Procter & Gamble

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Procter & Gamble GBS Report & Recommendations
Introduction:
P & G is the quintessential American company, with more than 175 years of history. Coming from humble roots, it was established by a partnership of William Procter and his brother in law James Gamble. Over its extensive history, P&G has followed an aggressive “growth by acquisition” strategy which has transformed it into the global manufacturer of household & health items in the world. After P & G’s merger with Gillette in 2005, it controlled 22 individual brands, 8 of which would each be large enough to be included in the Fortune 100. Due to recent changes in market conditions and renewed competition, P & G started to change strategies and became
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Outsource GBS divisions separately to best-of-breed companies:
Pros:
* Allow P&G to control the cost of services and retain the quality of services from experienced employees who are familiar with P&G’s business processes. In fact, this choice may actually improve the quality of services, as P&G will most likely seek out only companies who are at the top of their respective service industries. These “Top-of-Breed” companies will most likely add experience and know-how to bring additional value to P&G. * May prevent job losses * Allows P&G to focus on core businesses
Cons:
* All previous concerns from option ii * Multiple partnerships necessitated by this option could prove extremely costly and complicated to integrate and manage

iv. Retain GBS in-house
Pros:
* Maintain continuity with employees possibly boost morale * Least disruptive to employees * Less conflict with core values * Develop business unit further than other options
Cons:
* Costly investment to make GBS competitive in the long run * Makes Org structure more complex * P&G may eventually outgrow the capabilities of GBS (temporary fix)
Recommendations:
After careful analysis, I’ve decided to recommend that P&G spin GBS off as a separate business. This move will allow P&G to keep its commitment to

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