Shift Of The Organizational Structure Of P & G.

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Ans 1:
Shift of US organizational structure from product grouping in the 1950s to a matrix in the 1980s

In 1954, P&G created individual operating divisions to manage the growing lines of products, each with its own line and staff.
Since, United States had a large homogenous market with a nationwide brand and product division management; this model seemed to be helpful. Within this product grouping model, the organization developed along two key dimensions: functions and brands.

The brand managers in the model bore responsibility for profitability of the company. Brand managers of the same product division competed in the marketplace among one another but they shared access to strong divisional functions. A corporate basic-research
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This structure ultimately led to a situation in which innovation and brands could take more than to globalise leading to a need of another such structure that was more efficient and effective.
Another reason was that the functional organizations became embedded in company silos and European corporate functions were also completely disconnected from the US operation. To cap it all, focus on product categories and brands was fragmented by country, virtually precluding region- wide category or branding strategies.
This led to subscale manufacturing operations in each European country which were expensive and unreliable.
Thus in early 1980s, Europe attempted to promote cross border co-operation across functions and to shift focus from country management to product category management.

In the early 1980s, Europe attempted to shift focus from country management to product-category management. It encouraged the formation of regional committees composed of large-country managers and corporate functional leaders to eliminate needless product variations, coordinate marketing communications and prioritize product

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