Deconstruction Of Procter & Gamble Business Model

Question

Task: You are required to write a 2000-word report for a novel business proposal you have developed. The business proposal must build upon your novel value proposition developed in assessment 1 for the existing business or organisation selected in assessment 1. You must use appropriate headings to structure the body of the report.
Your report must demonstrate:
1. Logical and persuasive articulation of: business model description; value proposition development; business operations development; supply chain development; competitive advantage; financial value capture and strategic fit (this includes elements 5 to 10 in the disciplined entrepreneurship canvas and elements 3 to 9 in the business model canvas). 40%
2. Logical and persuasive argumentation in regard to how assumptions and uncertainties related to: customer desirability; technical feasibility; and financial viability have been addressed to date and how they will be addressed in the future as described in a phased development plan. 16%
3. Logical and persuasive argumentation for the selection of the innovation tools and techniques used to support the report findings and recommendations. These must be beyond the tools and techniques used in assessment 1. Minimum five (5) additional tools and techniques must be selected from the provided list of tools and techniques. 6%
4. Logical and persuasive application of the selected innovation tools and techniques used to support the report findings and recommendations. These must be different to the tools and techniques used in assessment 1. Minimum five (5) additional tools and techniques must be applied from the provided list of tools and techniques. 8%
5. Candid and critical self-reflection about assessment 2 tasks including: a reflection on the development of personal innovation capabilities and practices; identification of own personal strengths and weaknesses; supported with suggestions for self-improvement. 10%
6. Clear flow of thought throughout the report with: a convincing executive summary; clear and succinct purpose described in the introduction; relevant structure and content within the body of the report; and a clear and succinct conclusion. 6%
7. Critical review skills and integration of relevant academic and professional literature. A minimum of ten (10) academic and professional references must be used. 4%
8. Appropriate in-text referencing and reference list. Adherence to CQUniversity APA reference style. 4%
9. Clarity of expression, grammar and spelling. Appropriate report format with good use of bullet points, illustrations and figures. Within ±10% of the word limit for report, excluding references and appendices: 2000 words. 6%

Answer

Executive summary:-
Overview
Procter & Gamble business model canvas with the novel value proposition is focusing on the different issues like business operations development, financial value capture, and competitive advantages of the company with the uncertainty related to desirability of the customer, technical feasibilities of the business, and financial viability.

The problem
What resources and capabilities do P&G need to incorporate with product and service when scaling the business?

What core capabilities P&G shows when compared with other competitors in the market? What are the unique benefits P&G propose when delivering to the customers?

The solution
Using the innovation tools among which 5 are discussed here is the solution to the problems briefed above.

Highlights
Strategic fits, innovation tools, and techniques, business operations development, and self-improvement processes.

'Introduction'
"The Procter and Gamble" company is a "multinational consumer goods corporation founded in the year 1837 by William Procter and James Gamble." The company is "specialized" in personal health products as well as consumer health products. This company is used for the assessment of Procter & Gamble business model. The main goal of this project is to:

Demonstrating the articulation related to "logical and persuasive" aspects of this Procter & Gamble business model, desirability of the consumer, and "value proposition canvas" development processes. The different strategic factors like competitive advantages for the company with the technical feasibility of the company and the innovative tools and techniques used for growing business value for the company is going to be discussed to achieve the goal of this project on Procter & Gamble business model. 

1. Demonstrations
1.1 Articulating the Procter & Gamble business model in a “Logical and persuasive" view
This articulation of the Procter & Gamble business model consists of 4 areas

. "Definition of the business"-It includes the identification of business vision, the mission of the business, associated with its value and opportunities. It begins with the clear articulation of the business and its direction (Baldassarre et al. 2017).

1. "Objective setting"-Analyzing the objectives of the previous years and Present scenario. It is the measurable result of a specific object which identifies the key objectives for the previous years and the current situation.
2. "Systems and processes"-Description of the markets and marketing plans, sales plan, service activities, resource plan, and risks. This is the procedure of achieving the objectives or the goal. This is also could be demonstrated as the "sub-set" of the business plan. The step by steps plans is the marketing plan, sales plan, service plan, resource plan, and major tasks.

Figure 1: Demonstration of "system and processes" of a Procter & Gamble business model

It includes addressing the financial aspects and taking the business to the next level with strategic planning.

1.2 Development of the "Value proposition canvas tool"-This is a tool which helps the Procter & Gamble (P&G) organization that the product is positioned according to the value and requirements of the customers (Äyväri & Jyrämä 2017). The framework is used for ensuring the fit between the "product and market." The tool is formed with the "customer profile" and the organization's value proposition. The P&G company researched about this factor and step by step which includes sub-categories of the customer profile such as:

1. Gain-The The expectations and needs of the customer for benefit.
2. Pains-Experience of risks and emotions for the customer.
3. Customer jobs-These are the problems that the customers are analyzing and trying to solve according to their needs for satisfaction.

Then comes the "value map", it also includes several sub-factors such as:

1. "Gain creators"-Offering the added value service to the customers by the product.
2. "Pain relievers"-Service of the product to relieve customer's pains(Manninen et al. 2018).
3. "Products and services"-The products of the company which relieves pain and benefits the customer by creating gain with the added value of the product.

Demonstration-When the listing of gain creators is completed by the company, all products and services are ranked by the customers and achieves a fit between the "value proposition and customer profile". In this way, the P&G developed the value proposition canvas.

1.3 Development strategies of the "Business operations" for P&G
It can be summarized as the initiatives and activities of the company towards increasing the business and taking it to the next level. This leads to revenue increase, business growth, and an increase in profitability. With proper strategies and business decisions, it can be achieved.

1.4 Development of the Supply chain management
There are several procedures to develop the supply chain, which are briefed below as follows:

1. Increasing the QCT ("Quality, Cost and Time") level
2. Identification and selection of the local factories to deliver the required materials.
3. Business plan development with a "sustainable supply chain."

Demonstration-The activities that are explained above are essential for the development of the company's supply chain. Also, it should be considered that the company must have to analyze and weigh the benefits and the other options which are provided by the international supply chain.

1.5 Advantages of P&G compared with the market competitors

The growth of the company always depends on the set up to deliver the maximum value into the market (Laszlo & Zhexembayeva 2017). It has observed that a good product or service does not have any guarantee that it will be successful in the market. The company needs to have an effective Procter & Gamble business model. Re-engineering the cost of the products which have high value in the market is an excellent approach to gain competitive advantages in the markett (Austin & Pisano 2017)t. The commercial strategy of innovation failed in many cases without achieving sufficient profitability.

1.6 Developing the methods of financial value capture and strategic fit for P&G
It is one of the most important and interesting areas of Procter & Gamble business model. It is the process of retention of some percentage of the total value provided in each transaction of the business. One of the financial value capture approaches is maximization, where the company captures the maximum value and the other is minimization (Fainshmidt et al. 2019). Here the company captures a little value to maintain the sufficiency. This is a strategic fit for more or less small, medium, or large business organizations (Tamayo-Torres et al. 2016). Creating the value is strategically fit so that the captured value is worth it.

2. Logical and persuasive argumentation relations
2.1 Desirability among the consumers
Customer desirability always focuses on the point that the innovative initiatives of the company are solving the problems of the customers properly. It is a discussion that is "design-focused." The focus must point out the customer goals and product experience. Also, it includes the context culture and goals which are designed for aesthetics and interactions.

2.2 Future addressing of feasibility (Technical aspect) and viability (Financial aspect)
Technical feasibility focuses on the discussion on Procter & Gamble business model, which is managed throughout the platforms. It is associated with strategic processes and tools. The company needs to develop the process at a reasonable cost and time. To assess the technical feasibility, one of the large part of "determining resources" are required (Aldossary, Mahmoud & Al-Dadah 2016). Considering the technical requirements of the company, it needed to compare it with its technical capabilities too. In this case, it should be analyzed that, the technical resources have been upgraded to complete the request which is under a consideration.

Financial viability-It is one of the measures to reduce the business risk for the company. It should be considered at the same time when the company is planning the tender (Huenteler et al. 2017)r. This assessment evaluates the risk that the goods will not be delivered through the tender which is specified in the contract (Campbell et al. 2018). As the "financial viability" imposes a cost on the tender, it is required to commensurate the scope and risks related to the proposed project.

However, the period of the procurement process and the extension of the "financial viability" assessments should be considered and analyzed by case basis (Trimble et al. 2016). It is not necessarily required to an extent on an "entity-wide basis." A method for analyzing the meaning of financial reports to use the financial ratios, the ratios will represent the interaction between the various components of the report (Meng, McKechnie & Pickering 2018). It could be compared with the industry standards provide some information to support the "financial viability."

3. Application of the innovative tools and techniques related to "logical and persuasive argumentation" of P&G
3.1 Five (5) additional "tools and techniques" and its applications.

Table 1: five innovation tools and techniques

4. Critical "self-reflection" about the assessment
4.1 Achievements and gaps
The project is aimed on the new value proposition of the P&G Company and deconstructs the Procter & Gamble business model canvas. I have observed the global marketing procedures of the company and the strategies they are using for attracting customers. My observations could evaluate through applying the personal SWOT (Strength Weakness Opportunities and Threats). These factors are described below: .

Table 2: A self-reflection about the assessment

4.2 Personal innovation capabilities, its development and practices

Table 3: Personal innovation capability practices

4.3 Identifying the personal strengths and weaknesses and self-improvement suggestions

Table 4: Self-improvement suggestions and its description

Conclusion
The project is about "Novel business proposition and self-reflection." The study of the report is the tools and techniques (innovative) used by the Procter and Gamble company for their business strategy. The 4 areas of the Procter & Gamble business model have been discussed in the beginning. The use of these tools to understanding the customer value proportions is also discussed in brief in the chapters related to the company. Other factors like development of the business operations and "supply chain" development system are also explored in brief in the next sections of this study on Procter & Gamble business model. The individual also expressed the innovative capabilities, strengths and weaknesses, and the reflections for personal improvement.

Bibliography
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