As markets and technologies change more and more rapidly
organizations mustiness respond quickly and frequently to strategic moves if they
are to keep competitive advantage. Durk Jager took everyplace as the upstart CEO
of P&G to make changes in the company, so that P&G understructure change its
culture, regain its market share, and find successful new products.
P&G is one of the big companies in the regular army with $37 billion in
revenues in 1998.It sold over ccc brands in 140 countries. It was organized
as a matrix of course of instruction and functional hierarchies and organized into four
major division; laundry and cleanup products; food and beverage; health
and beauty care; and paper products.
P&G has stopped growing, which has flattened out revenues, and
its most celebrated brands have been losing their market shares. The reasons
behind this are that the company could non respond to changes around it; it
could not innovate the new products that push aside make difference form others;
and instead of encouraging people, P&G has become known as the land of
the proctoids a place that squelches entrepreneurs, creative types, and free
thinkers.
It sees entrepreneurs ,creative types ,free thinkers as trouble makers
PROBLEMS
I- Strategic planning: Environment and consumer needs are
changing and P&G couldnt do the necessary arrangements to meet those
changes when it was supposed to.
II- organisational Structure: P&G was organized as a matrix of
category and functional hierarchies. Its achingly slow. Decision-making
takes time because nark the in pution takes much time. Process of a
product is so slow that it might take five years to get a new product out.
P&Gs ads must be written in the specific format otherwise they get sent
back over and over until its right typically an ad went through 15
changes before it could be given to the brand manager.
III- Innovation: P&G has kept...If you want to get a full essay, disposition it on our website: Orderessay
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