Procter and Gamble: Operation Management
Introduction
Founded in 1837 by Villiam Procter and James Gamble, P&G settled their headquarters in Cincinnati. Where its based till now. The main objective of the organization is to unify employees and growth strategy under the common cause of improving more consumers lives in a small but meaningful ways each day.
Procter & Gamble has become one of the most important International players as a consumer product manufacturer based on revenue production and industry market share. Their net profits span over $ 82.559bn and $15.818bn in operating income according to P&G 2011 annual report. As such a big International consumer product manufacturer, P&G encounters a lot of problem solving in their everyday activities like: innovation, operation management, marketing and many others. Innovation department is one of their most prosperous departments and can currently be an example to their competitors and other developing market players. That’s why the main goal of this case is to show the path they had to take to succeed in a rough nowadays market.
Executive Summary
In this case study we are going to determine and explain the reasons behind P&G’s radical approach change in their innovation department, explain the innovation techniques in place to them to production facilities, express our opinion on how innovation can help streamline operations based on the facts given & choose a specific product for consideration on it’s operational success.
As the growing market and the need of consumers pushes companies to keep their fingers on the pulse of the future, P&G had to over think their innovation strategy. Despite the success in their innovation process that worked for generations, year 2000 showed that their internal model of innovations has become unsustainable and their stock share dropped by more than 50 percent. From a “closed door” approach towards their innovation they had to move to an open platform and search for ideas outside company’s walls for
Founded in 1837 by Villiam Procter and James Gamble, P&G settled their headquarters in Cincinnati. Where its based till now. The main objective of the organization is to unify employees and growth strategy under the common cause of improving more consumers lives in a small but meaningful ways each day.
Procter & Gamble has become one of the most important International players as a consumer product manufacturer based on revenue production and industry market share. Their net profits span over $ 82.559bn and $15.818bn in operating income according to P&G 2011 annual report. As such a big International consumer product manufacturer, P&G encounters a lot of problem solving in their everyday activities like: innovation, operation management, marketing and many others. Innovation department is one of their most prosperous departments and can currently be an example to their competitors and other developing market players. That’s why the main goal of this case is to show the path they had to take to succeed in a rough nowadays market.
Executive Summary
In this case study we are going to determine and explain the reasons behind P&G’s radical approach change in their innovation department, explain the innovation techniques in place to them to production facilities, express our opinion on how innovation can help streamline operations based on the facts given & choose a specific product for consideration on it’s operational success.
As the growing market and the need of consumers pushes companies to keep their fingers on the pulse of the future, P&G had to over think their innovation strategy. Despite the success in their innovation process that worked for generations, year 2000 showed that their internal model of innovations has become unsustainable and their stock share dropped by more than 50 percent. From a “closed door” approach towards their innovation they had to move to an open platform and search for ideas outside company’s walls for