there are strengths for the company which being regard as the plus point for p
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Strength
There are strengths for the company which is being regard as the plus point for P& G as
of good elements is there. One of the strength will be the existence of variety of trading division
especially in consumer goods manufacturing. As of having various operation P&G divided
especially in the consumer goods industry into five segments which are fabric and home care
such as baby, feminine, and family care such as beauty care, health care such as food and
beverage. This variation of consumer products made it so clear that P& G is showing good
performance and efficiency in output all over the years. (1995). The thing that can be concerned
here will be the application and practice of trading divisions which enables the company in
applying complex and combined system of production which can get along with global market.
(2006). It seems to be the same method which was discussed in previous case study of (2003)
about P&G having intercontinental recognition as well as the availability of the product
universally. P &Gs product has already being well known in areas such as United States, Latin
America, Europe, Middle East, Africa, and Asia
Next, the strength is already in the history of P&G especially in offering the best quality
products for the customers which creates good perception and name among consumers. As of the
good start for the company in 1837 in the United States, this gives wider opportunity for
succession and achieving the status of highly ranked international business. The achievement by
the company can be said because of having good leaders. Based on the study (1999) the
companies stepping stone starts from the management of the company which is the crucial part.
Besides that, leadership is also important because as leader he or she will supervise the company
from top to bottom especially involved in dealing with this organization 2005 in P&G. This
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leaders who comes out with program called organization 2005 is something unique and
unbeatable by other competitors strategy.
This P&G organization 2005, is being draft which is mainly for boosting up the sales andincome by coming out with new products, closing unwanted manufacturing plants and cutting
down unnecessary jobs. Organization 2005 has greater advantage towards the marketing and
management outlook which gives importance to the top in term of decision making process by
coming out with strategies that will be effective for all range of management. These strategies
will be applied mostly in departments such as production, finance, and human resource. On the
other hand, it also works as an element in indentifying non performing division, applying
innovations in organizational workforce and being competitive as well as retaining P&G strong
global brand.
As being discussed above the top management who comes out with policy that will be
applicable from top to down in divisions such as production, finance and human resource. This
organization 2005 is mainly for the advancement of the company at a pleasant stage. Once the
program being used there will be positive elements especially in general managerial and working
environments. As of the implementation of Organization 2005 it is believed that there will be
tremendous change in the overall operation. (2003). In P& G the programs targeted towards the
financial matters as it related with the goals in increasing the sales and income. Next, would be
the operation methods where it is being standardized with sophisticated expertise as a substitute
of existing operation method. In term of human resources during Jagers period he restructures
the paying method in conjunction with companys workforce. Consequently, its a must for P
&G to manage well production cost and employability aspect which can be done easily with the
existence of organization 2005.
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Next, it also will be useful in detecting and coming out with solution especially in
management section during Jagers supervision period as he realizes that management must well
managed. With this new program it clarifies slow functional area and requires in depth
development. The specialty of this organization 2005 is in indentifying inefficient jobs, divisions
and others mainly the whole business of P&G in the long-term and when the strategy being
applied.
The new program emphasizes more on R&D and sustaining good position in the industry.
The goal of organization 2005 mainly in expanding the market place and operating efficiencies.
In term of management functions it will be enhanced with further industrialist dynamism by
aiming for visions and some achievement even it is not 100% achievement. Under this program
it is entitled that everyone must contribute their share by working and its implementation and not
forgotten the role of improvement in management as well as operation areas.
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Organizational Weaknesses
P&G was going fine at first when organization 2005 was introduced but lately it gives
negative feedback especially in management as the implementation was done without examining
it. The quick reaction would be seen in management especially Jager who was unable to cope
with unexpected changes. Things reflect to be worst when more problems raised and at the same
time Jager made his mind of leaving the company. The worst thing would be the flop of share
price from $117 to $90 in January 2000. Good expectation from result went upside down.
Moreover, management functions were affected especially for the delivery department due tothis the managers are responsible. The following effect can be seen in human resources
especially when P&G relocate their employees to different part of world and the employees can
get along with this change. On the other hand, huge limitations of organization 2005 hit the
human resource management which is unavoidable of their working hierarchy. The problem in
managing starts as of Jager practices challenging way where not all of the employees can adapt
it. Finally, there is insufficient research and development done for the organization 2005
program therefore the implementation doesnt go on the flow.
Next, weaknesses would be seen where there is no development on their current brand.
This might make the customer get bored of using the same product for a long time and high
chances for them in switching to different brand if P& G continuous the operation without
innovation. This low attention towards product development gives difficulty even if P&G wants
to do product improvement. The obstacle that P&G is facing reflects the tendency of not having
flexibility and being disinterest. (2006). The obstacle P&G faces regarding product development
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is something like hot cake as it is known that the current product that available in the market
already reached the maturity stage where the consumers already have huge knowledge about the
product. In fact when the product already reaches the maturity stage at once the product will start
to decline as it an economic cycle. Therefore if the company unable to come out with new
product the demand for the product will start to decline day by day till it affect the profit of P&G.
This situation get worst as there is no stability of improvement in the product brands of P&G and
at the same time the consumer product industry stands alone which means there is no control.
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Organizational Opportunities
One of the opportunities can be seen will be the application of principle towards latest
event. This new event will be advantage for these upcoming markets, highly distributed service
arrangements, growing economics as well as competitors weakness. Basically, P&G will have a
strategic plan for their business so that they will be better off than the competitors especially
gaining more customers and obtain higher profit even being the best in the industry.1985 In
companies its really important to maintain new or upgraded operation with the new vision. This
organization 2005 is an element which plays one of the important roles especially on
management with the use of advanced information technology in performing well. Technology is
globalized yet it is sophisticated therefore technology transfer from one area to the plant which
supports high technology.
Besides that, the revolution towards the well organized system into business aspects by
focusing on global business units (GBUs), market development organizations (MDOs), global
business services (GBS), corporate functions, and company culture. Next, would be the
reorganizing where it will indentify the division that requires consideration and progression from
the person in-charge. The existence of organization 2005 shows possibilities of high production
and new collaborative dealing. As P&G being the market leader is also opportunity where the
managers show good performance as well as the organization 2005 strategy application.
Cost is one of the element which exists when production process takes place thereforethere are ways to deal with it therefore P&G has come with a solution for it which will be their
opportunity. P&G is having business worldwide even their production plant and storehouse
available in big overseas market which helps in lowering the cost. Next, P&G do have good
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knowledge of the market therefore it is easier to get along with the consumers behavior and the
market culture in the prcised market where their product is available. Furthermore, P&G also
involved in the localization process therefore the globalization demand will be considered under
this localization operations of multinational firms. Multinational company must respond
differently when it comes to in-house demand through survey done in particular place.
The aim of lowering the production cost solely depends on the company. At the same
time P&G has the idea of opening factories in other regions and also investment on plants and
factories. Basically, the labour cost is not the same at all places so in other operating places
which are lower will benefit P&G where higher allocation can be given to other areas which
really required. The money that being saved can also is used for R&D of current product in order
to make it famous and available at all the places. The product that P&G produces is mature so
P&G can use this opportunity and offers a better product yet being competitive.
Organizational Threats
The threat that being faced by P&G will be on change management due to the
implementation of organization 2005 mainly in all departments. Apparently, financial
background of the company is important in order for P&G to adopt and apply the system. In fact
if financially they are not strong they might not have enough facilities to maintain the system and
at the same time the stake holder who has been involved also wont be able to help especially in
financial part. Then it will be the human resource management which will be major contributor for operation process will have difficulties in managing the change and also hazardous if change
takes place without prior notice. This sudden change will have effect on each and every single
aspect of the company.
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Basically, it doesnt matter of what type the business is yet there will be competition no
matter the location distribution of the business.The main importance is given towards the
expansion between global industries seems to be purposeful. As of that P&G do face threats in
form of worldwide trading policies, trade and industry factor, unpredictable consumer culture
and buying behavior shows ambiguity. Technology advancement also being seen as threat where
it is changing constantly as new technology is being introduced in the market as well as the role
of IT in term of expansion even though P&G uses latest technology they are still outdated. Not
only P&G involved in this industry yet there are many companies out there which will be
competing with P&G in order to be the market leader.
Basically, when it comes to implementation of policy the essential aspect will be market
situation. The combination of policy and market situation acts as an element which will give
feedback for better production and performance of a company. P&G has low consideration
towards improvement on R&D therefore the technology that being used by the competitors areupgraded version and they are almost can compete strongly with P&G.
The next main threat would be a complex competition from Unilever towards P&G. Both
this company has been in the market for a long time in fact their production are almost the same
but only difference is branding. These two companies are fighting each other in order to be the
first in the market by using their own way. This organization 2005 in some areas has pin point
the negative outcome of P&G especially the drop in sales and also the cash flow which would
give bad impression among the customers.
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