Proctor and Gamble 2007 Annual Report Download - page 20

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


We made three clear growth choices at the beginning
of the decade: to grow P&G’s core businesses, to expand
our presence in faster-growing, higher-margin businesses,
and to win with lower-income consumers and in developing
markets. We haven’t changed course. Our strategic
discipline has led to 6% average organic sales growth
since the beginning of the decade.

We have highly detailed work processes that force
discipline and focus throughout critical business activities
such as the development and launch of new products,
building marketing plans, enhancing brand equities,
and developing joint business plans with retail customers.
We instill strict operational discipline to ensure best
practices are consistently applied from brand to brand
around the world.

To create shareholder value at the company level, we
ensure each business within P&G’s portfolio is contributing
at least its fair share of growth and value creation.
We measure the value contribution of an individual
business using operating Total Shareholder Return (TSR).
Operating TSR is driven by sales growth, prot margin
improvement and asset efciency. Importantly, since
operating TSR is highly correlated with the Company’s
stock price performance, focusing on maximizing TSR
ensures management is exercising nancial discipline and
making decisions that create value for P&G shareholders.
The Procter & Gamble Company
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