Case Study : Procter And Gamble Essay

Decent Essays
What began as a small, family-operated soap and candle company now provides products and services of superior quality and value to consumers in over 180 countries. However, with the implementation of the restructuring program, Organization 2005, Procter and Gamble is sent on slipper slop. Will they be able to see the light at the end of the tunnel? Follow me on the journey leading up to the reconstruction and to the newfound leadership of A.G. Lafley. Many changes in Procter & Gamble took place within the decades prior to the reconstruction of 1998. One was the shift of the US organizational structure from product grouping in the 1950s to a matrix model in the 1990s. Product grouping was quick and more consumer focused business decisions could be made by brand managers at lower levels in the corporate hierarchy. Brand managers held responsibility for profitability and could focus on matching company strategy with product- category dynamics. The company shifted to a matrix model where structure was broken up by business units and centralized functions. Functional leaders reported directly to their business leadership and also had a dotted-line reporting relationship to their functional leadership. This shift was made because the US was a homogenous market focused on brand and functions. Centralizing the structure would give more condensed focus on both function and brand. Whereas the US shifted from product grouping to a matrix structure from the 1950s to the 1980s, the
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