Procter and Gamble Market Analysis Essay

7285 Words Apr 12th, 2011 30 Pages
procter and gamble market analysis

Executive Summary 3
Swot Analysis 4
Cash Assessment 5
Profitability Assessment 8 eARNING PER SHARE 9
MARKET ANALYSIS 10
INDUSTRY ANALYSIS 10
Target marke 10 customer profile 11 major competitors and participants 12 market segmentation 12
PROJECTED MARKET GROWTH AND MARKET SHARE OBJECTIVES 13
PRODUCT AND SERVICE OFFERING 13
PRODUCT AND SERVICE UNIQUENESS 14
PRODUCT AND SERVICE DESCRIPTIONS 14
COMPETITIVE COMPARISON 15 research and development 16
Patent and trademarks 16 summary of key findings 17 references 18

Executive summary
The Procter & Gamble Company (P&G) began its operation in downtown Cincinnati, Ohio in 1837. The company operates in a very competitive industry where
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Therefore, P&G is lower than their industry average (0.7), and significantly lower than the companies in the S&P 500 (0.9) for the quick ratio. Inventory and accounts payable days declined due in part to the optimization of P&G’s manufacturing process and inventory levels and a moderation of commodity costs late in the year. The quickest way that P&G can improve its quick ratio is to pay down its current bills and also to increase its sales which in result increases cash or accounts receivable.
Account Receivable turnover
Account receivable turnover is an accounting measure used to quantify a firm's effectiveness in extending credit as well as collecting debts. This ratio also allows a company to measure whether or not the company is effectively collecting payments on its accounts receivable, or its sales on credit. P&G with its turnover ratio of 14.8 compare to 2009 with the ratio of 13.54 experiences an improvement in the outstanding credit accounts P&G is above their industry average (12.2x), and significantly above than the companies in the S&P 500(13.3x)for the account receivable turnover.
Inventory Turnover
Inventory turnover measures how many times a company's inventory is sold and replaced over a period. In 2010 PG with inventory of 5.9 compare to 2009 with the ratio of 5.6, indicates that the firm’s

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