Restructuring the organizational structure at Kimberly-Clark
Restructuring the organizational structure at Kimberly-Clark
In 2003,Kimberly-Clark the maker of paper products including Kleenex, Haggis , and Depends, announced it was creating a radical new structure to shore up parts of its business that were performing poorly by restructuring its product into three categories .The categories were” grow,” “sustain,” and “fix”-somewhat unconventional categories. They weren’t devised based on product type, customers, or the geographic location is which Kimberly-Clark sold goods, but instead on the perceived strength of the products themselves.
Background
Kimberly, Clark and company was established in 1872 by four young businessmen, John A. Kimberly, Havilah, Babcock, Charles B. Clark, and Frank C. Shattuck. Based in Neenah, Wisconsin, The Company initially manufactured paper, but over the years it began to branch out, broadening into the personal hygiene consumer products area to compete with companies like Procter & Gamble.
In 1978,Kimberly-Clark introduced what would become its top seller; Huggies disposable diapers. Huggies were an instant hit and soon became the nation’s number one diaper brand.Over the course of the next two decades,Kimberly-Clark introduced Depends for adults and training pants for toddlers,and acquired its competitor Scott Paper,a leading maker of toilet paper and paper towels.Today,the merged company sells its products in over 150 countries around the world.In 80 of those countries,it holds the number-one or number-two spot in the marketplace.It has physical operations in 38 countries and employs more than 55.000 employees.
Restructuring Problems
Like many corporate mergers, the merger between Kimberly-Clark and Scott Paper in 1995 didn’t roll out smoothly .Most of Scott’s senior management team left after the merger,and Kimberly-Clark experienced problems integrating the two companies.The following year,operating income and sales dropped.
By the late 1990s,the company’s senior managers had
In 2003,Kimberly-Clark the maker of paper products including Kleenex, Haggis , and Depends, announced it was creating a radical new structure to shore up parts of its business that were performing poorly by restructuring its product into three categories .The categories were” grow,” “sustain,” and “fix”-somewhat unconventional categories. They weren’t devised based on product type, customers, or the geographic location is which Kimberly-Clark sold goods, but instead on the perceived strength of the products themselves.
Background
Kimberly, Clark and company was established in 1872 by four young businessmen, John A. Kimberly, Havilah, Babcock, Charles B. Clark, and Frank C. Shattuck. Based in Neenah, Wisconsin, The Company initially manufactured paper, but over the years it began to branch out, broadening into the personal hygiene consumer products area to compete with companies like Procter & Gamble.
In 1978,Kimberly-Clark introduced what would become its top seller; Huggies disposable diapers. Huggies were an instant hit and soon became the nation’s number one diaper brand.Over the course of the next two decades,Kimberly-Clark introduced Depends for adults and training pants for toddlers,and acquired its competitor Scott Paper,a leading maker of toilet paper and paper towels.Today,the merged company sells its products in over 150 countries around the world.In 80 of those countries,it holds the number-one or number-two spot in the marketplace.It has physical operations in 38 countries and employs more than 55.000 employees.
Restructuring Problems
Like many corporate mergers, the merger between Kimberly-Clark and Scott Paper in 1995 didn’t roll out smoothly .Most of Scott’s senior management team left after the merger,and Kimberly-Clark experienced problems integrating the two companies.The following year,operating income and sales dropped.
By the late 1990s,the company’s senior managers had