Strategic Fit: P&G

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Step 1
Executive Summary:
The modifications to the corporate strategy of Proctor & Gamble are that the company fit between its strategy and industry environment is likely to change. Proctor & Gamble used to tailor make its products for its geographical markets. This is likely to change. Now, Proctor & Gamble will make high quality global products, and advertize them globally for global markets. The degree of differentiation will continue by way of superior quality.
The external market is has strong competition and the buyer has several choices. The Organization 2005 project of Proctor & Gamble will develop global business units for products. The company has already identified 300 products for closing down and divesting and only profitable products will be continued.

Step 2
The business and corporate strategy is differentiation. Differentiation is achieved through innovation and brand identification (a). Procter & Gamble uses research & development to innovate and regularly introduce new products. At the same time its spends large sums of money on advertising building brand reputation. The corporate strategy of Procter & Gamble is to focus on profitable 65 brands and to divest non-profit making brands of the company.

Step 3
Competitive Analysis:
The PEST factors for Procter & Gamble are as follows. P&G is a global company and had $83.1 billion in sales in 2014. Its operations are spread all over the world except Cuba and North Korea. it faces different tax policies from different regimes. Procter & Gamble faces a politically stable environment. There are conflicts in Syria and related Middle East areas but overall there is a politically peaceful climate. The employment laws are improving in most countries and with the efforts of WTO, trade restrictions and tariffs are declining. The economic factors currently are not very favorable. There is global economic slowdown and some countries are experiencing recession. However, the economic growth of the USA has begun and is likely to continue. The social factors are that a large proportion of the population is aging. Procter & Gamble products targeted at the elderly and older customers will have a positive impact. Cosmetic and other products aimed at grooming will experience a growth at career attitudes improve. Further, Procter & ...