Procter&gamble company Term Paper Example | Topics and Well Written Essays - 1750 words

Procter&gamble company - Term Paper Example These units include Global Beauty, Global Baby, feminine and Family Care, Global Fabric and Home Care, and Global Health and Grooming. All these units focus on common consumer benefits, common technologies and face common competitors. The company has invested $9.7 billion in 2013 and is consistently one of the world’s top advertisers. Sports sponsorship is very popular with P&G while they also engage in social responsibility in various ways. One of the ways that P&G tries to bring the comforts of home to families impacted by natural disasters is by responding to disasters all over the world through product and cash donations. On October 30, 2013, P&G news release states that the company has expanded its partnership with American Red Cross by joining the Disaster Responder Program to support Red Cross Disaster response work worldwide. This represents a milestone in P&G’s commitment to bring relief to the disaster-stricken. In the past decade P&G has created programs like Tide Loads of Hope and Duracell Power aimed at bringing clean clothes, batteries and power to families recovering from disasters. They know some of their products can bring immediate relief and hence P&G employees pack kits containing P&G brands such as Secret, Gillette, Crest, Ivory and Lams, which are then distributed after the disaster through mobile relief units. Their partnership with American Red Cross ensures the victims receive immediate care in critical moments after the disaster. Brands such as Pampers, Crest and Tide help in rebuilding their lives with the dignity that comes with clean clothes. P&G has worked in partnership with American Red Cross for disasters like Oklahoma Tornadoes, Hurricane Isaac and Superstorm Sandy. P&G engages in corporate social responsibility (CSR) activities in other ways. On October 10, 2013, P&G announced that some of its brands such as Duracell, Tide and Secret had underwritten all their production costs for the Nyad Swim for Relief. To sup port Hurricane Sandy recovery efforts, long-distance swim legend, Diana Nyad organized 48-hour â€Å"Swim for Relief† in New York City’s Herald Square. The funds would be donated to AmeriCares, a non-profit global health and disaster relief organization that delivers medicines, medical supplies and medical aid to people in need across the world, including the United States. Established in 1982, AmeriCares has distributed humanitarian aid worth more than $11 billion across 164 countries. Hurricane Sandy had destroyed nearly 125,000 homes in New Jersey alone and caused an approximate damage of $70 billion across the eastern seaboard. Yet another way that P&G demonstrates its responsibility towards the society is by extending educational scholarships to students committed to improving oral health of the Hispanic community. On September 26, 2013, P&G Hispanic Dental Association Foundation (HDAF) announced recipients of their annual scholarship program. These scholarships w ere awarded to 16 entry-level US Hispanic students that have been accepted into any accredited dental program. The awardees were based on their scholastic achievement, community service, leadership skills and commitment to improve health in the Hispanic community. Apart from providing scholarships to the next generation Hispanic Dental students, P&G and HDAF have also taken up the responsibility to correct misperceptions the US

Global financing and exchange rate mechanisms Essay

Global financing and exchange rate mechanisms - Essay Example Big Mac was specifically under consideration because it was the only chain present in almost every country and have an affordable price, that can be dealt with an average income individual (Kotler & Armstrong, 2009). BIG MAC THEORY: Mc Donald’s best selling product is Big Mac. While hanging out with friends, or for lunch or dinner, people order mouth watering Big Mac with accessories. Big Mac Theory is a theory named to make this product, the most profiting product around the globe. The theory that stabilizes the Big Mac profit is the relationship between currencies, the United States Dollar (USD) with other foreign currencies at current exchange rates. Fed, an economist calls this exchange rate theory a game of achieving with currency rates. Big Mac theory tells us that the original exchange rate that is a nominal exchange rate was adjusted for the ratio of different prices to local prices that allows economists to compare the purchasing power of different currencies (Kotler & Armstrong, 2009). To make it clearer PPP Purchasing Power Parity of foreign currencies is measured by the use of Big Mac Theory. Local currency is used for price comparison and will convert it into USD. The country in which Big Mac price in terms of USD is supposedly be higher, it is considered to have an overvalue in comparison to U.S. dollars. Opposite to this if the estimated price in terms of USD is low then it is an undervalued currency. Globally it is considered to be a consistent price around the globe. This theory is referred as Purchasing Power Parity (Kennedy, 2006). Other then Purchasing Power Parity, many factors are there to put influence on the price of Big Mac. Factors other than PPP are labor cost, rent, and other surcharges, which later are added while fixing the final price but that only affects the local consumers and have no relation with McDonald’s head institution. If the exchange rates are allowed to fluctuate, the currency value will establish and ca n be factorized efficiently in these variables that allow investors to employ capital inflow efficiently. In short, Big Mac theory is about profits at exchange rates (Kotler & Armstrong, 2009). GLOBAL FINANCING OPERATIONS AND EXCHANGE RATE MECHANISMS: Global financing operations are for those institutions that work or invest on an international level and follow set standard regulations, opposed to institutions who work on regional or national level. To maintain these operations, IMF, World Bank, government agencies and ministries of finance design laws and rules through understanding and economic laws. McDonald’s is an international food chain and running its franchises all around the globe. It follows a law of one price that means that selling price is fixed in one currency and is sold at the same rate in any country at the exchange rate (Kennedy, 2006). Purchasing Power Parity (PPP) explains that purchasing power of Big Mac vary according to the price that comes out at exch ange rate. For example if Big Mac is sold at $2.5 in U.S., the rate of Big Mac in U.K will be ?2. It does not include tariff charges or carriers to keep cost neutral (Kotler & Armstrong, 2009). RISK MANAGEMENT: McDonald’s Big Mac is sold every day in different regions in different quantities. It very much depends upon the purchasing power