Procter and Gamble

Because leadership is a key force in determining an organization’s success or lack thereof, the Gordons should consider putting a succession plan in place as soon as possible and should start grooming the would-be successor(s).

Procter & Gamble Co is an American global consumer goods company. P&G have various products that range from personal hygiene products to household products.

The company continually strives for innovation and leadership. Utilizing a decentralized management approach, it allows each of their companies to function as its own small business giving the advantages of both a small and large organization. The Executive Committee of Johnson & Johnson is the principal management group responsible for the operations of Johnson & Johnson. In addition, certain Executive Committee members serve as Worldwide Chairmen of Group Operating Committees, which are comprised of managers who represent key operations within the group, as well as management expertise in other specialized functions. These committees oversee and coordinate the activities of domestic and international companies related to each of the Consumer, Pharmaceutical and Professional segments of business. Operating management of each company is headed by a Chairman, President, General Manager or Managing Director who reports directly to, or through a line executive to, a Group Operating Committee. In line with this policy of decentralization, each international subsidiary is, with some exceptions, managed by citizens of the country where it is located.

The two divisions were often on different pages and experienced communication challenges. This created several pricing difficulties making it even harder to globally market the products. To further the problem, the ID felt as though their R&D received less than sufficient manufacturing resources, which limited the ability to forecast the global market.

The culture of ownership is great strategy to motivate employees because the owners try harder than employees, both to improve the customer satisfaction and to save costs. This can be done in 2 ways

But as the company grows, they will have to let go of this structure and culture. Even Peter wonders if this structure is suitable if the company will grow in the future. SOLUTION: By growing as a corporation in the future, the company should and will hire more and more employees, and as the personnel increases in number, the organizational structure and the culture will change.

Despite the inconsistent changes in spending from year to year, P&G’s market share consistently increased between 1% and 2% every twelve months (see Figure 1). The question is, with Unilever’s actions in regards to marketing expenditures, is the 15% increase going to be enough to restart P&G’s upward growth of market share?

Consequently P&G aimed to increase its innovative capacity and speed in order to accelerate global rollout of products and brands throughout new structures and policies. This was the main goal of Organization 2005:

P&G need to work hard and do more research and development in order to produce higher quality, more innovative, and more unique in products in order to answer consumer’s need and compete with those major world brand competitors.

In the year 2005 P&G went through a system of restructuring and strategic emphasis on innovation instead of geographic

Johnson & Johnson was founded in 1886 by a New England Druggist named Robert Wood Johnson. Robert had his ingenuity inspired when Joseph Lister revealed that infections in the operating room were caused by airborne germs. Robert joined with his brothers, James and Edward, and started producing dressings in New Brunswick, New Jersey in 1886. They started with only 14 employees and were situated in an old wallpaper factory. Johnson and Johnson became incorporated in 1887. (Johnson & Johnson)

There were several core problems that were interrelated around the strategy, organization, and structure of the company. Strategically, they were trying to do too many things. It wasn’t clear what the core businesses were,

2. Leadership Style - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4

As a large global company, P&G has strengths that have helped them to acquire such a vast market share. The company’s culture, strong product quality, the ability to understand customers, brand equity, and centralized management is at the

At that time, General Motor's board of directors may have failed to read the market.