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Operations Management
Describe the organization (Proctor and Gamble)
What is the product or service?
Proctor and Gamble (P&G) is a U.S. based multinational consumer Products Company. It offers products such as cleaning agents, pet foods, and personal care items. Before selling Pringles to Kellogg Company, P&G offered products in the line of food and beverages.
What is the ownership structure?
The ownership structure of P&G is multi-divisional because simple structures are used in small companies where the owner works as the management and makes all the big decisions for the organization. In such a case, the owner and the manager must be in the workplace every day. P&G is a relative giant company, with businesses spread across the world; therefore, the company uses a multidivisional structure. This structure entails operating divisions, where single divisions represent independent businesses where the top manager assigns responsibilities of daily operations. Every division signifies a different, self-contained business with an independent functional hierarchy (Mitchell & Coles, 2003). Active supervision of performance through this structure increased the chances that managerial decisions in individual units are in the best interest of shareholders. The adoption of this structure was intended to attain three key benefits for the company:
To enable managers to supervise the performance of each division accurately, hence simplify the problem of control
To facilitate comparisons between, thus improve the process of allocating resources
To stimulate managers in poorly performing divisions to look for strategies of improving performance
What are its competitive advantages?
Diversity and inclusion are the core priorities for P&G. Exceeding equality and the idea of doing the right thing is their business imperative and a competitive advantage for the company. Therefore, diversity and inclusion assume the central place at the top of talent management, human resources, and recruitment strategies. Diversity and inclusion are crucial enablers for P&G in becoming an "employer of choice," that recruits, develops, engages, and retains the best talent of all faiths, ethnicities, and backgrounds. The company's global leadership has established a strong vision for diversity and inclusion (Cooper, 2006).
What are its operations competitive advantages?
P&G has invested in market research like no other company in the world. The company...
It conducts thousands of studies every year and invests massively in consumer understanding. Market research is their core competitive advantage in terms of operations because it generates insights that help identify opportunities to serve better, innovate, and communicate with their clients (Mitchell & Coles, 2003).
Describe the industry
Who are its primary competitors?
The markets in which P&G sells its products are highly competitive. P&G's products compete against similar offerings of both small and large companies, notably L'Oreal and Unilever.
How does the competitive environment affect its operations?
The businesses of P&G have been dragging on the top line. After a positive momentum previously, P&G has once more slipped behind competitors L'Oreal and Unilever in terms of sales growth and has even further fallen behind industry player Estee Lauder. This competitive environment has forced P&G to embrace drastic measures to reverse the situation. P&G has adopted digitization of its operations and digital marketing of its brands as part of the remedial measure (Cooper, 2006). The company intends to become the digital savvy by making better use of digital tools to predict demand and enabling innovation.
Discuss the product's location in the product life cycle
P&G's products are in the maturity stage, which is the third stage of the product lifecycle. Their products have been successful in the market and have later attracted rival firms into launching similar offerings. It demonstrates that the products are generating maximum profits used to build the brands. Nevertheless, rival offerings from L'Oreal and Unilever offer the same benefits and this has slowed sales and chipped the market position of P&G. Although the company continues to support the growth of its brands, some of its products continue to struggle in the crowded markets.
Choose a product or service that this organization offers
Proctor and Gamble Company dealing with a wide range of pet food products and cleaning agents that are often released into the market through an intricate chain of supply. Notably, the company is a global dealer in soap and detergents production and the market demand for these products have been overwhelming. The company deals with the extraction of detergents from their crude sources. Ideally, it is engaged in creating value of raw materials into desirable product ready for…
Moreover, the organization will have to consider prioritizing consumers waiting in the line based on various factors. For example, the organization will have to use first-come, first-serve method, considering the age of the consumer, and other factors such as the health status, as in the case of physical disabilities. From the waiting line, managers acquire insights into the level of service and quality of products to provide their consumers. For example, low-service line of service delivery will be inexpensive to the organization, but can cost the organization significant costs due to customer dissatisfaction. Similarly, a high-level line of service delivery will result in low consumer dissatisfaction costs. Therefore, considering the above waiting line factors will influence the performance of the company significantly (Anderson, 2008).
Operations Management
The organization uses total quality management to ensure quality of the products and services it offers to its consumers. Total quality management facilitates the creation of organizational culture that aims at strengthening organizational efforts of improving quality and delivering of high-quality services and products to the consumers. Total quality management ensures the success of organizational activities through the provision of services and products that aims at satisfying consumer needs and participation of organizational stakeholders in activities contributes to its success. The collective efforts of the organizational stakeholders result in the creation of the desired organizational culture focused at success and competitiveness of the company. The company uses various strategies to
Proctor Innovation Strategy for Innovation at Proctor & Gamble It may seem self-apparent to speak of Innovation as an aspect of a business process or of business process re-engineering. Indeed, it is perhaps a common misconception that innovation is a standard part of every business organization's internal structure and approach to its goals. However, patterns of innovation suggest this to be a specialized approach to business, reserved only for those organizations that
Proctor and Gamble Strategic Case Study Company Overview P&G is an American multinational consumer goods corporation founded in 1837, headquartered in Cincinnati, Ohio. It manufactures and distributes food and beverages, cleaning supplies and personal care products. In 2011, it showed almost $83 billion in sales, making it 5th in the "World's Most Admired Companies." P&G has about 130,000 employees globally (P&G Information, 2012). Bob McDonald is the current CEO, and worked for
All other Ultra Gain products are not recommended for High-Efficiency machines Source: Ultra Gain (2008) at http://www.gainlaundry.com/static/products.asp. Marketing application and analysis The "release the hounds" reference used to promote Gain "Outdoor Sunshine" is reflective of the company's past marketing efforts for this product that have equated doing laundry with going to war while remaining "ladylike" in the process. According to Harris (2000), "Throughout the twentieth century, the aesthetic of cleanness has been
At the time of Organization 2005, P&G did not have the ability to report to this specific level, and instead focused purely on geographies first, product area second, and functional areas the last. This clearly made execution of marketing strategies extremely difficult, as in the old organizational structure, country-based marketing managers could decline to sell a specific product or an entire brand. Jager, who had extensive experience in Asia-pacific prior to
Academic and Theoretical Foundations Brief Histories and Organizational Backgrounds Procter & Gamble Procter & Gamble was established in Cincinnati, OH in 1837 by brothers-in-law William Procter, a candle maker and James Gamble, a soap maker, continuing to this day under the name of Procter & Gamble (Procter & Gamble, 2015). It began as a two-man partnership but by 1859, the partnership had 80 employees and annual sales exceeding $1 million, and then
Business -- Applied Management Project STYLES OF LEADERSHIP: PROCTER & GAMBLE VS COLGATE-PALMOLIVE This research proposal will focus on two major competitors in the national and international market, Procter & Gamble and Colgate-Palmolive, and the types of leadership that can be found within those organizations. The first step will to compile a list of leadership models that would most likely to be found within these organizations and then develop a questionnaire or