P&G: Organization 2005 and Beyond

Paper Summary:

This paper presents a complete SWOT analysis of Procter & Gamble, as the corporation was fundamentally re-organized under the Organization 2005 initiative. The paper comments that as P&G was faltering significantly through this time period in both sales and new product introduction processes, Organization 2005 focused on bringing an entirely new organizational structure and a redefinition of work processes to make them more efficient. The paper states that P&G had become too complacent in both product development and the aggressive penetration of new markets to sustain its revenue growth. Organization 2005 was therefore defined and aggressively pursued to turn the company around. The paper discusses the company's pluses and minuses and problems facing the company.

Outline:
Summary
Strengths
Weaknesses
Opportunities
Threats

From the Paper:

" In addition, analytics applications were integrated throughout the business units to allow for the creation of dashboards to measure collaborative performance between and within business units. 97% or 3,600 IT employees were next assigned across the global business units, with just 3% being retained in a centralized IT function. The role of Private Trading Exchanges also aided significantly in ensuring a higher level of accuracy and speed throughout the supply chain. In addition, the many benefits of guided selling on the company's website using the techniques as defined by AMR Research also aided significantly in the growth of e-commerce strategies within the company. In addition, the development of coordinated demand-driven networks and the centralizing of order management as defined by Manufacturing Manager also paid significant dividends. The creation of a unified IT architecture that was demand driven was a major competitive advantage that emerged from the work on the reorganization."

Sample of Sources Used:

• Aguirre, Calderone, Jones (2004) -10 Principles of Change Management. Resilience Report, Booz, Allen Hamilton. New York, NY. Accessed from the Internet on August 4, 2007: http://www.strategy-business.com/resilience/rr00006?pg=all
• AMR Research (2001) - Defining Your Direction In Guided Selling. AMR Research Report. Boston, MA. October, 2001. Retrieved from the Internet on August 4, 2007: http://www.lwcresearch.com/filesfordownloads/DefiningYourDirectioninGuidedSellin.pdf
• Brody (2006). Packaging Innovation as a Marketing Tool. Food Technology. Aaron Brody. June, 2006. Accessed from the Internet on August 4, 2007 from location:http://members.ift.org/NR/rdonlyres/2189B5E5-5744-4493-8714 84009FDEDED2/0/0606pack.pdf
• Columbus (2001) - Integrating E-Commerce into Exchanges: Risks and Rewards April 6, 2001. Sam's Publishing Company. Accessed from the Internet on August 5, 2007 from:http://www.informit.com/articles/article.asp?p=21094&rl=1
• Johansson and Nonaka (1987). Johnny K. Johansson and Ikujuro Nonaka. Market Research the Japanese Way. Harvard Business Review. May - June, 1987. Pg. 34 - 45.

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