How Procter And Gamble Manages Business Essay

How Procter And Gamble Manages Business EssayNowadays every crease is trying to expand its market to the world. There are many factors that help the alliance to achieve in the business world much(prenominal) as generating unused wares, a good marketing plan and knowing the important factor of cultural diversity in each country. Procter and Gamble (PG) is one of the most self-made companies in the world. Resulting from effective business operation through cultural diversity, PG has become one of the most successful organizations. PG is the largest consumer goods production company in the world and wellhead known around the world with a long history. PG is concerned about cultural diversity and they place an importance on it. Robert Mcdonald, Chairman of the Board, President and chief executive officer and Linda Clement-Holmes, Past Chief Diversity Officer, and Senior Vice President, Global Business Service mention that Even during a challenging business climate, Diversity co mprehension remains a key priority. We believe diversity and inclusion is a competitive advantage.1Therefore PG is a good example in the education of boylike business workers and other companies to succeed in international business. This paper focuses on the issue of a world(prenominal) manpower by relating how PG manages a global hands and remains successful in international business.II. Company OverviewProcter and Gamble (PG) is a company focused on consumer goods production. The company provides brands and packages goods involved in Beauty, Grooming and folk 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 than 300 brands and sells in more than one hundred eighty countries. To better support the global marketplace, PG divided their geographic structure into four regions North America, Asia, Latin Amer ica, and Europe/Middle East/ Africa.2PGs HistoryWilliam Procter who was candle churchman and James Gamble who was soap maker both 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 new product named Ivory. Ivory was a cheap soap that did not sink in water. During the American Civil War in 1858-1859, the company sign to provide the Union Army with soap from Procter and Gamble. In addition, to addition profit and product demand, it developed a mint of product lines that were related to soap such as for hair, laundry and dishwashers.4Moreover, in 1887, PG began a profit sharing architectural plan for company workers. This course of instruction helped the workforce join their crucial duty with the companys success.5In 1915, PG started to name factories outside the United States because o f the demand for products. PG opened another product facility in Canada for soap and Crisco.6Radio grew more popular in the 1920s and 1930s, and PG sponsored receiving set programs. That is the origin of the word soap operas. Moreover, PG is the first company to manage data based market research with customers. This research helps the company enhance customer perceptiveness and respond to consumer needs.7PG is the first company that instituted the Consumer Relations Department to respond and connect with the consumer in 1941. In addition, in 1973, the company created a toll-free phone repress an e- mail in the 1980s to break customers ability to contact the company.8In 1984 PG was one of the top 100 Best companies to work. Each year, the company receives many global honors for diversity, take account, and improvement of lives.9PG obtained the honors from the U.S. Governments National Medal of Technology in 1996. Since PG is the company that improved and created advance technolo gy 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 170 years, PG has provided 50 miteing brands around the world and 25 brands build 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 law-abiding 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 habitation Care. The top products include the following12Beauty and Grooming Gillette, Olay, SKII, Head and Shoulders, Herbal Essences, Pantene, Rejoice, Safeguard, Always Ivory, Oral-B, Gucci Fragrances, Dolce Gabbana Cosmetic and CoverGirl.Household Care Dur acell, Mr. clean, Swiffer, Pampers, Tide, Downy, Dash and Gain.13Figure 1 PG Popular Products14PG SWOT Analysis15StrengthsMost important market position gathered on a convincing brand portfolioSignificant RD and marketing investments c toucheless cash productivityWeaknessHigh instance of product recallsOpportunitiesFuture sum up plans with focus on growth attention on its essential openhanded business and improving its consumers baseIncrease investment in production ability in developing 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 strong brand portfolio with incomes of $78,938 million and serves products to 4.2 billion people. Moreover, PG also provided significant research and development 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 demeanor and focused on consumer thought.16However, PG is the company with a contrast kind of product and large size but sometimes mistakes can happen in production. whatever 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 Administration (FDA) found the Salmonella bacteria that cause of hazard with healthy. ingeminate products are often recalled cause the company less in consumer trust and impact with company financial.17Moreover in the future PG has plan to focused on growth attention on its essential good-looking business and improving its consumer base for maintain the company that largest consumer pro duct in the world.The attractive point from psychoanalysis is how PG adapt and develop diversity challenges to be its strength 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 gain with its employees, consumers manner and purification diversity. Although PG is an American company but it has strong growth from the mid 1940s to 2000 on international. PG products are obtainable in North America, Latin America, telephone exchange 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 and culture diversity, understanding the difference and issue of culture diversity and context of use 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 destinys to work in different 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 following recommendations will help the company improve and develop the culture diversity restraint for compa ny 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. disagreement 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 whitethorn pick up the vocabulary of a new culture. This situation lead to misunderstanding mingled with people.Suggestions for develop communication among diverse work place audiences21 stress training. Particularly in international organizations that face to diversity riddles. 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 fewer assumptions. Companies should not assume that all customers wants the same products or like the same products. Companies should produce product variety for customers option.The Companys solution to the issues How PG manages a global workforceHow PG confine suggestions for develop communication among diverse workplace audiences with the PGs case.Seek 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 pardon 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 consist 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 strategy 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 squad (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 Hispanic 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 tog. However PG did not compute about the differences washed clothes way between 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 researc h customer behavior and exert time and money for explore target market.26As a result, PG design to run the Living It feed 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 the PG complete in global market is research the customer behavior, develop and improve the pr oduct 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.