Question

For Procter and Gamble.

1. Develop and explain a recommended corporate strategy for the selected company. What competitive strengths does this strategy exploit? How is the strategy different from the current strategy? What are the risks associated with the new strategy and its chances for successful implementation? If the current strategy is considered to be the best alternative, carefully and thoroughly discuss and explain why?

2. develop and explain a recommended financing strategy. How much additional financing is needed? What should be the sources(s) of that new financing and why? Estimate the costs of the new financing? If the current financing strategy is considered to be the best alternative, carefully and thoroughly discuss and explain why?

Answer 1

1) Procter & Gamble uses differentiation as its generic strategy for competitive advantage. Differentiation involves developing the uniqueness of the business and its products to attract target customers. In this case, Procter & Gamble highlights quality and value in its consumer goods. For example, the company offers high quality cleaning agents, like Tide laundry detergent, at affordable prices. Based on this generic competitive strategy, a suitable strategic objective is to maintain P&G’s high investments for R&D to ensure high-quality and valuable products. Another strategic objective based on Procter & Gamble’s generic strategy of differentiation is to maintain effective marketing strategies that emphasize the uniqueness of such products. Such product uniqueness determines pricing and promotional activities.
The Procter & Gamble Company applies its generic strategy to achieve competitive advantage in the consumer goods industry. Michael Porter’s model for generic competitive strategies focuses on business approaches that lead to competitiveness and resilience amid competition. In the case of Procter & Gamble’s generic strategy, the emphasis is on product quality and value. These factors are significant in supporting P&G’s efforts to achieve and maintain a leadership position in the consumer goods industry. It is worth noting that quality and value are also included as major points in Procter & Gamble’s vision statement and mission statement. Moreover, the company applies intensive growth strategies alongside its generic strategy. These intensive strategies facilitate Procter & Gamble’s growth in terms of market performance. Considering the tough competition in the consumer goods market, it is essential that these intensive growth strategies are effective and relevant to the current market conditions affecting Procter & Gamble.
Procter & Gamble’s market position helps ensure resilience in spite of organizational weaknesses, and despite threats in the external environment. For example, this SWOT analysis highlights the strengths in economies of scale and strong brands. Such strengths make it difficult for other firms to directly compete against Procter & Gamble. The company also has high competitiveness based on the global scale of its operations. These conditions lead to capabilities in exploiting the opportunities available for Procter & Gamble in the consumer goods industry.

Despite its profitable and strong market position, the Procter & Gamble Company must develop measures to overcome its weaknesses and address external threats. Competitive rivalry is the most significant of these threats. On the other hand, limited online presence and limited business diversification are the most significant weaknesses of Procter & Gamble. Given these factors, the company must strengthen its competitive advantage and business capabilities in the consumer goods market. Based on the results of this SWOT analysis, the following are recommendations to address such issues facing Procter & Gamble:

Develop P&G’s competitive advantage through innovation and technology.
Expand e-commerce operations to exploit online market growth.
Diversify by entering new industries to minimize Procter & Gamble’s market-based risk exposure.

2) In waving the flag on top of business success will only mean one thing – that is a financial strategy. In the struggle of business competition, each company is armed with their personalized investment strategy.

Having a financial strategy will guide the company on how it will steer the wheel of the company in order to ensure that it will land on top of the Competition.

There is no such thing as a matter of luck in the field of business. Financial Strategy can delineate the mark between success and failure. Financial analysts and strategists are being employed in order for them to draft a Financial Strategy that can ensure the success of the company on the tough competition in the materialistic world.

In this world of commercialism, the core value of a financial strategy is more on the acquisition of financial resources and money. It will be on the idea of impossibility that a company can embark on the policy of touching human lives.

Reality will give us a hint that companies had developed financial strategy based on how a company can maintain a large cash balance without giving appropriate consideration on the concept of improving the quality of human lives.