Restructuring P&G


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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:

Price:

Case Code : BSTR068 For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Rs. 25 for Shipping & Handling Charges

Themes

Corporate Restructuring
Case Length : 20 Pages
Period : 2003
Organization : Procter & Gamble
Pub Date : 2003
Teaching Note : Not Available
Countries : USA
Industry : FMCG

Abstract:

The case discusses the 'Organization 2005' program; a six-year long organizational restructuring exercise conducted by the US based Procter & Gamble (P&G), global leader in the fast moving consumer goods industry. The case examines in detail, the important elements of the restructuring program including changing the organizational structure, standardizing the work processes and revamping the corporate culture. The case elaborates on the mistakes committed by Durk Jager, the erstwhile CEO of P&G and examines the reasons as to why Organization 2005 program did not deliver the desired results. Finally, the case discusses how Alan George Lafley, the new CEO, accelerated the initiatives under the Organization 2005 program and revived P&G's financial performance.

Issues:

Gain insight into the common causes that contribute to steady decline over a period of time in the performance of a large multi-product multi-national company of high repute

Contents:

  Page No.
Introduction 1
Background Note 2
The 'Organization 2005' Program 4
Change in Organization Structure 4
Standardization of Work Processes 5
Revamping the Corporate Culture 7
The Mistakes Committed 8
Enter Lafley - Implementing Strategies To Revive P&G 10
P&G - Current Status 11
Exhibits 13

Keywords:

Organization 2005, six-year, organizational restructuring, US, Procter & Gamble, P&G, consumer goods, standardizing, work processes, corporate culture, Durk Jager, CEO, Alan George Lafley, financial performance

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