The document outlines Procter & Gamble's vision, mission, values, and strategic analysis including a SWOT analysis, financial analysis, competitor analysis, and quantitative strategic planning matrix comparing joint ventures in Europe and Asia. It provides an overview of P&G's history and operations, identifies opportunities and threats, and evaluates strategic options for expanding internationally through joint ventures.
3. VISION
STATEMENT
Be, and be
recognized
as, the best
consumer
products and
services
company in
the world.
Usman Rehmani
4. MISSION
STATEMENT
We will provide products and
services of superior quality and
value that improve the lives of the
world's consumers. As a result,
consumers will reward us with
leadership sales, profit and value
creation, allowing our people, our
shareholders, and the
communities in which we live and
work to prosper. 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.
5. RECOMMENDED
VISION & MISSION
VISION
P&Gs intent is to offer the highest quality consumer
product goods at the least expensive price for the
widest spectrum of customers in a convenient format.
MISSION
coca-cola will work with its suppliers and distributors
to ensure that its products are recognized both in the
market and on the supply side as contributory to a
retail distributors bottom line.
6. VALUES
Integrity
Passion for Winning
Leadership
Trust
Ownership
7. PRINCIPLES
We Are Strategically Focused in Our
Work.
We Value Personal Mastery.
We Seek to Be the Best.
The Interests of the Company and the
Individual Are Inseparable.
We Are Externally Focused.
Mutual Interdependency is a Way of
Life
8. OBJECTIVES
To build existing core businesses into stronger
global leaders.
To grow leading brands in big countries, winning
customers.
To develop fast-growing, higher-margin with
global leadership potential.
To regain growth momentum rate and leadership
in Western Europe.
To drive growth in key developing markets.
9. COMPANY OVERVIEW & HISTORY
Procter and Gamble is actually the
name of two persons William
Procter and James Gamble
immigrants from England &
Ireland respectively.
Procters business was candle
making and Gambles business was
soap making.
16. History Of coca-cola In Pakistan
coca-cola Pakistan, headquartered in Karachi,
commenced operations in Pakistan in 1991.
In 1994 coca-cola acquired a soap-manufacturing
facility Hub, Baluchistan.
In 2004, a PUR facility was set up to produce P&Gs
water purifying technology.
Today, the Hub plant is equipped with state-of-the-
art manufacturing technologies and quality assurance
processes and systems, reflecting the company's
values of safe, hygienic and ethical manufacturing
practices.
18. DISTRIBUTION CHANNEL
coca-cola itself has no distribution channel rather
they were initially distributing its products through
International Brands Limited (IBL).
In the 1940s, Abudawood became the exclusive
distributor of coca-cola(coca-cola) brands throughout
Saudi Arabia.
In 1956, Abudawood and coca-cola established a
joint-venture factory in Saudi Arabia (called Modern
Industries Inc.). In the same year Abudawood started
distribution of coca-cola products in Pakistan.
19. SOCIAL RESPONSIBILITY
Pampers Hospital Education Program
Safeguard School Education Program
22. Balance Sheet 2010
During the previous 3 years P&Gs assets have
diminished by 10%.
While long term debt has been constant short term
debt has decreased by 48%.
coca-cola has an extremely low ratio of tangible
assets to intangible assets.
23. June 2008 June 2009 June 2010
Total Assets 143992.00 134833.00 128172.00
Total Liabilities 74498.00 71734.00 67057.00
Total Equity 69494.00 63099.00 61115.00
Short Term Debt 13084.00 16320.00 8472.00
Long Term Debt 23581.00 20652.00 21360.00
Current Assets 24515.00 21905.00 18782.00
Intangible Assets 98837.00 93466.00 90146.00
26. Continued..
faces very strong buyers power because retailers like
Wal-Mart are able to negotiate for pricing with
companies.
limited supplier power because of the costs they
incur when switching suppliers.
low threat of new entrants because a huge capital
amount is required.
high threat of substitutes.
high level of rivalry exists among existing firms.
29. Opportunities
Developing markets.
Niche markets.
New products.
To invest in the segment for
children.
To introduce food and
beverages for Pakistani market.
Emerging consumer market
(China& India).
Manufacturing facilities in
China.
Selling through internet.
36. Strengths
large scale operations.
very strong brand name and leading market
position.
coca-cola has a huge customer base.
innovations to sustain its customer base.
Diversified product portfolio.
Strong focus on research & development.
Strong global presence (160countries).
38. Weaknesses
less innovative than its major competitor Unilever.
products have failed in certain geographic areas. For
example, Oil of Olay failed in Pakistan, Camay failed
here as well.
Dependent on Wal-Mart stores for majority of its
revenue.
Production facilities in 43 countries while operations
in more than 160 countries.
39. IFE Matrix
Key Internal Factors Weight Rating Weighted
Score
Internal Strengths
1. Largest home consumer product goods manufacturer. 0.05 4 0.20
1. Innovative products format. 0.10 4 0.40
1. Increasing free cash flows. 0.05 3 0.15
1. Career development program. 0.15 4 0.60
1. Strong management team. 0.05 3 0.15
1. Strong logistics supply chains. 0.05 3 0.15
1. Discount pricing structures. 0.05 3 0.15
1. Long-range planning. 0.05 4 0.20
1. Reputation for quality. 0.05 3 0.15
1. Outperforming financial ratios 0.05 3 0.15
Internal Weaknesses
1. Many products are not personal care necessity. 0.04 2 0.08
1. Little unified brand focus. 0.05 2 0.10
1. Narrow margins. 0.05 2 0.10
1. High operating costs. 0.11 1 0.11
1. Uncertain joint marketing ventures. 0.10 1 0.10
40. TOWS MATRIX
S- Strengths W- Weaknesses
Innovative products. Lack of direct marketing.
Professional management. Lack of new media marketing
Diverse product lineup. channels.
Plans for acquisitions. Dependence on few major
product categories.
O- Opportunities S-O Strategies W-O Strategies
Expanding marketing strategies. Develop new products to target niche More focused marketing
Undifferentiated rival products. markets. strategy.
Consumer demand. Utilize managerial competencies for Liaison with good distributors
Niche markets. aggressive marketing strategy to attain to increase online sales.
competitive advantage. Utilize niche markets rather to
Continue diversification to fulfill depend upon few product
consumers demand. categories.
T- Threats S-T Strategies W-T Strategies
Price competition. Utilize buying volume to put pressure on Develop good partnership with
Regulations. competitors. internet consumer product goods
Rival competitors. Continue product diversification to distributors to increase sales.
offset increased chances of competitor
entry.
41. SPACE Matrix
Financial Strength Ratings
The companys original capital ratio is 7.23 percent which is 1.23 percentage points 1.0
over the generally required ratio of 6. 1.0
3.0
P&Gs return on assets is negative 8.7 compared to industry average of positive 8.0.
4.0
The companys net income is continually expanding. 9.0
The companys revenue increased 14 percent.
Industry Strength Ratings
Increasing market share provides geographic and product freedom. 4.0
2.0
More competition in global markets. 4.0
Kimberly-Clark provides a strong industry benchmark. 10.0
Environmental Stability Ratings
High inflation rate in developing countries and political instability are big
-4.0
hurdles for international business growth. -4.0
Merger and acquisitions are also difficult due to credit markets. -5.0
coca-cola get more of its revenue fr0m US market. -13.0
Competitive Advantage Ratings
coca-cola focused on home consumer product goods for health and beauty.
-2.0
coca-cola is a recognized category killer. -5.0
In addition of Kimberly-Clark, Johnson & Johnson is a trouble creating -2.0
competitor. -9.0
42. Conclusion:
ES average is -13.0 歎 3= -4.33
IS average is +10.0 歎 3= +3.33
CA average is -9.0 歎 3= -3.00
FS average is +9.0 歎 4= +2.25
Directional vector coordinates:
x-axis: -3.00 + (13.33) = 0.33
y-axis: -4.33 + (12.25) = -2.08
Outcome:
coca-colashould pursue Competitive Strategies.
43. QSPM Chart
QUANTITATIVE STRATEGIC PLANNING MATRIX
Strategic Alternatives
Key Factors Weight Joint Ventures in Joint Ventures in
Europe Asia
Opportunities AS TAS AS TAS
1. Europe is a potential growth market. 0.10 4 0.40 2 0.20
1. The US market continues to develop 0.15 4 0.60 3 0.45
new product categories.
1. Free market economies increasing in 0.10 2 0.20 4 0.40
Asia.
1. Demand for health & beauty products 0.05 - - - -
is increasing.
Threats
1. Competitor threats such as Kimberly-Clark. 0.10 3 0.30 4 0.40
1. Economic contraction in its main US market. 0.05 - - - -
1. Lack of defining product to attract continued 0.10 4 0.40 1 0.10
foot-traffic in the companys retail
distributors.
1. Environmental issues with some home 0.05 - - - -
consumer product goods products.
1. Low value of US dollar abroad. 0.15 4 0.60 2 0.30
44. Strengths
1. Profits rose 0.10 4 0.40 2 0.20
1. Strong management team 0.10 - - - -
1. New employee development programs. 0.10 4 0.40 2 0.20
1. Diversified product portfolio. 0.05 4 0.20 3 0.15
1. Performance driven management. 0.05 - - - -
1. Capacity utilization increased from 60% 0.15 3 0.45 4 0.60
to 80% for all manufacturing facilities.
Weaknesses
1. Johnson & Johnsons troubles could be 0.05 - - - -
contagious.
1. Restructuring costs could be significant if 0.05 - - - -
the market requires.
1. International expansion suffers. 0.15 2 0.30 4 0.60
1. The company is slow in leveraging its 0.15 4 0.60 3 0.45
global operations due to current economic
conditions.
1. Pre-tax profit margins are narrow. 0.05 - - - -
Sum of Total Attractiveness Score 1.0 5.30 4.65
47. CONCLUSION
coca-colais the worlds largest producer of household
and personal products by revenue with net sales of
$83503 million with its products reaching 4 billion
people worldwide.
Being in more competitive position coca-cola must
continue to scan the environment for possible
threats, whether through acquisition or Greenfield
investments.
coca-cola must continue to innovate because
economies of scales allow coca-cola to spend much
more than rivals on research and development.
48. coca-cola will also have to control its pricing and
reduce outside vendors.
coca-cola will want to continue its strong support
and funding of its world class research and
development in order to continue to provide
innovative products to touch the lives of customers
worldwide.
49. RECOMMENDATIONS
coca-cola may have a series of strategies which can
be more attractive to the company. Such series of
alternatives may not result in an alternative internal
rate of return (IRR) relative to the cost of the
strategies. Hence, in such time of economic pressure
it is recommended to do nothing and continue
business as usual and even avoid organic expansion
also.
50. Another recommendation is to expand organically.
coca-cola has access to a greater number of
developed and developing markets.
The company has also product co-branding
opportunities because of its size and volume of sales.
Thus, coca-cola can opt to expand through organic
growth by establishing another brand category that
will target specifically the UK and European markets
to increase companys continued growth.
51. Third suggestion is about acquisition that the company can
acquire its primary competitor. Through such acquisition the
established company can gain immediate sales capacity and
market position without investing in substantial marketing
effort.
New products must be introduced which must be
appropriately positioned relative to its competitors but this
would involve thousands of dollars in terms of marketing.
Usman Rehmani
Conts no= 03007477593