Factorsto consider in continuing or abandoning Organization 2005
Influenceon sales P & G faces problems of slow growth rate in sales sincethe year 1990. The Organization 2005 has the sole purpose ofstimulating the sales of the company so that it can record thehighest revenues in a particular year. If the project will add valueto the sales of the company it should, therefore, be continued unlessthe reverse has been realized.
Innovationopportunities Lafley should also consider the innovationopportunities that the company will get out of investing in theproject. If the project has numerous processes that give room for theinnovation processes to be explored, the project should be continuedunless it’s realized that the project is too rigid to accommodateany innovation opportunity.
Natureof the organization structure structures that are bureaucratic innature are too inefficient. They are often exposed to slow decisionmaking. The Organization 2005 should, therefore, employ a structurethat enables the decisions of the organization to be made as fasteras possible for the company to implement the urgent decisions withinthe specified time. The organization structure should abolish thebureaucratic elements and come up with a more efficient structurewhere the powers are decentralized.
Myadvice to Lafley
Istrongly advice Lafley to continue with the implementation ofOrganization 2005 and ensure that it succeeds due to theopportunities that are due after it has been successfully put inoperation. To start with, the geographical structure has been adoptedin most parts globally where P & G operates. Most strategicdecisions can now be made at the geographical level, and they haveproved to be a success all round. Decision making is now faster asthe authority to make a decision has now been vested on businessareas. Every business unit can now make any decision that servestheir interest better towards ensuring that the expected sales growthhas been attained.
Secondly,globally, there are different divisions for the products of P& Gthat have called for efficiency and innovation. The establishment ofthese divisions has eliminated the duplication of functions among thevarious departments and thus saved time. Each department now hasdemarcated functions that are distinct from one another. Research anddevelopment activities have been simplified according to eachdivision. Each division has a unique product that requires a uniquetechnology that may be different from that of other similar products.Each division, therefore, embraces the technology that suits theirproduct. The technologies so improvised have led to innovation as newproducts can now be invented and coordinated together with otherproducts.
Thirdly,despite the national and regional market differences, some of theproducts of P & G have globally standardized. For instance,Pringles potato chips have gained a global market, and this may helpmarket the company leading to most of its products being recognizedglobally. There have been different strategies in different countriesto suit the needs of the customers in the cosmetics and skin careindustry. The global market differences should not pose any challengeas the globalization forces are working on it to reduce the gap thathas been existing in the national market. Similarly, as morecommunist countries are entering the market, strategies will beintegrated to suit each country (Grant, 2010).
Opinionon organization structure under Organization 2005
Previously,the bureaucratic structure of the company had impeded most functionsfrom being performed efficiently. There were efforts made to come upwith a structure that was more flexible and decentralized powers todecision making. The shift from geographical regions structure tobusiness divisions’ structure has played a vital role in reducingthe bureaucratic nature of the existing system. Therefore, no notablechanges can be made to the Organization 2005 as it has solved some ofthe problems that initially existed. Accountability can now beattached to a particular head of the division, and the CEO and theline managers can now communicate more efficiently, a situation thatnever existed before. Besides this, decision making can now be donefaster because there are no much hierarchical channels involved, andtherefore, implementation of the decisions duly made will also befaster.
Adviceregarding implementation of Organization 2005
Forproper implementation of the Organization 2005, Mr. Lafley shouldensure that the current inefficiencies are eliminated after theproject has been fully implemented. He should work toward ensuringthat the sales of P & G have been correctly tracked and that theyare improving from time to time. This will prove that theOrganization 2005 serves the intended purpose. He should also ensurethat the innovation strategies have been clearly incorporated in theproject and any new technology identified can fit to it efficientlywithout altering the existing organization structure in any manner.Lastly, he should ensure that the other products of the company thatnot gained global market recognition have been put to the marketalongside those products already in the market so that they cancontribute to raising the revenues of the company.
Grant,R.M. (2010). Casesto Accompany Contemporary Strategy Analysis: Procter & Gambler’sOrganization 2005 Project.The Wiley Advantage.