Product details

The case discusses the corporate espionage controversy involving two of the world''s largest consumer product companies, Procter & Gamble (P&G) and Unilever, in the early 21st century. It gives an overview of the concepts of competitive intelligence and corporate espionage and examines the differences between them. It then outlines the evolution of corporate espionage over the centuries and examines the reasons for its increasing use. Next, the case details the covert operation conducted by P&G to gain competitive information about Unilever''s shampoo business in the US. It examines the steps taken by P&G''s top management after discovering the secret operation, to settle the matter with Unilever. Finally, it talks about Unilever''s response to the incident, its settlement demands, and summarises the lessons that can be learnt from this episode. The case is designed to enable students to; (1) understand the concept of competitive intelligence (CI) and its need vis-a-vis the concept of corporate espionage; (2) examine the evolution of corporate espionage and its impact on companies worldwide with special reference to the US; (3) analyse the covert operation initiated by P&G to gain commercially sensitive information about Unilever''s shampoo business in the US and the methods used by its agents to do so; (4) examine the steps taken by P&G''s and Unilever''s top managements to deal with the issue and work towards a settlement; and (5) understand the legal and ethical issues involved while using corporate espionage practices and discuss the lessons that can be learnt from the P&G-Unilever story. The case is intended for MBA/PGDBM level students as part of the ethics and social responsibility curriculum. This case does not contain an analysis of the case.