Procter and Bet: Organization june 2006 (A)

1 ) Look at P& G's organizational design in mid-50s. a. What kind of structure are these claims?

The organizational structure of P& G in the mid-50s is a " Product Section Structure” with centralized key support features. b. Exactly what the benefits of organizing in this way? What do you lose by organizing by doing this? If the range of products is growing in an emerging firm, it is having difficult to take care of the tasks. Collection by item type and functions, would simplify the control challenges. And, in case the products can be similar, we could centralize the support capabilities that can support many product divisions to keep the costs low. In addition , in the support capabilities; the clubs working for diverse product groupings may talk about their encounters or learned lessons to get the benefit towards the other goods. In every product department you may have a large number of brands of precisely the same products and various brand managers in competition in the same market. The manager should be careful about competition level and should be able to manage crisis. The product divisions are employing the same assets of the support functions and managers may well complain regarding unfair support or request priority. Driven managers may possibly create headache. c. Whenever you think back in the 1955s, what technique P& G pursuing? Do they offer a fit among P& G's strategy and structure? Prior to the 50s, P& G was structured around product lines and brand managers targeting several consumer portions. Brand managers could make organization decisions to get quick actions. P& G's product strategy was often to in increase the selection. With the growth of the product selection things acquired complicated plus the company necessary some added changes to the present brand-management program to have an effective control for the system with minimum expenditure of the solutions. Yes, the strategy meets with the structure. With this structure, the item managers can focus on the industry dynamics with small enough individual merchandise resources and strong enough central resources. d. Who has the net income and reduction responsibility through this structure? So why would this kind of make sense? What problems can easily this agreement create? Just how concerned can be P& G about this? The rand name managers experienced the responsibility pertaining to profit and loss. We see that the Company managers were basically responsible for the marketing strategies of their company using the same resources with all the other brand managers with the product. To achieve respect in the company, there has to be high competition among the company managers. As long as it is in order, competition delivers dynamics with itself with the end through the day P& G is advertising, anyway.

If perhaps competition is out of control, it could get unsightly, easily, hurting P& G's strategies. From this system, something else is that the over- or under-performance of the brand manager can be hidden by the item managers causing to lose the motivation.

Similar structure was kept till mid-80s. Apparently, they had not many grievances worth to create a big transform.

2 . Glance at the European product grouping.

a. What kind of structure is?

In 1950's, P& G establishes overseas division. To allow for with heterogeneous Western European countries Market P& G put into practice an organic structure like decentralized hub – and – spoke style. President of Overseas Operations places inside the hub and country certain function departments such as Revenue, Distribution, Promoting, R& G and Manufacturing etc ., which are uniquely suitable for country requirements, placed under Country Managers. Region managers can make and adopt products, that happen to be developed by Western european Technical Center(ETC), to his regions. m. Who has the money and reduction responsibility through this structure? In this structure, region managers are responsible for merchandise profit - loss and market strategy. c. How come Europe methodized differently than the U. T.? What are the huge benefits and...

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