Strategic Management and Strategic Competitiveness in Procter & Gamble Essay - 6

Strategic Management and Strategic Competitiveness in Procter & Gamble - Essay Example The researcher states that employee base for the Procter & Gamble Company is over 127,000. The Cincinnati based consumer goods company markets of more than two hundred and sixty brands across the world. The company enjoys leadership in almost twenty-four brands in its category and is able to fetch a billion of dollars annually from each of the brands. The consumer goods organization has established twenty-eight technical centers across the world. The company has understood the importance of globalization in business and adapted itself in accordance with the requirement of situation. The company has shifted focus from serving American people to establishing the maximum number of strategic business units across the globe. They have increased plant capacity level in order to achieve economies of scale and offer product mix in a cost-effective manner. Globalization strategy has helped the company to achieve the higher return on investment and maximize annual revenue. Lafley (CEO of the c ompany) has changed standardized global product structure of the company into hybrid product system. Hybrid product structure puts an emphasis on design product category in accordance with a demand of the particular market and changing value chain in a product-specific manner. This model is often termed as Front Back Hybrid Matrix by research scholars. The company not only changed product system in accordance with local demand but changed customer relation management also. Strategic business units work under the supervision of GBU or Global Business Units of the company. Although research and development functions remained centralized, sales operation in an individual local market is classified as decentralized function. During 1999 the company has adopted the change in the fields of managing and reporting in order to achieve business excellence. The company took six years to implement global restructuring model while they have invested $2 billion during the time frame.