Personal Perception

First impression
About a year ago I would never want to work for P&G. I saw the company as highly demanding and I didn't like the idea to move in Ontario.

The process:
When I met an employee who has a profile very similar to mine, I decided to take a risk, and I told myself that I still would have the right to say no and then stop the process. As I move from one step to the others, I was more and more excited about working for Procter & Gamble. I met people who has the same profile as me, and who love their jobs. Then, I saw the career opportunity that P&G can give me. I am impress of the impact of the recruiting process. At every step, I was more willing to move in Ontario. It is very fast and I feel like I absolutly fit in the company. I really felt that the values are living within the company and that from the beginning, I've been choose.

Porter's five forces model

Buyer Power:
The buyer power is weak since the customers are fragmented. They do not have a big influence on the price they pay for the domestical products. It is not the same when we think about the distributors who have a big buyer power. For example, if Wal-Mart decide that a price is too high, it can have an important impact on P&G.

Suppliers Power:

The suppliers power is important because it is very costly to switch suppliers. The production of Procter and Gamble is very big so are the supply. If they change suppliers, the supply chain will probably change also and those changes requires a lot of time and money. On the other hand, P&G has also a important power over their suppliers because of the importance of their demand. Therefore, on both sides they are limited.

Substitutes:

There is possible substitutes for P&G products. Since most of their products are domestical, customers could decide to go with the homebrand that are less expensive. This is where the branding take all of its importance. Another substitutes could also be that the customers decide to create their own domestical products. An exemple would be to wash their windows with water and lemon juice or to use washable diapers.

Current competition:

It is really important to be aware of the competition in the market of a company. It affects the global strategy by having an effect on the demand and offer law. There is currently three main competitors to Procter and Gamble.

Johnson and Johnson is the biggest competitor of P&G. With theirs brands such as O.B. or Aveeno, they offer very similar products.

Unilever is another important competitor. They own the brand Sunlight and Dove, which are a close competition to Tide and Oil of Olay

Finally, Kimberley-Clark is the last important competitor. Kottex and Huggies are both sharing the market with P&G brands of Tampax and Huggies.

Potential competition:

The potential competition is not a really big threat.The barrier to entry are really big because the four company mentionned above worth a lot of money and there is a big capital investment needed. The branding is strong and they would have the strength to compete if they was a new competitors. Also, people are strongly attached to the brand that they know. They want the brand they like, even though another brand would be less expensive.

Swot Analysis

Strengths:
Leading market postion
Diversified and innovative products portfolio
Strong branding

Weaknesses:
Lack of flexibility

Opportunities:
Internalisation

Threats:
Economic slowdown
Competition

Vision

The vision of P&G is express in different principles:
We show respect for all individuals. (Integrity)
The interests of the Company and the individual are inseparable. (Ownership)
We are strategically focused in our work.
Innovation is the cornerstone of our success.
We are externally focused.
We value personal mastery. (Leadership)
We seek to be the best. (Passion for winning)
Mutual interdependency is a way of life. (Trust)

The vision is what the company want to be. Those principles clearly defined what P&G wants to be and they are closely related to the values.

Mission

The mission of Procter & Gamble:

"We will provide branded products and services of superior quality and value that improve the lives of the world's consumers, now and for generations to come.
As a result, consumers will reward us with leadership sales, profit and value creation, allowing our people, our shareholders and the communities in which we live and work to prosper."
------------------------------------------------
This mission clearly defined what the company currently does
The long term vision
Their competitive advantage
The ideals of the firm

Company Overview

Procter & Gamble has been founded in 1837 by William Procter and James Gamble. The first international operation made by P&G was with Canada in 1915 when they open the first Canadian manufacture in Hamilton, Ontario. Today, P&G is in nearly 80 different countries and employs over 100 000 persons. They own over 250 brands and market it in more than 160 countries. 3 billions times a day, someone uses a P&G's product. In 2002, the net sales was 40 billions dollars.

They received a lot of recognition such a top ten of World's Most Admired Companies by Fortune Magazine and Best Corporate Citizens by Business Ethics magazine. In 2006, P&G Canada has been recognized as one of Canada's Top 100 Employers for the 4th consecutive year.

Values

Procter and Gamble is a company that has five main values. Those values are represented in the diagram. It is very important that those values live within the company. They are at the center of 3 targets, the consumers, P&G Brands and P&G People. These 3 targets are closely connected because “P&G Brands and P&G People are the foundation of P&G’s success. P&G People bring the values to life as P&G Brands focus on improving the lives of the world’s consumer”.