Analysis of P&G’s Global Strategy + Functions of the Leader

In: Business and Management

Submitted By laytinen
Words 1121
Pages 5
1. (a) Perform an in-depth analysis of Procter & Gamble’s global strategy, (b) assess the merits and demerits of the strategy, as well as (c) give detailed, actionable recommendations on how to improve and implement it, among other things, through effective strategic leadership. 2. “The function of the leader consists of increasing personal payoffs to subordinates for work-goal attainment and making the path to these payoffs easier to travel.” Discuss.

1. In order to perform in-depth analysis of P&G’s global strategy we can use the framework suggested by Hambrick and Fredrickson called Strategy Diamond, the main idea of which is to evaluate a strategy from different point of view - facets of the Diamond: Arenas, Differentiators, Vehicles, Stages and Economic logic. * Arenas – demonstrate choices made about where to compete: the external environment such as product or service markets, geographic markets. P&G without a doubt is a global company. P&G produce and sells more than 300 brands, of which 22 are $1B sales producers, and has Market Development Organizations (MDOs) in 80 countries. Teams responsible to build brands organized in 7 areas: "North America, Western Europe, Northeast Asia, Latin America, Central and Eastern Europe/Middle East/Africa, Greater China and ASEAN/Australasia/India". P&G is organized into 3 global business units, P&G Household, P&G Family Health, and P&G Beauty. * Differentiators - factors that allow the company to "win" in its targeted arenas, in other words – competitive advantages. P&G’s competitive advantages come from several crucial factors, one of which is innovation. Company spends billions of dollars on R&D activity with help of thousands researches which allows to have very broad range of products for different market segments. Key to their success is knowledge sharing and…...

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