Abstract

By the early 21st century, Proctor and Gamble (P&G) looked like a very different enterprise from the one it had been ten years earlier. P&G has withdrawn from pulp and chemicals. Faster growing businesses in beauty care and health care (including oral care) complement the cash cows like fabric and home care and paper products (including feminine protection). P&G has acquired Max Factor (1991), Tambrands (1997), Iams (1999), Clairol (2001), and Wella (2003). At the same time, P&G has divested longtime brands such as Crisco, Spic and Span, Biz, Duncan Hines, Jif, Citrus Hill and Fisher Nuts. When P&G announces that it is taking over Gillette in a $57 billion deal, it is on the verge of becoming the largest consumer goods company in the world. The case discusses the challenges P&G has faced in recent times. It discusses P&G's globalisation initiatives, various acquisitions, the revamping of its product portfolio, and its efforts to streamline its operations. Will P&G be able to strengthen its competitive position or will it become an unwieldy enterprise consisting of disparate businesses?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Proctor and Gamble, P&G, Gillette, Noxell Company, Global thrust, Revamp of portfolio, Operations, Innovation, Organisation 2005, O-2005, Crisis, AG Lafley, John Pepper, Durk Jager, Ed Artzt, Global household care, Health care products for babies