1. What strategy was Procter and Gamble pursuing when it first entered foreign markets? Why do
you think this strategy became less viable later on?
Procter and Gamble pursued an International strategy. International strategy refers to activities that
happen crosswise over multinational enterprises in the private sector. Although international strategy
refers to doing business across nation-state boundaries, it is based on home market resources.
Historically, Procter and Gamble developed the new products in Cincinnati and after that depended
on semiautonomous foreign subsidiaries to make advertise and circulate those items in various
countries.
The strategy became less viable because P”G’s was facing high costs because of high duplication of
assembling, and marketing in various national subsidiaries. Duplication was the major cause of high
costs. Secondly, the barriers to low-cost trade were falling rapidly around the globe, and fragmented
national markets were converging into bigger international markets. Likewise, the retailers through
which the organization disseminated its items were becoming bigger and more global and were
demanding price discounts from Procter and Gamble.
2. What strategy does P&G appear to be moving toward?
Procter and Gamble appear to be moving toward a transnational strategy. As it was an international
business structure where P&Gs business activities were composed through collaboration and
relationship between its head office, operational divisions, and globally found backups or retail
outlets. The company is now comprised of seven centralized business units.