Write a 2- to 3-page assessment discussing the following: The financial ratios o
ID: 454470 • Letter: W
Question
Write a 2- to 3-page assessment discussing the following:
The financial ratios of P&G (Procter & Gamble) that you find strong and areas of concerns
The organizational structure of P&G: Does this structure optimize the firm’s focus or strategy within its industry?
Compare P&G’s marketing strategy to its competition.
Include a minimum of four credible resources: two for the strengths and two for the areas of concern.
Any references used should be properly cited following APA formatting guidelines.
Explanation / Answer
The financial ratios of P&G (Procter & Gamble) that you find strong and areas of concerns
Profitability
P&G's profit margins are at well levels and better than those for its peers, even although the company has seen diminish earnings on the operating height and in its net income compute, a result of waning sales during some periods. For the 12 months end on Sept. 30, 2015, P&G's operating edge was 16.22% and its net profit margin was 12.21%, comparing to a own 15.01% and 10.64% for its peers. Improving profit limits could potentially recompense for lost sales. If P&G turn into less effective at managing its expenses amid sales declines, profit margins would be battered, especially given the likely loss of cost benefit from disappearing economies of balance.
Valuation
Because of decreased pay over the first two quarters of 2015, P&G stocks suffer unrelenting price drops during the same period. Shares in progress to rebound towards the end of the third quarter for which P&G would afterward report a spontaneous in earnings as a result of better cost control. Earlier in the second district of 2015, the company undergo a cost overrun of over $2 billion, which impulsive its stock's earlier declines.
Currently, P&G's assessment metrics are mostly in line with persons of its peers and the manufacturing average. Based on pay data from its most new fiscal year ending on Sept. 30, 2014, when counting extraordinary items, the price-earnings (P/E) ratio is 23.3 for P&G, 23.8 for its peers and 26.2 for the manufacturing as a whole. The company's P/E ratio is somewhat off, but strange items are unusual and infrequent, so they will not be a unenthusiastic factor on P&G's future earnings.
Sales Growth
A bigger dilemma facing P&G is how to produce sales on a continual basis, which is a main task for management. During its last five fiscal years, from Jun. 30, 2011 to Jun. 30, 2015, revenue presentation was in a rather steady seesaw, with sales up one year and down the next. The situation may have gotten worse in the first three accommodation of 2015, when P&G registered three straight quarterly sales refuse. The company's five-year sales growth rate is -0.33%, as its peers have full-grown sales at 3.97% and the manufacturing as a whole has a 3.3% growth rate.
As a diversified consumer goods corporation, P&G may have benefited from its aptitude to market different products across a diversity of categories. However, the company's present market competitors consist of many companies that have additional focused product aid, such as Avon's beauty-related crop and Clorox's home and family care products. Specialty producers have a better possibility of gaining variety recognition.
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The organizational structure of P&G: Does this structure optimize the firm’s focus or strategy within its industry?
Answer :
We manufacture and deal out products in ten core group: Baby Care, Feminine Care, Family Care, Grooming, Oral Care, Personal Health Care, Hair Care, Skin and Personal Care, Fabric Care and Home Care.
And, within each group, Research & Development, Product provide, and the Brand association develop, produce and market the brands and products we provide to customers.
In order to deliver these make to retailers, our Selling & Market action center on selling and distribution. These SMOs are alienated into six regions that reach consumers in over 180 countries—and are accountable develop and execute restricted plans that dish up consumers wherever, whenever and yet they shop.
Functions provide particular expertise in the region of Finance, Human Resources, Sales, Communications, Legal and IT. Global Business Services (GBS) give shared services such as payroll, purchases, real-time information analytics, benefits and amenities administration.
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Compare P&G’s marketing strategy to its competition.
Answer :
Product Differentiation : P&G ---- ITC
Different Brands
Distribution Strategy : The distribution is of three types, which are being pursue
Basic Channels of Distribution Manufacturers/products Agents Wholesalers/distributors Retailers
Delivery Flexibility :
How simple to deal out the product.
Ordering Speed:- It is the time in use after the developed of product and the time till it arrive at the consumer.
Distribution criteria :
Typical Distribution of P & G Products producer
Marketing Agents - Region wise Retailers / Wholesalers / Distributors Chemists Shops, stipulation Stores, Retail Outlets, Big souk etc .
As these serve the need goods hence there is lesser/no brand loyalty from the clientele side, so the distribution network of the corporation needs to be very strong and practical. As the company manufactures the FMCG expediency / necessity goods. PGHH Ltd, is following this plan in india.
Intensive distribution:
Pricing strategies
Different pricing strategies:
Adopted by P & G
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