Organization

Question 1

How is P+G currently organized?

Answer 1

Global Business Units, Selling and Market Operations, Global Business Services
back office corporate

Question 2

What were the organization changes between 1945-80?

Answer 2

In 1954 announced plans to form individual operating divisions to better manage growing line of products
1956: In US organized by product line, in europe organized by country/region (UK, Germany, Benelux)

Question 3

What were changes from 1980-1999?

Answer 3

P&G expanded its globalization plans. The company established a worldwide research and development network.

Question 4

How did P+G manage economies of scale as they grew?

Answer 4

1950s- product focused
1980s- category management
1990s- Global matrix
2005- 3 equally important independent units

Question 5

What is a matrix organization/what’s its primary purpose?

Answer 5

Reporting to two bosses

Matrix creates constructive tension between differing objectives

Question 6

What are the 4 levels of innovation across the industry lifecycle?

Answer 6

• Product Innovation
• Customer intimacy innovation
• Operational Excellence Innovation
• Category Renewal innovation

Question 7

What are the 4 types of industry structure?

Answer 7

functional, product based, geographic,

customer segment based

Question 8

Who is AG lafley, why is he important?

Answer 8

former pg ceo,
― Need to clearly define what “winning ” means
― Strategy is composed of positioning, sustainable advantage, delivering value to customers (greater than competitors)
― You have to make decisions; ask the right question
― Discipline and leadership to determine what NOT to pursue

Question 9

What’s the sitch with PG 2017?

Answer 9

 P&G organized into 5 major categories.
 Dealing with slow growth with headcount reductions (they brag about this)
 Trying to simply number of products / market combinations
 Same 3 part organizational structure

Question 10

Who is Nelson Peltz

Answer 10

Activist investor, took a large part of pg, offered 8 recommendations to change

Question 11

What is a decision driven organizational design?

Answer 11

Good financial performance comes from effective decision-making ― Not from organizational structure (over-simplified view)
 When reorganizing, focus on decisions rather than structure
― Different types: Big one-off vs. small routine decisions
― Placing decisions in the right place (corporate vs. business unit) ― What level does the decision need to take place? (VP vs. Dir)
― Reduce the number of decision bottlenecks
― Align goals, processes, information, measures, and incentives ― Train people. . . (of course)
 Ask, “What are the key decisions to execute the strategy,” and then reorganize around these decisions