PG Global Expansion - 4949 Words

Introduction of the case: De Cesare, president of Max Factor Japan and GLT member on the Beauty Care GBU, is to present an analysis of SK-II’s potential to become a truly global brand. There are 3 alternatives for SK-II’s global strategy: To build on the brand’s success in Japan, tap into China, or expand SK-II into Western Europe. If Pamp;G chooses to focus on Japan, it is possible that they might achieve national brand recognition. However, to become a truly global brand, it is necessary that SK-II enters new markets. Yet, we must bear in mind that there are significant risks in Pamp;G’s first-ever proposal to expand a Japanese brand into foreign markets. These risks are magnified by the vast differences in consumers, distribution†¦show more content†¦It would be possible to anticipate or predict trends in various markets by having a global view. For instance, if Japanese consumers decrease their demand for one of Pamp;G’s products, it can anticipate that other countries with similar culture may follow this trend. This would also allow Pamp;G to launch new products quickly without the hindrance of autonomous national subsidiaries. Moreover, global business unit would be able to maintain product margins across country boundaries. Having a strong global control of its products, Pamp;G wo uld be able to use similar marketing campaigns in countries within a geographic region thus reducing marketing costs. Financial Ratios for Pamp;G | Column1 | Current ratio | 1.07 | Net working Capital | 597,000,000 | Total Debt Ratio | 0.63 | Cash Coverage Rate | 13.67 | Total Assets Turnover | 1.19 | Profit Margin | 0.099 | Return on Assets | 0.117 | Return on Equity | 0.312 | Table 2: Financial Ratios of Pamp;G in Year 1999 As seen in Table 2, Pamp;G is doing very well overall. It is relatively able to meet short term debt obligations. It has quite a substantial amount of net working capital which allows development (in Japan) and expansion (into China and/or Europe) of its business. It is also unlikely that the company will face problems with debt load as its financial leverage is not high. With its cash coverage ratio being very high, it is fairly safe if Pamp;G chooses to increase itsShow MoreRelatedPg Japan1454 Words   |  6 Pagesrather than geographic expansion and shifts power from local subsidiary to global business management. In the context of these changes introduced by Durk Jager, Pamp;G’s new CEO, Paolo de Cesare is transferred to Japan, where he takes over the recently turned-around beauty care business. Within the familiar Max Factor portfolio he inherits is SK-II, a fast-growing, highly profitable skin care product developed in Japan. Priced at over $100 a bottle, this is not a typical Pamp;G product, but its successfulRead MorePG Japan1395 Words   |  6 PagesProbable questions 1. Does SK-II have the potential to become a global brand within Procter Gamble’s worldwide operations? Why or why not? 2. Which of the three market options should Paulo Decesare recommendation to the GLT? What benefits do you expect to gain? What risks do you see? 3. How Should he implement your recommended option? What are the implications for PG’s new post-O2005 organization? What support and/ or resistance do you expect? How will you manage it? 4. Read MorePG Japan1409 Words   |  6 PagesProbable questions 1. Does SK-II have the potential to become a global brand within Procter Gamble’s worldwide operations? Why or why not? 2. Which of the three market options should Paulo Decesare recommendation to the GLT? What benefits do you expect to gain? What risks do you see? 3. How Should he implement your recommended option? What are the implications for PG’s new post-O2005 organization? What support and/ or resistance do you expect? How will you manage it? 4.Read MorePG Japan: the Sk-Ii Globalization Project1692 Words   |  7 Pagesto recommend in your SK-II presentation to the global leadership team (GLT)? What kind of analysis will you need to do in preparing for that meeting? There are many factors that need to be considered when deciding recommendations to the GLT of SK-II. Being that this is PG’s first proposal to build a Japanese brand worldwide, it is important to take into consideration different cultures than of the consumers in Japan. Since 2005, PGs global organization has been in the middle of a restructuringRead MoreEvolution of Strategy at Procter Gamble573 Words   |  3 PagesGlobal Issues in Business Week 5 Case Analysis DeVry University Federal Way, Washington Summary In the case study â€Å",† it discusses the history of Procter Gamble’s foreign business strategy and some of the problems they incurred along the way. It also covers some of their business strategy changes the company introduced in order to become more profitable in a changing world economy along with a more globalized less restrictive trade and business environment. It’sRead MoreEthical Considerations : Global Expansion1451 Words   |  6 PagesConsiderations in Global Expansion The challenges of values/ethics based business decision making in the current global marketplace is how the decisions is made. All decisions in a business must benefit the business and the team. If the team consists of two parties and companies that are in negotiations, there according to (Ballard, 2006) â€Å"values† must be ethical. p.g.. 1. If the according to (Ballard, 2006) â€Å"values† is not ethical the decisions making process will not be agreeable p. g. 1. UnethicalRead MoreIn The Present Time For Any Business To Be A Success, There1243 Words   |  5 Pagesthat is implemented to meet competition firms with the aim of reducing cost and paying attention to pressure for confined reaction. The third is Localization Strategy its primary objective being to maximize local awareness. The fourth strategy is global standardization which is focused on increasing profitability using low-cost approach. Question 3 The need for control over foreign operations is addressed by factors such as knowing which market to enter, the attractiveness of international marketRead MoreAnalysis Of Branch Prediction Buffer1477 Words   |  6 Pagesof these k branches; all these data being collected at run-time and maintained in tables. Differing by the way the 1st level branch history information is maintained in BHT, i.e., global (G) or on per-address (P) basis, and the way the 2nd level PHTs are associated with the BHT, i.e., global (g) or on per-address basis (p), Yeh and Patt [18] have presented three variations of the Two-Level Adaptive Branch Prediction schemes. These schemes are identified as GAg, PAg and PAp, embedded A being signifyingRead MoreProcter Gamble1088 Words   |  5 PagesGBS Report amp; Recommendations Introduction: P amp; G is the quintessential American company, with more than 175 years of history. Coming from humble roots, it was established by a partnership of William Procter and his brother in law James Gamble. Over its extensive history, Pamp;G has followed an aggressive â€Å"growth by acquisition† strategy which has transformed it into the global manufacturer of household amp; health items in the world. After P amp; G’s merger with Gillette in 2005, it controlledRead MoreProcter Gamble Essay1138 Words   |  5 Pagessingle-product company, would be risky to pursue in a global campaign and to build a global distribution network all at the same time. Tambrands could not continue to be profitable if it were to launch this global marketing program was alone. The decision to become apart of PG benefited both sides by putting PG back in the tampon business and Tambrands being able to go international as PG. PG has the means that Tambrands needs to go globally. PG has global mar keting, infrastructure, and distribution capabilities