The case discusses the ‘Organization 2005’ program; a six-year long organizational restructuring exercise conducted by the US based Procter & Gamble (P&G), global leader in the fast moving consumer goods industry. The case examines in detail, the important elements of the restructuring program including changing the organizational structure, standardizing the work processes and revamping the corporate culture. The case elaborates on the mistakes committed by Durk Jager, the erstwhile CEO of P&G and examines the reasons as to why Organization 2005 program did not deliver the desired results. Finally, the case discusses how Alan George Lafley, the new CEO, accelerated the initiatives under the Organization 2005 program and revived P&G’s financial performance. Issues Gain insight into the common causes that contribute to steady decline over a period of time in the performance of a large multi-product multi-national company of high repute. Introduction The US based Procter and Gamble (P&G), one Continue reading
Business Strategies
Reverse Merger – Meaning and Example
Normally, a small company merges with large company or a sick company with healthy company. However in some cases, reverse merger is done. When a healthy company merges with a sick or a small company is called reverse merger. This may be for various reasons. Some reasons for reverse merger are: The transferee company is a sick company and has carry forward losses and transferor Company is profit making company. If transferor Company merges with the sick transferee company, it gets advantage of setting off carry forward losses without any conditions. If sick company merges with healthy company, many restrictions are applicable for allowing set off. The transferee company may be listed company. In such case, if transferor Company merges with the listed company, it gets advantages of listed company, without following strict norms of listing of stock exchanges. In such cases, it is provided that on date of merger, Continue reading
Case Study on Apple’s Business Strategies
Apple was founded by Steve Jobs and Stephen Wozniak in 1976; Apple Computers revolutionized the personal computer industry. Apple Computers Inc is considered to be one of the innovators in the computer industry. It brought about different changes to the industry; these changes are still visible in the present. The company’s products were used as a basis by other computer company’s in designing the specifications and physical characteristics of their product. It also serves as a meter of how products are designed. The company offers various products for the different market it targets. The products made by the company offer something different. We can describe Apple’s business strategy in terms of product differentiation and strategic alliances. Product Differentiation Apple prides itself on its innovation. When reviewing the history of Apple, it is evident that this attitude permeated the company during its peaks of success. For instance, Apple pioneered Continue reading
Strategy Evaluation allows an Organization to take a Proactive Stance towards Shaping its own Future
In this modern era of 21st Century, it is really hard to imagine any result-orientated or business-orientated organizations to remain in static-quo. Usually those organizations are easily prompted to influences or changes from external environment elements. Based on PESTEL analysis, those external environment elements shall include political environment; economical environment; social environment; technological environment; environmental environment & legal environment. However, the impacts of each environment elements differ from time to time and in order to ensure the sustainability of an organization, it is important for an organization to constantly review their objectives and goals from time to time. Organization constitutes of a group of structured and organized people and with a specific purpose or goal to achieve in mind for the entity. Due to that, strategy plays a very important part in determine the success or failure of an organization. Carl Von Clausewitz once said, “Tactic is the art of Continue reading
Learning Organization – Characteristics, Benefits and Limitations
The phenomenon of globalization has turned the business world into a global dynamic village for business exchanges. Indeed, competition is becoming increasingly fiercer and simultaneously using Learning Organization as a strategy has become a MUST for companies’ success and development. Adopting such strategy helps organizations to innovate and acquire knowledge in order to survive and thrive in the current rapid changing environment. Some key definitions by distinguished writers on Learning Organization are as follows: “The essence of organizational learning is the organisation’s ability to use the amazing mental capacity of all its members to create the kind of processes that will improve its own”- Nancy Dixon “A Learning Organization is one that consciously manages its learning processes through an inquiry-driven orientation among all its members”- Kim D. “A Learning company is an organization that facilitates the learning of all its members and continually transforms itself”- M. Pedley, J. Burgoyne and Continue reading
Quantitative Strategic Planning Matrix (QSPM)
Quantitative Strategic Planning Matrix (QSPM) is a strategic management tool used in the evaluation of strategic options and determination of relative attractiveness of strategies. The QSPM technique determines which of the selected strategic options is feasible, and it actually prioritizes these strategies. A basic tenet of the QSPM is that firms need to systematically assess their external and internal environments, conduct research, carefully evaluate the pros and cons of various alternatives, perform analyses, and then decide upon a particular course of action. The Quantitative Strategic Planning Matrix (QSPM) consists of three stages that are used in the strategies formulation process. The first step is to define key strategic factors. Then, once this has been determined, a SWOT analysis, or other similar form of analysis, is performed to objectively weigh the pros and cons of each strategic factor in numerical form. Finally, based on the information found in the analysis, a Continue reading