P & G Case Study

5112 Words 21 Pages
Register to read the introduction… Attempts to superimpose aggregation across Europe first proved difficult and, in particular, led to the installation of a matrix structure throughout the 1980s, but the matrix proved unwieldy. So, in 1999, the then CEO, Durk Jager, announced another reorganization whereby global business units (GBUs) retained ultimate profit responsibility but were complemented by geographic market development organizations (MDOs) that actually managed the sales force as a shared resource across GBUs. The result was disastrous. Conflicts arose everywhere, especially at the key GBU-MDO interfaces. The upshot: Jager departed after less than a year in …show more content…
Although most companies will focus on just one “A” at any given time, leading-edge companies such as GE, P&G, IBM, and Nestlé, to name a few, have embarked on implementing two, or even all three, of the “A”s. 8. There are serious constraints on the ability of any one company to simultaneously use all three “A”s with great effectiveness. Such attempts stretch a firm’s managerial bandwidth, force a company to operate with multiple corporate cultures, and can present competitors with opportunities to undercut a company’s overall competitiveness. 9. Most companies would be wise to (a) focus on one or two of the “A”s, (b) make sure the new elements of a strategy are a good fit organizationally, (c) employ multiple integration mechanisms, (d) think about externalizing integration, and (e) know when not to integrate.

Beware the pitfalls of Global Marketing
Kamran Kashani
The article is mainly drawn from a study done by the author about 17 cases of marketing standardization at 9 American and European multinationals. Winners and Losers * Differences in outcome often depends on the process followed in decision making. * How are the global decisions conceptualized? Refined? Internally communicated? And finally implemented? 5 pit falls: 1. Insufficient
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* Shortcutting the early step of research in a decision process is likely to be costly. 2. Over standardization: a. Again the case of Polaroid introducing SX-70 camera in Europe, the company employed the same advertising strategy including TV commercials and print ads as it was done in America. Didn’t find success b. But later the contributions from European subsidiaries were included and it became a success story 3. Poor follow-up c. Usage of DEC standardized system for sales management started with much fanfare and announcement but later there was no follow up communication. d. If each subsidiaries are left to do their own things and at their imagination, then new marketing campaign is likely to fail 4. Narrow Vision e. To look after the health of a global marketing program, there has to be a central coordinating organization. f. The coordinating body should provide a common forum for debating alternatives or sharing solutions to common problems. 5. Rigid implementation g. In the 17 cases studied by the author, every case in which there was rigid implementation of the marketing strategy has

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