P&G has a number of stakeholders who range from the employees, the shareholders
(investors), consumers, the government, the society, and the supply chain. These stakeholders
have different interests in the company. This paper presents a stakeholder analysis for P&G and
the reasons why each stakeholder has interests in the company. Additionally, the paper will
highlight the impact of globalization on the stakeholder groups. Finally, the analysis will include
the corporate strategy based on the mission and vision of P&G.
Relationship with Employees
The employees form a large part of the stakeholders in P&G. The employees in this case
are sourced from five different trading regions in the world. These regions include Europe, Asia,
Latin America, North America and India, Middle East as well as Africa (P&G 6-12). The
employee’s main interest as stakeholders is to have a job security. Job security gives the
employees an assurance that their terms of employment will be respected and that their
employment will last for the agreed period. The effect of globalization on employees at P&G is
that the workplace has become more diverse. The penetration of P&G products into other market
regions has seen the increase in employees from these regions. In this regard, employees at P&G
come from diverse backgrounds.
Relationship with Shareholders
The shareholders also form a big part of the stakeholders at P&G. Their main interest is
to increase their wealth by an increase in the P&G share value (P&G 6-12). In this regard, the
globalization has benefited P&G shareholders by increasing the share value, as it is a
multinational firm. The increased sales in different regions globally have also led to
maximization of profits thus an increase in the dividends. In this perspective, the shareholders at
P&G receive more revenues in terms of dividends.
Relationship with consumers
The consumers at P&G are also stakeholders in the firm. The interest of the consumers is
that the quality of products from P&G is maintained at a high quality (OBERHOLZER-GEE 7-
10). Additionally, the consumers have an interest in the long life of the products from P&G. In
this perspective, the consumers have an interest in finding their favorite products from P&G on
the store shelves. Furthermore, they have an interest in having an ease of access for the products
from P&G. Globalization has increased the number of consumers for P&G. The increase in
consumer base means that the firm has to incorporate more tastes and preferences in its product
Relationship with other Allied Firms and Stakeholders
The government in this case refers to the national governments in the different nations
where P&G trades (KANTER 2-5). The interest of these governments is for P&G to adhere to
the set regulations for conducting business in each country. Additionally, governments are highly
interested in the taxes paid by P&G. Tax forms a significant part of government revenue.
Furthermore, the governments are interested in the investment made by P&G in their countries.
P&G has a large employee base. P&G reduces the unemployment levels in the countries where it
operates by offering jobs to the local communities. Globalization in this perspective has
increased the global participation of unemployment reduction.
Relationship with the Society
The society in which P&G operates is a stakeholder. The main interest of the society as a
stakeholder is for P&G to initiate corporate social responsibility projects that upgrade the
societies where it operates (P&G 6-12). Corporate social responsibility performed by P&G
includes construction of water reservoirs in arid regions in Africa and the construction of schools
among other community projects. Globalization has had an effect on the relationship between
P&G and the societies in the sense that P&G participates in more projects globally. Therefore,
P&G continues to influence more societies in the world due to globalization.
Relationship with Suppliers
The supply chain also forms part of the stakeholders group for P&G (P&G 6-12). The
supply chain mainly consists of the suppliers of raw materials for P&G products. The interest of
suppliers is that the relationship with P&G continues being stable. They also have an interest in
the increase of product portfolio for P&G so that they may supply more materials to P&G.
Globalization has enabled P&G to access different suppliers. In this perspective, P&G has a
wider variety of suppliers and evaluates them based on their reliability and quality of supplies.
The current corporate strategy at P&G involves accelerating the performance and
creating a new P&G. The focus lies within leading in 70 to 80 brands in different markets and
creating customer value for the preferred brands for different regions. The strategy also focuses
on growing sales at a faster pace and more sustainably thus creating profit and value
simultaneously (P&G 6-12). The strategy also aims at increasing the profitability for the P&G
shareholders. The company`s corporate strategy involves various investment strategies. The
investment strategies for the business level made by P&G include building strong relationships
with their suppliers. Additionally, P&G has invested in their product portfolio through research
and development, the firm has increased the number of products it sells. Furthermore, P&G has
invested majorly on itself as a corporation by building on social responsibility as well as
KEY INTERESTS IMPORTANCE
To have a job
To increase their
wealth by an
increase in the P&G
The quality of
products from P&G
is maintained at a
P&G to adhere to
the set regulations
To provide support
services in different
To provide P&G
products from P&G
Set favourable rules
Their hard work
will lead to
success of the
will increase the
The more the
profitability of the
will enhance the
services in different
products from P&G
For P&G to initiate
projects that upgrade
for P&G to operate
in the business
They contribute in
creating a favorable
Provide P&G with
the needed raw
thus making the
The participate in
The stable supply
of raw materials
to P&G leads to
Allow P&G to
materials to P&G
Production Management Shareholders
Supplier Customer Society
P&G has several strengths that include a wide market penetration and product portfolio.
These strengths enable the firm to make greater sales and earn more revenues from sales (P&G
6-12). Additionally, P&G enjoys a large pool of resources such as capital. These resources are
important in the research and development of new products to add onto the product portfolio.
The wide product portfolio may be a weakness for P&G because the firm does not
specialize on any product (P&G 6-12). The wide product base means that equal attention and
resources are given to all products.
P&G has several opportunities, which lie within increasing its product portfolio and
making an entry to the Australian market. The firm can successfully make an entry into the
Australian because it has successfully made entries to the five different market regions.
P&G faces threats such as the changes in the political economic and global environment
(P&G 6-12). These changes greatly affect credit and capital markets, which makes the access to
capital difficult and expensive. Economic uncertainty greatly affect P&G, being a global firm
P&G engages in currency exchange. However, the economic uncertainty leads to significant
fluctuations in exchange rates which affects P&G`s profit.
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KANTER, ROSABETH MOSS . "Gillette Company (E): Procter & Gamble ." Havard Business
School 309.9 (2008): 1-8. Print.
P&G, "P&G annual report 2014." P&G annual report 2014 1.1 (2014): 1-94. Print.