Proctor and Gamble Case Summary

Proctor & ampere; gambles organization enkindle 2005 The case takes us back in June 2000, lining fiend main issues slumping in stock expense and leadership crisis when Jager the forefront operating officer at that time steps  floor and is replaced by Lafley. Jager initiated hotshot year ago a shake-up of P&G called government 2005 in assign to regain output of sales. Mainly the new organization consists of a shift from geographical structure to a global product business subdivisions structure. But Wall roadway seemed to punish this discover in spring 2000 when the stock price felt by 50% from its peak. P&G natural get-go confidence was also punishing this transmit and was the expression of the interior resistance to these changes. Lafley, the new CEO who coup detat Jager has now a dilemma. He must make a choice on whether or not to continue placement 2005. He was facing several problems, first of all the pretermit of coordination across coun tries and region combined with a willing of volume of senior manager to reverse back to a regional business organization. Organization 2005 Features: In 1998, P&G started a 6 years restructuring program organization 2005. * unpaid separations of 15000 employees by 2001 * 45% job separations from global product-supply consolidation.

* 25% from growing of scale benefits arising from standardised business process. * Eliminate 6 counseling layers , reducing the jibe from 13 to 7 * Dismantling matrix organization and replacing with mutually beneficial organizations: Glo bal business organization Units, Market De! velopment, and a Global Business Services managing internal business process. My advice to Lafley: The new structure should be retained by the new CEO, and form the basis of growth. Lafley should accentuate the need for mutation and building brands. The companys roughly high-profile strategy, however, has been acquisitions, particularly in the health and beauty care businesses (Clairol, Wella and Gillette). These businesses are...If you emergency to get a full essay, order it on our website: OrderCustomPaper.com

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