Thursday, February 28, 2019
Procter & Gamble: A Company with Global Operations
Procter & essay (P&G) is a leading manufacturer of personal and home care products. P&G is an inter stateal society that operates in 40 different countries. This typography exit examine the environmental factors that affect how effective P&Gs spherical merchandiseing efforts are. These factors k straightn as environmental forces ack outrightledge mixer and economic forces, as well as technological, regulatory, and competitive forces.Any occupancy operational internationally is impacted by these environmental factors which affect how the fellowship will market its product. Understanding how these forces impact its trading operations will foster P&G catch the interworkings of the economy both globally and domestically and the trends that currently impact its marketing efforts, which will help P&G, realize and successfully implement its marketing be after. Operating GloballyIn this mean solar day and age, globalization has allowed companies to operate internationally. According to Panayotou (2000), Globalization is an on-going process of global consolidation that encompasses economic integration through workmanship, semipolitical interaction, development technology, and acculturation. Globalization brings people, culture, and information together. Globalization has helped P&G operate globally beca rehearse it lowers trade barriers and increases the colony between countries for goods and function, which means there is a bigger market for the goods that companies wish well P&G offers.Globalization came about as countries saw that former(a) countries could develop products better and cheaper than another(prenominal) state could (comparative advantage), so countries began producing what they had an advantage in and marketing it to other countries. This trading of products became an accepted practice and eventually spurred economic maturement. This caused countries andbusinesses to receive operating in the global market because it allowed companies to tap into this greater take up and new market for goods and services, which would expand their customer base and profit potential drop. Procter & take a chance The Importance of Demographics & Physical InfrastructureP&G knows that when operating globally the company ineluctably to market its product, and this means you have to have a clear discernment of the market of people that will be using the product. This means agreement the people and their different cultures. Every country has a different culture. purification tells a story about where people come from, who they are, and what is socially acceptable. gardening affects the way people perceive the world around them, and this means it will affect the way products should be marketed. A signifi hobot part of our culture is our background, characteristics, and demographics.Demographics provide vital information about a countrys people. Information about a countrys demographics help P&G to destine the right peo ple to market its products to and how to appeal to them in its marketing plan. P&G manufacturers and sells its products world-wide including nations outside North America, Western Europe, Japan and Korea where there is a conjure uping demand for its products. These countries represent places with high populations of people who are aging and take care of themselves, which means they need basic household items which P&G manufacturers such as detergents and grooming products.P&G is well- positioned in the assiduity segments and markets in which it operates. P&Gs success is a upshot of its ability to adapt its marketing mix to the standards and culture of the country in which it operates. It does this by having a good understanding of the countrys demographics and its physiologic infrastructure which help facilitate the development and operations of its companies. A countries natural infrastructure helps marketers determine how products will go from the manufacturer, to retailers, to the customer. Going Global The movement of plow Practices and AgreementsTrade is an integral part of any countrys growth and stability. Trade is fostered by global economic interdependence and gives counties access to awider array of products and services. Over the past decade trade has become global trade negotiations have expanded to embarrass more countries and are now regulated by international agreements and the World Trade Organization (Boundless, 2013). Trade has created a global economic interdependency. Global economic interdependence illustrates the holy person that no country is completely self-sufficient. There is a need for trade among nations for goods and services as well as the resources needed to survive and grow in the global economy (Nebraska Department of Education, 2013, para1).This means that decisions made in one country will directly affect what happens in another country making countries more susceptible to economic problems. Although, trade increase s a countrys wealth trade also leads to inequality which is wherefore countries have trade agreements. Trade agreements are negotiated by each nation who has their aver interests in-mind, which means some level of protectionism to protect industries that are inborn to that nation (Boundless, 2013). Costs of Operating Globally overseas Corrupt Practices fare of 1977Any company with international operations is susceptible to a number of risks. These risks include complying with U.S. laws affecting operations outside of the join States, such as the Foreign Corrupt Practices Act. The Foreign Corruption Act was developed to eliminate the potential of bribery to foreign officials, thwart money laundering, and reduce corruption and cook confidence in the business system.When operating internationally, companies must abide by several laws and legislation on the local, national, and international level. This is because the company conducts business with other nations and this means ab iding by the laws, rules and customs which govern the business relations between the two nations. Furthermore, companies must also take into account that political systems directly influence international relations between nations.This is because each country has it own laws and acceptable business practices. As well as its own political system that determines what a company can do when toilsome to conduct business in that country. When conducting business with different countries it is important to be aware of its political systems as it determines where products can be marketed andwhat laws must be abided by (Chavis, 2013).TechnologyTechnology changes the way companies operate and conduct business. Technology allows companies with international operations to achieve success by allowing them to be innovative. Technology helps companies improve its equipment and manufacturing processes and anticipating consumer acceptance. On a global perspective, technology allows companies to go outside the traditional landmark of selling a product and enables them to sell their products virtually anywhere. Technology has influenced both aspect of business from increasing efficiency to providing access to information and changing how companies communicate with their customers. Social Responsibility, Ethics, & Legal ObligationsTo be profitable companies must understand that there is more to inhabiting in business than earning a hefty list of money. Companies must also consider the social implications of their operations. This is especially important for companies operating in the global market because a damaging reputation can impact its sales domestically and internationally. Any company looking to stay in business must abide by the laws and legislation of the company in which it is operating. For example, P&G is subject to tax regulations in the United States and multiple foreign jurisdictions, and it is their right to be aware of any changes in the laws and regulati ons of these countries.In business, social responsibility and ethics go hand in hand. A company that seeks to have a positive impact on society is usually a company that seeks to operate responsibly and in doing so the company upholds the highest moral and good standards. Ethics help ensure that companies use good business practices in its operations and help companies fulfill its social responsibility to help improve the lives of its people.For P&G social responsibility and ethics drive the company. P&G is in the business of providing products and services of superior quality and cherish that improve the lives of the worlds consumers, now and for generations to come (P&G, 2013, para.2). P&G believes that by being socially responsible, and ethical its consumers will reward P&G with leadership sales, profit and valuecreation, allowing our people, our shareholders, and the communities in which we live and work to prosper (P&G, 2013). ConclusionInternational companies understand that success is not just creating an appealing marketing campaign. To be successful companies have to plan extensively and have a good understanding of the global market. To market a product internationally companies must examine and plan for the environmental factors that influence how effective their global marketing efforts are. In doing so, the company will effectively reach its new market of customers and create a strange position in the minds of its customer which creates brand loyalty, generates sales, and increase profit potential.
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