Rachel Angelina Walker
Morrisville State College
International Human Resource Management
Dr. Linda F. Turner
February 10, 2013
P&G is a global manufacturer and marketer of branded consumer products. The company markets its products in over 180 countries spanning Americas, Europe, EMEA and Asian region. In the company profile (The Proctor and Gamble Company), P&G’s organizational structure is explained as being comprised of global business units, global operations; global business services and corporate functions. The company is organized into two global business units: beauty and grooming, and household care. The main focus of this business unit is new product upgrades, innovations and marketing plans. The company profile (The Proctor and Gamble Company) also states that P&G is one of the world's largest consumer goods companies. “Its products reach 4.4 billion people worldwide. P&G has the strongest portfolio of brands in the industry, with 50 leadership brands that generate 90% of the company’s sales and profits” (p. 123). P&G has a leading market position and strong brand portfolio which provides them with a competitive advantage. The 2012 company profile (The Proctor and Gamble Company) recorded revenues of $83,680 million, an increase of 3.2% over 2011. P&G listed North America as the company's largest geographic market, this accounts for 39% of their total revenues. “P&G generates revenues through five reportable segments: fabric care and home care (32.1%* of the total revenues in 2012), beauty (24%), baby care and family care (19.4%), health care (14.6%) and grooming (9.8%)”(p.103). The current global operations that comprise P&G's Market Development Organization involve “go-to-market” plans at the local level with dedicated retail customer, trade channel and country-specific teams. It is organized into five geographic units: North America, Western Europe, Central and Eastern Europe/Middle East/Africa, Latin America and Asia which comprises Japan, Greater China and ASEAN/Australia/India/ Korea. For 2013, the company will be forming a joint venture in the Asian geographic unit.
Intricacies of Global Organizations
As we prepare to expand our operations to China, we will begin by creating an international design and structure. There will be several stages that our company undergoes in an attempt to break into the Chinese market successfully. First, we plan to engage in portfolio investment in order to purchase stock from the local firms in China. Procter & Gamble Co. is a worldwide recognized company established in many markets across the globe. Therefore, although we will be emphasizing the exportation and sales of our products in the Chinese market, this stage will not be a very big operation due to our already existing global familiarity. At this time, our company will take on light training to ensure that our employees have the capabilities to do business across borders. As stated previously, we already operate across several boarders so the training will just ensure some skill sharpening among existing employees who will be affected by our expansion to China.
The second stage in creating our international structure will be sales. In this stage we will be focusing on hiring managers, or training existing managers, who will specialize in purchasing and sales in China. The next stage deals with our method of entering the Chinese market, we have chosen to gradually expand into China by beginning with licensing. By doing this we have located firms that already exist in China that are capable and experienced with manufacturing our products. By licensing, we are able to cut costs and be more integral in the local community allowing for a more seamless expansion into Chinese market. The only person that will be involved in these operations from Procter & Gamble...