This case study is a brief analysis of the Procter and Gamble (P&G) company’s strategic posture during the late twentieth century. It provides a short description of some of the strategic issues the organization faced during that time period to remain competitive and a leader in the consumer goods global market. The first part of the case study provides a short introduction of the company, its net worth, as well as a brief line up of its products, followed by a short description of strategic issues, solutions and recommendations that are in line with the strategic goals of the company.
Company Background
P&G manufactures and sells consumer goods, founded in 1837 by William Procter and James Gamble; the company started its humble beginnings …show more content…
The trade barriers that existed in the 60s made duplication efforts part of their early success, when the barriers began to fall, the divided markets started to grow together and larger, the existing organizational structure ended up decreasing revenue because each one of the markets duplicated the same administrative and operational platforms. Although the company restructured in order to remain competitive, it did not take into account how the world would become increasingly smaller and borderless due to technological advances and trade agreements. The company’s management failed to plan for organizational and market changes driven by globalization. A way to focus on increasing profitability and decrease the costs of production is to adopt a global strategy, which requires reduction of duplicate efforts, actions like closing manufacturing plants, streamlining operations, investing in new equipment, and reorganizing the company structure and assets, as it did with P&G, to remain competitive in the global market.
Alternate …show more content…
Regardless of whether the global and market environments are stable, an organization needs to exercise control over its operations to meet its strategic goals and manage risks. A well-designed organization avoids pitfalls such as poor communication gaps (cite) between the subordinate global units by ensuring each unit understand the strategic goals and how each fits in the overall design. Review the products line up, P&G should remain vigilant on the brands that make revenue and adjust them to meet the local market needs. Production of variances in products to meet the local cultural and socioeconomic stance should be at the forefront in the global units. Corporate headquarters should review the market analysis before introducing new products to a developing country, it make little sense to sell a core brand at normal price to a developing country if the consumers cannot afford
Company Background
P&G manufactures and sells consumer goods, founded in 1837 by William Procter and James Gamble; the company started its humble beginnings …show more content…
The trade barriers that existed in the 60s made duplication efforts part of their early success, when the barriers began to fall, the divided markets started to grow together and larger, the existing organizational structure ended up decreasing revenue because each one of the markets duplicated the same administrative and operational platforms. Although the company restructured in order to remain competitive, it did not take into account how the world would become increasingly smaller and borderless due to technological advances and trade agreements. The company’s management failed to plan for organizational and market changes driven by globalization. A way to focus on increasing profitability and decrease the costs of production is to adopt a global strategy, which requires reduction of duplicate efforts, actions like closing manufacturing plants, streamlining operations, investing in new equipment, and reorganizing the company structure and assets, as it did with P&G, to remain competitive in the global market.
Alternate …show more content…
Regardless of whether the global and market environments are stable, an organization needs to exercise control over its operations to meet its strategic goals and manage risks. A well-designed organization avoids pitfalls such as poor communication gaps (cite) between the subordinate global units by ensuring each unit understand the strategic goals and how each fits in the overall design. Review the products line up, P&G should remain vigilant on the brands that make revenue and adjust them to meet the local market needs. Production of variances in products to meet the local cultural and socioeconomic stance should be at the forefront in the global units. Corporate headquarters should review the market analysis before introducing new products to a developing country, it make little sense to sell a core brand at normal price to a developing country if the consumers cannot afford