Internationalization of Procter & Gamble (P&G) Essay

Internationalization of Procter & Gamble (P&G) - Essay ExampleThe popularity and acceptance of P&G was well certified by ACNielsen, which surveyed and found that 99% of U.S. ho enjoymentholds use one or the other P&G product. P& G completed the acquisition of The Gillette Company for approximately $53.43 billion on October 1, 2005. Gillette is a principal consumer products company that had $10.48 billion of sales in its intimately recent pre-acquisition year ended December 31, 2004. (Annual Report 2006).Globalization has brought about intense competition for world(prenominal) markets amongst the major multinational companies. These companies have been looking outwards to reorient their organizational structures and strategies to capture the world(a) markets by positioning their products strategically. A recent study of the US and European companies revealed that 75 percent were taking up the above strategic reorganization in order to stay competitive and staying competitive was co nsidered the single most important external issue on their agenda. Past experiences have shown that poor planning further embattled by rudimentary understanding of the cultural aspects of the global market places had ruined the huge marketing campaigns of even the multinational companies. ... , much penny wise, or a little more nationalistic, and they are spending more of their money on local drinks whose flavors are not part of the Coca-Cola line up. (Rance, 2000). In 21st century international marketeer should seek solution to choice worry between standardization and adaptation. (Ghemawat, 2003). A vital challenge for the international marketing strategy of a firm is the need to understand the different milieus the company postulate to operate in. That is comprehending different cultural, economic, and political environments is necessary for the success of a company. Culture is one of the most challenging and devious elements of the international marketplace. These challenges e ncouraged numerous researchers to condition up international marketing studies concerning behavioral differences in consumers across nations (e.g. Lynn, Zinkhan et al. 1993 Nakata and Sivakumar 1996 Brass 1991 McCarty and Hattwick 1991 Hafstrom, Chae et al. 1992 Steenkamp, Hofstede et al. 1999 Chu, Spires et al. 1999 Husted 2000).P& G has also been adopting a strategic globalization stance and has been a herald in this race as explained below.Internationalization at P&G P& G is patently a multinational corporation (MNC) with substantial civilize investment in foreign markets which is in addition to its normal lines of exports.P& G is also involved in the active management of this portfolio of foreign investments without being clean a passive financial investor of funds. Through its various business unit structures it has adopted an integrated management of its operations. On July 1, 2006, nine months after closing the (Gillette) acquisition, P&G completed the largest wave of bus iness systems integration so far. P&G integrated systems in 26 countries, spanning five