Essay on Pg Japan

1458 Words Apr 10th, 2012 6 Pages
Author: Christopher A. Bartlett Source: HARVARD BUSINESS SCHOOL PUBLISHING Description: Organization 2005, a reorganization that places strategic emphasis on product innovation rather than geographic expansion and shifts power from local subsidiary to global business management. In the context of these changes introduced by Durk Jager, P&G’s new CEO, Paolo de Cesare is transferred to Japan, where he takes over the recently turned-around beauty care business. Within the familiar Max Factor portfolio he inherits is SK-II, a fast-growing, highly profitable skin care product developed in Japan. Priced at over $100 a bottle, this is not a typical P&G product, but its successful introduction in Taiwan and Hong Kong
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In analyzing the three options of Chinese expansion, European roll-out, and further growth of Japanese market, Paolo should recommend P&G to continue concentrate its efforts in Japan Taiwan and Hong Kong to further penetrate and grow its share.
In Addition Paolo may suggest re-evaluating this strategy in one year, and perhaps conducting through this year markets analysis in territories and countries were SK-II may succeed. 2. Does O2005 support or impede SK-II's transfer worldwide?
There is a dilemma here.
On a conceptual strategic level O2005 supports a worldwide rollout. Yet since this rollout seems to still take place and cause more havoc than expected many executives are confused and therefore the potential for failure is enhanced. Thus, even though everyone may have a good intention, the worldwide rollout may fail just for reasons of the putting in practice the O2005 plan, such as – organizational change, changes in management structures and the various implications from operations via marketing to the sales. Another supporting argument is that here is also the issue of risk taking. Jager supports risk taking and so it is expected the SBU`s will take some risks in order to achieve product marketing breakthroughs and dramatically

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