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Planning and Organizing: Proctor & Gamble
Transcript of Planning and Organizing: Proctor & Gamble
Operationalize actions necessary to achieve strategic goals
To launch the package more environmental friendly
The steps or tactics needed to achieve the goals defined in a strategic plan
To minimize plastic The Planning Process Strategic goal:
Planned objectives that an organization strives to achieve
Improve the environmental profile of our products
Aimed at creating a desired future
Reduction in plastic compared to the originally The Planning Process Chapter 7 Planning and Decision Making A written procedure prescribed
The facilities collaborated to develop a standard operating procedure for recycling Standard Operating Procedure (SOP) Ensure proper and immediate follow-up steps
It all comes down to how our people respond under pressure when it count in an emergencies situations. Contingency Planning One to five years
Develop and market at least $50 billion in cumulative sales of “Sustainable Innovation Products” Intermediate Plan Operational goal:
An organization towards achieving its strategic or long-term goals
Reduction in energy consumption
Detailed plan formulated by management to achieve tactical objectives
1) usage control monitoring
2) condensate recovery
3) compressed air system upgrade The Planning Process Five years or more
Operations Long Range Plan Depend on Wal-Mart stores
for majority of it's revenue WEAKNESS SWOT ANALYSIS
Strong Focus on Research and Development Strength
Overall Cost Leadership Strategy
Focus Strategy Porter's Generic Strategies
Related Diversification Strategy
Unrelated Diversification Strategy Corporate-Level Strategies Diversification
Home Replication Strategy
Transnational Strategy Strategic Options for International Business Beginning of 2012, 129,000 employees worldwide.
12,000 in the Greater Cincinnati area.
One of the top five employers in the region.
Multitude of product lines created extensive workforce. Jobs of P&G Real time information improves productivity.
Reduces decision making cycle time.
Simplifies work processes. Allows for rapid response to marketplace changes
Uncover new opportunities
Business sphere is massive data environment
Provides decision making base on real time business information. Business Sphere and Business Sufficiency Established five strategies in 2007 for sustainability.
Goals to be achieves by 2012
Fives strategies are:
3. Social responsibility
5. Stakeholders P&G’s Five Business Strategies Strategies and how they will be accomplished.
Requires management to plan business before making investments.
Motives of P&G’s strategies
Sustainability Business Plan Creation of something new or new use for existing product.
Crucial to any successful business.
“We know from our history that while promotions may win quarters, innovation wins decades.” Innovation Provides new jobs.
Specifically for unemployed.
Important effect of starting/ expanding a business.
Based more on success than size. Job Creation
Manufacturing moved to China to reduce cost.
Top selling diaper in China. Pampers China launched over a decade ago with expected success.
Expectations not met.
Disposable diapers not cultural norm.
Researcher highlighted importance of softness.
Added softness and reduced plastic feel. Pampers Diapers in China Investment of $400 million in foundational consumer research.
20,000 studies involving 5 million consumers
Over 100 countries Striving for Innovation The Administrative Model:
Global Business Services
Executive Share Ownership Program Behavioral Aspects of Decision Making Risk Propensity: @RISK Software Behavioral Aspects of Decision Making Interacting Group or Team: Global Business Units (GBUs) and Market Development Organizations (MDOs) Group and Team Decision Making in Organizations Nominal Group: Global Business Services (GBS) Group and Team Decision Making
in Organizations SWOT ANALYSIS Opportunity Acquisitions
Future growth plans THREAT Private label Growth
Economic Conditions Chapter 10:
Managing New Venture Formation & Entrepreneurship Introduction to P&G 1837 - 1860 1900- 2012 1887 Creation Founded by James Procter & William Gamble
Downtown Cincinnati, Ohio Profit Sharing Program
Soap Operas Acquired multiple Companies
Dramatically expanded How many brands are owned by P&G? a. about 150
b. exactly 49
c. between 80 and 100
d. over 300 American Civil war Decision Making Under
Uncertainty Decision Making:
The process of choosing one alternative from a set of alternatives
Brand-Building Chapter 9
Managing Decision Making and Problem Solving Nonprogrammed Decisions Programmed Decisions Types of Decisions Frequent and anticipated
Basic operating procedures and standard transactions Infrequent and unstructured
unique Examples Environmental Sustainability
Social Responsibility P&G's 5 year goal plan Common in Business
P&G's 2012 fourth quarter earnings estimate Conclusion
slide Chapter 8: Strategy and Strategic Management