PG宝洁strategicanalysis.doc

 PAGE \* MERGEFORMAT 13 CONTENT Introduction 1 Brief History and Strategic Challenges 1 PESTLE Analysis 3 Five Forces Analysis 4 SWOT Analysis 6 Generic Strategy 8 Recommendations 9 Conclusion 10 Bibliography 11  Introduction For the fiscal year of 2010, Procter Gamble witnessed an increase on net sales by 3% to $78.9 billion and a 4% increase in unit volume (Deloitte, 2010). Under the unfavourable environment of global recession, PG has successfully retained positive increases since the Financial Crisis and kept the position of world’s largest consumer products manufacturer. In Fortune’s list of most admired companies for the year of 2010, PG is ranked as 6th among the world’s corporations (Fortune, 2010). Products of PG serve 4.2 billion of the 6.5 billion people in the world from everyday morning (PG, 2010c). The aim of this report is to undertake a detailed in-depth research centred on the company of Procter Gamble with a number of theoretical frameworks. In the beginning of the report, a brief history of PG will be presented and point out some strategic challenges facing the firm. Secondly, there will be a PESTLE analysis of the current external environmental conditions for the firm. Then, the company’s effectiveness and sustainability of current strategies will be examined, followed by recommendations for PG’s strategies, accompanied by appropriate explanation and justification. The concentration industry of this report will be the SIC code 2844 Perfumes, Cosmetics and Other Toilet Preparations (OSHA, 2010). It will be defined as Personal Products Industry throughout this report. The world personal market will be regarded as a whole and the market can be categorized into six segments, encompassing hair care, make-up, skincare, personal hygiene, oral hygiene, and fragrances (Graul et al, 2006). Brief History and Strategic Challenges PG was founded by Willian Procter (a candle maker) and James Gamble (a soup maker) in 1837 in Cincinnati, Ohio, the US.