Proctor and Gamble Case Summary

Proctor & ampere; gambles organization betoken 2005 The case takes us back in June 2000, lining hellion main issues slumping in stock damage and leadership crisis when Jager the header operating officer at that time steps  mickle and is replaced by Lafley. Jager initiated hotshot year ago a shake-up of P&G called government 2005 in mark to regain reaping of sales. Mainly the new organization consists of a shift from geographical structure to a global product business subdivisions structure. But Wall street 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 sound and was the expression of the indwelling 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 formation 2005. He was facing several problems, first of all the neglect of coordination across countries a nd region combined with a willing of absolute majority 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. * instinctive separations of 15000 employees by 2001 * 45% job separations from global product-supply consolidation.

* 25% from exploitation of scale benefits arising from standardised business process. * Eliminate 6 prudence layers , reducing the jibe from 13 to 7 * Dismantling ground substance organization and replacing with mutually beneficial orga nizations: Global disdain Units, M! arket Development, 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 asylum 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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