Economic Forces Affecting Procter And Gamble

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• Procter and Gamble History  In 1837, a bold new enterprise was born: Procter & Gamble  a global organization  a fortune 500 American multinational corporation  manufactures a wide range of consumer goods.  5th in fortunes most admired organization 2011 list.
• 5. Recent and current operating result  The intrinsic value of Procter & Gamble’s share is $74.05 which is the average of all the valuation models.  Procter & Gamble has maximized its attention on emerging markets; currently it has 32% of its revenue from emerging markets  Procter & Gamble generates 57% of its revenue from overseas markets; this adds to the geographic diversification and reduces the effect of a recession in the US
• 6. Economic Forces that affects Procter and Gamble  In light of the global economic recession, P&G has announced it will concentrate its development strategy on emerging markets, opening almost all of its 20 new manufacturing facilities outside its established markets.  Pitman, S. (2008) states that Procter & Gamble has become the first main personal care producer to announce significant across the board price maximization in the face of mounting costs.
• 7. Political Forces that Affects Procter and Gamble Most  the effect of the U.S. recession, which according to the IMF represents about 21 percent of the global economy, is spreading via multiple channels.  And that there is less spending by American Consumers and organization which reduces demand for imported goods.