P&G has a number of stakeholders who range from the employees, the shareholders (investors), consumers, the government, the society, and the supply chain. These stakeholders have different interests in the company. This paper presents a stakeholder analysis for P&G and the reasons why each stakeholder has interests in the company. Additionally, the paper will highlight the impact of globalization on the stakeholder groups. Finally, the analysis will include the corporate strategy based on the mission and vision of P&G.
Relationship with Employees
The employees form a large part of the stakeholders in P&G. The employees in this case are sourced from five different trading regions in the world. These regions include Europe, Asia, Latin America, North America and India, Middle East as well as Africa (P&G 6-12). The employee’s main interest as stakeholders is to have a job security. Job security gives the employees an assurance that their terms of employment will be respected and that their employment will last for the agreed period. The effect of globalization on employees at P&G is that the workplace has become more diverse. The penetration of P&G products into other market regions has seen the increase in employees from these regions. In this regard, employees at P&G come from diverse backgrounds.
Relationship with Shareholders
The shareholders also form a big part of the stakeholders at P&G. Their main interest is to increase their wealth by an increase in the P&G share value (P&G 6-12). In this regard, the globalization has benefited P&G shareholders by increasing the share value, as it is a multinational firm. The increased sales in different regions globally have also led to maximization of profits thus an increase in the dividends. In this perspective, the shareholders at P&G receive more revenues in terms of dividends.
Relationship with consumers
The consumers at P&G are also stakeholders in the firm. The interest of the consumers is that the quality of products from P&G is maintained at a high quality (OBERHOLZER-GEE 7-10). Additionally, the consumers have an interest in the long life of the products from P&G. In this perspective, the consumers have an interest in finding their favorite products from P&G on the store shelves. Furthermore, they have an interest in having an ease of access for the products from P&G. Globalization has increased the number of consumers for P&G. The increase in consumer base means that the firm has to incorporate more tastes and preferences in its product line.
Relationship with other Allied Firms and Stakeholders
The government in this case refers to the national governments in the different nations where P&G trades (KANTER 2-5). The interest of these governments is for P&G to adhere to the set regulations for conducting business in each country. Additionally, governments are highly interested in the taxes paid by P&G. Tax forms a significant part of government revenue. Furthermore, the governments are interested in the investment made by P&G in their countries. P&G has a large employee base. P&G reduces the unemployment levels in the countries where it operates by offering jobs to the local communities. Globalization in this perspective has increased the global participation of unemployment reduction.
Relationship with the Society
The society in which P&G operates is a stakeholder. The main interest of the society as a stakeholder is for P&G to initiate corporate social responsibility projects that upgrade the societies where it operates (P&G 6-12). Corporate social responsibility performed by P&G includes construction of water reservoirs in arid regions in Africa and the construction of schools among other community projects. Globalization has had an effect on the relationship between P&G and the societies in the sense that P&G participates in more projects globally. Therefore, P&G continues to influence more societies in the world due to globalization.
Relationship with Suppliers
The supply chain also forms part of the stakeholders group for P&G (P&G 6-12). The supply chain mainly consists of the suppliers of raw materials for P&G products. The interest of suppliers is that the relationship with P&G continues being stable. They also have an interest in the increase of product portfolio for P&G so that they may supply more materials to P&G. Globalization has enabled P&G to access different suppliers. In this perspective, P&G has a wider variety of suppliers and evaluates them based on their reliability and quality of supplies.
The current corporate strategy at P&G involves accelerating the performance and creating a new P&G. The focus lies within leading in 70 to 80 brands in different markets and creating customer value for the preferred brands for different regions. The strategy also focuses on growing sales at a faster pace and more sustainably thus creating profit and value simultaneously (P&G 6-12). The strategy also aims at increasing the profitability for the P&G shareholders. The company`s corporate strategy involves various investment strategies. The investment strategies for the business level made by P&G include building strong relationships with their suppliers. Additionally, P&G has invested in their product portfolio through research and development, the firm has increased the number of products it sells. Furthermore, P&G has invested majorly on itself as a corporation by building on social responsibility as well as environmental sustainability.
|STAKEHOLDERS||KEY INTERESTS||IMPORTANCE TO PROJECT||INFLUENCE ON PROJECT||PARTICIPATION
|To have a job security
To increase their wealth by an increase in the P&G share value
The quality of products from P&G is maintained at a high quality
P&G to adhere to the set regulations for conducting business
For P&G to initiate corporate social responsibility projects that upgrade the society
Relationship with P&G continues being stable
|To provide support services in different departments in P&G
To provide P&G with operating capital
They purchase products from P&G
Set favourable rules for P&G to operate in the business environment
They contribute in creating a favorable business environment
Provide P&G with the needed raw materials for Business
|Their hard work will lead to success of the project
Increased capital and investments will increase the share value
The more the consumers the higher the profitability of the business
Favourable rules will enhance the profitability of P&G`s venture thus making the venture sustainable in these countries
The participate in indirect marketing
The stable supply of raw materials to P&G leads to an increased production level
|Offer support services in different departments
Attend Annual General Meetings
Purchase the products from P&G
Regulate the working environment
Allow P&G to conduct its activities and coexist peacefully
Provide raw materials to P&G
P&G has several strengths that include a wide market penetration and product portfolio. These strengths enable the firm to make greater sales and earn more revenues from sales (P&G 6-12). Additionally, P&G enjoys a large pool of resources such as capital. These resources are important in the research and development of new products to add onto the product portfolio.
The wide product portfolio may be a weakness for P&G because the firm does not specialize on any product (P&G 6-12). The wide product base means that equal attention and resources are given to all products.
P&G has several opportunities, which lie within increasing its product portfolio and making an entry to the Australian market. The firm can successfully make an entry into the Australian because it has successfully made entries to the five different market regions.
P&G faces threats such as the changes in the political economic and global environment (P&G 6-12). These changes greatly affect credit and capital markets, which makes the access to capital difficult and expensive. Economic uncertainty greatly affect P&G, being a global firm P&G engages in currency exchange. However, the economic uncertainty leads to significant fluctuations in exchange rates which affects P&G`s profit.
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KANTER, ROSABETH MOSS . “Gillette Company (E): Procter & Gamble .” Havard Business School 309.9 (2008): 1-8. Print.
P&G, “P&G annual report 2014.” P&G annual report 2014 1.1 (2014): 1-94. Print.