P&g Mexico Case Study
Join now to read essay P&g Mexico Case Study
THE P&G COMPANY: MEXICO 1991
Table of contents
Introduction……………………………………………………….………………………………………………………….2
History of P&G………………………………………..………………………………………………………………………3
Global financing at P&G……………………..……………………………………………………………………………4
Mexico……………………………………………………………………………………………………………………………5
P&G in Mexico………………………………………………………………………………………………………………..6
Case questions
Bibliography…………………………………………………………………………………………………………………14
Introduction
Dick Duffel, associate director of P&G Mexico suggests, in order to increase manufacturing facilities in Mexico, to borrow an average of $ 55 million of dollars for over three years. As the borrowing would represent the 20% of the investment needed, the total investment required would be $ 750 millions of dollars.
All investment proposal would have to pass through the board of Cincinnati and therefore Mr. Duffel was asked to prepare a complete written analysis to be presented to the board, considering the Mexican economic stability.
In order to be able to evaluate the situation, there may be presented some notes:
History of P&G with highlighting of expansion and financial information
Indication of the financing attitude at P&G
Outline of the Mexican market
Presentation of P&G Mexico
The information given in these notes will help to evaluate:
P&G communications corporate identity and goals
Possibility of interaction with local authorities and Mexican government stability
Evaluation of the risks and outline for the specific pro and contras
Forecast of Mexican political situation, playing a vital part in this decision
History of P&G
October 1837
James Gamble and William Procter started the company contributing each one $ 3,596.
Production: soap and candle
Location: Cincinnati (Ohio)
P&G bought some land near Cincinnati
P&G is gaining an annual profit of $ 26,000
P&G Prospered through the civil war
introduction of IVORY SOAP: absolute success
P&G start to sell directly to retailers. Business grows steadily
centennial of foundation celebrated with
– sales of $230 millions
– 16 manufacturing plants (11 in the United states and 5 in foreign countries such as Canada, England,