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Transcript

Early Strategy (to 1980)

Major Reorganization

(1990s)

Major Problem with P&G:

As a Result:

  • The strategy at P&G was well established
  • Provided growing sales & profit for years
  • In the 1980's international barriers fell so a new strategy was in order
  • Plants were shut down
  • Thousands of layoffs
  • Costs were too high
  • Retailers demanded discounts

"Organization 2005"

History

  • Goal was to transform P&G into a truly global economy
  • Replaced old organization with self-contained global business units
  • Benefits and disadvantages
  • Founded by William Procter and James Gamble in 1837
  • $80 billion in sales annually
  • P&G sells more than 300 brands to consumers in 180 countries -including Ivory Soap, Tide, Pampers, IAMS Pet Food, Crisco, and Folgers

Conclusion

  • The strategy seemed to be working
  • For most of the 2000s, P&G reported strong growth in sales and profits
  • Competitors were struggling

Case Introduction

  • Procter & Gamble History
  • Strategy Changes
  • Final Strategy Change

Evolution of Strategy at Procter & Gamble

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