Procter and Gable

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Procter & Gamble: Organization 2005 (A) [Piskorski & Spadini, 2007] September 25, 2012

Case Discussion Questions

These questions are mainly for class discussion. However, they will also be quite helpful in preparing for the quiz. The possible essay questions for the exam have already been sent in the guidelines for the first exam.

U.S. Divisional Structure in 1955 (Diagram 1)
1. What are the benefits of organizing by product rather than function? By using the product strategy brand managers in the same product division competed in the marketplace but shared access to strong divisional functions. Those transferred best practices and talent across many brands foresting leading edge competencies in the R&D, manufacturing, market research in the rapidly developing consumer product industry.

2. Does it make sense to put brand managers in charge of performance (profit and loss)?Yes, Brand managers in charge of performance is profitable and it has been shown in the article that more consumer focused business decisions could be made and with more pace by brand managers at lower levels in corporate hierarchy. Since also brand managers are given responsibility of profits and strategies

3. Despite being responsible for profits and losses, why do brand managers not have complete control over manufacturing and sales force? Because of strong centralized functions in R&D and Manufacturing.

Accountability and authority
Small operations – Entrepreneurs
Trade off for being entrepreneurial and a large company

Western Europe Initial Organizational Design (Diagram 3)
4. How is this structure different from the structure shown in Diagram 1? Country managers not brand managers has responsibility of profits and market strategy. Country GM’s adapted P&G technology and marketing expertise to local markets 5. What are the reasons for P&G to have adopted a structure different from the one shown in Diagram 1? To suit the...
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