P&g Lense of Analysis.
Autor: redwing1 • March 20, 2019 • Research Paper • 2,971 Words (12 Pages) • 407 Views
Proctor & Gamble: Global Business Services
Case Study
February 14, 2019
BUAD 6400:002 Spring 2019
Syed Kashif Haque
Case Study:
Proctor & Gamble: Global Business Services
History & Organizational Context
The Proctor & Gamble Company (P&G) was established in 1837 by a partnership between William Proctor, a candlemaker and his brother-in-law, James Gamble, an apprentice soapmaker. Throughout its history, P&G was known for its innovation and growth. The company is renowned for such well known brands as Ivory™, Crisco™, Crest™, Downy Fabric softener™, Pampers™, Head & Shoulders™, Nyquil/Vicks™ (acquired), Metamucil™ (acquired), CoverGirl™, Noxzema™, and Max Factor™ (acquired). In fact, if separated from the parent company, 13 of P&G’s brands (all with sales over $1 billion each) would rank in the top 70 companies on the Fortune 500 list.
P&G was also known for its business innovations: in 1882 it was the first company to launch advertising campaigns directed at consumers, it instituted the first profit sharing programs in 1911, and it established one of the first consumer research departments to study consumer preferences and buying habits in 1924.
One major factor that contributed to P&G’s growth and success over the years, was the devotion of its workforce, which was attributed to the company’s uncommon commitment to its employees. P&G was often recognized by national publications as a great place to work. For many employees, working at P&G was seen as prestigious and the best guarantee of job security.
P&G was organized into 5 global business units (GBUs) with each unit focused on a different sector of the company’s business:
- Fabric & Home Care
- Beauty Care
- Baby, Feminine, and Family Care
- Health Care
- Snacks & Beverage
P&G also had 3 other types of separate business organizations which supported the 5 GBUs. These 3 support units were:
- Market Development Organization (MDOs) – “On the ground connection to local customers & consumers”
- Corporate Functions – Which served as functional centers of expertise
- Global Business Services (GBS) which in turn brought together internal services such as:
- Finance & Accounting – Accounts payable, expense accounting, & financial reporting
- Employee Services – including human resources, employee benefits, payroll, travel management
- Customer Logistics – order management, credit and collections, and delivery.
- Purchasing – including corporate facilities, transportation, consultants, and contractors (but NOT raw materials which were handled by individual GBUs).
- Information Technology (IT) – including business information services and market measurement data.
- Technology Services Worldwide – including P&G’s computing and telecommunications infrastructure.
P&G also intended to collocate many of these services into strategic work centers in each of the geographic regions in which the company operated. The goal of collocation was to provide the greatest quality service possible to the internal customers that GBS supported. P&G planned for these regional centers to be operational by June 2004 in the following locations:
...