Procter nd Gmble nd 'Orgnistion 2005' Case Study

Procter nd Gmble nd Orgnistion 2005 - Case Study ExampleHlf the brnds were mrked with potentil the growth while the rest were frozen. In retil business more nd more occupied by privtely owned lbel goods, P&Gs top products were hving difficulty competing. More gile competitors were left P&G behind the mrket by lunching products, executing mrketing plns better nd finlly by fster product innovtion. It ws lso thought tht P&Gs profitbility ws being slowed down due to incresing dominnce of retilers like Wl-Mrt, who controlled the point-of-sle.In n ttempt to reinforce the growth, P&G nnounced corporte restructuring progrm, clled Orgniztion 2005, in September 1998. The objective of the progrm ws to improve P&Gs competitive position nd generte operting competences through more mbitious gols, enhncing greter innovtions nd diminishing time-to-mrket. This ws to be reched by considerble redesign of compnys orgniztionl structure, work processes, culture nd py structures.Orgniztion 2005 design s it ws lredy mentioned, Orgniztion 2005 is the ltest inititive by Procter & Gmble (P&G) worldwide nd the one tht defined the next phse of orgniztionl development nd growth. ... 2) Plcing Compnys Globl origin work to stndrdize systems, ignore internl opertions nd better serve customers worldwide3) Simplifying Compnys orgniztionl structure to reduce hierrchy nd hurry up decision mking. From the words of P&G Chief executive director Durk I. Jger, the compny ws ment to redesign orgniztionl structure completely, struggle for constnt innovtions through work process, substntil finncil benefits, fster speed of mrket nd greter growth.Under Orgniztion 2005, P&G is chnging from four business units bsed on territoril regions to seven Globl Business Units (GBU) bsed on product lines. This chnge is designed to drive greter innovtion nd speed by emphsizing strtegy nd profit responsibility globlly on mrkets, rther thn territories. P&G lso estblished eight Mrket schooling Orgniztions (MDO), the regions whose objective ws to tilor globl mrketing progrms to locl mrkets nd develop mrket strtegies to build compnys entire business on superior consumer nd customer knowledge. Within Orgniztion 2005, P&G lso lunched Globl Business Services (GBS). Its overhed functions such s humn resources, ccounting, order mngement, nd informtion technology were consolidted from seprte geogrphic regions to one corporte orgniztion tht would serve ll GBUs. Finlly, P&G redefined the role of Corporte Functions. Most of the corporte stff were trnsferred to one of the new business units, with the remining stff refocused on developing cutting-edge new knowledge nd serving corporte needs. Costs of the Progrm Orgniztion 2005 involved substntil costs. Of the pproximtely $1.9 billion in costs, $400 million were plnned for 1999, $1 billion over the next two fiscl yers,