P&G Japan the Sk-Ii Globalization Project Essay

3486 Words Sep 30th, 2011 14 Pages
P&G Japan: The SK-II Globalization Project

When looking at the archetype of P&G it can be seen that it is an Multi Centred MNE. Which consists of a set of entrepreneurial subsidiaries abroad which are key to knowledge-based FSA development. National responsiveness is the foundation of the international strategy. The non-location bound FSAs that hold these firms together are minimal: common financial governance and the identity and specific business interest of the founders or main owners.

Later on a transformation can be seen. P&G tends to be a combination of a Multi Centred MNE with an international projector. This because an international projector is built upon a tradition of transferring its proprietary knowledge development
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The old regional organizations were reconstituted into seven market development organizations that assumed responsibility for local implementation of the GBUs’ global strategies. And transactional activities such as accounting, human resource, payroll, and much of IT were coordinated through a global business service unit.

Via this Jager believed that P&G could not only reap economies but might also remove a major barrier to rapid new-product rollouts.

Overall, six management layers were stripped out, reducing the levels between the chairman and the front line from 13 to 7.

The organizational constraint:
While the strategic opportunities were clear, de Cesare also recognized that his decision needed to comply with the organizational reality in which it would be implemented. Jager was among those in P&G who openly questioned how well some of the products in the beauty care business-particularly some of the acquired brands-fit in the P&G portfolio. In his view, the fashion-linked and promotion-driven salesmodels of luxury products neither played well to P&G’s “stack it high, sell it cheap” marketing skills nor leveraged its superior technologies.

The other organizational reality was that the implementation of O2005 was causing a good deal of

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