P&G Japan Essay Example for Free

PG japan EssaySlow, conformist and risk averse stretch, innovation and speed lead Innovation Team implemented a global roll knocked out(p) of Dryel and Swiffer Impact 18 months after entering the number one test market they were on sales in US, Europe, Latin America and Asia Processes Performance-based component of compensation change magnitude from traditional range of 20% to 80%. Extended the reach of stock options to virtually all employees integrated business planning process where all budget elements of the operating plan could be reviewed and approved unneurotic StructurePrimary profit responsibility shifted from PGs four regional organization to seven GBUs that would now eradicate product development, manufacturing and marketing of their respective categories worldwide Charged with standardising manufacturing processes, simplifying brand portfolios and coordinating marketing activities Eliminate bureaucracy and increase accountability Committee responsibilities were transferred to individuals Activities such as accounting, human resources, payroll and much of IT were coordinated through a global business service unitProgression form Ethnocentric/Polycentric- Regiocentric Geocentric SK-II at heart PG this high-end product had little visibility outside Japan Because Japanese women had by far the highest use of peach care products in the world, it was natural that the global bang care category management started to regard grievous bodily harm Factor Japan as a potential source of innovation Working with RD labs in Cincinatti and the UK, some(prenominal) Japanese technologists participated on a global team that developed a new product involving a durable 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 300 0 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 tax Japanese team came up with SK-IIIn the end, each market ended up with a explicit 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 extensive 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 outer brand image Product innovation and superior in-store service competitive advantage in JapanChina Operating since 1988 only Entrepreneurial beauty care manager in China both(prenominal) were worried that SK-II would be a dist raction to PGs strategy of becoming a mainstream Chinese company and to its competitive goal 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 billion population with laundry, hair care, oral care, diapers and other basics Europe De Cesare new the European market wellWithout any real brand ken or heritage, would SK-IIs mystique transfer to a Western market Organisational constraint De Cesare recognised that his decision demand 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 fortune it high, sell it cheap marketing skills nor exploited its superior technologies From a local to a global focalize