Microeconomic Factors of Proctor and Gamble

Abstract

This research paper includes the economic factors driving Proctor and Gamble, along with the global strategy and it affect, impact of technology and the utilization of the opportunities that companies have in the outside environment to gain the benefit.

Table of Content

Abstract1

Introduction2

Discussion2

Nature of Business2

Economic Concepts3

Problems and Opportunities3

Economic and Political Policies4

Technology4

Impact of Globalization5

Conclusion5

References6

Microeconomic Factors of Proctor and Gamble

Introduction

Proctor & Gamble, established in 1837, was resultant of William Proctor and James Gamble partnership. It is one of the consumer good organization, whose operations divided in business units, that are beauty segment, health care segment, snack & pet care segment, fabric segment and, baby care segment. Proctor & gamble has 50 leadership brands out of which 24 brands generated the annual sale of one million dollars. These leadership brands constitute to the 90% of the company's sale and, 90% of its profits.Procter & Gamble id ranked 5th in 2011 by fortunes Magazine and 6th in 2010. It employs more than 129,000 employees around the world by the year 2010. By the year 2011, Proctor and Gamble recorded the sale of $82.6 billion and is reported to rank 5th amongst World's Most Admired Companies.

Discussion

Nature of Business

Proctor and Gamble is a fast moving consumer good company dealing in multiple of domains to facilitate the daily needs of the consumer by offering varied brads targeting different segments of the society belonging to different mental filter, psychograph, and age and income bracket. It is one of the consumer good organization, whose operations divided in business units, that are beauty segment, health care segment, snack & pet care segment, fabric segment and, baby care segment. They offer different brands from the 50 offered brands around the world, depending on the maturity of the market and affordability of the consumers. They offer products keeping in mind the governmental legislation o f the country along with the acceptability possibility of the product in the nation. The most offered brand around the world by P&G are Ariel, Gillette, Always, Pantene and Head n Shoulders. They have the strategy for reposing to the demand with zero error bases and develop strong branding and focus on product innovation according to the target market and the demand of the consumers. They focus on expanding and penetrating in new market by the acquisition, direct investment, alliances and buyers (Recklies, (n.d.)).

Economic Concepts

The major economic factor of the P&G is that, since it is dealing in the household and personal care products industry which is highly ...