Procter & Gamble: Organization 2005 (A) [Piskorski & Spadini, 2007]
September 25, 2012
Case Discussion Questions
These questions are mainly for class discussion. However, they will also be quite helpful in preparing for the quiz. The possible essay questions for the exam have already been sent in the guidelines for the first exam.
U.S. Divisional Structure in 1955 (Diagram 1) 1. What are the benefits of organizing by product rather than function? By using the product strategy brand managers in the same product division competed in the marketplace but shared access to strong divisional functions. Those transferred best practices and talent across many brands foresting leading edge competencies in the R&D,
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What are the reasons for P&G to have adopted a structure different from the one shown in Diagram 1? Marketing resources are being wasted on internal competition with each brand manager competing with same group of consumers. (-cannibalization) 7. What is the category-level manufacturing director able to do now that would not have been previously possible in Diagram 1? How much authority does he/she have? More authority in terms of sales, manufacturing, finance, R&D, Product development functions when compared to Brand management. Also Category Manager is a decision maker who is responsible for the entire firm’s product line whereas BM acts as independent decision maker and independent entrepreneur within the same firm.
Improves functional strength
Cooperation
Growth of VP
Information sharing
European Category Management in the early 1980s (Diagram 4) Hybrid structure 8. How is this structure different from the structure shown in Diagram 3? To promote cross border cooperation across functions and to shift focus from country management to product category management. Restructured around product categories. Country GM’s were replaced with multiple-country product category GM’s who reported to the division VP’s. 9. What are the reasons for P&G to have adopted a structure different from the one shown in Diagram 3? The model was not effective. Unstandardized and subscale manufacturing operations in each country were expensive and
Please use this template to answer the questions below in essay format. The minimum word count for the three questions of Part 1 is 300 words total (or 100 words per question). A reference citation is required.
Three of the four questions below will appear on the exam and you will be asked to address all three. Maximum: Three sentences for each question.
This structure is unlike that of the Philips where locals, within the national organizations, held senior management positions. Basically, the structure gave some leeway to product control but still kept the same global image of Matsushita. As times/cultures changed, the strategy that existed with Matsushita during the early years proved to be the foundation of a successful company.
Regionalization: New structures were formed in order to approach the ID problems. The organizational reconstruction focused on speed of results, process to be driven by B&L executives, and input from as many B&L employees as possible. A significant amount of time and money was dedicated to creating a task force that was goal was to evaluate organizational structure. They concluded that it was necessary for a fine-tuning of the current organization structure, a regional structure, a product-region matrix, and a global product structure.
P&G intended to overcome the tensions and conflicts of interest that arose in the former matrix structure between category management and regional managers by the clear definition and reallocation of responsibilities for product development, brand design and business strategies to GBUs and market development to MDOs.
P&G set up the newly reorganized global operations. I’m going to explain how the company works with its new global operations strategy and how P&G could push SK-II to world brand by using P&G’s target market – China, Europe, and Japan. By using the implement of Organization 2005 (O2005), the company is expected to have more annual growth rate together with less expense. P&G gives more compensation along with more responsibility tasks. P&G allows every employee in company to hold firm’s stock. P&G transferred primary profit responsibility from P&G four regional organizations to seven global business units.
has opened up for us, and it appears that we finally have a chance to resolve, once
Organizational Hierarchy Structure- Toys R Us was a decentralized organization, which had a leadership type setting from country to country. This type of structure was difficult because all the leaders from different countries were not communicating effectively. The company knew they had to make some changes to the system, if they wanted to be successful. Therefore, after careful consideration, the company decided to move to a more centralized structure. This change was needed to strengthen their business with regards to their compatibility amongst countries and creating a more efficient workplace in the United States and abroad. In the company’s business in Europe, instead of their being different leaders across the continent, there will
The strength of Philip’s current organizational structure lies in the fact that it organizes around market needs, rather than products and core competencies. The company continued to bring
It did so in order to better focus its resources on changing customer needs as well as emphasize its strengths in the market place. The organizational structure now consists of centralized engineering and marketing organizations. This way the company has the ability to prevent product and resource overlaps and more effectively allocate its resources to areas yielding optimum profitability. The engineering side has eleven technology groups with people heading multiple groups and reporting to one person who then reports to the CEO. The marketing side has one head who reports to the CEO as well.
3. Is the present structure consistent with current corporate objectives, strategies, policies, and programs, as well as with the firm’s international operations? Yes, all areas are
You are to answer the following questions in your own words. Please post the questions with your answers in the text box below to submit your work. Remember to use complete sentences, use proper grammar, and don't forget to proofread and spell check your work before submitting it. This may require additional internet research, so be sure to cite your sources.
Is the present structure consistent with current corporate objectives, strategies, policies, and programs, as well as with the firm's international operations?
A global product group structure is a variant organizational structure which has product groups along a vertical axis and foreign (overseas) divisions, or business units, on a horizontal axis. The primary purpose of the product group structure is: