Global Strategy

Global Strategy

Proctor and Gamble (P&G) is a multinational company with one of the most diversified global networks in the world. This company manufactures and sells consumer goods in over 180 countries. The company has had to rely on an effective global expansion strategy that works for them and their stakeholders to achieve such an extensive global network.

Explain how the strategic posture of Procter & Gamble changed as a result of its experience outside the United States.

When P&G first expanded its business outside of the United States, the company had to develop an efficient supply chain that would enable the delivery of goods in different global markets. Therefore, the company initially got into agreements with semiautonomous foreign subsidiaries, who would produce and distribute P&G products in the international markets according to the market’s individual needs (Hill & Hult, 2019). Doing business outside of the U.S. showed P&G that the needs of various global markets could be significantly different. The local subsidiaries better understood the global markets; thus, they would brand and market the products to meet local needs.

Identify and describe clearly the factors involved that would influence a company to change its strategy.

There are many factors that would influence a company’s international strategy. One of the most significant influences is foreign laws. Laws that affect international trade directly determine the strategic lengths that a business can go to advance its Business (Johnson, 2016). For instance, when P&G was first expanding globally, the tariff limitations were too high. Therefore, producing in the local countries was a more economically friendly option.

Another factor that influences a company to change its global strategy is the unique characteristics of the local market. Even though a company may be producing the same products globally, it must find a way to meet the unique needs of the local market (Tulung, 2017). For instance, P&G has had to customize certain aspects of its products, such as the brand names and the marketing strategies, to meet the needs of the different global markets.

Assess Procter & Gamble’s current change in strategy and describe a strategy most likely to promote business in the future, including justifying the proposed strategy.

P&G’s current strategy involves the division of its extensive product portfolio into different business units. Instead of duplicating assets in different countries, as it was doing before, the company has developed different business units that will be responsible for the profitability of certain groups of related products. For instance, there is a unit for baby products. The unit leaders are expected to ensure that the baby products are doing well globally and creating their own profits. This strategy is likely to promote business in the future. The strategy enables the different business units to have a diversity of strategic options. Each type of product can be affected by unique factors in the global market. For instance, there are different legal regulations for the importation of food products compared to baby products. This strategy enables the business units to focus on the unique factors that affect them for the advancement of the business in general.

References

Hill, C., & Hult, T., (2019). Global Business Today Asia-Pacific Perspective. McGraw-Hill Education.

Johnson, G. (2016). Exploring Strategy: Text and Cases. Pearson Education.

Tulung, J. E. (2017). Resource Availability and Firm’s International Strategy as Key Determinants of Entry Mode Choice. Jurnal Aplikasi Manajemen, 15(1), 160-168.

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[u07a1] Unit 7 Assignment 1

Procter & Gamble: The Global Retailer

Read the “Evolution of Strategy at Procter & Gamble” case study on page 345 of your text and address the following:

• Explain how the strategic posture of Procter & Gamble changed as a result of its experience outside the United States.
• Identify and describe clearly the factors involved that would influence a company to change its strategy.
• Identify and describe the strategy of Procter & Gamble today.
• Assess Procter & Gamble’s current change in strategy and describe a strategy most likely to promote business in the future, including justifying the proposed strategy.
• Support your position with one additional resource from either globalEDGE or the Capella library.

Use the following guidelines when writing your essay:

• Length: 250–500 words.
• Your submission should be well organized and written in clear, succinct language. Follow APA rules for attributing sources that support your analysis and conclusions.

As a reminder related to using APA rules to ensure academic honesty:

1. When using a direct quote (using exact or nearly exact wording), you must enclose the quoted wording in quotation marks, immediately followed by an in-text citation. The source must then be listed in your references page.
2. When paraphrasing (using your own words to describe a nonoriginal idea), the paraphrased idea must be immediately followed by an in-text citation and the source must be listed in your references page.

 Resources

• Procter & Gamble: The Global Retailer Scoring Guide.

Project – Procter & Gamble: The Global Retailer Scoring Guide. (Looking for DISTINGUISHED – set up your paper to hit each Topic)

Due Date: End of Unit 7
Percentage of Course Grade: 10%.

CRITERIA	NON-PERFORMANCE	BASIC	PROFICIENT	DISTINGUISHED
Demonstrate how the strategic posture of a company changes as a result of its experiences outside of its home market. 25%	Does not demonstrate how the strategic posture of a company changes as a result of its experiences outside of its home market.	Discusses how a company changes as a result of its experiences outside of its home market.	Demonstrates how the strategic posture of a company changes as a result of its experiences outside of its home market.	Demonstrates how the strategic posture of a company changes as a result of its experiences outside of its home market, and provides specific examples.
Identify the factors involved that would influence a company to change its strategy. 25%	Does not identify the factors involved that would influence a company to change its strategy.	Discusses factors relevant to a company changing its strategy.	Identifies the factors involved that would influence a company to change its strategy.	Identifies and describes clearly the factors involved that would influence a company to change its strategy.
Identify a revised strategy made by a company as a result of its experiences outside its home market. 25%	Does not identify a revised strategy made by a company as a result of its experiences outside its home market.	Discusses strategy revision in the context of companies’ experiences outside their home markets.	Identifies a revised strategy made by a company as a result of its experiences outside its home market.	Identifies and describes clearly a revised strategy made by a company as a result of its experiences outside its home market.
Assess these management strategies and identify a strategy most likely to promote business in the future. 25%	Does not assess these management strategies and identify a strategy most likely to promote business in the future.	Discusses these management strategies and a strategy most likely to promote business in the future.	Assesses these management strategies and identifies a strategy most likely to promote business in the future.	Assesses these management strategies and describes a strategy most likely to promote business in the future, including justifying the proposed strategy.

• APA Style and Format.
• globalEDGE.