A.Factors behind success of P&G 1.1.

Product P&G was structures into four organizational units among which is Corporate Functions (CF). This unit worked to maintain P&Gs place as the leader of the consumer goods industries as well as ensured that the functional capability integrated into the rest of the company remained on the cutting edge of the industry. The beauty/feminine care industry was comprised of various included companies that manufactured goods that were used to fulfill the needs of consumers. The products these companies produced included hair products, skin products, feminine products, fine fragrances, cosmetics, and Discussion personal cleaning products.

Procter & Gamble analysis

Analysis the success and prosper of P&G through answering three questions about the factors behind the success of P&G, the company in macro environment trends and corporate level to improve its aggregate value

1.1.1 Understanding customers

Consumers used each product for their own personal reasons, but the main purposes were to make people look more beautiful and feel clean. The Group 10 consumers for these products 11/17/2013 included both females and males from all age groups. Even though it was called beauty/feminine care, males were actually a large part of the consumer base because they used a lot of beauty products. Consumers also included people from different ethnic groups, marital status, and also low income consumers.

1.1.2. Manufacturing system These products were produced in the factories all over the world with raw materials ranging from materials as simple as water to chemicals such as stearic acid and sodium hydroxide. These materials were mixed in unique ways to make each product. Regardless of the raw materials or procedures used to make them , each product had to meet regulatory standards. In the United States of America, an example of such a regulatory body was the U.S Food and Drug Administration (FDA). These standards varied by country and they helped to ensure that these products were safe enough to be used by the consumers. Manufacturing had to decide if they wanted to make or buy their manufacturing materials. If they decided to buy any item they usually looked for the cheapest and most efficient source to buy from. This process was called Sourcing and it was a process that had to be continuously received in order to maintain the best deals that suited the company. 1.1.3 Technology Due to the variety in customers and consumers, technology played a major role in this industry, making it a capital intensive industry. They required highly mechanized assembly lines which were designed for long production runs and flexibility, so that it could be easily changed to produce the same products with minor alterations. Some of the companied that produced beauty/feminine care products were Unilever, Colgate-Palmolive, Playtex products, Avon, and Estee Lauder. Since they produced products that appealed to people all over the world, they had to take into consideration various factors such as differences in the skin types, body types, hair types, values and beliefs, to efficiently meet their needs. These differences were seriously considered during production in each part of the world to produce products that could be used by consumers and sold for a profit. P&G Corporation offers a wide selection of these products available to consumers. The quality of these products had to be considered during production to maintain the companys brand quality reputation.

The beauty/feminine care industry was a capital intensive industry. The companies that manufacturing these products required highly mechanized assembly lines which were designed for long production runs and flexibility. These companies constantly manufactured the same products over and over again, so they has to have machines that could run for long periods of time. Also, due to the differences in their consumers, products sometimes had to be with some differences. An example was in the production of moisturizers, some consumers had oily skin while others had dry skin. During production, the companies had to make slight changes in the ingredients for their products to suit these differences in their consumers. In order to achieve this, the machines used had to be designed in a way that is allowed such changes and flexibility. The keys to success included several factors. The companies had to use high quality machines and technology systems so they continuously had problems with them. These equipments also had to be competitively so that it was affordable by these companies. 1.2. Place (Distribution) Distribution was the act of dispersing products from the point of production to the final consumer. Most distribution channels had a designated sales force which was in charge of selling and promoting their products. The sale force included individuals who were recruited to move from place to place encouraging customers to purchase their products. These individuals were encouraged to do a better job offering them incentives such as days-off and monetary incentives. Companies had various channels of distribution companies, individual stores and chain store outlets. 1.2.1 Distribution Companies These were the middlemen that purchased directly from the manufacturers and resold them to the retailers for a profit. They were experts at moving things into the market. To do this, most of them generally had a good transportation system. These companies normally bought in bulk to control their inventory and increase their profits.

Distributors had to also establish good relationships with the store managers to get good product display and shelf space. Some companies also incorporated supply chain technology with their retailers to ensure proper distribution of their products. Distribution companies had to recruit good employees and offer incentives for them to work hard. 1.2.2 Individual stores Individual stores were stores that were owned by companies, where consumers could walk into and purchase the product they wanted. An advantage of service provided by companies was that they were able to remove the extra price allocated by the middlemen. It also gave them a chance to relate with their consumers and learn what they liked and disliked about their products, especially the male consumers who were generally not thought the purchase beauty/feminine care products. They also learned trends amongst their consumers and were able to educate them on their products. Also the presence of these stores in different communities helped to build a household name amongst the consumers. These stores had to be located in prime locations to attract more consumers. 1.2.3. Chain Store outlets All over the world, the numbers of chain outlets were growing. In Taiwan the total number of chain store outlets grew 11% to 62,637 in 2003, according to a survey released in the late April by the Taiwan chain Store and Franchise Association. These were stores that sold a variety of products. In the United States, a large percentage of the population purchased beauty/feminine products in these types of stores. There were different types pf chain stores outlets; some were specialized chain stores, where they sold a wide variety and offered very good customer services. These stores had to pay special attention to their customers, especially the male customers by offering sales and promotions on products that they thought these customers should be interested in. Some of these chain store outlets were Costco, Walgreens, Target, Sears and Wal-Mart. 1.3. Price One of the threats that P&G faced was intense competition. It operated in an industry with rivals such as Unilever, Colgate-Palmolive, Playter Product, Avon

and Estee Lauder. These companies operated and sold their products worldwide. Their presence in the same industry put pressure on P&G to competitive price its products and continuously strive to develop innovative products. Another threat was the increase in price of raw materials. These prices were subject to price volatility caused by weather, supply conditions and other unpredictable factors. During the 1990s the company made some significant alterations to its corporate strategy; it aimed to reduce its cost structure and develop its differentiated business-level strategy, in an attempt to increase revenues and profits. The rapid development of international markets and globalisation demanded a corporate shake up. Moreover, the reduction of trade barriers and tariffs indicated that to retain a competitive advantage globally the company had to develop an effective International strategy, whilst benefitting from economies of scale. Crossfunctional integration and speed of innovation increasingly became imperative to corporate strategy. In this article I will look at the key development that took place in thus process and turned P&G into such a powerhouse. This strategy allowed P&G to simultaneously amalgamate cost reductions in the firm and retain efficient customer responsiveness; adapting to local tastes and expectations as they vary across nations. The nature of this strategy dictates that some functions are centralised and some are decentralised. This has been chosen as it supports the empowerment of the various levels of management in the companys Global Business Units (GBUs). Lafley has suggested that this provides the ability to make faster, more locally responsive and efficient decisions, whilst autonomy was given to key functions that required local customisation. R&D and innovation were very much the spearhead of P&Gs corporate strategy, so the R & D function remained centralized, so that control could be exerted over it. 1.4. Promotion 1.4.1 Sales and Promotion P&G also used various sales and promotion such as free samples, coupon and discounts were used by company to attract more consumers. These methods were really effective for new products. Sales and promotion for these products normally encouraged the consumers to take a risk and try the new product. Chain store outlets also used these methods to attract more customers. The keys to success

included several factors. Customers and consumers had to be aware of the sales and promotion. They also had to be easy to use and available to the customers and consumers. 1.4.2. Advertising With over 300 brands to market, P&G was specialized in advertising its products. For the past 5 years, the company constantly increased in advertising costs to accommodate with growing brands. The company used various media to reach its consumers such as television, internet, radio and print. It offered sales promotions like free trials, discounts and coupons. These advertisements served different purposes for the company. Firstly, they made consumers aware of the products. These advertisements were sometimes made to be interactive, so that they held the customers attention. They also served to make the customer aware of the sales promotion that were going on at the particular time. And lastly, they helped to convince the consumers that they needed the products , so they actually went out and purchased them. In each segments of the company, P&G hired employees who were l for marketing its products. These representatives would move from stores to stores, selling its products to the stores managers. These interactions helped to build a better relationship with the store managers, because they helped to increase and maximize shelf space and also provided better displays for P&G advertised on television, internet, radio and print media Television P&G created commercials and it was careful to choose the right channels and shows that hoped its target customers viewed. Most of its commercials showed people using its products and their experiences after using them. Internet P&G used the Internet to advertise because it reached its customers worldwide. It did the advertisement through various methods such as posters on websites, emailing codes for samples and discounts and ect Print media

In 2000, advertising in prints like newspapers, magazineswas declining. In early 2006, P&G still used this form of advertising to reach these customers who usually read these prints. It advertised the products by showing pictures of people using its products and explaining their use. Radio P&G also advertised on radio. However, P&G didnt have to spend money on creating and directing visual commercials

B. Evaluate P&G Core Business in the light of broader trends in the macroenvironment
1. External Analysis Buyer Power (Mixed-Strong Buyer Power from Retailers) P&G faces weak buyer power because customers are fragmented and have little influence on price. But if we consider the buyers of P&G products to be retailers, rather than individuals, then P&G faces very strong buyer power. Retailers like Wal-Mart and Target are able to negotiate for pricing with P&G because they purchase and sell much of P&Gs products. Supplier Power (Low) A co-dependent relationship exists between P&G and its suppliers. In order to generate above average revenues, the Company needs various quality materials for product production at the best prices available. Suppliers of these materials also need key customers like P&G for profitable revenue generation but will most likely have little bargaining power because of its size. Threat of New Entrants (Moderate) The sheer scale of products that are distributed under Procter & Gamble's name creates a challenge for new entrants. Since the Company has a significant amount of many market

shares around the world, a company without the capital for heavy marketing or research and development, would hardly be able to compete. However, there is concern about firms that specialize in specific markets. This type of company could become a threat to P&Gs corresponding business segment. A small manufacturer could develop a superior product and compete with Procter & Gamble. The real test is whether the small manufacturer can get its products on the shelves of the same retailers as that of its much larger rivals. Threat of Substitutes (High) There are considerable substitutes for all of P&G's product offerings, creating an intense competitive environment. In order to differentiate itself, the firm must continue to provide new, innovative products and branding to the customer. Furthermore, the pricing power of brands can be eroded with substitutes such as store-branded private-label offerings. In fact, some of these same store-brand private-label products are manufactured by the large consumer-products firms. The firms believe that if they can manufacture and package a lower-price alternative themselves, they would rather accept the marginal revenue from their lower-priced items than risk completely losing the sale to a private-label competitor. Degree of competition (high) While P&G enjoys exceptional brand name recognition and commands a considerable market share, the truth is that switching costs in the industry are quite low. It does not cost anything for a consumer to buy one brand of shampoo instead of another. That, combined with the size of other competitors such as Unilever, makes this a highly competitive industry. Significant Competitors include: Unilever, Colgate-Palmolive, Playtex, Avon and Estee Lauder. Other salient points There are some Threats to P&G, including the growth of large Retailers higher margin private label brands in competition with P&G. Stiff competition from private label brands

or store brands of large retailers such as Wal-Mart, Target, and supermarket chains is a significant threat. In terms of the Industry Life-Cycle, P&Gs North American and Western European operations could be said to be in a Mature Industry, yet in the Developing/Emerging economies, the industry resembles more that of a Growth Industry. 2. Macro Environment Macroeconomic Forces: Economic growth affects P&G to some extent. Specifically, in mature markets like the USA, a recession impacts P&Gs sales/earnings growth, as consumers tend to completely trade-down and only purchase lowest-priced, heavilydiscounted goods. Demographic Forces: Especially in more mature markets, the population is increasingly aging, providing more opportunities for products which cater to Baby Boomers. In Emerging/Developing Markets, a growing number of new consumers with disposable income spell significant opportunities for P&G. Many new markets though have large number of low-income consumers. Global Forces: Economic Growth in countries like China, India, Russia and Brazil afford new markets for P&G products. The opening up of new regions offers P&G the opportunity to operate in more countries. Social Forces: With heightened awareness of wellness/well-being and quality of life issues, along with increasing disposable incomes, the market for Beauty/Feminine care has extended greatly, and is gender-neutral given the growing demand by male consumers for Beauty products. Furthermore, there is a greater demand for products made from Natural/Organic Ingredients. Technological Forces: Given how capital-intensive the beauty/feminine care industry is, it is imperative for P&G to stay ahead of the curve in terms of the most advanced technological breakthroughs, as the company requires highly mechanized assembly lines

designed both for long production runs and flexibility. The proliferation of Internet users also opens up further market opportunities for P&G to market its products. 3. Internal Analysis P&Gs formidable success to date is attributable to a number of distinct competitive advantages: - P&G is the innovation leader in the industry. P&G produced products with natural ingredients that were used by male and female. They designed the products for men so that they would attract male consumers, by using dark color for the packaging that it looked more masculine. - P&G is also the brand-building leader of its industry. The Company has built the strongest portfolio of brands in the industry. In early 2006, the company had 12 billiondollar brands in Baby/Family care and Fabric/Home care, 10 billion-dollar brands in Beauty/Feminine care and Health care. (P&G Annual Report 2005) - P&G has also established industry-leading go-to-market capabilities. P&G is consistently ranked by leading retailers in industry surveys as a preferred supplier and as the industry leader in a wide range of capabilities including clearest company strategy, brands most important to retailers, strong business fundamentals and innovative marketing programs. - The Company has also established significant scale advantages as a total company and in individual categories, countries and retail channels. P&Gs scale advantage is driven as much by knowledge sharing, common systems and processes, and best practices, as it is by its size and scope. P&G was a global manufacturing, distribution and marketing company focusing on providing brand products with superior quality and value. Two billion times a day, P&G brand products touched the lives of people around the world. The company provided over 300 brands reaching consumers in about 140 countries.

By leveraging these core strengths - consumer understanding, brand-building, innovation, go-to-market capability and scale - P&G can execute its growth strategies. These strengths create significant competitive advantage for P&G. 4. SWOT Analysi Strengths - Industry Innovation Leader/Brand-Building leader in the Industry: Their 20 most important innovations offer significantly higher growth potential than the balance of the innovation portfolio. Therefore, the growth of the Company depends substantially on the success of our biggest innovations. - Formidable R&D spending and budget. - Solid Financial strength with significant free cashflow for possible: In 2005, the beauty segment which sales nearly doubled to $19.2 billion and profit more than doubled to $2.9 billion. This growth was also noticed in the Health care segment, where sales doubled to $7.8 billion and profit more than tripled to $1 billion. - Acquisitions/Mergers and Joint Ventures. In September 2003, P&G acquired with Wella, owning 79.2 percent of the company's total shares. This acquisition contributed about $3.3 billion in sales to P&G overall beauty business around $1.6 billion in the professional hair care segment, $1 billion in the retail hair care segment, and $800 million in Fragrances. Other brands acquired by P&G were Clairol from Bristol-Myers Squibb in 2011 and Gillette in 2006. The acquisition of Gillette helped P&G to start to address this trend with products like Gillettes complete skin care for men and Gillettes Fashion. This was some of steps that P&G decided to take to remain at the top in the beauty/feminine care segment. Joint Ventures in countries such as China and India create a unique foothold for P&G in a vast consumer market while also minimizing the risk of a full-blown Acquisition and/or setting up new manufacturing/plant facilities and having to source materials, etc.

- Huge Economies of Scale: about 140 countries. In early 2006, the geographical regions that P&G operated in were Africa, Australia, Europe, South America, and North America. - Significant Distribution Channels. P&G had a very effective distribution system. In the United States, a major distribution center was the Brown Summit, which was located in Greens-boro, North Carolina. The distribution channels of P&G included department stores, such as Macys and JCPenney, and discount stores, such as Wal-Mart and Costco. P&Gs biggest customer is Wal-Mart. In the 1980s, the two giants built a software system that linked P&G up to Wal-Marts distribution centers. This system was called the Supply Chain System (SCS). It was used to facilitate the coordination with outside business entities. - Considerable sums spent of Advertising and Marketing, which serve to further solidify brand recognition. With over 300 brands to market, P&G was specialized in advertising its product. For the past 5 years, the company has constantly increased its advertising cost, as shown in Figure 11, to accommodate its growing brands. (2001: $3,600 million; 2002: $3,800 million; 2003: $4,400 million; 2004: $5,500 million; 2005: $5,900 million) - Successful Cost-Cutting yet with no downside on R&D spending. The company has increased sales per employee nearly 40% over the past five years, and even though Research and Development (R&D) investment has increased over the past years, R&D as a percentage of sales has declined from 4.8% in 2000 to 3.4% in 2005. P&G reduced capital spending as a percentage of sales since 2000 from nearly 8% to less than 4% without forgoing any strategic in growth. Weaknesses

- Assuming these natural ingredient products are competitively priced, P&G still lacks presence in the more prestigious, premium-brand products that competitors like Estee Lauder operate in. - The acquisition of Wella, while contributing $3.3 billion in Sales to P&Gs overall beauty business, was not as profitable as P&G had though given that Wellas results fell below P&Gs stated long-term targets. - There could be a lack of control over the technology and an inability to realize location based and scale-based economies. Other issues such as span of control, amount of decentralized decision-making, corporate culture, leadership, and training are all issues at hand. - At the mercy of Large Retailers (Wal-Mart, etc.) which can squeeze margins and also have private-label products which compete directly with P&G. Opportunities There is a clear demand for greater Beauty products designed for Men and significant demand for Natural/Organic ingredient products. P&G can increase its presence in Developing Countries. It can also market to Lower Income Consumers in both Developed and Developing countries, especially in order to diversify its customer base and to capture greater market share, especially in emerging markets such as Russia, China and India. Increasing the depth and number of distribution channels in emerging markets also provides great opportunities to expand market share and customer reach. E-commerce also offers further revenue streams and customer penetration. Threats Rising prices could put a real squeeze on P&G as it can only pass on the added costs to the end consumer for so long without risking consumer decrease. The highly competitive nature of the business means that P&G must constantly price its products competitively and continually strive to develop innovative products. The existence of smaller

corporations focused on a market niche that operate regionally or even locally still poses a challenge to P&Gs sales.

C. Some options at the corporate level for P&G to improve the aggregate worth of P&G. 1. The aggregate worth of P&G P&G is its people and the values by which they live. They attract and recruit the finest people in the world. They build their organization from within, promoting and rewarding people without regard to any difference unrelated to performance. They act on the conviction that the men and women of Procter & Gamble will always be their most importance asset. 1.1 Integrity They always try to do the right thing. They are honest and straight forward with each other. They operate within the letter and spirit of the law. They uphold the values and principles of O&G in every action and decision. They are data-based and intellectually honest in advocating proposals, including recognizing risks. 1.2 Leadership They are all leaders in their area of responsibility, with a deep commitment to deliver leadership results. They have a clear vision of where they are going. They focus their resources to achieve leadership objectives and strategies. 1.3 Ownership They accept personal accountability to meet the business needs, improve their systems and help others improve their effectiveness. They all act like owners, treating the companys assets as their own and behaving with the companys long-term success in mind. 1.4 Passion for winning

 They are determined to be the best at doing what matters most. They have a healthy dissatisfaction with the status quo. They have a compelling desire to improve and to win in the marketplace. 1.5 Trust They respect their P&G colleagues, customers, and treat them as they want to be treated. They have confidence in each others capabilities and intentions. They believe that people work best when there is a foundation of trust. 2. Strategies that P&G applied to improve their aggregate worth. 2.1. Expand and build existing core business The first alternative was for P&G to expand and build existing core business, such as the health and beauty segments. The target customers were the low income consumers. P&G reduced sizes of the existing products and changed their packages to reduce their prices so that consumers can buy them more easily. With this alternative strategy, P&G only have to expand on products and services it already had without a lot of money on research and development, reducing the cost for company. Besides, P&G had also built a strong relationship with most of the large chain stores outlets, such as Wal-Mart. So, the distribution process would remain effective for the new products that would be introduced into the market. The company would increase its brands and products by merging with other companies to create more products and specifically targeting the low income consumers. However, this alternative strategy also had some drawback. Firstly, it was the reduction in its expertise in one particular product. Having so many products made P&G difficult to appropriately manage each and every one of them. Another drawback was the lack of enough prestigious products, such as very expensive fragrances. This alternative also did not address consumers who were interested in products that contained natural ingredients.

The company could get more qualified employees so they could continue to appropriately manage each product. They also needed to manufacture products that incorporated the trends as mentioned above. 2.2. Focus and expand on its skin care segment of the beauty/feminine care segment P&G focused and expanded just on its skin care segment of beauty/feminine care segment. The company would focus and specialize just on skin care products. It would produce different types of products for each ethic group, products that had natural ingredients, and more skin products for men. It would have to sell all its other products, cosmetics, feminine products and fine fragrances. The money from the sale of these products would be used to acquire more brands and products in the skin care segment. In 2005, the beauty/ feminine care segment of P&G delivered its third consecutive year of double digit growth in volume, sales, and profit. Volume increased 12 %, sales increased 14 %, and net earnings increased 22%. The industry leading performance was driven mainly by broad- based organic growth across geographies and brands. P&G produced products that were used by male and female. With the growing trend for man to use beauty products, the company started manufacturing more products for them. Consumers for P&G products could be segmented into age, gender, ethnicity, and low- income consumers. Age P&G addressed each age group differently and produced products that were suitable for them to use. P&G understood that as people aged, their skins vitality and radiance were reduced. So in the skin care segment, the company produced products that would address these issues. One of the products it produced was Olays Total Effects which it believed would fight seven sign of aging. In 2005, the mens beauty market was emerging and growing at a very fast rate. To be very effective in reaching ethnic group, P&G set up strategies to market these groups. An example of an agency that awarded the company was the Association of Hispanic Advertising Agencies. Another ethnic group that P&G was actively involved with was the African Americans.

The benefit of this strategy was that it would enable the company to focus just on one segment of the beauty/ feminine care division and do it well. P&G would be able to apply all its resources and skills to this segment. Its employees would all be working in the same field, making it easier to share information between each other. The marketing team would only need to collect information from its consumers about skin products, making it easier to market and advertise these products. This strategy was feasible because P&G already had a skin care segment. It just had to expand its products to incorporate every trend. P&G was financially capable of doing this, especially after selling off its other segments. The company already had a strong relationship with most of the large chain stores outlet, such as Costco and Wal- Mart. So the distribution process would remain effective for the new products that would be introduced into the market. P&Gs employees already had the expertise within this segment required to support the introduction of new brands. This strategy would win against the completion because P&G would increase its products and expertise in the skin care segment. The company would offer a wider variety of skin care products that would satisfy more consumers need. Satisfying more consumers would increase the companys sale and number of consumers, allowing P&G to win against its competitors such as Unilever, Colgate- Palmolive, Playtex Products, Avon, and Estee Lauder. Concentrating on this segment would also create more a better environment for P&G to create more innovative products according to trends and this would keep it ahead of its competitors. The drawback of this strategy was the loss of its other segment. The company would lose those consumers who wanted other products, such as hair products, cosmetics, fine fragrances, and feminine products. P&G employees would also lose the flexibility of moving from one segment to the other. This flexibility would have allowed them to learn about different segments in the consumer goods industry. A way around this drawback was to allow another company such as Unilever that sold products in these other segments to use P&G name to sell its products. This would satisfy the needs of those consumers who would prefer to use products associated with P&G. And also those employees who

wanted to get more experience and flexibility could go to this other company and work for a while. 3. Some options for P&G to improve the aggregate worth. 3.1. Respect of Government and the Law Compliance with Laws and P&G Policies and Business Conduct Policies: The Company should expect and direct their employees to comply with all laws and P&G business conduct policies relating to their P&G business activities. It is also each employees responsibility to know and understand legal and policy requirement as they apply to their job, and to notify management when they believe a violation of law or P&G policies/standards has occurred. Securities trading: to ensure fairness and integrity in financial markets, they do not trade in P&G securities or those of any other company on the basis of material, non-public information acquired through their employment. Material information is any information that an investor would reasonably consider important in making investment decisions. Examples include knowledge of acquisitions or divestitures, new product launches or financial about P&G must not be communicated without a legitimate business reason and proper leadership authorization. Transacting international business: Managers and employees of P&G affiliates doing business around the world abide by special laws and regulations which apply to the import and export of products and technical data, as well as the conduct of business with non-US entities. They also comply with anti-boycott and international embargo regulations in all locations where they do business. 3.2. Respect in the workplace Personal behavior in the workplace: P&Gs fundamental policy is that they will treat all of their colleagues with respect. The company strives to provide a safe, healthful and productive work environment. This includes being free of violence for their employees, contractors, visitors, etc. Each employee has a personal responsibility to other P&G employees and to the company to help eliminate actions or circumstances which undermine this environment. Wage and hour practices: P&G should pay employees a competitive wage, as bench marketed with other leading companies. Consistent with their principle of

valuing personal mastery, they can reward employees for improving their skills and capabilities. At a minimum, they should comply with all applicable wage and hour laws, rules and regulations, including minimum wage, overtime and maximum hours. They can also use internal audit scores and performance against a set of critical measures to assess how effectively sites are implementing the global standard. Environmental quality policy: Ensure the products, packaging and operations are safe for their employees, consumers and the environment. Reduce or prevent the environment impact of their products and packaging in their design, manufacture, distribution, use and disposal whenever possible. They should support the sustainable use of resources and actively encourage reuse, recycling and compositing. Provide their consumers, customers, employees, communities, public interest groups and others with relevant and appropriate factual information about the environment quality of P&G. 3.3. Respect in the marketplace Product safety: The companys products and packages should be safe for consumers and the environment when used as intended. The company should seek to ensure that their operations are safe for their employees, neighbors and the environment. The company must meet or exceed all applicable legislative and regulatory requirements with respect to product safety and labeling. The company can provide interested parties with relevant and appropriate factual information about the safety of their products and packaging. Fair dealing with suppliers and customers: P&Gs success depends on building productive relationships with their suppliers and customers based on integrity, ethical behavior and mutual trust. The relationships with the suppliers must be characterized by honest and fairness. The consumers, customers and suppliers should become more and more diverse every day, so their success depends in their ability to understand diverse consumers; needs and to work effectively

with customers and suppliers around ther world. Besides, the company should treat all customers equitably and not give any customer an unfair advantage over another competing customer.do not discriminate by customer size, type, channel or business strategy. Fair competition: P&G believe in competing fairly because they all benefit from fair, free and open markets. So, they can compete strictly on the merits of their products and services and make no attempts to restrain or limit trade Do not enter into agreements with the competitors concerning prices, production volumes, customers or sales territories. Do not disparage the product or services of a competitor. Collect competitive information through proper public or other lawful channels but do not use information that was obtained illegally or improperly by others, including through misrepresentation, invasion of property or privacy, or coercion 3.4. Respect in society and communities. Community relations: the company has a long-standing commitment to being good citizens and neighbors in all the places where they do business around the world. They should satisfy their commitment through financial support for a wide range of educational, health, social service, cultural, civic and environmental organizations. Support of universal human right: P&G is committed to universal human right, particularly those of employees, communities in which they operate and parties with whom they do business. Therefore, the company should: Provide equal opportunity for employees at all levels and no discrimination or harassment based on any personal characteristics unrelated to job performance. Create a safe and healthy workplace protecting human health and the environment. Work with governments and communities to improve the educational, cultural, economic and social well-being of those communities.