Essay about Management Focus
In the early twentieth century, Procter & Gamble continued to grow. The company began to build factories in other locations in the United States, because the demand for products had outgrown the capacity of the Cincinnati facilities. The Procter & Gamble Company (P&G) is a global force of nature. William Procter and James Gamble formed Procter & Gamble, a partnership in Cincinnati, Ohio, to manufacture and sell candles and soap. The partnership began October 31, 1837, with paid-in capital of $7, 192.24. It has grown to be the leading maker of household products in the United States. According to the …show more content…
c) What strategy does P&G appear to be moving toward? What are the benefits of this strategy? What are the potential risks associated with it?
Due to the increase in competition and the changing market conditions P&G closed some of their local plants and asked their subsidiaries to exploit as much economies of scale as possible in their production lines. They also asked their local centers to create and use global brands whenever possible to try and reduce marketing costs. While these cost savings were effective, they were still not enough and P&G then reorganized the company to be a pure Transnational Strategy, with more control