Question Details

(Solved) Running head: Business Analysis 1 Kristina Cacaj MBA 6024 2/26/2017 Proctor and Gamble Proctor and Gamble Business Analysis 2 Proctor and Gamble...

Assignment Overview

For this assignment, you are to write a 4–6 page business analysis to the vice president of corporate strategy at the company's headquarters that describes key elements of the corporate strategy of the firm you selected. Include key findings for the firm's level of diversification (product scope), geographical and vertical scope, and the overall fit with the business strategy or strategies identified in Unit 1 of the course.  

Assignment Preparation

For your selected firm (Proctor and Gamble) , research the firm's corporate strategy, including its level of diversification, corporate structure, extent of vertical integration, and global scope. Use the Capella University Library, Internet, your text case studies, or the firm research information in the Assignment Resources to find at least four current, scholarly, or professional resources for this assignment.

Assignment Requirements

For this assignment, use headings and subheadings to help organize the key points of your 4-6 page business analysis and include the following:

  • Analyze the corporate strategy of the selected firm- Proctor and Gamble, including product, geographical, and vertical scope in which it operates. Has the firm expanded from its initial product line or field of operation? Does the firm own vertically related activities along the value chain for its products?
  • Analyze the firm's overall corporate structure and key management systems. Does the firm employ any of the following three elements of corporate strategy: diversification, vertical integration, or globalization? Are global alliances an overall part of the corporate strategy?
  • Analyze the strategic fit between the business and corporate strategies of the selected firm.

Write coherently to support a central idea (in appropriate APA format) with correct grammar, usage, and mechanics as expected of a business professional.

Submission Requirements
  • References: Support your business analysis with at least four academic resources from the Capella University Library. You must use proper APA style and format for citations and references.
  • Length: 4–6 double-spaced, typed pages, not including the references list.
  • Written communication: Demonstrate graduate-level writing skills through accurate communication of thoughts that convey the overall goals of the analysis and do not detract from the message.
  • Font: Times New Roman, 12 point.

Running head: Business Analysis 1 Kristina Cacaj
MBA 6024
Proctor and Gamble Proctor and Gamble Business Analysis 2 Proctor and Gamble Business Analysis
Overview of the generic strategy
Cost Leadership Strategy:
Proctor and gamble uses cost leadership strategy to compete effectively with its
competitors for control of majority of the customers. The company subsidizes its products in the
market and then lowers the price of the subsidies products that what the competitors charge. This
way, the company is able to increase sales and gain many customers without making loses.
Differentiation Strategy
This strategy can be effective for the company if used well. It involves producing
products that are totally different from what your competitors in the market produce. Many
customers like products with unique feature that will give them additional value for their money
Wilson, Andrew 2012. When customers realize that your products are different for all the good
reasons, they will turn to it and buy more of it. This way, the company will be able to gain
competitive advantage over its rivals in the market. The company will also be able to sell more
of its products and therefore make more profits.
Focus Strategy
This strategy works best mostly for these companies that do not have enough resources
to mount sale in a large market. Focus strategy involves choosing to focus on small and
manageable group of customers or selling in a specific geographical area that the company is
able to manage James Brian 2014. Proctor and Gamble Business Analysis 3 This leads to better services to the customers compared to the companies that chose to
focus on a wide range of market. Focus strategy will enable the company to manage its cost well
and be able to effectively control a given market share well.
The business strategy the firm is using
Pricing strategy
Pricing strategy is one of the most powerful strategies a company can use to gain
competitive advantage. One of the strategies the company uses is to charge its products cheaply
that what its competitors charge in the market. This way, many customers will buy its products in
large numbers and the company will be able to control the market by gaining competitive
advantage over its market rivals.
Product strategy
Product strategy involves improving your products to make them stand out in the market.
Customers want the value for their money and they can only achieve that if the products they
exchange for their money is worth it. The company should ensure that the products it takes to the
market are of high quality and safe for use by the customers. Offering good quality products than
your competitor will make the company to have competitive advantage and gain trust with
Market segmentation strategy
Market segmentation involves dividing the market into geographical, behavioral and
demographical segmentation. This will enable the company to understand the market better. Proctor and Gamble Business Analysis 4 The company will be able to know which category of customers its dealing with in terms of
age, location and preferences of these customers. After knowing the market segments the
company will now design its products in line with the requirements of these market segments.
Elements of Business Strategies
Critical reflection
The company needs to carefully reflect on its direction before blindly moving ahead. This
is to avoid mistakes that will be costly to the business. The company should understand its
mission and goals as a guide to achieving its desires. Making hasty business decisions should be
avoided as this can lead to mistakes George and Bock AJ. 2012. The company should apply the
use of SWOT analysis to enable it understand its weakness and strengths that would also be
useful in guiding it in making right decisions.
The Power of a Simple Message
Clear and simple mission statement is important. The company should avoid large
statement that is confusing. Using simple clear mission statement is easy to understand by the
company and its employees and so avoids any mistake that may arise as result of ambiguous
mission statements.
Balanced Stakeholder Listening
A good company is one that listens to its stakeholder’s opinions and needs. The company
should bear in mind that stakeholders are people with company interest and therefore should be
allowed to contribute positive to the effort of achieving company goals together. Proctor and Gamble Business Analysis 5 A company should not ignore the contribution of stakeholders as this may expose the company in
a bad light with them. George,G and Bock AJ. 2012.
Actionable Content
For the company to succeed in achieving its goals, it must develop a proper actionable
content. The strategies the company has developed should be properly detailed to ensure that a
guideline is provided that will enable the company management to meet its goals. The actionable
content do not offers the solution to company problems but simply acts as a guide on what
should be done and what should not be done. Questions such as “whats” and “hows” are
common in the actionable content. Strategies are can be useless without actionable content.
Components of business model
Value Proposition:
Do the company’s products have any unique value that differentiates its products from
these of its competitors? Having unique products with added value will attract customers and the
company will be able to benefit from large sales and hence profits James Brian 2014.
Customer Segments:
The company should know which customers it serves. This will enable it to understand
their needs in terms of taste and preference. Proctor and Gamble Business Analysis 6 Customer Relationships:
Having a positive relationship can be a very important ingredient that will cement
customers to the company’s products James Brian 2014. The company should develop a strong
relationship with customers as this will increase trust as well.
Key findings
1. There is stiff completion in the market.
2. The company requires well defined strategies well actionable content that will enable it
compete effectively in the market. References
Freedman, Lawrence (2013). Strategy. Capella University Press
Wilson, Andrew (2012). Masters of War: History's Greatest Strategic Thinkers. The
Teaching Company.
GILES, LIONEL The Art of War by Sun Tzu - Special Edition. Special Edition Books.
2007. Mintzberg, Henry and, Quinn, James Brian (2014). The Strategy Process: Concepts,
Contexts, Cases. Prentice Hall
George,G and Bock AJ. 2012. Models of opportunity: How entrepreneurs design firms to
achieve the unexpected. Capella University Press


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