P&G Japan Essay Example for Free

PG Japan EssaySlow, conformist and risk averse stretch, innovation and speed Leadership novelty Team implemented a global rollout of Dryel and Swiffer Impact 18 months after entering the first test market they were on sales in US, Europe, Latin America and Asia Processes Performance-based component of compensation add-ond from traditional range of 20% to 80%. Extended the reach of stock options to virtually all employees Integrated trade planning process where all budget elements of the operating plan could be reviewed and approved together StructurePrimary profit responsibility shifted from PGs four regional organisation to seven GBUs that would now manage ware development, manufacturing and marketing of their respective categories worldwide Charged with standardising manufacturing processes, simplifying grunge portfolios and coordinating marketing activities Eliminate bureaucracy and increase accountability Committee responsibilities were transferred to individuals Activitie s such as accounting, human re denotations, payroll and much of IT were coordinated through a global business service unit cash advance form Ethnocentric/Polycentric- Regiocentric Geocentric SK-II within PG this high-end product had little visibility outside Japan Because Nipponese women had by far the highest use of beauty financial aid products in the world, it was natural that the global beauty address category focussing started to regard Max Factor Japan as a potential source of innovation Working with RD labs in Cincinatti and the UK, several Japanese technologists participated on a global squad that developed a new product involving a long-lasting color base and renewable moisturising second coat LipfinityJapanese innovations were than transferred worldwide, as Lipfinity rolled out in Europe and the US within six months of the Japanese launch Implementation of O2005 in July 1999 half the top 30 managers and a third of the top 3000 were new to their jobs capabilities do not reside in management Global product development process Technology team assembled at an RD facility in Cincinnati, drawing the most qualified technologists from its PG labs worldwide US-based marketing team and Japanese team had the same task Japanese team came up with SK-IIIn the end, each market ended up with a distinct product built on a common technology platform. Marketing expertise was also shared, allowing the organisation to exploit local learning Decisions Japanese Opportunity Tapping into PGs extended technological resources extend the SK-II line beyond its traditional product offerings Although would take a considerable amount of time and effort, it would exploit internal capabilities and external brand image Product innovation and superior in-store service competitive advantage in JapanChina Operating since 1988 only Entrepreneurial beauty care manager in China Some were worried that SK-II would be a distraction to PGs strategy of becoming a mainstream Ch inese company and to its competitive closing of entering 600 Chinese cities ahead of competitors Targeting an elite consumer group with a niche product was not in keeping with the objective of reaching the 1. 2 gazillion population with laundry, hair care, oral care, diapers and other basics Europe De Cesare new the European market wellWithout any real brand awareness or heritage, would SK-IIs mystique transfer to a Western market Organisational constraint De Cesare recognised that his decision needed to comply with the organisational reality in which it would be implemented Jager openly questioned how well some of the products in the beauty care business fit in the PG portfolio the fashion-linked and promotion-driven sales models neither played well to PGs stack it high, wander it cheap marketing skills nor exploited its superior technologies From a local to a global focus