mark. In 1980s, they preferred to convert their brand mark to their company initial letters.

Their sales progressed to $230 million by the 100th anniversary of the company. By this time, they put in various products like Ivory soap, Crisco and simultaneously opened their maiden plant in Canada, that is, outside the USA. P & G added numerous products like Tide, Crest, Downy, Folgers, Bounce, Always, Liquid Tide, and Pampers for the next 50 years. Also, the company achieved $10 billion in sales and was rated as the second company amongst the 50 largest fortune 500 companies. Afterwards, P & G took on companies like Max Factor, Tambrands (Tampex), Clairol. By 2004, the company achieved $16 billion brands, which brought forth $30 billion of the companies overall annual sales, that is, $51.4 billion (Procter & gamble Inc, 2007).

Divisions: Presently, the company possesses a business in around 50 classes accompanying more than 300 brands. The company functions in the five different sections of the business, which can be described as follows:

Personal and beauty care, which comprises of the products that assist in personal care and beauty care. The products are colognes, cosmetics, personal cleansing, skin care, etc.
House and home care, which comprises of the products that assist in house keeping and home care. The products are dish care, laundry products, household cleaners, etc.
Health and wellness, which comprises of the products that assist in health care. The products are health care, different drugs, etc.
Baby and family care, which comprises of the products that assist in baby care and family care. The products are baby care products, snacks, etc.
Pet nutrition and care, which comprises of the products that assist in the care of pets, their health and nutrition.
Along its long time operations of around 169 years, the company has carried further enlargement with the objective to attain economies of scale and to get through customers throughout the world. The company becomes more bureaucratic due to the elaboration of businesses and larger size. In its expansion phase, the company is extremely concentrated and standardized, and is frequently operating in a mechanistic manner. With the assistance of systematically collected and written down policies and processes, and separation of responsibilities, the company is capable of preserving a secure internal control system (Procter & gamble Inc, 2007). The reason behind this is that big organizations require depending on policies, processes, communication procedures for the command of large number of employees and divisions of business.

In 1990s, the company moved into the irregular declination after accomplishing maturity with the assistance of the processes of consolidation and formalization. Therefore, P & G has been attempting to reduce the bureaucratic procedure, and to experience a ...

Solution Summary

The response addresses the queries posted in 3095 words with references. The given discussion paper is based on the Company named 'Proctor and Gamble'. The content of the paper is based on the Environmental and Competitive Analysis of the Company.