1. P ROCTER & G AMBLE -G ILLETTE M ERGER By: Christine Cruell Kamika Hemphill Antjuan Seawright Jonathan Toney

2. E XECUTIVE S UMMARY

3. P RODUCTS Three main product lines: household and personal care food consumer heath care products Recent merge with Gillette Competitive advantage

4. D OMINANT F IRMS Procter and Gamble, Nestle, Unilever, L’Oreal, Colgate-Palmolive, Revlon, Bic, PepsiCo, Sara Lee, and Kimberly Clark. Success factors: positive brand image availability of products the ease of access

5. V ISION AND M ISSION Vision “Be, and be recognized as, the best consumer products and services in the world” Mission “Procter and Gamble will continue to serve consumers by continuously innovating products that will allow us to be leaders in household and personal care, health care, and food products. To produce products with the utmost care to give nothing but quality to our communities. And to continue to grow so that we can maximize our shareholder’s wealth.”

6. E XTERNAL E NVIRONMENT

7. Economic Factors Social Factors Technological Factors Political Factors Ecological Factors

8. E CONOMIC F ACTORS S OCIAL F ACTORS Concerned with nature and direction of economy in which the CP industry Threat/Opportunity Concerned with beliefs, values, opinions, and lifestyles of people Threat/Opportunity

9. T ECHNOLOGICAL F ACTORS Focus on technological changes affecting the industry: New Products, improvement in existing products, manufacturing and marketing techniques T hreat/Opportunity

10. I NDUSTRY A NALYSIS

11. C ONSUMER G OODS I NDUSTRY 5 F ORCES M ODEL Buyers: large impact on industry Large retailers-Wal-Mart, Kmart, Target Rivalry: keeps industry thriving Differentiation, advertising, promotions, price, customer service and quality Threats to Entry: heavy impact on industry productivity Mergers and acquisitions

12. C ONSUMER G OODS I NDUSTRY 5 F ORCES M ODEL C ONT … Substitutes: no huge impact Competitive products replacement Private label brands and small label brands-only real substitutes Suppliers: no threat to the industry Raw materials can be obtained anywhere

13. C OMPANY P ROFILE

14. V ALUE C HAIN A NALYSIS Primary Activity Marketing and Sales=Brand Recognition Support Activities Research Technology-RFID

15. F INANCIAL A NALYSIS

16. Key Data from Bal. Sheet Total Assets 138,014.00 135,695.00 61,527.00 57,048.00 43,706.00

17. F INANCIAL A NALYSIS ( CONT ’ D ) Key Data from Income Statement Net Income 10,340.00 8,684.00 6,923.00 6,156.00 5,186.00

18. F INANCIAL A NALYSIS ( CONT ’ D ) Key Ratio’s Gross Margin Debt/Equity Ratio Current Ratio Quick Ratio Return On Equity Return On Assets Return On Capital

19. R ATIO A NALYSIS Key Ratio’s Gross Margin Debt/Equity Ratio Current Ratio Quick Ratio Return On Equity Return On Assets Return On Capital PG Nes Uni Ind 51.8 30.8 14.5 20.54.67.78.84.9.8.7.98.6.11.4.7 16.8 30 32.3 30.9 7.9 8.3 10.9 9.6 10.2 13.4 17.6 13.4

20. SWOT S UMMARY /C ORE I SSUE

21. SWOT Strengths product variety and diversification Line of shaving /grooming products Supply chain technology Weaknesses Constant innovation= higher prices for consumers

22. Opportunities Globalization Threats Private labels Core Issues: Overlap in management Overlap in P&G- Gillette products (I.e. Old Spice deodorant and Right Guard deodorant) Expensive products

23. L ONG T ERM O BJECTIVE AND S TRATEGIC S CENARIOS

24. L ONG T ERM O BJECTIVES Generic Strategy: Differentiation Grand Strategies: Innovation Conglomerate diversification Concentric diversification Strategic alliance

25. S CENARIOS Best Worst Likely

26. C ORPORATE L EVEL S TRATEGIC A LTERNATIVES

27. C ORPORATE L EVEL S TRATEGY Stay in same SBU’S Get into new SBU’S Keys to success Proper asset mgmt Possible change of mission statement

28. C ORP L EVEL S TRATEGY Best Case Expand to new mkts Grow by 30% Worst Case Lose Mkt share Fail to expand Most Likely Grow by 10% Continue current corporate strategies

29. B USINESS L EVEL S TRATEGIC A LTERNATIVES

30. B USINESS L EVEL S TRATEGY Generic Options Low Cost Leadership Differentiation Pros/Cons of both Rivals Unilever Colgate-Palmolive

31. G RAND S TRATEGIES Low Cost Leadership Concentrated Growth Market Development Differentiation Product Development Innovation

32. S TRATEGIC C HOICE

33. Corporate level strategy: Get into new SBU’s.