Case Analysis: Changing Structure at P& G
Case Analysis: Changing Structure at P& G
Assignment 8.1: Case Analysis: Changing Structure at P&G
In this final case analysis, you will have an opportunity to explore an organization’s approach to changing its organizational structure away from its previous regional structure. You will find management in the middle of implementing the change and wondering if this approach was such a good idea after all. In this case, the organization working on this change effort is the consumer goods giant Procter & Gamble.
Procedure
- Read “Revamping Procter & Gamble: Organization 2005,” case 17-1, on page 595 of Global Marketing Management (text).
- Research business news and the P&G website as you see fit.
- Answer the following questions:
- What advantages does a regional divisional structure have in this case? What disadvantages are likely?
- What led the P&G management to the conclusion that a global product-based structure would be the right structure going forward?
- What is your assessment of “Organization 2005”? Is it the right approach? Why or why not?
- What is happening in terms of organizational structure at P&G now?
Answer preview
Q3a. Advantages and disadvantages of a regional divisional structure
In the case on Procter and Gamble, the use of the regional divisional structure had various advantages. The structure ensured accountability since every region was responsible for its own losses and profits. It also worked well due to the competition that existed in the markets where the organization operated. The management was in a position to change the direction of the operations to respond to the changes in the expectations of the customers in the regions. Decision making for a regional division structure ensures that it is shifted downward in the organization allowing for the improvement of the ability of the organization to respond to the needs of the local regions. The speed in which the regional divisional structure yields faster responses to the market conditions is great (Wilkin & Sinclair, 2011)…………………….
WORD COUNT:639WORDS
FORMAT:APA