P&G's Strategic Value Chain and Outsourcing Approach PPT

This PPT slide, part of the 159-slide Strategy Frameworks Manual PowerPoint presentation, presents an analysis of value chains with a specific focus on Procter & Gamble (P&G) as a case study. It highlights P&G's leadership in adopting a networked business model, emphasizing the importance of core capabilities in developing and commercializing products. The quote from A.G. Lafley, P&G's Chairman and CEO, underlines the strategic decision to outsource non-core functions, allowing the company to concentrate on areas where it excels, such as branding and customer business development.

The P&G value chain diagram illustrates various functions, including product development, procurement, manufacturing, logistics, and customer marketing. Each function is linked to specific outsourced services, such as global employee services, corporate facilities management, and IT management. The slide indicates that P&G has rolled out an e-procurement system for maintenance, repair, and operations (MRO), which signifies a move towards efficiency and cost-effectiveness in procurement processes.

Additionally, the slide notes partnerships with companies like Schneider and Exel Logistics, which are viewed as differentiators in P&G's operational strategy. The planning to outsource payables suggests an ongoing commitment to streamline operations and enhance focus on strategic initiatives.

Overall, the content serves as a practical example for organizations looking to optimize their value chains by leveraging outsourcing and strategic partnerships. It encourages a reevaluation of core competencies and the potential benefits of adopting a similar approach to enhance operational efficiency and market responsiveness.

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Strategy Frameworks Core Competencies Value Chain Facilities Management Business Development Leadership Product Development Manufacturing Logistics

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