P&G Japan

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P&G JAPAN: THE SK-II GLOBALIZATION PROJECT – (9-303-003) Discussion Questions for P&G Japan: The SK-II Globalization Project 1. Does O2005 support or impede SK-II's transfer worldwide? 2. What should Paolo's expansion strategy be in rolling out SK-II? Which country should be the priority? Please compare the cases of China, UK, and Japan. 3. How well has P&G implemented Jager's major strategic change? What does it take to develop and diffuse worldwide innovation and to ensure cross-border learning? And how effective has O2005 been in developing that ability? And, if possible, what advice would you give to change O2005 to make it a more effective way to implement the proposed strategy? 1. Does O2005 support or impede SK-II's transfer worldwide? There is a dilemma here. On a conceptual strategic level O2005 supports a worldwide rollout. Yet since this rollout seems to still take place and cause more havoc than expected many executives are confused and therefore the potential for failure is enhanced. Thus, even though everyone may have a good intention, the worldwide rollout may fail just for reasons of the putting in practice the O2005 plan, such as – organizational change, changes in management structures and the various implications from operations via marketing to the sales. Another supporting argument is that here is also the issue of risk taking. Jager supports risk taking and so it is expected the SBU`s will take some risks in order to achieve product marketing breakthroughs and dramatically enhance sales. Consequently there is a driving force to promote such projects as SK-II. To summarize. O2005 plans do indeed support the worldwide rollout of the project. Yet, actual organizational transitions and changes following the O2005 are not complete and are in a fragile state that could not fully support the project and provide it a cross corporate support

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