ORGANIZATIONAL STRUCTURE OFPROCTOR AND GAMBLE: AN EXAMPLE OF BUSINESS SUCCESS

Abstract

The goal of this paper is to use Proctor and Gamble as a paragon for other already successful businesses looking to expand further within their own markets. Organization and proper personnel placement have proven to be very important for business development. The proper people placed in the right positions with appropriate support both above and below allows for a well-run company. What about other components of the organization, specifically when expanding abroad? How does the company work as one single unit while still being able to supply and meet demands from so many places? This is where Proctor and Gamble (P&G) become a perfect example of excellent organizational management. Already a household name, P&G acquired another company, Gillette, in 1999 and decided to become a more globally dominant household good company. With this goal, the managerial shift called “Organization 2005” began. In starting this shift, the leadership determined that the need for rapid growth, expansion and research were all to be done simultaneously not only in domestically but abroad. This would allow for faster response times to local problems and introduction of products to specific markets much faster. The way that P&G went about it most effectively was by using the Transnational Approach. With decentralized R&D and centralized business services the company flourished and took over a larger global share. This shows that it is not just growth and increased personnel, but also the appropriate use of both decentralizing and centralizing services for employees and technology that truly allows for maximal efficiency in international management. All of this was done while still accounting for the labor law and other potential consequences that can come from working internationally with multiple labor forces.