Corporate and global strategy Essay Example | Topics and Well Written Essays - 3000 words

Corporate and global strategy - Essay Example Finally the study tried to some useful recommendation in terms of research & development and value chain cost for the company. Table of Contents Table of Contents 3 1.0 Procter & Gamble 5 2.0 Corporate Strategy 6 2.1 Core Competency of P&G 7 2.2 Overall Scope 8 3.0 Business Level Strategy 8 4.0 Internal Analysis 10 4.1 Porter’s Value Chain 10 4.2 Barney’s VRIN model 13 5.0 External Analysis 16 5.1 PESTLE 16 5.1.1 Political Environment 16 5.1.2 Economic 16 5.1.3 Social Environment 16 5.1.4 Technological 16 5.1.5 Environment 17 5.1.6 Laws and Regulations 17 5.2 Porter’s Five Forces 17 5.2.1 Threat of New Entrants 17 5.2.2 Buyer Power 18 5.2.3 Supplier Power 18 5.2.4 Competition 18 5.2.5 Threat of Substitutes 18 6.0 Evaluation of Strategy 19 7.0 Conclusion 20 7.1 Internationalization of P&G 20 7.2 History of Global Expansion of P&G 21 References 22 1.0 Procter & Gamble Proctor & Gamble is a famous American consumer product company. The organization is headquartered at Cincinnati, Ohio, USA. The company was founded by William Procter and James Gamble in the year 1837. The company operates over ninety five countries internationally. Sales volume of the company has crossed a record mark of $82, 00 billion in the year 2011. The organization has established product leadership in various categories such as Skin Care, House Care and Oral care. More than 125,000 employees work in the Procter & Gamble. The consumer product company sells more than two hundred and sixty brands across the globe. The organization enjoys leadership in more than twenty four brands globally and able to obtain billion of dollars per annum from each of the product category. The consumer product organization has established more than twenty eight technical centres internationally (PG-Global, 2012). Proctor & Gamble emphasizes on adopting modern technology integrated with state of art research and development facility in order to achieve competitive advantage over competitors. Th ey have incorporated market research intelligence process in order to take strategic decision to expand business in foreign market (Kotler, 2009, p. 253). The company has expanded their business extensively in last twenty years and achieved phenomenal sales growth from their international business operation hence analyzing their business and corporate level strategy will help management practitioners to understand key ingredients required to develop a sustainable strategic model. Strategic analysis of Procter & Gamble will not only help management practitioners to gain insight about strategic choices but to gain knowledge about global business practices. These study will do strategic analysis of Procter & Gamble in the below mentioned manner. Step 1- Analyzing corporate strategy of P&G, Step 2- Analyzing business strategy of P&G and Step 3- Internal and External environment analysis. 2.0 Corporate Strategy The Cincinnati based company has realized the significance of globalization t o survive in the hyper competitive market and adopted themselves (read Clay Street Think Tank) according to the prerequisite of situation (Weiner, 2006, p. 22). The organization has shifted focus from delivering products to American consumers and established SBU or strategic business units internationally. Procter & Gamble has increased level of plant capacity with the intention of achieving economies of scale and deliver product mix in cost effective manner (Lofgren, 2005, pp. 102-115).