How Procter And Gamble Manages Business Essay

How Procter And seek Manages Business EssayNowadays every business is trying to expand its market to the world. There argon galore(postnominal) factors that help the order to achieve in the business world much(prenominal) as generating in the altogetherfangled intersections, a good marketing plan and knowing the distinguished factor of cultural variation in each country. Procter and happen (PG) is one of the most successful companies in the world. Resulting from effective business operation through with(predicate) cultural salmagundi, PG has become one of the most successful organizations. PG is the largest consumer goods growthion association in the world and salutary known around the world with a long history. PG is concerned just about cultural diversity and they tramp an importance on it. Robert Mcdonald, Chairman of the Board, President and CEO and Linda Clement-Holmes, Past Chief Diversity Officer, and Senior infirmity President, orbiculate Business Service me ntion that Even during a challenging business climate, Diversity inclusion body remains a key priority. We believe diversity and inclusion is a competitive advantage.1Therefore PG is a good example in the education of young business workers and other(a) companies to succeed in worldwide business. This paper foc procedures on the issue of a international work force by relating how PG manages a global work force and remains successful in international business.II. Company OverviewProcter and Gamble (PG) is a beau monde focused on consumer goods production. The ships lodge provides brands and packages goods involved in Beauty, readiness and Household Care. The company was founded by William Procter and James Gamble in 1837 and is headquartered in Cincinnati, Ohio. PG is the largest company in the world that serves 4.6 billion consumers globally, produces and markets more(prenominal) than 300 brands and sells in more than clxxx countries. To better behave the global marketpl ace, PG divided their geographic structure into four regions North America, Asia, Latin America, and atomic proceeds 63/Middle East/ Africa.2PGs HistoryWilliam Procter who was candle shed light onr and James Gamble who was soap stickr two of them immigrated from England and Ireland. They are located to Cincinnati Ohio. After that, their father-in-law persuaded them to joins a business partners. Therefore, Procter and Gamble was founded in 1837.3In the 1880s, the company produced a in the raw product named Ivory. Ivory was a cheap soap that did not sink in water. During the American Civil War in 1858-1859, the company signed to provide the Union Army with soap from Procter and Gamble. In addition, to increase profit and product demand, it developed a slew of product lines that were related to soap such as for hair, laundry and dishwashers.4Moreover, in 1887, PG began a profit sharing schedule for company workers. This chopine helped the workforce join their crucial duty with the companys success.5In 1915, PG started to build factories outside the United States because of the demand for products. PG opened near other product facility in Canada for soap and Crisco.6Radio grew more popular in the 1920s and 1930s, and PG sponsored radiocommunication programs. That is the origin of the word soap operas. Moreover, PG is the first company to manage data found market research with customers. This research helps the company enhance customer watching and respond to consumer needs.7PG is the first company that instituted the Consumer Relations subdivision to respond and connect with the consumer in 1941. In addition, in 1973, the company created a toll-free phone number an e- mail in the 1980s to better customers strength to contact the company.8In 1984 PG was one of the top ascorbic acid Best companies to work. Each year, the company receives many global honors for diversity, value, and improvement of lives.9PG obtained the honors from the U.S. Governmen ts National Medal of Technology in 1996. Since PG is the company that improved and created advance technology for response to the consumer needs.10In 2010, PG understood the consumer needs and created the modernization program for help touch, on consumers needs. This enhanced consumers lives to complete the companys goal. Moreover, PG was one of the sponsors of the London Olympic Games in 2012.11ProductsFor more than clxx years, PG has provided 50 touching brands around the world and 25 brands have more than $1 billion in annual sales. About 4.6 billion consumers use PG products every day. For consumers better life style and brand loyalty, PG tries to improve their products by sight and testing in order to get the best suitable products for their customers. PGs brands can be divided into two groups Beauty and Grooming and Household Care. The top products include the following12Beauty and Grooming Gillette, Olay, SKII, Head and Shoulders, Herbal Essences, Pantene, Rejoice, Safegua rd, Always Ivory, Oral-B, Gucci Fragrances, Dolce Gabbana Cosmetic and CoverGirl.Household Care Duracell, Mr. clean, Swiffer, Pampers, Tide, Downy, Dash and Gain.13Figure 1 PG Popular Products14PG ram Analysis15StrengthsMost important market position put in on a convincing brand portfolioSignificant RD and marketing investmentsDurable cash productivityWeaknessHigh deterrent example of product recallsOpportunitiesFuture increase plans with focus on growth attention on its essential better-looking business and improving its consumers baseIncrease investment in production ability in evolution countriesThreatsRising inflation could cause considerable increase in the work costFake goodsSWOT Analysis OverviewPG is the largest consumer products company in the world. From past until now PG still leading market position collected on a unanimous brand portfolio with incomes of $78,938 million and serves products to 4.2 billion people. Moreover, PG also provided significant research and knowledge and marketing investment to investigation the products for respond the market. PG invested a lot of money with RD part and marketing. The company use RD by attempt to connect with customer around the world for research and learn customer appearance and focused on consumer understanding.16However, PG is the company with a contrariety kind of product and large size scarce some condemnations mistakes can happen in production. Some product brands are often recalled such as in November 2009 PG recalled Vicks Sine X nasal spray from Germany, UK and US because of the company found bacteria B. Cepa cia from product that produce in Germany. Later in March 2010 PG recalled Pringles the potato ship because of Food and Drug government (FDA) found the Salmonella bacteria that cause of hazard with healthy.Repeated products are often recalled cause the company slight in consumer trust and impact with company financial.17Moreover in the future PG has plan to focused on growth attent ion on its essential good-looking business and improving its consumer base for maintain the company that largest consumer product in the world.The attractive point from analysis is how PG adapt and develop diversity challenges to be its specialism for improve business becomes to strength business strategies and develop products for respond consumer around the world.The particular issue the company has to face in global workforceOver its 175 -year history and professional background, the other factors that make PG success in the world is understand with its employees, consumers behavior and culture diversity. Although PG is an American company but it has strong growth from the mid 1940s to 2000 on international. PG products are easy in North America, Latin America, central and Eastern Europe, Western Europe, the Middle East, Africa, Asia, New Zealand and Australia.18Therefore the one essential challenge of PG is a Global Workforce.Although PG has encounter with global workforce an d culture diversity, understanding the divagation and issue of culture diversity and condition of international business can help PG is successful in global market. Moreover company must(prenominal) have learned how to improve and how to solve the issue to the company for success in business world.When the company deprivations to work in variant culture, employees must have to understand and consider about the culture in each country. Employee should be considered which country is low context or high context by observing the people behavior in each country. If the employees understand the culture and known how it contrast with each other it is the important step to complete intercultural proficiency and increase ability to working in global workplace.19If the company wants to be successful in global business, there are various types of behavior suggestion that should be applied and avoided in order to increase a performance of intercultural communication. Therefore, the followi ng recommendations will help the company improve and develop the culture diversity obstacle for company successful in international business. obstacle of intercultural communication20Stereotype is a distorted attitude of groups of people related to their race, nationality and sexual orientation. As stereotypes lead to bias and disregarded the diversity within groups, stereotypes should be avoided.Prejudice is an aggressive attitude about some people or group of people. Prejudice is not based on experience but based on misunderstanding and generalization.Ethnocentrism is belief in your own culture that right, reasonable and better than the other cultures. variation is the obvious action to except, bypass or break up oneself from the other groups.Language Differences is people who from different culture or different country may pick up the vocabulary of a new culture. This situation lead to misunderstanding surrounded by people.Suggestions for develop communication among diverse work place audiences21 try on training. Particularly in international organizations that face to diversity problems. Companies should provide training to employees about workforce diversity and increase employees skill about intercultural communication.Understand the value of differences. Diversity makes n organization creative. If the company recognizes the difference and importance of each customer groups, the company will be able to run it.Make few assumptions. Companies should not assume that all customers wants the same products or like the same products. Companies should produce product classification for customers option.The Companys solution to the issues How PG manages a global workforceHow PG apply suggestions for develop communication among diverse workplace audiences with the PGs case. prove trainingIn order to understand the culture and behavior of customers is not easy because different culture, difference group and difference age it makes different demand of customers. Therefore PG recognizes the importance of employees diversity training. At PG diversity training is one part of management programs that explain different about diversity attitude that make the company successful.22PGs employees must learn the goodness of diversity culture through program called Cultures At Work. This program is taught about culture context that lie in of high context cultures such as Asia cultures are more likely thoughtful and instinctive and low context cultures such as German and North American communicators are more likely to use linear logic.23Understand the value of differenceA lot of companies such as Wal-Mart must failed when expand the branch to foreign country because of culture diversity. Like PG the important problems of PG are face with diversity workers and communication problem in international employees. The essential of company outline PG want to support employees culture diversity by established the seven corporate affinity groups for understand about workers culture and behavior in each group. Corporate affinity groups are consist of African Ancestry Leadership Network (AALN), Corporate Womens Leadership team (CWLT), Gay, Ally, Lesbian, Bisexual and Transgender Employees (GABLE), Asian Pacific American Leadership Team (APALT), Hispanic Leadership Team (HLT), Native American Indian Leadership Team (NAILT), and People with Disabilities (PWD).24PG understand the value of diversity board chief. Thus 11 board members of PG are consist of two are Black, one is Asian, one is Latino and four are women.25Make fewer assumptions.Procter and Gamble avoid the idea that the product is available in one country will be available to other countries. From errors in the past such as in Mexico PG produced the Downy Single Rinse this product help to clean turn. However PG did not think about the differences washed clothes way amongst American customers and Mexican customers. American use washing machine while Mexican washed clothes in rivers . Therefore, this product was failed in Mexico from this case it makes the PG try to research customer behavior and exert time and money for explore target market.26As a result, PG design to run the Living It front in order to authorize company workers to live with consumers in their home, go to shopping with consumers for notice consumer behavior when they want to buy some products. Moreover, PG design another associated campaign Working It campaign in order to support Living It campaign by company workers hang out the small shop and observation about shopper behavior and products in shelves for assemble information and bring it to develop company product in the future.27From this campaign bring the PG become to success in the business market and can expand the product through a lot of countries.ConclusionPG global workforce problem can be solved by the company tries to understanding and developing the culture diversity and international communication. Another factors that makes t he PG complete in global market is research the customer behavior, develop and improve the product that support the customer want. As many of cases of the past PG always to researches and studies about customer culture in each country and develop the new products for support the customer and find the way to run business across cultural. In addition, PG applying the methods for enhancing communication between diverse workplace that help the company to handle with the problem of the global workplace and improve employees ability to work in international market.