Procter and Gamble Case Study Essay

1132 Words Aug 20th, 2010 5 Pages
“Leadership, Innovation and Change at Procter and Gamble”
Procter and Gamble has capitalized on innovation and creativity to lead the consumer and household product industry. This paper will explore some strengths and weaknesses, as well as opportunities and threats that Procter and Gamble had utilized to sustain its success and competitiveness. This case study will also explore some characteristics of innovative organizations and why they have chosen to be innovative. I. Situation Analysis
William Procter, a candle maker, and James Gamble, a soap maker, formed this global and Fortune 500 Corporation in 1837 (corporate profile). Procter and Gamble (P&G) is headquartered in Cincinnati, Ohio. These two entrepreneurs
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They also focused on improving the speed of commercialization of new products. In addition, they wanted to move the company’s focus to higher growth, higher margin businesses such as health care and personal care. Another innovative play-to-win strategy that P&G management had adopted was the acquisition of its domestic and foreign competitors. P&G acquired a number of other companies that helped diversified its product line and increased profits significantly. In order to foster this aggressive strategy, management had integrated and reorganized all the manufacturing processes of the companies they acquired. Manufacturing processes of companies like Folgers Coffee, Norwich Eaton Pharmaceuticals, Richardson-Vicks, Noxell, Shulton’s Old Spice, and many others. “Innovation must be encouraged, carefully implemented within an organization at all times”. The pre-dominant leadership or management style in P&G is that of participatory, delegating, and empowerment. Management has decentralized decision making process in such a manner that middle level management most at times do not have to wait for headquarters approval and funding; in order to embark on certain key innovative projects. Because of the empowerment given to mid and senior level management within this

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