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