Case Study Description of Procter & Gamble Canada (A): The Febreze Decision
Procter & Gamble reorganized its operations and created Global Business Units with Market Development Organizations (MDO) to augment the brand strategy work. This reorganization supported changes in culture that included reasonable risk taking. The marketing director of Procter & Gamble Canada was evaluating the potential success of launching a new product, Febreze, by using volume analysis resources available to her. The results indicated that Febreze would be a relatively small business opportunity, but the model could not take into account the various new MDO marketing tools that were not yet available. To justify the cost of launching the product, revenues would have to be significantly more than the volume model predicted. While trying to adjust to the new culture, the marketing director had to evaluate the risks associated with launching the product not knowing if the new tools would generate the additional volumes needed and the risk of losing the competitive edge if she postponed the launch.
Swot Analysis of "Procter & Gamble Canada (A): The Febreze Decision" written by Roderick E. White, Ken Mark includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Febreze Mdo facing as an external strategic factors. Some of the topics covered in Procter & Gamble Canada (A): The Febreze Decision case study are - Strategic Management Strategies, Reorganization, Strategic planning and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Procter & Gamble Canada (A): The Febreze Decision casestudy better are - – increasing commodity prices, there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic , geopolitical disruptions, increasing energy prices,
there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Procter & Gamble Canada (A): The Febreze Decision
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Procter & Gamble Canada (A): The Febreze Decision case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Febreze Mdo, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Febreze Mdo operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Procter & Gamble Canada (A): The Febreze Decision can be done for the following purposes –
1. Strategic planning using facts provided in Procter & Gamble Canada (A): The Febreze Decision case study
2. Improving business portfolio management of Febreze Mdo
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Febreze Mdo
Strengths Procter & Gamble Canada (A): The Febreze Decision | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Febreze Mdo in Procter & Gamble Canada (A): The Febreze Decision Harvard Business Review case study are -
High switching costs
– The high switching costs that Febreze Mdo has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Febreze Mdo digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Febreze Mdo has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Sustainable margins compare to other players in Sales & Marketing industry
– Procter & Gamble Canada (A): The Febreze Decision firm has clearly differentiated products in the market place. This has enabled Febreze Mdo to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Febreze Mdo to invest into research and development (R&D) and innovation.
Learning organization
- Febreze Mdo is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Febreze Mdo is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Procter & Gamble Canada (A): The Febreze Decision Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Febreze Mdo is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– Febreze Mdo has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Procter & Gamble Canada (A): The Febreze Decision HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Operational resilience
– The operational resilience strategy in the Procter & Gamble Canada (A): The Febreze Decision Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Successful track record of launching new products
– Febreze Mdo has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Febreze Mdo has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Organizational Resilience of Febreze Mdo
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Febreze Mdo does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Febreze Mdo has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Febreze Mdo to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Febreze Mdo is present in almost all the verticals within the industry. This has provided firm in Procter & Gamble Canada (A): The Febreze Decision case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Training and development
– Febreze Mdo has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Procter & Gamble Canada (A): The Febreze Decision Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Weaknesses Procter & Gamble Canada (A): The Febreze Decision | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Procter & Gamble Canada (A): The Febreze Decision are -
No frontier risks strategy
– After analyzing the HBR case study Procter & Gamble Canada (A): The Febreze Decision, it seems that company is thinking about the frontier risks that can impact Sales & Marketing strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Lack of clear differentiation of Febreze Mdo products
– To increase the profitability and margins on the products, Febreze Mdo needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Febreze Mdo has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Low market penetration in new markets
– Outside its home market of Febreze Mdo, firm in the HBR case study Procter & Gamble Canada (A): The Febreze Decision needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Procter & Gamble Canada (A): The Febreze Decision, is just above the industry average. Febreze Mdo needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Febreze Mdo is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Procter & Gamble Canada (A): The Febreze Decision can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study Procter & Gamble Canada (A): The Febreze Decision that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Procter & Gamble Canada (A): The Febreze Decision can leverage the sales team experience to cultivate customer relationships as Febreze Mdo is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Febreze Mdo is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Febreze Mdo needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Febreze Mdo to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As Procter & Gamble Canada (A): The Febreze Decision HBR case study mentions - Febreze Mdo takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Procter & Gamble Canada (A): The Febreze Decision, in the dynamic environment Febreze Mdo has struggled to respond to the nimble upstart competition. Febreze Mdo has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring
– The stress on hiring functional specialists at Febreze Mdo has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Opportunities Procter & Gamble Canada (A): The Febreze Decision | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Procter & Gamble Canada (A): The Febreze Decision are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Febreze Mdo can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Procter & Gamble Canada (A): The Febreze Decision, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Febreze Mdo can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Febreze Mdo to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Febreze Mdo to hire the very best people irrespective of their geographical location.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Febreze Mdo to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Creating value in data economy
– The success of analytics program of Febreze Mdo has opened avenues for new revenue streams for the organization in the industry. This can help Febreze Mdo to build a more holistic ecosystem as suggested in the Procter & Gamble Canada (A): The Febreze Decision case study. Febreze Mdo can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Febreze Mdo can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Sales & Marketing segment.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Sales & Marketing industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Febreze Mdo can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Febreze Mdo can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Febreze Mdo is facing challenges because of the dominance of functional experts in the organization. Procter & Gamble Canada (A): The Febreze Decision case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Febreze Mdo in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Sales & Marketing segment, and it will provide faster access to the consumers.
Buying journey improvements
– Febreze Mdo can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Procter & Gamble Canada (A): The Febreze Decision suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Learning at scale
– Online learning technologies has now opened space for Febreze Mdo to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Low interest rates
– Even though inflation is raising its head in most developed economies, Febreze Mdo can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Better consumer reach
– The expansion of the 5G network will help Febreze Mdo to increase its market reach. Febreze Mdo will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Threats Procter & Gamble Canada (A): The Febreze Decision External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Procter & Gamble Canada (A): The Febreze Decision are -
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Febreze Mdo business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Febreze Mdo is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Febreze Mdo demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Procter & Gamble Canada (A): The Febreze Decision, Febreze Mdo may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .
High dependence on third party suppliers
– Febreze Mdo high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Febreze Mdo in the Sales & Marketing industry. The Sales & Marketing industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Regulatory challenges
– Febreze Mdo needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Sales & Marketing industry regulations.
Environmental challenges
– Febreze Mdo needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Febreze Mdo can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Febreze Mdo in the Sales & Marketing sector and impact the bottomline of the organization.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Febreze Mdo needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Increasing wage structure of Febreze Mdo
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Febreze Mdo.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Febreze Mdo will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Weighted SWOT Analysis of Procter & Gamble Canada (A): The Febreze Decision Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Procter & Gamble Canada (A): The Febreze Decision needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Procter & Gamble Canada (A): The Febreze Decision is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Procter & Gamble Canada (A): The Febreze Decision is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Procter & Gamble Canada (A): The Febreze Decision is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Febreze Mdo needs to make to build a sustainable competitive advantage.
