PG Organization Structure Essay examples - 824 Words

Pamp;G Case Analysis The history of Pamp;G is a vivid story of organization strategy as it goes through the entrepreneurial, collectivity, formalization, and elaboration stages. It evolves from a domestic company to multination, global, international, and finally transnational company. The organization structure keeps evolving correspondingly in its life cycle. As it becomes a globalized company, it is weighed down by the bureaucracy and hierarchy. Finding a fit organization structure and executing the transition smoothly becomes critical to its future growth. Domestic - Entrepreneurial Stage: at its inception, Pamp;G established centralized functional structure and focused on product innovation. The centralized Ramp;D structure†¦show more content†¦The weakness of the decentralized Europe structure is that it has slow innovation and response time and is very hard to build regional brand. In the end, Europe was consolidated into product division structure like US. Multinational - Formalization Stage: starting from 1987, Pamp;G expanded its business in Japan and developing markets. The increasing demand of coordination among functions and cross-country product management called for organization change. A Matrix structure of category and function first emerged in U.S., and then the Global Matrix was created and extended to the rest of world. These global functions promoted knowledge sharing and transfer, consolidated manufacturing and distribution and extracted massive saving, developed close relationship with big customers, and accelerated global product launches. Global – Elaboration Stage: by late 1990s, Pamp;G entered global stage. The customers are global and no longer limited to specific regions. The suppliers are from different countries. The manufacturing and distribution are consolidated worldwide to reduce cost. Finally, the information technology made the global standardization possible, enabling free flow of information and resource. The global matrix structure streamlined these processes and also reinforced the power of these global functions. However, on the other side, regional managers had their own responsibility of financial results. The asymmetric power structure andShow MoreRelatedProcter Gambler: Organisation1063 Words   |  5 PagesGamble: Organization 2005       1.Why did the US organizational structure shift from product grouping in the 1950s to a matrix in the 1980s? Why did the European organizational structure shift from geographic grouping in the 1950s to category management in the 1980s? 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