Evolution of Strategy at Procter & Gamble

573 Words Jun 10th, 2013 3 Pages
Global Issues in Business
Week 5 Case Analysis
DeVry University
Federal Way, Washington

Summary In the case study “,” it discusses the history of Procter & Gamble’s foreign business strategy and some of the problems they incurred along the way. It also covers some of their business strategy changes the company introduced in order to become more profitable in a changing world economy along with a more globalized less restrictive trade and business environment. It’s summarized with a detailed discussion regarding P & G reorganization and complete restructuring of the company to control its costs by having European plant closures and layoffs.
Questions 3 a, b, c
a. What strategy was Procter & Gamble
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c. What strategy does P&G appear to be moving toward? What are the benefits of this strategy? What are the potential risks associated with it?
Procter & Gamble appear to be more of a transnational strategy while leaning to a global strategy. There are matrixes of these different strategies and depending on the product(s), places and people each company has to evaluate which one would work best for them. “For an organization to be successful in a global market they must adopt a globalization process which includes transnational communications, cooperation and transactions.”(3) Transnational organizations offer a variety of benefits like around the clock service because they operate in multiple time zones, different languages for customer service and flexible hours mixed with global market reach and efficient-low cost structures. (Transnational can be subject to political or economic instability, insufficient technological infrastructure and pure technical knowledge of the hosting nation.)(4) Understanding these differences ahead of time is crucial to success as it is to understand the people and its culture. Assimilating and integrating an employee training and retention program as well as good communications with the local employees are equally important in your company’s success.

Sources:
(Hill 413)
1) Hill, Charles W.L.. Global Business Today, 7th Edition.

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