Strategic

Management
 History
• 1837, founded in Cincinnati, Ohio by
William Proctor & James Gambles.
• Started with soap & candles.
• 1879, the 1st big hit (Ivory soap).
• 1915, build a manufacturing facility in
Canada.
• 1946, Tide soap introduced.
• 1948, overseas division established to
support sales in Mexico, Europe &
Japan.
• 1950s & 1960s expanded the R & D
 Continued………
• 1980, annual sales $ 10 billion.
• 1993, annual sales $ 30 billion.
• 1995-2005 several acquisitions were
made.
• 2004, P & G appeared on 7 fortune
magazine company list.
•
 Our Vision

Be, and be recognized as, the

best consumer products and
services company in the
world.
 Our Purpose
• We will provide branded products
and services of superior quality and
value that
• improve the lives of the world’s
consumers, now and for
generations to come.
• As a result, consumers will reward us
with leadership sales, profit and
value-creation, allowing our people,
our shareholders, and the
communities in which
 Our values
• “P & G is its people and the values by
which we live”.
• “the men and women of P & G will
always be our most important
asset”.
• Value statement specifically
addresses five topics.
• “leadership, integrity, trust,
ownership & passion for winning”.
 Our Principles
1.“We show respect for all individuals.
2.The interest of the company & the
individual are inspirable.
3.We are strategically focused in our
work.
4.Innovation is the cornerstone of our
success.
5.We are externally focused.
6.We value personal mastery.
7.We seek to be the best. and
8.Mutual independency is the way of life”.
 Our Promise

Three billion times a day, P&G

brands touch the lives of people
around the world. And P&G people
work to make sure those brands live
up to their promise to make
everyday life just a little bit better.
 Corporate Governance
1.Management, shareholders, and the
board work together;
2.Employees are long-term investors;
3.A foundation of integrity, control,
and stewardship; and
4.Doing what’s right.
“Our Purpose inspires us. Our
Values
unite us. And our strengths
enable
us to make small but
meaningful
differences in people’s lives…
every day.”
—A.G. Lafley
 Lafly states……

• P & G’s goal is to deliver 4-6%

annual sales growth.
• 10% or better EPS (earning per
share) growth.
• Free cash flow equal to 90% or
more of net earning.
• 2001-2004 annual sales
increased 30%,EPS grow 40% &
shareholder’s accumulated
return 81%.
 SWOT
ANALYSIS
 Strengths
(on which we stand)
1.Strong brand recognition.
2.Strong goodwill. (Ranked 26 in
Fortune)
3.Wide brand range (300 brands).
4.16-Billion $ selling brands.
5.Advanced R & D department.
6.Record revenue generation
($56.7 BLN sales, $6.4 BLN ne
income).
7.Strong global presence (160
countries).
Weaknesses
(which have to remove)
1.Production facilities in 43
countries while operations
in more than 160 countries.
2.
3.Unable to coupe with the raw
material prices.
4.
5.Decreased revenues in their
Northeast Asia market.
 Threats
(which can damage)
1.Price competition around the
world.

2.Rising commodity prices.

3.Media fragmentation.

4.Global economic threats.

5.Political disruption.

6.Increasing localization trends.

7.
 Opportunities
(which can be achieved )
1.Developing countries(cover 80%
population).
2.
3.Emerging consumer market (China
& India)
4.
5.Manufacturing facilities in China.
6.
7.Selling through internet.
8.
Stage-1: The Input
Stage
Internal Factors
Evaluation
IFE
External Factors
Evaluation
EFE
 Competitive
Profile Matrix
CPM
Proctor & Gamble
P&G
Johnson &
Johnson
J& J
Unilever
Colgate-Palmolive
CP
 CPM
Comparison
 Stage-2: The
Matching Stage
TOWS Matrix
 S W

O
•

T
•
SO Strategies
WO Strategies
ST Strategies
WT Strategies
Space Matrix
 FS (Financial Strengths)

FS + ES =
CA(Competitive

IS + CA =
Advantage)

IS (Industry
Strengths)
ES (Environmental
Stability)
The direction is
BCG Matrix
 High Star Question Mark

Mar ke
t
Cash Cow Dog
Growt
h

Str on Wea
Low g Relative Mar ket k
Share
Internal-External
IE Matrix
 IFE
EF
Grand Strategy
Matrix
GSM
 Strong
Competitive
position
Rapid Market Growth

Slow Market Growth

Weak
Competitive
Stage-3: The Decision
Stage
 Quantitative
Strategic Planning
Matrix (QSPM)
Checklist
THANKS TO
ALL