Internationalization of Procter & Gamble (P&G) Essay

Internationalization of Procter & Gamble (P&G) - Essay Example The popularity and acceptance of P&G was well certified by ACNielsen, which surveyed and found that 99% of U.S. households use one or the other P&G product. P& G completed the acquisition of The Gillette Company for approximately $53.43 billion on October 1, 2005. Gillette is a leading consumer products company that had $10.48 billion of sales in its most recent pre-acquisition year ended December 31, 2004. (Annual Report 2006). Globalization has brought about intense competition for global markets amongst the major multinational companies. These companies have been looking outwards to reorient their organizational structures and strategies to capture the global markets by positioning their products strategically. A recent study of the US and European companies revealed that 75 percent were taking up the above strategic reorganization in order to stay competitive and staying competitive was considered the single most important external issue on their agenda. Past experiences have shown that poor planning further embattled by rudimentary understanding of the cultural aspects of the global market places had ruined the huge marketing campaigns of even the multinational companies. ... , more penny wise, or a little more nationalistic, and they are spending more of their money on local drinks whose flavors are not part of the Coca-Cola line up. (Rance, 2000). In 21st century international marketeer should seek solution to choice problem between standardization and adaptation. (Ghemawat, 2003). A vital challenge for the international marketing strategy of a firm is the need to understand the different milieus the company needs to operate in. That is comprehending different cultural, economic, and political environments is necessary for the success of a company. Culture is one of the most challenging and devious elements of the international marketplace. These challenges encouraged numerous researchers to take up international marketing studies concerning behavioral differences in consumers across nations (e.g. Lynn, Zinkhan et al. 1993; Nakata and Sivakumar 1996: Brass 1991; McCarty and Hattwick 1991; Hafstrom, Chae et al. 1992; Steenkamp, Hofstede et al. 1999; Chu, Spires et al. 1999; Husted 2000).P& G has also been adopting a strategic globalization stance and has been a forerunner in this race as explained below. Internationalization at P&G P& G is patently a multinational corporation (MNC) with substantial direct investment in foreign markets which is in addition to its normal lines of exports.P& G is also involved in the active management of this portfolio of foreign investments without being just a passive financial investor of funds. Through its various business unit structures it has adopted an integrated management of its operations. On July 1, 2006, nine months after closing the (Gillette) acquisition, P&G completed the largest wave of business systems integration so far. P&G integrated systems in 26 countries, spanning five

The case study will be send by file .pdf Example | Topics and Well Written Essays - 1000 words

The will be send by file .pdf - Case Study Example Offering the employees with low food cost menu which are also known as â€Å"freebies† during their shifts can help to deter these employees from eating higher food cost items. Not using Consistent Portion Control- For keeping the business profitable, portions should be controlled with, consistent storage sizes, calibrated food scales and correct sized serving utensils Wasting Food- Utilizing maximum quantity of food can help to decrease food cost percentage. For example beef trimmings from the tenderloins can be purposefully used into satay beef tips, which can be sold as moderate entry special. Buying Food for Home- Using food from the kitchen restaurant instead from the grocery store on a regular basis will skew food costs and profits. Bulk pricing helps to use food for a personal use and also pay it back. Poor Staff Education- employees who burn food, does not practice portion control or rotating food according to first in first out basis will definitely increase the food cost percentage. Poor Bookkeeping- food suppliers often make mistakes on invoice like charging double of the amount , not reflecting the payments made or delivering the food that is listed on invoice. Weekly food orders should be checked to ensure all of it is accounted for and also matches the invoice. Copies of all the payments made and invoices should be properly stored in case of any disputes. Using only one Food Vendor- Prices offered by different vendors should be compared and asked for a match. 2. Do you think that the beverage cost percentage might be rising or falling? Why? The beverage cost percentage will rise because it is directly proportional to the cost percentage of food which is also rising. 3. What issues might Jack be discovering with the inventory levels in the central stores and Preparation kitchen stores? Inventory control is an important way to ensure that the appropriate products are available when required and to control cost. Two types of inventory methods are required: Perpetual inventory- It is a continuous record of the purchases and deliveries and issues of food supply. A system involving the use of computer program needs to be in place to ensure that a perpetual inventory is maintained. Physical inventory- It is an actual physical count of the product in hand that is done on a periodic basis usually monthly. Physical inventory helps to verify perpetual inventory. Someone else who maintains the perpetual inventory does not maintain the physical inventory. Jack might have faced the following problem with the inventory levels in the central stores and preparation kitchen stores: Central stores do not compare the changes in the beginning and ending inventory to net purchases, issues and write offs because the inventory management system is not programmed to generate reliable reports of the total purchases from the vendors. The systems also do not generate any report of the total issues to the departments which needs to be reconciled with the ending inventory. There is also no evidence of the fact that the comptrollers has verified that the accounting records match with the annual purchases and issues because summary of the general ledger reports that account for storeroom inventory issues are not generated by the accounting system. The ending inventory also do not account for the city wide purchase order. The accounting syste