MANAGEMENT

“Proctor & Gamble”

Project Report

Osama Mir

11/28/2010

William Procter, a candle maker, and James Gamble, a soap maker, immigrants from England

and Ireland, respectively, who had settled earlier in Cincinnati, who met as they both married sisters, Olivia and Elizabeth Norris, formed the company initially. Alexander Norris, their father-in law, called a meeting in which he persuaded his new sons-in-law to become business partners. On October 31, 1837, as a result of the suggestion, Procter & Gamble was born.

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PROCTOR AND GAMBLE

TABLE OF CONTENTS

1. Mission Statement ............................................................................................................ 3

2. History ................................................................................................................................. 3

3. Introduction........................................................................................................................ 4

3.1 P&G IN PAKISTAN ................................................................................................... 4

3.2 Products......................................................................................................................... 5

3.3 Picture view of P& G products ............................................................................... 6

4. Functions of Manager ...................................................................................................... 7

4.1 Planning......................................................................................................................... 7

4.2 Organizing .................................................................................................................... 8

4.3 Leading .......................................................................................................................... 9

4.4 Controlling.................................................................................................................... 9

5. Organizational culture, learning & Types of organizational strategy ............. 10

5.1 P&G culture ................................................................................................................ 11

5.2 Learning....................................................................................................................... 11

5.3 Types of organizational strategy .......................................................................... 11

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6. SWOT Analysis of Proctor and Gamble Company............................................... 12

6.1 Strength........................................................................................................................ 13

6.2 Weaknesses................................................................................................................. 13

6.3 Opportunities ............................................................................................................. 13

6.4 Threats ......................................................................................................................... 14

7. Develop the plans for the company to deal with following threats. ................ 14

7.1 Threats of other company product ...................................................................... 14

7.2 Threats of unilever companies’ products .......................................................... 15

7.3 Threat from Swine Flu............................................................................................. 15

7.3.1 Animal testing .................................................................................................... 15

7.3.2 According to CNN ............................................................................................ 16

7.3.3 According to WHO ........................................................................................... 16

8. What type of plans would be applicable? ................................................................ 16

8.1 How much concerned should Business Be? ...................................................... 17

8.2 Business Continuity Management Implications .............................................. 17

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1.MISSION STATEMENT

“We will provide branded 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”.

2.HISTORY

William Procter, a candle maker, and James Gamble, a soap maker, immigrants

from England and Ireland, respectively, who had settled earlier in Cincinnati,

who met as they both married sisters, Olivia and Elizabeth Norris, formed the

company initially. Alexander Norris, their father-in law, called a meeting in

which he persuaded his new sons-in-law to become business partners. On

October 31, 1837, as a result of the suggestion, Procter & Gamble was born.

In 1859, sales reached one million dollars. By this point,

approximately eighty employees worked for Procter & Gamble. During the

American Civil War, the company won contracts to supply the Union Army with

soap and candles. In addition to the increased profits experienced during the

war, the military contracts introduced soldiers from all over the country to

Procter & Gamble's products.

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3.Introduction

roctor & Gamble (P&G) started their business by

producing candles on small scale. It was founded

in 1837. Its head quarter is situated in America. It

produces the consumer goods. As of 2008, P&G is

the 6th largest corporation in the world by market capitalization and 14th largest

US Company by profit. It is 10th in Fortune's Most Admired Companies list (as

of 2007). P&G is credited with many business innovations including brand

management, the soap opera, and "Connect & Develop" innovation. It has

138,000 employees to perform their work. Worldwide they have 386 products but

in Pakistan due to less purchasing power and political instability they have

introduced only 36 products.

3.1 P&G IN PAKISTAN

Proctor &Gamble started their business in Pakistan in 1992. At that time it

was not a famous brand. But now it is one of the most trusted brands in Pakistan

and has great good will.

In paper category their main products are Pampers and Always. Their

shampoos are also available in market i.e. Head & Shoulder, Pantene and pert

plus are their some famous brands. They are producing the greatest anti germ

soap by the name of safeguard. It is manufactured in Pakistan and they export it

to other countries. There are also different kinds of shaving materials available in

market. They are the owner of the most famous shaving company i.e. Gillette.

They also produce surf. Arial is their famous brand which is one of the best

company f Pakistan.

P

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3.2 Products

Proctor & Gamble produce 386 Products in world.

Here we will mention some of their famous products.

a) It is famous on producing Shampoo. Their main products on this field are

Head Shoulder, Pantene and Pert plus.

b) They also produce soap. Worldwide Safeguard and Camay are their

famous soaps. They produce all kind of shaving materials named as

Gillette.

c) Pringles is one of the best chips in the world and it is produced by P&G.

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3.3 Picture view of P& G products

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4.FUNCTIONS OF MANAGER

There are four management function perform by a manager.

1. Planning

2. Organizing

3. Leading

4. Controlling

4.1 Planning

According to the book planning is define defining goals, establishing

strategy, and developing plans to coordinate activities. The management of P&G

in Pakistan performs this function in this way.

• By setting sales target:-

They set their sale target on daily basis and plan how to achieve

it. Normally daily sale target is four million.

• Area focusing:-

Some time there are some specific areas where they need to

focus. In their planning they discus that. For example Faisalabad takes lead of

100000 sales. After focusing on one product (GILLETE) take the lead of 2700000.

• Volume updates:-

They up-date the volume and plan for it after specific period. They

plan that how they will use the existing stock and when will the update it.

• Expert’s reports:-

They take the reports of their experts and plan according to it.

• Demand & Supply:-

Every time they get information about market and plan

supply according to it for the best output.

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4.2 Organizing

According to the book organizing means what need to be done, who it will

be done and who will do it. Here is the information that how they organize

the work of organization.

I. Divide the areas:-

i. Lahore1, Lahore2, Lahore3. They have divided the Lahore in

three parts for better competition and for more sales. Because

whenever there is some competition then there will be good

outcome.

II. Divide the team:-

i. There are different teams who control their specific areas and

field of distribution.

III. Daily meeting:-

i. There is daily meeting of all staff at 9:00 am in their main

office of Lahore.

IV. Visiting the warehouse:-

1. Before meeting they visit the warehouse at 8:45 am to

check the availability of stock.

V. Quantity of product:-

i. They check the quantity of every product to know that did

they have enough quantity to distribute their products to

fulfill the demand.

VI. Supply:-

i. After checking the quantity of every product they make their

supply to the customers.

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4.3 Leading

According to the book leading means motivating, leading, and any other

activity involves in dealing with people. Manager of P&G leads their

employees in following ways.

I. Target achievement:-

i. They set their daily target of sale. Normally they set their

daily target of Rs 40, 00,000. Then at the end they check how

much of their target they have achieved.

II. Up-grade the team:-

1. They up-grade their teams (on daily basis) by providing

them some specific information about the market.

III. Motivate the team:-

1. They motivate their teams in different ways.

4.4 Controlling

The monitoring activity to ensure that they are accomplished as planned.

Total salary

30% variable

10% attendance

10% Target achievement

10% perfect score

70 % fixed

Surprize gifts

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I. Monitor the Hard work:-

1. He randomly checks his workers. He checks their

performance and working abilities.

II. Skills checking:-

i. He checks that how many skills a person has. If a person has

good selling skill or other skill then he motivates him.

III. Attendance :-

1. He checks the Attendance of their workers,

IV. Target achievement:-

a. After setting the target he noticed that how many

persons have achieved our target of 4 million

sales.

V. Weekly sales checking:-

a. He checks their sale every week.

VI. Work done:-

i. This is also need to check that the work which workers have

done is correct. And we are going according to the plan or not.

5.ORGANIZATIONAL CULTURE, LEARNING

& TYPES OF ORGANIZATIONAL STRATEGY

It’s shared values, principles, traditions and ways of doing things that

influence the act of organizational members. Management is concerned with

high production but this can only be achieved by treating their employees

rightly.

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5.1 P&G culture

In Pakistan, proctor and gamble have also organizational culture which

affects the employee’s working there. Culture has been taught to them by giving

training to their employees. Motivating them and giving them all the necessary

incentives. Managers have a faith on their employees and they work as a team

and team members are encouraged to interact with people across functions and

authority levels. Employees talk positively about the competition between teams.

Individuals and teams have goals, and bonuses are based on achievement on

outcomes. According to manager “they are team oriented.

5.2 Learning

When they hire their employee for the job then they notice that how well

this employee can adjust on their environment after selecting the employee they

provide him special training. So that employee can easily understand their

culture.

5.3 Types of organizational strategy

As mentioned above that an organization has three main types of strategies. Out

of these three strategies an organization selects the one best suitable strategy for

them. The three main strategies are Corporate, Business, and Functional strategy.

According to our point of view P&G are following the corporate strategy.

Corporate strategy means that determine what business a company is in, should

be in, or want to be in and what it wants to d with those businesses. Corporate

strategy is further divided I to three types: Growth, Stability, and renewal. P&G

is leading in its business and it is not stable. So, it is following the growth

strategy for its business because it wants to grow more and more.

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Growth strategy is further divided into five kinds.

1. Concentration

2. Vertical integration

3. Horizontal integration

4. Related Diversity

5. Unrelated Diversity

Proctor & Gamble use the concentration strategy. They are concentrating and

increasing the products on the same line of business. They are producing

consumer goods. They are making different products on the same

line for example Pantene and Head & Shoulder.

As we can see that they are making the same shampoo with

many different qualities.

6.SWOT ANALYSIS OF PROCTOR AND

GAMBLE COMPANY SWOT analyses are analysis of a organization’s internal strengths and

weaknesses and external opportunities and threats .we visited the manager of

Proctor & Gamble and according to us their SWAT analysis are these.

Strength (S)

Weaknesses (W)

Opportunities (O)

Threats (T)

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6.1 Strength

Proctor & Gamble has great strengths. They have very large business. They

have 386 products which makes it different from others. Moreover its ability to

reach almost every nation of the world provides it great strengths. It has very

good name on the market and majority of the people trust on the name or

Proctor & Gamble. Its many products like Safeguard, Head shoulder and

Pampers are leading product of the market.

6.2 Weaknesses

There are some weaknesses which a proctor & Gamble has. There some

products are the seasonal products. For example Pampers are more used in

winter season and anti-dandruff shampoos are more used in summer season. On

other days of the year their sale kept low. Some time they have to take their sale

back from the market. There in another weakness which proctor & Gamble has is

that they are not able to establish their plant on every country. Because of that

they have to pay the heavy duty on their products which increases their cost and

price. Due to increase in price their competitors get advantage on them on their

some products. The major weakness which P&G has is that they are not able to

create any differential advantage on their competitors.

6.3 Opportunities

There are always many opportunities available for every large

organization. Their many products are the market leaders. So they have great

opportunities to improve their organization size. Due to large amount of capital

they are able to get the customer attraction. They have the opportunity to

maximize the size of organization by producing so many things in Pakistan.

They have opportunity to create good will in Pakistan because they have very

large capital available for advertisement.

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6.4 Threats

Proctor & Gamble has 386 products. But on their every product there are

many competitors which are their threats. They have many leading products on

Pakistani market. So it is the threat for them to not to lose the top position. Arial

was the market leader but now due to their competitors no Arial is on 3 rd

position. So they have to protect their products from their competitors and have

to maintain their customers.

7. DEVELOP THE PLANS FOR THE COMPANY

TO DEAL WITH FOLLOWING THREATS.

Answer:

Every organization that exists in the market there are lots of threats

occurs. The competitors are providing the best quality products and add some

features in the products where the other company has not been providing in the

existing products.

P&G has facing the threats of their competitors in the some products.

7.1 Threats of other company product

For example: The company facing the threats of the Arial and surf excel of the

other company product. The price of the surf excel is much lower to the Arial in

the Pakistani markets.

When this situation creates the sale of the Arial is down .so the external threats

can creates for the product. The price of the surf excel per kg bag is 195 and the

price of the Arial is per kg is 260 rupees. When the price of the Arial is high to his

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competitors there can be threat creates. And the sale of the product is down. This

type of threat can creates a big hurdle of the existing product of the company.

7.2 Threats of unilever companies’ products

For example: Another product of the P&G and the unilever companies’ products

are safe guard and lux. The price of the competitors soap is 36 rupees per bar

and the price of the safeguard soap is 38 rupees per bar. Where the lux is beauty

soap but safeguard is the anti bacterial soap where there is no comparison of the

both product. So once again threat can create for the P&G Company so the

solution is that the company can reduce the 5% trade off their product so the

price of the safeguard soap is 36 approximately.

This type of threats can creates for many problems of the existing products of the

well known companies.

7.3 Threat from Swine Flu

7.3.1 Animal testing

P&G conducts research using animals to demonstrate safety or efficiency of their

raw materials and products. This has led to a worldwide campaign to raise

public awareness and to stop P&G being involved in animal testing. The

campaign is led by un-caged Campaigns in the UK and Stop Animal Exploitation

Now in the USA. In 2002 P&G was recognized by the Humane Society of the

United States for "advancing alternatives to animal testing".

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7.3.2 According to CNN

Companies in the United States like Gartner, Sprint Nextel, Microsoft, General

Electric, IBM, and Dell already have plans in place to deal with potential

outbreaks. Yes, everyone is jumping on the worry bandwagon, but because we

just don't know what's ahead and how this will pan out, it's better to be

prepared.

7.3.3 According to WHO

WHO reported due to swine flu virus (A/H1N1), the cost of lost GDP for East

and South East Asia was $US18 billion ($A24.7 billion). Along the way, there

were 8000 cases and 800 deaths. Swine flu strain appears to be weakening,

although people are still being infected, notably in New York City. At posting,

the Centers for Disease Control and Prevention had reported 5,123 cases of swine

flu in 48 states, and five deaths, while the World Health Organization put the

official toll at over 8,480 diagnosed cases in 39 countries.

8.WHAT TYPE OF PLANS WOULD BE

APPLICABLE?

Answer:

Define the goals of the organization established the overall strategy for

achieving those goal why we use plans in the organization. The planning is for

the stating of the organization and also facing some problems in the organization

for the products.

When the problem is create in the P&G organization.

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8.1 How much concerned should Business Be?

1. Supply chains will be affected as the virus spreads particularly where

suppliers are from countries with denser populations and face more

restricted access to health care. Many organizations have already activated

contingency plans to ensure a flow of goods and reduce the threat of a

pandemic to their operations.

2. Workforce availability and employees’ access to work locations could be

severely impacted.

3. The psychological impacts could be widespread as the outbreak worsens.

4. Public events or promotion parties will be cancelled, and many people are

staying at home and away from work.

5. Customer

8.2 Business Continuity Management Implications

1. Small-business owners need contingency plans when employees call in sick or stay home to take care of children or loved ones.

2. Remote work and telecommuting options nowadays are numerous, affordable and reliable. The trick can be used in such a crisis.

3. Keep the workplace clean - “Good housekeeping equals good health”.

4. Retailers can switch to taking payment via credit card over the phone and dry cleaners can ask customers to drop off clothes in a bag.

5. Educate workers about what’s called “respiratory etiquette.” That is,

cough or sneeze into sleeves or handkerchiefs and properly dispose of tissues.