Procter & Gamble: Organization 2005 & Beyond


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Case Details:

Case Code : BSTA062
Case Length : 15 Pages
Period : 1998 - 2003
Organization : Procter & Gamble (P&G)
Pub Date : 2003
Teaching Note :Not Available
Countries : Global
Industry : FMCG Fast Moving Consumer Goods

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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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Excerpts Contd...

Organization 2005 under Lafley

Alan George Lafley (Lafley), a 23-year P&G veteran replaced Jager as president and CEO. Lafley announced he would improve operations and profitability and rebuild the management team. The heads of P&G's operating businesses and corporate functions hailed from 13 different countries.

The new faces included Deb Henretta, head of global baby care; Jim Stengel, global marketing officer; and Fabrizio Freda, head of the global snacks business. Overall, the average age of the Global Leadership Council (GLC, See Exhibit XII) was only 49, compared to 54 three years earlier. Unlike Jager, who focused on taking new initiatives in under developed markets, Lafley decided to concentrate more on big countries and big products...

Conclusion

P&G expected to conclude Organization 2005 by June 2003. After the ouster of Jager, Lafley had shifted the focus from new initiatives to advancing the market share of big brands in developed markets. Lafley believed that overall, Organization 2005 had brought the much-needed discipline to P&G's global marketing efforts...

Exhibits

Exhibit I: P&G: Brands Around the World
Exhibit II: Summary of Financial Performance
Exhibit III: P&G's Performance in 2002
Exhibit IV: P&G's Earnings Growth from Different Segments
Exhibit V: P&G's Simplification Drive in the 1990s
Exhibit VI: P&G: Chronology of Recent Events
Exhibit VII: P&G: Net Sales & Net Earnings - Segment Wise
Exhibit VIII: P&G's Lineup: Something Old, Something New
Exhibit IX: Organization 2005: The Costs of Restructuring
Exhibit X: Organization 2005 Program Impact
Exhibit XI: Volatile Share Price


 

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