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 energy prices, geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , wage bills are increasing,
cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation, 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 -
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.
Ability to lead change in Sales & Marketing field
– Febreze Mdo is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Febreze Mdo in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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.
Analytics focus
– Febreze Mdo is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Roderick E. White, Ken Mark can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Ability to recruit top talent
– Febreze Mdo is one of the leading recruiters in the industry. Managers in the Procter & Gamble Canada (A): The Febreze Decision are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– Febreze Mdo has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Procter & Gamble Canada (A): The Febreze Decision - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Febreze Mdo in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
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.
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.
Low bargaining power of suppliers
– Suppliers of Febreze Mdo in the sector have low bargaining power. Procter & Gamble Canada (A): The Febreze Decision has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Febreze Mdo to manage not only supply disruptions but also source products at highly competitive prices.
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.
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 -
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.
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.
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.
High cash cycle compare to competitors
Febreze Mdo has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Slow decision making process
– As mentioned earlier in the report, Febreze Mdo has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Febreze Mdo even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Febreze Mdo supply chain. Even after few cautionary changes mentioned in the HBR case study - Procter & Gamble Canada (A): The Febreze Decision, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Febreze Mdo vulnerable to further global disruptions in South East Asia.
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.
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.
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.
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.
High operating costs
– Compare to the competitors, firm in the HBR case study Procter & Gamble Canada (A): The Febreze Decision has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Febreze Mdo 's lucrative customers.
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 -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Febreze Mdo can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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.
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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Febreze Mdo can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Febreze Mdo has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Procter & Gamble Canada (A): The Febreze Decision - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Febreze Mdo to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
Developing new processes and practices
– Febreze Mdo can develop new processes and procedures in Sales & Marketing industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Febreze Mdo can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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.
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.
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 -
Stagnating economy with rate increase
– Febreze Mdo can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
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.
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.
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.
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.
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.
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.
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 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.
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.
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.
Technology acceleration in Forth Industrial Revolution
– Febreze Mdo has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Febreze Mdo needs to keep up with the evolution of technology in the Sales & Marketing sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Febreze Mdo with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.