Abstract
We chose Procter and Gamble because it's a huge company, which is established in different sectors and owns a multitude of products. It acts internationally and has a good place and a good experience in the market.
After a successful start, P&G is now an international company which owns more than 250 different brands and is established in more than 35 countries worldwide. One of its major missions is to respond to consumers' desires in terms of quality and innovation and also to respect the local environment as much as it can. This will not be realized if the company will not do well financially. In fact, P&G has an important free cash flow that helps it to develop and invest in new technologies. Added to sales that are rising up, we obtain a multinational company that has an insurance to be sustained by its shareholders for a long time. The firm has a good predictable future.
To analyze the environmental analysis, we have conducted the PEST analysis of four main factors. We chose an area first: Europe, for the political aspect: environment is stable and governments of different countries don't act alone. They should respect the directives of the European authorities. Relating to economical factors in Europe, each country doesn't have a lot of power; the European organizations take care of the economy notably the laws, directives, etc. For socio-cultural aspects, Europe is an area that blends in the society quite well. Birth rate isn't really high but life expectation keeps growing. Culture doesn't change a lot between countries. Finally, concerning technology, it offers a new way to communicate (internet, customer relationship management) and it improves the supply chain for distribution.
P&G is the market leader in the majority of its segments. To make the difference, it spends $5 million per day for R&D. Product technology and innovation is the task of the company. High barriers to entry are erected because new entrants have to succeed in being a reference in the market. Buyers are the retail establishments such as grocery stores, discount chains, and warehouse stores that purchase P&G products for resale to consumers.
