Swot Analysis Of Procter And Gamble

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INTRODUCTION Procter and Gamble is multinational company dealing with consumer goods. Its products include personal care products and cleaning agents. Apart from producing those products the company also produces food and beverages. The company made some changes in its corporate strategy in the early 1990s and aimed at reduction of cost structure come up with its differentiated business-level-strategy. This was in an attempt to increase its profits and revenue. The company developed an international strategy in order to retain a competitive advantage. This was due to the globalization and rapid development of international markets. There was also reduction of trade barriers and tariffs which made the company come up with the said strategy. The company aimed also to benefiting from economies of scale. The cohesion between the structure of the company and the strategy applied is very crucial. The structure aligns the company with the strategy it wishes to implement, and along with the companies control systems and culture, will utilize the value-chain capabilities and competencies, and facilitate increased profitability, competitiveness and superior return on investment (Henderson, 1993). Procter and Gamble identified the rapid increase in globalization and changed their business strategy and the company’s structure in order to increase their exposure in many countries. This was to help it benefit from economies of scale and to remain competitive internationally. The
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