Abao 03 Activity 1 PM

BM2005
NAME: Jerho J. Abao DATE: 29/09/2023 SCORE:
CASE ANALYSIS
Direction: Analyze the given case and answer what is asked from the problem. You are encouraged to do
research.
Procter & Gamble (P&G) is the world’s largest consumer products company. Some of its category-defining
brands include Ivory soap, Tide detergent, Crest toothpaste, and Pampers diapers. Among its many offerings,
P&G has more than 20 consumer brands in its lineup that achieve over 66.8 billion dollars or three (3) trillion
pesos in 2018. P&G’s iconic brands are a result of a clearly formulated and effectively implemented company
strategy. The company pursues a strategy that attempts to create higher perceived value for its customers
than its competitors by delivering products with unique features and attributes. Creating higher perceived
value generally goes along with higher product costs due to greater innovation efforts and promotion
expenses, among other things. Successful differentiators can command a premium price for their products,
but they must also control their costs. In addition, the company was able to achieve its market leader
position through its top management commitment that collaborates even with the lower-level managers in
the company.
In recent years, however, P&G’s strategic position has weakened considerably and seems to be losing rather
than winning. P&G lost market share in key “product-country combinations,” including beauty in the United
States and oral care in China, amid an overall lackluster performance in many emerging economies. As a
consequence, profits have declined. P&G posted a sustained competitive advantage in recent years; its stock
market valuation has fallen, while its competitors Unilever, Colgate-Palmolive, and Kimberly-Clark posted
strong gains. Critics and business analysts believe that the job description of the company’s employees does
not match the corporate vision (“Be, and be recognized as, the best consumer products and services
company in the world.”) of P&G. Later on, this became noticeable by the top management after assessing
that most of their employees practice individualistic approach towards their job. P&G believes that their
company needs oneness and a stronger bond among employees to reach their vision. In addition, the
company’s management knows that they can recover from their losses if only their vision is practiced well by
their employees. This requires proper cascading and re-visiting of the company goals in order for the
employees to align and re-align their personal objectives with that of the company. Until then, many wonder
when P&G will play to win again.
Answer the following questions: (3 items x 10 points)

1. Based on the case facts, what is the major reason behind the company losses of Procter & Gamble
(P&G)?
The losses suffered by Procter & Gamble can be ascribed to a decline in market share in important
product categories, subpar performance in new regions, and a mismatch between corporate
strategy and employee behavior. As a result, earnings have decreased and the value of the
company's shares has decreased, underscoring the need for internal alignment and a more
aggressive approach.
2. Assuming the role of a manager in P&G, how can you cascade the company vision to your
subordinates?
As a manager, maintain open communication, and assist subordinates in connecting their duties to
the vision to cascade the corporate vision at P&G. Provide instruction, establish performance
03 Activity 1 *Property of STI
Page 1 of 2
BM2005
measures, and offer rewards. Encourage cooperation, solicit feedback, and applaud achievements.
These tactics guarantee that employees not only comprehend but also actively strive toward the
goal, resulting in a more cohesive and aligned workforce.
3. Analyze and explain how the alignment of vision will help the company recover from their losses.
Aligning with P&G's goal is critical to the company's turnaround. It brings together activities, increases
employee involvement, and simplifies resource allocation. P&G can better answer consumer
requirements, stimulate innovation, and improve workplace culture with a unified vision. This
alignment also enhances decision-making and external views of the organization, preparing it for
market share recovery and long-term success.

Page 2 of 2
BM2005
Rubric for grading:

CRITERIA PERFORMANCE INDICATORS POINTS
Content Provided the correct concept with pieces 8
of evidence and supporting details.
Organization Expressed the points in a clear and logical 2
of Ideas arrangement of ideas in the paragraph.
TOTAL 10
Reference:
Rothaermel, F. (2017). Strategic management (3rd ed.). New York, NY: McGraw-Hill Education.

Page 3 of 2

Abao 03 Activity 1 PM

Uploaded by

Copyright:

Available Formats

Abao 03 Activity 1 PM

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Abao 03 Activity 1 PM

Uploaded by

Copyright:

Available Formats

BM2005

NAME: Jerho J. Abao DATE: 29/09/2023 SCORE:

Answer the following questions: (3 items x 10 points)

03 Activity 1 *Property of STI

Rubric for grading:

03 Activity 1 *Property of STI

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.