Procter & Gamble Canada
Issue:
The ‘Organization 2005’ was set up to help Procter & Gamble double revenue growth in five years, one of the major moves is launching Febreze to the Canadian market. Investment amount, timing, risks and opportunities need to be considered before launching the new product.
Analysis:
The objectives of reorganization are to accelerate business growth through cost savings, innovation, and commercialization. The issue of ‘Organization 2005’ means the business strategy of P&G shift focus from regionalism and functionalism to globalization, P&G could have great opportunities in the global market in the opening new market. The corporate organizational structure moves from four business units based on regions to seven Global Business Units (GBUs) based on product lines which allow centralization of brand strategy decision-making and a global operation group. The global operation group consists of eight Market Development Organizations (MDOs) for exploring new capability through local channels and consumers and Global Business Services (GBS) of gathering business activities to one organization for business support services at low cost for a competitive advantage. The complementary of five elements in this organizational structure allows P&G think globally, act locally and operate efficiently.
Company’s culture, structure, and work will be affected by the changes. For P&G Canada, reorganization supported changes and incorporated reasonable more risk. With the strengthening global effectiveness change, R&D investment is focused on more technology changes, and rationalization of sourcing and appropriate production arrangement among countries improve the efficiency and saving the cost. The changes for more specialized lines of businesses and MDO is for paying more attention to local customer needs. Febreze as a new household product