P&G in 2005

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Case Details:

Case Code : BSTA011
Case Length : 17 Pages
Period : 1990 - 2005
Organization : Proctor and Gamble P&G
Pub Date : 2005
Teaching Note :Not Available
Countries : USA
Industry : Consumer Products

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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.

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Global Thrust

P&G's globalization efforts had accelerated in the 1990s. The appointment of fifty-nine-year-old Ed Artzt (Artzt) as chief executive in 1990, appointment of two new executive vice presidents, Durk Jager and Jurgen Hintz, both foreign born with most of their careers spent outside the US, and John Pepper (Pepper), as president of P&G International reinforced the company's global outlook...

Revamp of Portfolio

Even as P&G decided to support core brands and fund new growth opportunities it made a realistic assessment of the long-term viability of underperforming brands and businesses.

In 1992, P&G began to sell off its operations in cotton linters and wood pulp, including the P&G Cellulose (formerly Buckeye) subsidiary established in the early twentieth century...

Streamlining Operations

In 1992, P&G regrouped its sales force under a new organization called Customer Business Development (CBD). Structured around national (and eventually global) accounts, CBD forged close relationships with its customers to streamline the supply chain...

Encouraging Innovation

The SGE initiative had an immediate impact on P&G's bottom line, but did not boost sales. P&G realized that incremental innovations, product line extensions, and flanker brands were not enough to generate faster growth. It needed to accelerate the development of major new brands and new lines of business...

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