Analysis of P&G’s Global Strategy + Functions of the Leader Essay

1125 Words Sep 13th, 2012 5 Pages
1. (a) Perform an in-depth analysis of Procter & Gamble’s global strategy, (b) assess the merits and demerits of the strategy, as well as (c) give detailed, actionable recommendations on how to improve and implement it, among other things, through effective strategic leadership. 2. “The function of the leader consists of increasing personal payoffs to subordinates for work-goal attainment and making the path to these payoffs easier to travel.” Discuss.

1. In order to perform in-depth analysis of P&G’s global strategy we can use the framework suggested by Hambrick and Fredrickson called Strategy Diamond, the main idea of which is to evaluate a strategy from different point of view - facets of the Diamond: Arenas,
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Another important aspect contributing to their competitive advantage is their scale operations and capabilities of entering new markets that provide first mover advantage and makes it hard for competitors to copy ideas and apply them. P&G also successfully exploit international growth, especially in emerging markets. * Vehicles and Stages - demonstrates the degree to which the company’s strategy relies on internal development comparative to partnering with or acquisition of external parties, as well as refers to the sequence and speed of strategic moves. P&G does substantial investments globally, and uses acquisitions, joint ventures, and alliances to expand their market expertise. We can mention 3 key competencies P&G has developed: 1) understanding of the foreign marketplace, 2) ability to manage people in foreign markets, and 3) skills at managing foreign subsidiaries. Their global strategy includes innovation, increasing market share on core businesses while focusing on each business as well as on each industry, and investing in the developing segments. * Economic logic - explains how all the facets of the Diamond tie together to achieve business’ goals and satisfy key stakeholders.

The results of the analysis of P&G’s current strategy do not uncover any evident drawbacks. In order to assess the quality of current strategy we can use the questionnaire provided by authors of Strategic Diamond which consist from the following

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