At markets has enabled the firm to attain

At
a time of rapid globalization, multinational corporations can either be agents
of or actors in globalization. In essence, the nature of globalization on
individual corporations can either have positive or negative results depending
on the multinational in question. A pertinent multinational such as Procter and
Gamble (P&G) is an appropriate example of a corporation that can help in
understanding the strategic management process and strategic competitiveness.
Procter and Gamble is a multinational operating in the consumer products
industry. Indeed, the commitments, decisions, and actions necessary for a firm
to attain strategic competitiveness and earn above-average returns describe the
strategic management process. On the other hand, strategic competitiveness
denotes the point a firm productively creates and implements a value-creating
strategy. In essence, the strategic management and strategic competitiveness
strategies are usually used by multinationals to gain a sustainable competitive
advantage. Sustainable competitive advantage is the value edge gained against
competitors. As such, to derive success from a Procter and Gamble’s
value-creating strategy, key areas such as globalization and technology,
industrial organization model and the resource-based model, vision and mission
statements, and stakeholder impacts are examined in the attainment of
success.  

Impacts
of globalization and technological changes on Procter and Gamble

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Rapid
globalization and technological changes have direct impacts on a firm’s
operations and performance. On one hand, globalization changes have enabled
P&G to improve on its operations through operating in emerging markets both
in the developed and developing world. The introduction of P&G products in
these markets has enabled the firm to attain different levels of success. Today
P&G has several subsidiaries across the world. However, the reality is that
in light of globalization changes, these subsidiaries can either benefit from
globalization or not. Therefore, accessibility to markets appears to be the
strongest impact of globalization for P&G. On the other hand, technological
changes allow for the production of the same output with a lower amount of
production factors, namely capital, and labor (Haile, Srour, and Vivarelli,
2013). P&G has successfully incorporated technological changes by
strengthening their brand products. Regarding its brands, P&G mantra is
“P&G is made of many individual brands each serving customers in different
ways — but all with a focus on making people’s lives easier” (Procter and
Gamble, 2017). This is in the realization that consumers have different tastes
and preferences, of which, some are influenced by socio-cultural factors. In
fact, throughout its existence, P&G has managed to develop exceptional
means of customer attraction and fulfillment by constant innovations such as
direct distribution and brand management (Davey and Sanders, 2012). As a
result, the best way for P&G of attaining success is ensuring it fulfills
those distinct tastes and preferences.

Industrial
organization model versus resource-based in earning above-average returns by
P&G

The
process of value creation can involve two overarching models, which are: the
industrial organizational model and the resource-based model. These models can
be used to determine how P&G can earn above-average returns. Above-average
returns can denote the returns in excess of what investor expects in comparison
to other investments with similar risk (Talaja, 2012). In essence, the major
difference between the industrial organization model and the resource-based one
is that the former adopts an external perspective on the forces that influence
a firm’s strategic actions while the latter adopts an internal perspective
regarding how above-average returns are attained through a firm’s internal
resources and capabilities.

Given
these objectives, the following are the impacts of P&G in earning
above-average returns. Regarding the industry organization model, some of its
competitors include Avon Products, CCA Industries Inc., Unilever PLC and
Colgate-Palmolive Products (Nasdaq, 2018). These firms all operate in the
consumer products industry and given that their products are as popular as
P&G’s, the firm’s (P&G) ability to attract above-average returns are
bleak. Given that above-average returns are dictated by the industry, it can be
difficult for a firm to realize its success potential.

Subsequently,
on the basis of the resources-based model, organizational capability and
branding, unique resources, and capabilities of P&G, which are utilized in
determining the appropriateness of strategic actions in the realization of
organizational success. The internal resources and capabilities of P&G are
listed as the firm’s core strengths (Procter and Gamble, 20170. They are:
consumer understanding (pushing boundaries of market research to better
understand the consumers the company serves), productivity (improvement of
sales), innovation (prolific global innovator), brand building (10 product
categories with an average of 65 brands), scale, and a go-to-market (preferred
supplier worldwide). In essence, despite the risks involved in technological
and globalization changes, the important elements of success; developing and
implementing strategies such as the internal resources and capabilities listed
above are some of the best and suitable factors that can result in
above-average returns for P&G.

Effects
of vision statement and mission statement of Procter and Gamble influence its
overall success

The
vision and mission statements of an organization can influence its overall
performance and success. In fact, a firm’s vision statement can describe its
future projections and or realities while the mission statement can denote
factors such as quality and value as fundamentals of attaining business
success. Indeed, P&G vision statement states “Be, and be recognized as, the
best consumer product and services company in the world” (Procter and Gamble, 2017).
This means that P&G’s commitment to fulfilling its vision through the
offering of a variety of products is the first and major step that the
organization can take in the attainment of success. Besides its commitment to
offering variety, P&G’s global footprints are pertinent and effective
features that are required to determine its success. Such success can be
evaluated through its global outreach, impacts, and survival in various
markets. To this end, the vision statement of P&G aims at making the firm
the best in the consumer products industry.  

P&G
mission statement states: “We will provide branded products and services of
superior quality and value that improve the lives of the world’s consumers, now
and for generations to come. As a result, consumers will reward us with
leadership sales, profit and value creation, allowing our people, our
shareholders and the communities in which we live in and work to prosper”
(Procter and Gamble, 2017). In essence, the mission statement of P&G
thrives on the fundamentals of branded products, leadership ownership,
integrity, trust, and passion for winning. These elements are connected to
P&G’s growth strategies that emphasize on producing and delivering on
quality and value by use of intensive growth strategies such as market
penetration and product development and Porter’s generic strategy for gaining
competitive advantages over their competitors (Smithson, 2017). As a result,
P&G’s mission statement covers a variety of critical areas that can enhance
business performance and success as discussed above.  

Categories
of stakeholders and their impacts on the overall success of Procter and Gamble

Stakeholders
can be defined as those individuals who have the power to affect the future of
an organization and those whom certain responsibility is owed (Mathur, Price,
Austin, and Moobela, 2007). There are four pertinent categories of
stakeholders: Users, Governance, Influencers, and Providers. Users are the
customers who will use the products and services provided by P and, as
such, responsibility for quality and value is owed to these stakeholders. In
return, the delivery of quality and value to users can result in business
success through the realization of profits. The second category, governance can
include entities such as auditors, regulators, and government stakeholders
whose responsibility can be argued to be consumer protection. In essence, the
ability of an organization to properly fulfill the standards prescribed by
these stakeholders can result into improved performance that will better the
chances of attaining success. The third categories are the influencers such as
the mainstream media and lobby groups. These stakeholders can influence the
direction of a program for an organization. For instance, local news outlets of
a country in Africa can help influence P market penetration, which will
bring improved sales and wider market share that will ultimately result in
widespread success. Lastly, are the providers who include suppliers and
vendors. The providers’ availability and willingness to provide support to the
company can also impact on the organization’s success rate. As such,
stakeholders are critical for the operations and running of the business.