Presented bySanjeev Prasad

I. Company Overviewa) Historyb) Operationsc) P&G in India

II. Issues & Outlook profile1. Mission Statement2. The Vision3. Values4. Objectives5. Current Strategies6. Strategic Issues

III. SWOT Analysis

IV. Story of change1. Challenge2. set objective3. implementation4. Result

V. Change in strategy1. Preparing people for changeMcKinsey 7 S Model

OUTLINE

I. Company Overview

Procter & Gamble is an American global corporation based on manufacturing a wide range of consumer goods.

As of 2008, P&G is the 6th largest Company by Market Cap., 14th largest by profit, and 10th in Fortune's Most Admired Companies list.

a) History

William Procter, a candle maker, and James Gamble, a soap maker, formed the company known as Procter & Gamble in 1837.

Throughout the twentieth century, the company moved into other

countries, both in terms of manufacturing and product sales, becoming an international corporation.

Known for people centric company, First profit sharing Plans (25% share is in the hand of employees)

b) Operations

1. Beauty Beauty segment Grooming segment

2. Household Care Baby Care and Family Care segment Fabric Care and Home Care segment

3. Health & Well-Being Health Care Snacks, Coffee and Pet Care

II. Issues & Outlook profile

1. Mission StatementWe will provide branded products and services of We will provide branded products and services of superior quality and value that improve that improve the lives of the world's consumers, now and for generations to come. the lives of the world's consumers, now and for generations to come.

2. The Vision“Be, and be recognized as, the best consumer products and services company in the world.”

3. ValuesIntegrityPassion for WinningLeadershipTrustOwnership

4. Objectives- Build existing core businesses into stronger global leaders- Grow leading brands, big countries, winning customers- Develop faster-growing, higher-margin with global leadership potential- Regain growth momentum and leadership in Western Europe- Drive growth in key developing markets

5. Current Strategies

1. Consumers will pay a premium for products that offer improvements over either private-label products or the brands they have bought for years.

2. Product innovation must be regular with visible improvements year constantly.

3. Product innovation must be designed to constantly "up-scale" consumer preferences.

4. This “up-scaling” of consumer tastes is not just for affluent consumers.

5. These strategies of innovation and pricing can be used to break into developing economies

6. Using innovation to attain a growing share of developing markets will be the key to growing company earnings as growth rates in mature consumer markets

6.Strategic Issues

- Competitive pressure is a constant and consistent challenge

- Risks of over confidence and complexity

- Rising commodity costs

- Global economic and political instability

SWOT analysisSWOT analysis

Strengths1. Strong financial position2. Large scale of operations3. Strong branding4. Product innovation5. Developing markets infrastructure

Weaknesses1. Customer concentration2. Lack of effective distribution in some countries

SWOT analysisSWOT analysis

Opportunities

1. Wide range of demography2. Developing markets3. Gillette, old spice, Vicks acquisition4. New products

Threats1. Uncertainty in pharmaceuticals business2. Increase in prices of raw materials3. Intense competition4. Unfavorable business laws and political instability

Story of ChangeStory of ChangeJuly,1999P&G's President and CEO, Durk Jager

1. Challenges No innovation since 1985 strong, traditional and conservative culture Losing market dominance

2. Objective Fasten the decision making to innovate Eliminate bureaucracy Reduce costs

Story of ChangeStory of Change

3. Implementation,- “Organization 2005”

Radical revamping of P&G's organizational culture Reduction in hierarchies Retrenchment of employees Use of IT to fasten the decision making Target to double in global revenues till 2005 Informal work environment to promote innovation

RESULT ?RESULT ?????““F” for “Fabulous”F” for “Fabulous”OrOr

““F” for “Failed”F” for “Failed”

RESULTRESULT“

““F” for “Failed”F” for “Failed”

“F” for “Failed”1.1.Because Not Executed ProperlyBecause Not Executed Properly

2.2.Culture cannot be changed in a single dayCulture cannot be changed in a single day

Result1.1.Rise in cost, decline in profitabilityRise in cost, decline in profitability

2.2.President and CEO, Durk Jager President and CEO, Durk Jager resigned resigned in 2000 and in 2000 and A.G.Laflay took the positionA.G.Laflay took the position

““Winners Do Not Do Winners Do Not Do Different Things, They Do Different Things, They Do The Things Differently”The Things Differently”

Change in StrategyPreparing people for change

Communication of entire planMotivationUse of IT as a facilitator (AskMe enterprise, Corporate standards System)Training (Cultural sensitivity , Motivation)

Understanding the difference between urgent and essential

Change in StrategyPreparing people for change

"Business schools tend to focus on inductive thinking (based on directly observable facts) and deductive thinking (logic and analysis, typically based on past evidence)," .

“Design schools emphasize abductive thinking—imagining what could be possible. This new thinking approach helps us challenge assumed constraints and add to ideas, versus discouraging them."

-A.G. Laflay

Change in StrategyChange in StrategyImplementationStructureStructure

Decentralized decision making

StaffStaffNew management (Representing different countries)

RecruitmentRecruitmentGood relationship with top B - schoolsComprehensive selection processFocus on innovation and leadership

Change in StrategyChange in StrategyImplementationShared valuesShared values

Customer is the kingP&G as a leader

SystemSystemFast decision makingReward for efforts and learning

Change in StrategyImplementationSkillsSkills

Leveraging the cultural differencesFocus on innovationIT, R&D experts (9,000 R&D associates,1,100 PhDs)

StyleStyleFocus on leadershipUse of IT (AskMe Enterprise system)

Change in StrategyImplementationStrategyStrategy

Establish a clear criteria and don’t hesitate to shift resourcesRevolution does not last for long but evolution doesFocus on customers rather than only innovationAcquisition of innovative companiesEmployee’s involvement

Win over Cross boundaries and help others do the sameConcentrate on possibility

Mass marketing

Change in StrategyImplementationStrategyCustomer’s involvement (olayfryou.com)

(Diaper, deodorant, Mouth wash)

Thank youThank you

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