Procter & Gamble
I shall use the P&G (Procter & Gamble) Company because it is not only leading in the household and personal industry but also because of its wide-ranged products, which essentially satisfies our basic and self-esteem needs. These products are purchased almost on an everyday basis in the market. And for this reason, P&G serves me well as an interesting focus for my economic analysis.
Economic Terms
Consumers
(Economics,2008)Refers to people who use the goods or products and/or services. This term is applicable in making references to the people who use the products during marketing. This is done in general sense.
Consumer Goods
(Economics,2008)Refers to the goods intended for final consumption. This term is applicable in giving definition and explanation of the nature of the products produced by PG Company.
Opportunity Cost
(Economics,2008)Refers to the the cost of an economic decision. The classic example is “guns or butter.” What should a nation produce; butter, a need, or guns, a want? What is the cost of either decsion? If we choose the guns the cost is the butter. If we choose butter, the cost is the guns. nations bust always deal with the questions faced by opportunity cost. It is a matter of choices. Resources are limted thus we cannot meet every need or want.
Therefore, it is applicable to the company when it is faced by such scenerio mentioned above.
Current Event
Thank You Mom
(Events: P&G, 2012)It’s a relatively current event undertaken by P&G Company in their promotional efforts which was sponsored by the Olympics committee, aimed at recognizing and appreciating moms all around the world for their devotion to nurture their children’s talent and abilities outside classroom. It brought up the issue of rewarding moms who have succeeded in upbringing the talents of their children. However, this issue got influenced by the economic concept of scarcity and opportunity cost. Therefore, because of scarcity in resources and opportunity cost evaluation, P&G was not able to reward all the deserving mothers but rewarded the few best mothers of different nationalities.
Current Article
Media Kit FY 2011-2012
(P&G, 2011-2012) This article entails information on areas of the company like P&G at a Glance, Purpose-inspired, Growth Strategy, Corporate Structure, Global Operations, P&G Innovation, Company Leadership, Leadership Brands, Sustainability –environmental and Social Causes and P&G’s History.
From this article, economic concepts such as choice are brought up in one way or another. For instance under the area of leadership brands, the economic concepts of choice and opportunity cost arise as consumers will be faced with difficulty in making a choice due to the opportunity cost.
Bibliography
Events: P&G. (2012). Retrieved from P&G: www.pg.com
Economics. (2008). Retrieved from Economist: http://www.economist.com/research/economics
P&G. (2011-2012). Innovating for everyday life. Media Kit FY, pp. 1-25.
