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Abstract

The case discusses the ''Organisation 2005'' programme; a six-year long organisational 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 programme, including changing the organisational structure, standardising 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 the Organisation 2005 programme did not deliver the desired results. Finally, the case discusses how Alan George Lafley, the new CEO, accelerated the initiatives under the Organisation 2005 programme and revived P&G''s financial performance. This case is structured to enable students to: (1) gain insight into the common causes that contribute to steady decline over a period of time in the performance of a large multi-product multinational corporation of high repute; (2) understand the nature of turnaround strategy and its components developed for a fast moving consumer goods multinational company; (3) examine a few mistakes generally committed by a leader in conceiving and implementing a plan, and gauging the plan''s ultimate impact on the profitability of an organisation; (4) understand the importance of proper planning and implementation of a restructuring programme; and (5) analyse the key elements, emphasis and overall impact of a revival strategy in improving the financial performance of a company. The case is targeted at MBA/PGDBA students and is intended to be part of the strategy and general management curriculum. The teaching note does not contain an analysis of the case.
Location:
Size:
Large
Other setting(s):
1837-2003

About

Abstract

The case discusses the ''Organisation 2005'' programme; a six-year long organisational 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 programme, including changing the organisational structure, standardising 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 the Organisation 2005 programme did not deliver the desired results. Finally, the case discusses how Alan George Lafley, the new CEO, accelerated the initiatives under the Organisation 2005 programme and revived P&G''s financial performance. This case is structured to enable students to: (1) gain insight into the common causes that contribute to steady decline over a period of time in the performance of a large multi-product multinational corporation of high repute; (2) understand the nature of turnaround strategy and its components developed for a fast moving consumer goods multinational company; (3) examine a few mistakes generally committed by a leader in conceiving and implementing a plan, and gauging the plan''s ultimate impact on the profitability of an organisation; (4) understand the importance of proper planning and implementation of a restructuring programme; and (5) analyse the key elements, emphasis and overall impact of a revival strategy in improving the financial performance of a company. The case is targeted at MBA/PGDBA students and is intended to be part of the strategy and general management curriculum. The teaching note does not contain an analysis of the case.

Settings

Location:
Size:
Large
Other setting(s):
1837-2003

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