Transnational Corporation Article Example | Topics and Well Written Essays - 2500 words

Transnational Corporation - Article Example P&G is no exception .It has launched a systematic expansion strategy in such foreign markets to acquire a truly international hue. This paper addresses the issue of globalization of P&G and explores the details of the strategy adopted by P&G within the framework of an examination of strengths, weaknesses, opportunities and threats. P&G is a US company and has its main office in Cincinnati; USA.P&G is one of the largest manufacturers of fast moving consumer goods (FMCG) in the world. P&G enjoys a noticeable proportion of market share in numerous product categories: beauty care (Pantene, Olay, Cover Girl), paper goods (Bounty, Charmin, Pampers), food and beverages (Folgers, Pringles, Duncan Hines), laundry and cleaning (Tide, Cascade, Dawn), and health care (Crest, Scope, Metamucil). A literature piece in the Fortune Europe edition (April 17th, 2006) reported that Procter & Gamble ( ranked number 24 in the Fortune 500 list) had as many as 22 brands in its stable with each exceeding 1$ billion in sales. P&G had acquired 5 of these brands during the course of its $61 billion acquisition of Gillette (which was acknowledged as the largest merger of the year 2005). The strength and size of P&G was conclusively certified by ACNielsen, which surveyed and found that 99% of U.S. households use one or the other P&G produc t. P& G completed the acquisition of The Gillette Company for approximately $53.43 billion on October 1, 2005. At that point of time Gillette was the leading consumer products company that had $10.48 billion of sales in its most recent pre-acquisition year ended December 31, 2004. (Annual Report 2006). Theory behind the strategy of Globalization Dunning (1981) posits that three conditions need be met concurrently in order to initiate an FDI decision. The investing organization should derive both an ownership (O) advantage and an internalization (I) advantage, as the foreign market presents a clearly calculated and reckoned locational (L) advantage. P&G has been carefully vetting all three in its strategy for globalization. Globalization has brought about intense competition for global markets amongst the major multinational companies. These companies have been looking outwards to reorient their organizational structures and strategies to capture the global markets by positioning their products strategically. A recent study of the US and European companies revealed that 75 percent were taking up the above strategic reorganization in order to stay competitive and staying competitive was considered the single most important external issue on their agenda. Past experiences have shown that poor planning further embattled by rudi mentary understanding of the cultural aspects of the global market places had ruined the huge marketing campaigns of even the multinational companies. Coke CEO stated," Coke has had to come to terms with a conflicting reality. In many parts of the world, consumers have become pickier, more

Rational-Emotive Behaviour Therapy Theory Essay

Rational-Emotive Behaviour Therapy Theory - Essay Example The fundamental premise of the theory is based on the fact that almost all emotions and behaviors are caused by what people believe about the situations they face. The theory posits a bio-psychosocial explanation of how individuals come to feel and behave. This stems from the belief of Ellis that both biological factors and social factors are involved in the experiencing and action processes. This idea is important, for it proposes that there are limits to the extent that a person can change (Ellis A. , 2003). Ellis argues in his theory that all humans have the ability to interpret reality in a clear, logical and objective manner and avoid unwanted emotional behavioural disturbances. Furthermore, he argues that in addition to these abilities, humans are also predisposed to irrational interpretations (Collard & OKelly, 2011). They are predisposed to twisted or illogical thinking, draw illogical conclusions that are impartial and are cognitive distortions of reality (Levinson, 2010). Ellis identified four standard characteristics that represent an irrational interpretation of reality. These four standard characteristics are demands of something that is not of the real world, other people or the individual; amplification of the awfulness of something an individual dislikes (Macinnes, 2004); conclusion that one cannot tolerate the thing they dislike and finally condemnation of the world, other people or the individual (Dryden, 2003). The characteristics identified above are expressed in speci fic irrational ideas and beliefs (Macinnes, 2004). Ellis suggested that the targets for change in psychotherapy are those thoughts, attitudes beliefs and meanings that cause emotional-behavioural disturbances and then goes ahead to present the rational emotive behaviour therapy (REBT) (Windy & Neenan, 2004).   REBT teaches individuals how to identify their own self defeating ideas, thoughts, beliefs and actions and replace