The Procter & Gamble Company (P&G) is a leading consumer goods firm whose mission statement and vision statement establishes a market position that competes with other large multinationals, like Unilever, Colgate-Palmolive, Johnson & Johnson, and L’Oréal. A firm’s vision statement describes the target future situation of the business. In the case of Procter & Gamble, the corporate vision statement emphasizes leadership in the global market. On the other hand, a company’s mission statement specifies the strategic approach to fulfill the vision. Procter & Gamble’s corporate mission statement highlights quality and value as the foundation for ensuring business success. The company’s growth path and strategies in the consumer goods industry are based on this strategic approach to reach the corporate vision. As a dominant firm in the market, Procter & Gamble needs to ensure that its vision statement and mission statement are fulfilled. It is also necessary to consider possible adjustments to these statements to address changes in market conditions and P&G’s business needs over time.
A corporate vision statement for global market leadership defines Procter & Gamble’s business aims. These aims require strategies for achieving leadership in the organization and leadership in the industry environment, while considering various aspects of the business, such as the threat of substitution and competitive rivalry (See Porter’s Five Forces Analysis of Procter & Gamble). In addition, a corporate mission statement imposes pressure on P&G management to implement strategic objectives for enhancing the company’s products to ensure competitive advantage based on quality and value.
Procter & Gamble’s Mission Statement
Procter & Gamble’s mission statement is “We will provide branded products and services of superior quality and value that improve the lives of the world’s consumers, now and for generations to come. As a result, consumers will reward us with leadership sales, profit and value creation, allowing our people, our shareholders and the communities in which we live and work to prosper.” This corporate mission contains a detailed specification that influences P&G’s strategic direction. Superiority in quality and value are emphasized, just as these factors are also highlighted in the company’s vision statement. Procter & Gamble’s corporate mission statement has the following characteristics:
- Branded products and services of superior quality and value
- Improve the lives of the world’s consumers, now and for generations to come
- Leadership sales, profit and value creation
- Prosperity of people, shareholders and communities
The mission statement requires that The Procter & Gamble Company must ensure the superior quality and value of its products, like personal care products and cleaning agents. Based on this characteristic, a strategic objective is to continue enhancing the company’s products to maintain superior quality and value. For example, innovation and adequate R&D investment for product development are part of Procter & Gamble’s generic competitive strategy and intensive growth strategies. Another feature of the mission statement is the improvement of consumers’ lives. Thus, P&G develops its consumer goods to address challenges or problems consumers face. The third characteristic of the corporate mission refers to business performance, especially Procter & Gamble’s financial performance. The fourth feature depicts the desired combined effect of the activities based on Procter & Gamble’s mission statement, contributing to various stakeholders’ prosperity. Prosperity of stakeholders supports long-term business survival. This consideration is included in Procter & Gamble’s corporate social responsibility strategy.
Procter & Gamble’s Vision Statement
Procter & Gamble’s vision statement is “Be, and be recognized as, the best consumer products and services company in the world.” In this corporate vision, the term “best” characterizes what the company aims to achieve in the global consumer goods market. This factor indicates how P&G sees itself relative to other firms in the industry. In addition, the term describes the capabilities and potential of the business organization. In this regard, the corporate vision statement highlights the following characteristics relevant to Procter & Gamble and its business condition:
- Be the best consumer products and services company
- Be recognized as the best consumer products and services company
- Global market operations
The first characteristic of Procter & Gamble’s vision statement requires steps that ensure the company’s leadership in the consumer goods industry. P&G does not specify the criteria for determining the “best” position. However, typical considerations to achieve industry leadership include quality and value of products, quality of customer service, and corporate responsibility status, among others. These factors strengthen the business and its strategic fit, as shown in the SWOT analysis of Procter & Gamble. The second feature of P&G’s corporate vision statement focuses on recognition. Such recognition requires strategic objectives that involve marketing management, among others. For example, P&G needs to effectively implement its public relations strategy to enhance corporate and brand image. Such a strategy is included in Procter & Gamble’s marketing mix or 4Ps. The vision statement also indicates global market operations. The emphasis is on maintaining an effective global reach. Procter & Gamble already fulfills this part of the corporate vision by maintaining significant shares of various markets around the world.
An Assessment of P&G’s Mission & Vision
Procter & Gamble’s mission statement is a detailed account of strategic direction in the consumer goods market. For example, the corporate mission specifies a product development strategy that emphasizes quality and value. Also, the statement includes information about high sales, profit, and value. Moreover, the mission statement’s inclusion of the detail about the prosperity of stakeholders guides P&G’s corporate social responsibility strategy. Thus, based on conventions on writing ideal mission statements, Procter & Gamble’s corporate mission statement is satisfactory.
Based on the conditions of the consumer goods industry, The Procter & Gamble Company’s vision statement is satisfactory in following conventions on writing ideal vision statements. For example, P&G’s corporate vision specifies an ideal future business condition, which emphasizes leadership or being the best in the global market. A recommendation for a possible improvement of the vision statement is to include variables that P&G uses in determining such a leadership position. For example, the company can specify leadership or being the best in terms of financial performance, customer service, and product quality. These variables can make Procter & Gamble’s corporate vision statement more effective in guiding strategic objectives and decisions.
References
- Lizares, R. M. (2022). Investigating the association of mission statement and performance using the component and stakeholder approaches in an emerging market. Journal of Management & Organization, 1-25.
- Reid, S. E., & Crawford, C. B. (2022). Crafting the Vision Statement. In Entrepreneurial Vision: A Guide for Charting and Implementing the Visioning Process (pp. 263-276). Cham: Springer International Publishing.
- The Procter & Gamble Company – Form 10-K.
- The Procter & Gamble Company – P&G Announces Fiscal Year 2023 Third Quarter Results.
- The Procter & Gamble Company – P&G History.
- The Procter & Gamble Company – Policies and Practices – Purpose, Values and Principles.
- U.S. Department of Commerce – International Trade Administration – Consumer Goods Industry.