Based on a philosophy of providing products of superior quality and value that best fill the needs of consumer, Procter & Gamble is one of the most successful consumer goods companies in the world. The company markets its brands in more than 140 countries and had net earnings of $1.6 billion in 1990. The Canadian subsidiary contributed $1.4 billion in sales and $100 million in net earnings in 1990. It was recognized as a leader in the Canadian packaged-goods industry, and its consumer brands led in most of the categories in which the company competed. Between 1987 and 1990, worldwide sales of P&G had increased by $8 billion and net earnings by $1.3 billion. P&G executives attributed the company's success to a variety of factors, including the ability to develop truly innovative products to meet consumers' needs. Exhibit 1 contains the statement of purpose and strategy of the Canadian subsidiary.