P&G Organizational Structure Emily

Procter & Gamble (P&G) P&G America’s biggest maker of household products Founded in Cincinnati, Ohio in 1837. Founded by William Procter (Candle maker from England) & James Gamble (Soap maker from Ireland). Emphasizes over Product Innovation. One of the very first organization to set up R & D department. First one to step into direct sales in 1919. Established first market research department in 1924. Having 250 brands all over. P&G

P&G

P&G

Attractive expansion opportunities in Japan and developing markets led P&G question its globalization model. They wanted to cover more diverse consumer taste and income levels. Corporate functions in Brussels still lacked direct control of country functional activities. P&G

P&G

Structure Analysis P&G This structure allowed for the creation of global technical centers in different regions. Each with a core competency in a specific product category. Country category GM’s reports to global category president. Category presidents were given direct responsibility for managing a fully globalised corporate R&D function. Global R&D vice presidencies were established to manage R&D for a given product division which in turn directly reported to global category presidents. P&G

Effects of this structure The creation of powerful & independent global functions promoted the pooling of knowledge, transfer of best practices, elimination of intra regional redundancies & standardization of activities. New matrix organization allowed for manufacturing, purchasing, engineering and distribution to be integrated into one global product supply function which managed the supply chain from beginning to end. P&G

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