Question

Reread the Management Focus on Procter & Gamble, and then answer the following questions: a) What strategy was Procter & Gamble pursuing when it first entered foreign markets? Why do you think this strategy became less viable later on? b) What strategy does P&G appear to be moving toward? What are the benefits of this strategy? What are the potential risks associated with it? c) To what do you attribute P&G's recent sales decline?

Answer 1

During the 1980, procter and Gamble would use subsidiaries To manut actiune the products to be sold in different nadions, however procter & Gamble developed new products in Cincinnad: and then Relied on semiantonomous Foreign Subsidiaries to manufacture market and distribute those products in different nations. The procken and Gamble company (P & G) is an Ame rican multinational consumer goods corporation headquardened in down town Cincinnati, Ohio, Founded in 1837 by english American William procken and Inish American James Gamble Benefits :- procter and Gamble's generic competitive strategy de tines the main approach to the Bu- siness to achieve competitiveness The prochen and Gamble company's poimany Intensive growth strategy, is market penetration. In this

Intensive schondegy, the main aim is to Increase the company's marked Share procter and Gamble dues so through mankefing campaigns to Increase Consumer awareness. poden fial Risk :- As a defensive stock il's worth nothing that P & G may be more likely to outperform the broader market duning a sell off. prochen and Gamble Fails to Reverse India fide. P SG's Indian Finan cials minron the parents performance Which saw sales decline of 8 % du- ring riscal year 2016 . P & G has Invested more than Rs 2000 crore in India in past years, mainly to sed up manufacturing units to Reduce dependence on pricier Import sales were also hit due to demone- disation. P&G is slouggling to hold on to market shares across categories due to Intense compeliti- areness and Internal focus on profit- ability.