Unilever and Proctor & Gamble
FAYOL’S 14 PRINCIPLES OF MANAGEMENT APPLIED ON
UNILEVER AND PROCTOR & GAMBLE
Yohaan Samuel
H00114548
A Frenchman named Henri Fayol (1841-1925), although an engineer came up with a theory. He changed the thoughts of business administration and sculpted a structure of management that is practiced even now in this day and age by a vast number of companies worldwide. This theory of his, now commonly known as ‘The 14 principles of management by Fayol’ is going to be applied in two mega-organisations such as Uniliver and Proctor & Gamble (P&G):
Proctor & Gamble and Unilever are two big multinational corporations that manufacture a large range of consumer goods such as beverages, food, personal care products, products for the home, etc. The former is an American multinational corporation while the latter is a Dutch-British multinational corporation.
In around 1997, Unilever decided that it was time to start living up to its potential. The new objective to increase focus and improve results, unsurprisingly become a priority. Clear direction was set and it was agreed almost unanimously that the company should direct its focus on specific tasks and products that mattered. For instance, the sale of the chemicals business in 1997, although considered as a very promising prospect, if having been allowed to remain in the portfolio would have resulted in a deviation of managerial attention, labour, funding, etc. This helped Unilever channel more of its time and energy into their other products as they didn’t have to worry about the chemical business anymore. This and other such instances eventually lead to a steep growth in the development for Unilever.
In the 1990s, Unilever realized that it wasn’t developing and growing very fast – both in terms of profit and size. The chief of the many problems was that they focused a considerable amount of time and energy on too many tasks, most of which did not require that much attention. Eventually, Unilever
UNILEVER AND PROCTOR & GAMBLE
Yohaan Samuel
H00114548
A Frenchman named Henri Fayol (1841-1925), although an engineer came up with a theory. He changed the thoughts of business administration and sculpted a structure of management that is practiced even now in this day and age by a vast number of companies worldwide. This theory of his, now commonly known as ‘The 14 principles of management by Fayol’ is going to be applied in two mega-organisations such as Uniliver and Proctor & Gamble (P&G):
Proctor & Gamble and Unilever are two big multinational corporations that manufacture a large range of consumer goods such as beverages, food, personal care products, products for the home, etc. The former is an American multinational corporation while the latter is a Dutch-British multinational corporation.
In around 1997, Unilever decided that it was time to start living up to its potential. The new objective to increase focus and improve results, unsurprisingly become a priority. Clear direction was set and it was agreed almost unanimously that the company should direct its focus on specific tasks and products that mattered. For instance, the sale of the chemicals business in 1997, although considered as a very promising prospect, if having been allowed to remain in the portfolio would have resulted in a deviation of managerial attention, labour, funding, etc. This helped Unilever channel more of its time and energy into their other products as they didn’t have to worry about the chemical business anymore. This and other such instances eventually lead to a steep growth in the development for Unilever.
In the 1990s, Unilever realized that it wasn’t developing and growing very fast – both in terms of profit and size. The chief of the many problems was that they focused a considerable amount of time and energy on too many tasks, most of which did not require that much attention. Eventually, Unilever
References: 1) How Procter and Gamble Survived Through Innovation – A Case Study - a knol by Osman Masahudu Gunu. 2011. How Procter and Gamble Survived Through Innovation – A Case Study - a knol by Osman Masahudu Gunu. [ONLINE] Available at:http://knol.google.com/k/how-procter-and-gamble-survived-through-innovation-a-case-study#. [Accessed 12 November 2011]. 2) Unilever global company website. 2011. Unilever global company website. [ONLINE] Available at: http://www.unilever.com/. [Accessed 12 November 2011]. 3) PG.com Home: sustainability, company, brands . 2011. PG.com Home: sustainability, company, brands . [ONLINE] Available at: http://www.pg.com/en_US/index.shtml. [Accessed 12 November 2011]. 4) 14 Principles of Management of Henri Fayol.. 2011. 14 Principles of Management of Henri Fayol.. [ONLINE] Available at: http://www.citehr.com/137134-14-principles-management-henri-fayol.html. [Accessed 12 November 2011]. 5) National Council Of Educational Research And Training :: Home . 2011. National Council Of Educational Research And Training :: Home . [ONLINE] Available at:http://ncert.nic.in/NCERTS/textbook/textbook.htm?lebs1=2-8. [Accessed 12 November 2011]