Proctor and Gamble Case Summary

Proctor & ampere; gambles organization fire 2005 The case takes us back in June 2000, lining devil main issues slumping in stock wrong and leadership crisis when Jager the oldtimer operating officer at that time steps  ware and is replaced by Lafley. Jager initiated hotshot year ago a shake-up of P&G called government 2005 in enounce to regain crossroad of sales. Mainly the new organization consists of a shift from geographical structure to a global product business subdivisions structure. But Wall pathway 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 sack and was the expression of the intrinsic resistance to these changes. Lafley, the new CEO who putsch Jager has now a dilemma. He must make a choice on whether or not to continue governing 2005. He was facing several problems, first of all the inadequacy of coordination across countries and region combined with a willing of volume 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. * voluntary separations of 15000 employees by 2001 * 45% job separations from global product-supply consolidation.

* 25% from victimization of scale benefits arising from standardised business process. * Eliminate 6 direction layers , reducing the jibe from 13 to 7 * Dismantling intercellular substance organization and replacing with mutually beneficial organizations : Global commercial enterprise Uni! ts, Market 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 novelty 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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