1. What is Proctor & Gamble’s corporate strategy? Do the company’s businesses seem to be related or unrelated? Are Gillette’s businesses closely related to P&G’s businesses? How will a merger with Gillette provide a 1 + 1 = 3 effect for P&G?
Proctor and Gamble recently completed large restructuring, put new management in place, and cut capital spending needs. Since then they are now focused on increasing top and bottom line results after shifting business mix toward higher margin, less capital-intensive health and beauty care sectors and also gearing towards developing markets and lower-income consumers.
Most of the company’s products are closely related in the sense that they are household products such as Always, Bounty, Braun, Charmin, Gain and Tide. However, there are a few product lines that are completely unrelated like Actonel prescription medication, and newly acquired Duracell batteries and Iams Cat and dog food. They are all related by the fact that 23 brands of P&G and Gillette together make up more than a billion dollars in net annual sales and another 18 have sales between $500 million and $1 billion. Some of their top selling products include:
• Always is a brand of feminine hygiene products, including maxi pads, pantiliners (sometimes called Alldays), and feminine wipes, produced by Procter & Gamble.--See also Brand homepage; related trademarks: Ultra Thins; Flexi-Wing; Maxis; Alldays; CleanWeave.
• Ariel is a brand of washing powder/liquid, available in numerous forms and scents.
• Actonel A brand of Osteoporosis drug Risedronate.
• Bounty is a brand of paper towel sold in the United States, Canada. P&G sold the brand in the British Isles.
• Braun is a small-appliances manufacturer...
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"Procter & Gamble Co. (PG)." Yahoo Finance. 24 Mar 2008. 24 Mar 2008
"Proctor & Gamble." Wikipedia. 24 Mar 2008. 24 Mar 2008
Wines, Leslie. "Colgate-Palmolive Vs. Procter & Gamble ." Forbes.com Monday Match-up. 13 Oct 2003. Forbes. 24 Mar 2008
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