1. Balance Scorecard Project
Sarah Martinez
Jamie Itzenheiser
Sheena Allen
Maria Billings

2. GROUP MEMBERS WITH PICTURES
Maria Billings, Jamie Itzenheiser, Sarah Martinez, Sheena Allen

3. PROCTOR AND GAMBLE MAJOR PRODUCTS AND SERVICES

4. Leaders in the Industry/Global
Net Sales for 2013:
Beauty : $20 billion
Baby, Feminine and Family Care : $22 billion
Fabric and Home Care : $26 billion
Health and Grooming : $17 billion

5. Beauty
Beauty Care:
Cover Girl, Max Factor, Olay, Old Spice, Safeguard, Secret
Hair Care , Hair Color:
Head & Shoulders, Herbal Essences, Nice & Easy, Pantene, Rejoice
Prestige:
Gucci, Hugo Boss, SK-II
Salon Professional:
Wella

6. Baby, Feminine, and Family Care
Baby Care:
luvs, Pampers
Family Care:
Bounty, Charmin, Puffs
Feminine Care:
Always, Naturella, Tampax

7. Fabric and Home Care Fabric Care:
Ace, Ariel, Bold, Bounce, Dash, Downy, Gain, Tide
Home Care:
Cascade, Dawn, Febreze, Mr. Clean, Swiffer
Personal Power:
Duracell

8. Fusion, Gillette, Mach 3, Prestobarba, Venus
Health and Grooming
Braun and Appliances:
Braun
Oral Care:
Crest, Fixodent, Oral-B
Personal Health Care:
Prilosec, Vicks
Pet Care:
Eukanuba, Iams
Shave Care:
Fusion, Gillette, Mach 3, Prestobarba, Venus

9. MANAGEMENT TEAM Jon R. Moeller, Chief Financial Officer
Fillippo Passerini,
Chief Information Officer
Bruce Brown,
Chief Technology Officer
Deborah P. Majoras,
Chief Legal Officer

10. BOARD OF DIRECTORS
Procter & Gamble Independent Directors are made up of 4 committees:
Audit Committee
Angela F. Braly
Kenneth I. Chenault
Mary Agnes Wilderotter
Patricia A. Woertz
Governance & Public Responsibilities Committee
Terry J. Lundgren
W. James McNerney, Jr.
Johnathan A. Rodgers
Ernesto Zedillo
Compensation & Leadership Development Committee
Kenneth I. Chenault
Scott D. Cook
W. James McNerney, Jr.
Margaret C. Whitman
Mary Agnes Wilderotter
Innovation & Technology Committee
Scott D. Cook
Susan Desmond-Hellmann
Terry J. Lundgren
Johnathan A. Rodgers
Margaret C. Whitman
Ernesto Zedillo

11. LIQUIDITY TREND CHART

12. BALANCED SCORECARD-FINANCIAL PERSPECTIVE-LIQUIDITY RATIOS
6/30/2013
6/30/2012
6/30/2011
6/30/2010
6/30/2009
Quick Ratios
0.41>
0.42>
0.33>
0.34>
Current Ratios
0.8>
0.88>
0.77>
0.71>
Although rising, the quick ratios are still pretty low. This may cause a concern in the future if they continue to rise; but ratios are presently satisfactory.
Current ratios are very poor. They have risen in the past years but dropped in This means that Procter and Gamble is unstable short term.

13. ACTIVITY TREND CHART

14. BALANCED SCORECARD-FINANCIAL PERSPECTIVE-ACTIVITY RATIOS
Asset Management
6/30/2013
6/30/2012
6/30/2011
6/30/2010
6/30/2009
Total Asset Turnover
0.62>
0.6>
0.57>
Receivables Turnover
13.39>
13.52>
14.22>
14.13>
12.55>
Inventory Turnover
6.23>
6.01>
5.92>
5.72>
5.09>
Total asset turnover is very poor. This ratio shows that total assets for Procter and Gamble turns on average of .62 times per year.
Receivables turnover is good. They collect receivable accounts fairly regular.
Inventory turnover is favorable. This ratio shows that inventory turns over an average of times per year.

15. DEBT TREND CHART

16. BALANCED SCORECARD-FINANCIAL PERSPECTIVE-DEBT RATIOS
Debt Management
6/30/2013
6/30/2012
6/30/2011
6/30/2010
6/30/2009
LT Debt to Equity
0.28>
0.33>
0.35>
Total Debt to Equity
0.46>
0.47>
0.49>
0.59>
Long-term debt to equity is very poor. At a current ratio of 280%, Procter and Gamble has a high degree of long-term debt compared to equity.
Total debt to equity is poor as well but not as poor as the long-term ratios.Current total debt to equity is 460%. Debt to equity ratios should be 100% or less.

17. PROFITABILITY TREND CHART

18. Profitability Trends Stagnant.. Invest or Not?
Typically anything over 5% for ROA is considered good. In this model we can see over the last 5 years P&G has maintained above the 5% but took a pretty steep dip in They have since began to gain some of that growth back in 2013.
If we review the ROE for P&G we can see that they are well in the 15% to 20% range which is considered good. We see the same dip in 2011 and momentum in Even though the ROE is well within range we need to be careful and ask the questions of, What are we doing with our earnings? We can evaluate this further by using the DuPont Model.
Given the information presented to us in the beginning of the Annual Report P&G is aware of their dips and have put a stronger, more strategic plan in place. They are gaining back their growth (lost due partly to the market and multiple recalls) in the US market which is a 3rd of their sales and half their profits alone.

19. BALANCED SCORECARD-FINANCIAL PERSPECTIVE-PROFITABILITY RATIOS
Comparing Procter & Gamble to 2 of it’s top competitors we can relate to the profitability trends of the company.
Procter & Gamble will perform over the next 6 to 12 months. It’s a matter of how much. It’s earning strength compared to Colgate-Palmolive Co and Kimberly-Clark.
PG 13%
CL 15%
KMB 37%
Growth rate over the past 5 quarters.
PG %
CL %
KMB %
PG AND KMB ranked at 65% of companies covered by Ford Equity Research and CL ranked at 57%
Earnings Strength
PG .9% NEG
CL 11.6% NEU
KMB 16% NEU
1 YEAR PRICE UP
Common Stock Performance
Potential
RelativeValuation
Price Movement

20. BALANCED SCORECARD CUSTOMER PERSPECTIVE
Increase customer satisfaction
Tapping into developing countries
Developing new products

21. BALANCED SCORECARD CUSTOMER PERSPECTIVE
Nearly $500 million in sales in North America this fiscal year, Tide PODS is now expanding globally - starting with Latin America, Western and Central Europe, and Africa.
Crest and Oral-B 3D White toothpaste have grown value share in the U.S. for 13 consecutive quarters - every quarter since 3D White first launched - and are now sold in more than 40 markets globally.
Fusion ProGlide launched in the U.S. three years ago. It is now in more than 45 markets, most recently expanding to Brazil, Mexico and China. Fusion has grown global value share for 30 straight quarters - ever since the first fusion product launched.

22. P&G is investing in Capabilities for growth
Our final focus area is to make strategic, focused investments in innovation and go-to-market capabilities. These are two of our core strengths as a Company and two important sources of competitive advantage and growth. They are critical to winning the first and second moments of truth.

23. Purpose, Values & Principles
Procter & Gamble has grown over the last 175 years. Their purpose, values and principles are the root for their unique culture. Procter & Gamble have grown and adapted over the years, yet these three elements have stayed and will continue to be passed down to the future generations of P&G People.
“Our Purpose unifies us in a common cause and growth strategy of improving more consumers’ lives in small but meaningful ways each day. It inspires P&G people to make a positive contribution every day”.
“Our Values reflect the behaviors that shape the tone of how we work with each other and with our partners”.
“Our Principles articulate P&G’s unique approach to conducting work every day”.

24. Competitive Advantage and Innovation
P&G is constantly faced with challenges of staying on top competitively. Even though they have a wide range of products hitting so many different types of demographics it is imperative they continue to develop that competitive edge. It is a matter of survival and that key ingredient is INNOVATION.
Being innovative means to take risks, be flexible, seeing things from different perspectives and encouraging employees to be idea champions.
P&G’s Internal business strategies gives them this edge.

25. BALANCED SCORECARD-INTERNAL BUSINESS PERSPECTIVE
“P&G scientists received the Economist Innovation Award for their work on, and the Company’s commitment to providing clean drinking water to those in need, through our Children’s Safe Drinking Water Program”-page 87 of annual report.
Procter & Gamble uses a Connect + Develop Strategy (an open innovation approach) to bring products to consumers worldwide.
Take a look at some of the Innovations P&G uses to ensure their products are what the consumer needs and wants.
Signal P&G
The Clay Street Project
The Loft Approach
Business Sphere
SymphonyIRI Pacesetters
Because of facilities and tactics such as these P&G has been successful in launching 3 of the top 10 new products of 2012
Downy Unstopables
Pampers Sensitive Wipes
Clairol Nice n Easy Color Foam

26. BALANCED SCORECARD-INTERNAL BUSINESS PERSPECTIVE
Diversity & Inclusion is a sustained competitive advantage for the continued growth of P&G.
Launches an annual report specifically on the Diversity & Inclusion of their company..
P&G is committed to creating a winning culture where colleagues and mgrs demonstrate sincere care for each other.
“The New Flexicenter” is something P&G uses to create a culture of inclusion which allows employees with disabilities work alongside their colleagues both contributing and exceeding expectations as a single workforce.
For the 2nd consecutive year, Chief Executive Magazine named P&G #1 out of 40 of the Best Companies for Leaders.
They have been recognized by DiversityInc, for it’s impact in global diversity.

27. BALANCED SCORECARD-LEARNING AND GROWTH PERSPECTIVE
Procter & Gamble is built from within. It is their most important asset and source of competitive advantage.
Staying on top of current technology with it’s rapid growth is one of P&G’s #1 priorities, therefore it’s employee’s need to be in a constant motion of learning whether at an innovation center, retail store or consumer home.
Employee’s endure on-the-job experience which deepens their commitment to touching and improving consumer lives.
P&G approaches their employees with a mind set of career planning. They manage talent globally where the CEO, Vice Chairs, Business Presidents and Board of Directors all take part.
Business and functional leaders actively recruit, teach and coach.
P&G people are challenged from day one to understand the need to be in touch with consumers, retail customers and external stakeholders through disciplined projects.

28. PG SWOT ANALYSIS Weakness Strengths
Billion dollar leaderships brands such as Head & Shoulders, Olay, and Pantene
Top 3 Contributors to the company's revenue:
Fabric Care & Home Care contribute 32%
Beauty Segment with 24%
Baby care and Family health 19%
The company’s innovation efforts are based on understanding their customers behavior & perception
Market Development organization (MOD) is organized along five geographic units. June the company’s NA segment contributed 39% of net sales, followed by WE with 19, Asia with 18%, Ceema with 14%, and LA with 10%.
2013 recall its IAMS Puppy dog food due to levels of aflatoxin.
2011, P&G voluntarily recalled a lot of dry dog food due to aflatoxin levels that were above the acceptable limit.
July 2011, voluntary recall on Oral B mouthwash due to possible microbial contamination.
Reliance on a collection of key brands for a material amount of company's top line
Focus on high- end of the market
Must constantly reinvent its products or face flagging sales

29. P&G SWOT Analysis Opportunities Threats
The growth in middle class is emerging markets such as China and India
Mergers and acquisitions to better the brand
Increasing purchase power of people thereby increasing demand
Substitute threats- same products but cheaper store brands, direct competitor cheaper prices
Raw materials are increasing so cost goes up to the company
Private froths label is also a serious threat to the P & G market share

30. Stock Price Prediction-ADD PG STOCK CHART

31. 5 KEY EVIDENCE ELEMENTS
GDP, PPI and Unemployment are indicators of a slowing economy
People are buying environmentally friendly items
competition
Recalls on products playing a major role in profits
P&G has evaluated and established a strong and workable strategic plan in 2013 which has helped them gain growth back in the US.
Their # 1 priority is Value Creation. Starting with the consumer from when they buy the product to when they use the product. Followed by Innovation and Productivity. P&R ROCKS! when it comes to innovation. They need to enhance their productivity to gain more financial resources so they can invest back into the growth of their business. We see this on the upswing looking at their profitability ratios.