Proctor & Gamble

597 Words3 Pages
How has Proctor and Gamble’s organizational design evolved over the years? Organizational change is something that is very common for many companies, no matter how big or small it may be. Companies go through an organizational change to guarantee their products are being made with great quality. They also want to show that the performance of their employees represents what the mission of the company stands for. A.G. Lafley had very little time to determine how he would turn around Proctor & Gamble after Durk Jager’s departure. Prior to Jager’s resignation, he introduced an aggressive restructuring program, which was designed to generate bolder innovations and accelerate their global rollout in order to double the company’s sales, and annual earnings growth. Three interdependent global organizations were structured by product category, geography, and business process. The initial reactions to this reorganization were extremely bad. Because of poor results, and sagging employee confidence, Lafley was faced with the decision of returning to the previous organizational structure, or continue using Jager’s new plan. Proctor & Gamble always relied on its marketing and R & D expertise because it always produced success in all of their markets. Proctor & Gamble continued to focus on product innovation. Establishing a direct sales force, international divisions, and managing their brands as individual companies has helped Proctor & Gamble evolve as a company, and stay ahead of the competition. The worldwide demand for P&G’s products and services has forced management to focus on global marketing and innovation. This worldwide marketing and innovation success was achieved by making sure that what they produce is of high quality, and that their customers are always satisfied with their products. P&G is very adaptable to changing customer demands by carefully and

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