Scribd
Upload
13 views1 page

1

Procter & Gamble initially pursued a strategy of developing products at its headquarters and utilizing semi-autonomous foreign subsidiaries to adapt and distribute them locally, which was effective for years. However, this strategy became less viable due to changing market dynamics and increased competition. P&G is now moving toward a more integrated global strategy, which offers benefits such as efficiency and consistency but also poses risks like reduced local responsiveness.

Uploaded by

anhctn2611
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
13 views1 page

1

Procter & Gamble initially pursued a strategy of developing products at its headquarters and utilizing semi-autonomous foreign subsidiaries to adapt and distribute them locally, which was effective for years. However, this strategy became less viable due to changing market dynamics and increased competition. P&G is now moving toward a more integrated global strategy, which offers benefits such as efficiency and consistency but also poses risks like reduced local responsiveness.

Uploaded by

anhctn2611
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

Read the Management Focus on Procter & Gamble, and then answer the following

questions:
a. What strategy was Procter & Gamble pursuing when it first entered foreign markets?
Why do you think this strategy became less viable later on?
b. What strategy does P&G appear to be moving toward? What are the benefits of this
strategy? What are the potential risks associated with it?
c. To what do you attribute P&G's recent sales decline?
ANSWERS
a. When Procter & Gamble (P&G) first entered foreign markets, it pursued a strategy of
developing new products in its headquarters in Cincinnati and then relying on semi-
autonomous foreign subsidiaries to manufacture, market, and distribute those products in
different nations. The foreign subsidiaries had their own production facilities and tailored
the packaging, brand name, and marketing message to local tastes and preferences. This
strategy was successful in delivering new products and driving sales and profits for many
years.

You might also like