Question

My company is:

Name: Procter & Gamble

Industry: Fast Moving Consumer Goods

Nationality: American

Location: Cincinnati, Ohio

Size: Large multinational company $80 billion + revenue/annum

Activities: Manufacturing and selling of FMCG goods

Products: health, hygiene, beauty care, food, snacks and beverages

1. Evaluate the performance of the main activity of your selected company (performance of principal product/service). What type(s) of criteria do you use to evaluate this performance? (2 marks)
2. What type(s) of control of employees and production processes is/are used by your selected company? (1.5 mark)
3. How does the corporation manage the environmental risks? (2 marks)
4. Evaluate the competitive advantage of the corporation on its market. Suggest some recommendations for the managers of your selected company to improve this competitive advantage. (2.5 marks)

notice : i need the answer to be written pictures are not acceptable

Answer 1

Criteria used to evaluate Performance:

1. Please note that the various products of this company are :

Health & Hygiene

Beauty Care

Food

Snacks & Beverages

Please note that all the above business lines are important and hence th following criteria is necessary :

a. Contribution per product per Business Line : In this what we do is to list down all the products and find out the contribution made by the individual products. Contribution is Sales less variable costs. If he contribution is positive it is a good sign and if it negative then a bd sign.

Once you arrive at the Contribution numbers, you need to Rank the Products and the top Ranks would determine the best product for criteria decision.

b. Next criteria would be the Market Share : Since Procter & Gamble is Global MNC, divide the markets into follows:

1.Americas

2.EMEA (EUROPE & MIDDLE EAST & AFRICA)

3. SAR : SOUTH ASIA REGION - APAC REGION

4. SEA : SOUTH EAST ASIA - APAC REGION

To arrive at the best product in each business line find out each products Market share and Rank them accordingly. The highest market share ranks 1

=======================================================================================

CONTROL OF EMPLOYEES : Ther should be a well oiled HR Department which monitors (a) Excellent Recruitment attracting the Best Talent in the Industry. & (b) Employee Training to give consistently high performance.

CONTROL OF PRODUCTION PROCESS :

1. Obtain Certifications of all ISO 22000, OHSAS.

2. Have a well defined Quality Assurance department

3. Have a qualified Quality Control department.

4. Obtain Registrations from FDA & outside regulatory authorities.

5. Deply latest Plant & Machinery.

=====================================================================================

MANAGEMENT OF ENVIRONMENTAL RISKS :

This can be done as follows:

1. Green Initiatives like use of papers - stationery to be well controlled & reduced.

2. Plant trees to control Green house gases.

3. Solar Panels in manufacturing processes to save electricity grid power & also costs.

4. deploy electro static precipitators for absorbing pollutants.

=====================================================================================

The biggest competitive advantage that such a big MNC like Procter & Gamble have is (a) Visibility (b) Global Presence (c) economies of scale (d) Range & Reach into many countries.

The senior management to take advantage of such benefits & plus points and capitalise on the same to improve business.

=====================================================================================