Procter and Gamble Company

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Transcript of Procter and Gamble Company

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Procter and Gamble Company

P&Gs Business OrganizationProcter & Gamble Co., also known asP&G, is an Americanmultinational consumer goodscompany headquartered indowntown Cincinnati, Ohio, United States, founded byWilliam ProcterandJames Gamble, from Ireland and the United Kingdom. Its products includecleaning agents andpersonal careproducts. Before the sale ofPringlesto theKellogg Company, its product line included foods and beverages.

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It is 6th in Fortune's Most Admired Companies 2010 list. P&G is credited with many business innovations including brand management and the soap opera.

In 2014, P&G recorded $83.1billion in sales. On August 1, 2014, P&G announced it was streamlining the company, dropping around 100 brands and concentrating on the remaining 65 brands, which produced 95% of the company's profits.

OwnershipIn terms of ownership, the type of business ownership of P&G is corporation. Procter & Gamble(P&G) is an Americanconsumer goodscorporation with many globally marketedbrands.The board of directors of Procter & Gamble currently has 10 members. Board of Directors consists of men and women who are leaders in the fields of business, government, law, medicine and education.

Board of Directors:

Frank BlakeAngela BralyKenneth ChenaultScott CookTerry J. Lundgren

W. James McNerney, Jr.David S. TaylorMeg WhitmanPatricia A. WoertzErnesto Zedillo

DAVID S. TAYLOR The current President and Chief Executive Officer of Procter and Gamble Company

Type of BusinessThe type of business that Procter and Gamble engaged in is a manufacturing business. P&G manufactures a wide range of consumer goods and distribute products in ten core categories: Baby Care, Feminine Care, Family Care, Grooming, Oral Care, Personal Health Care, Hair Care, Skin and Personal Care, Fabric Care and Home Care.

The Company sells its products in approximately 180 countries and territories primarily through mass merchandisers, grocery stores, membership club stores, drug stores, department stores, distributors, baby stores, specialty beauty stores, e-commerce, high-frequency stores and pharmacies. The Company owns and operates approximately 20 manufacturing sites located in over 20 states in the United States. In addition, it owns and operates over 100 manufacturing sites in approximately 40 countries.

History of P&G CompanyCandlemaker William Procter born in the United Kingdom and soapmaker James Gamble born in Ireland, emigrated from England and Ireland, respectively. They settled in Cincinnati initially and met when they married sisters, Olivia and Elizabeth Norris.Alexander Norris, their father-in-law, called a meeting in which he persuaded his new sons-in-law to become business partners. On October 31, 1837, as a result of the suggestion, Procter & Gamble was created.

In 18581859, sales reached $1million. By that point, about 80 employees worked for Procter & Gamble. During theAmerican Civil War, the company won contracts to supply theUnion Armywith soap and candles. In addition to the increased profits experienced during the war, the military contracts introduced soldiers from all over the country to Procter & Gamble's products.

In the 1880s, Procter & Gamble began to market a new product, an inexpensive soap that floats in water. The company called the soapIvory. William Arnett Procter, William Procter's grandson, began aprofit-sharingprogram for the company'sworkforcein 1887. By giving the workers a stake in the company, he correctly assumed that they would be less likely to go on strike.

The company began to build factories in other locations in the United States because the demand for products had outgrown the capacity of the Cincinnati facilities. The company's leaders began to diversify its products, as well, and in 1911, began producingCrisco, ashorteningmade ofvegetable oilsrather thananimal fats. As radio became more popular in the 1920s and 1930s, the company sponsored a number of radio programs. As a result, these shows often became commonly known as "soap operas".

The company moved into other countries, both in terms of manufacturing and product sales, becoming an international corporation with its 1930 acquisition of theThomas Hedley Co., based inNewcastle upon Tyne, England.

Numerous new products and brand names were introduced over time, and Procter & Gamble began branching out into new areas. The company introduced Tide laundry detergent in 1946 and Prell shampoo in 1947.

One of the most revolutionary products to come out on the market was the company's disposablePampersdiaper, first test-marketed in 1961, the same year Procter & Gamble came out withHead & Shoulders.

In January 2005, P&G announced the acquisitionofGillette, forming the largest consumer goods company and placingUnileverinto second place.

P&G Companys StructureTheir unique organizational structure offers the global scale benefits of an international company and the local focus to be relevant for consumers in roughly 180 countries where their brands are sold. Their corporate structure provides the framework that allows them to tap the benefits of a global organization with speed and efficiency. Their global operations keep them in touch with their local communities. And their strong governance practices ensure that they conduct their operations with consistently high standards and integrity.

P&G'sorganizational structure is comprised of Global Business Units, Global Operations, Global Business Services andCorporateFunctions.

P&Gs Notable Products