P&G Case Study

Proctor and Gamble Case Study: Critical Review and Analysis

Procter and Gamble Case Study

Introduction

This paper is principally about the case of Procter and Gamble (P&G) that had happened in late 1990s. This was the time when the company had jammed at no revenue - no profitability situation. For a couple of years the company performed with the similar pace; however, the organization had taken a radical change under the leadership of Durk Jager and Alan George Lafley. Nevertheless, the case has very different consideration for the role of Jager and Lafley, but in this paper, the role of both leaders are critically evaluated with their respective Human Resource and Strategic Development strategies to bring company out of this turmoil. Both leaders have proposed their relevant move toward changing the culture of the organization; whereas, one had nearly diminished the operation, and other had made things all set - like there was no problem.

Despite of the critical analysis of the case, the paper will also propose the future strategies for the company, regarding its development, human resource management and leadership tactics and plan to successfully maneuver in the contemporary competitive market environment - especially for FMCG products.

Background of the Case Study

An organization, with more than hundred-thousand employees, has decided to reduce its man power and operation in order to bring the organization into a profitable zone. In 1999, CEO - Jager, proposed a plan for six years to restructure the organizational hierarchy and operational exercises in order to develop a rather new culture in P&G. He named it the Organization 2005 Program. For him, it was considerably a comprehensive plan than can help the organization in achieving growth in the next five years or so. However, from the very next years, in 2000, the organization had started declining on the stock boards and it was the first time in eight years that the company had noticed decline in net profits. Jager was not aware of the fact that that what he has proposed as extensive is principally a very drastic attempt to change - consider the number of years the organization has taken to construct its culture. The legacy of more than 160 years would definitely not be turned over in 6 years. The plan caused Jager to resign from the organization and within the span of 17 months; the company had got a new CEO, named Alan George Lafley.

Lafley was rather a very unruffled and composed person. He had immediately found that the attempt was too swift for the culture to get change. Thus, he dissolves all such plans and proposed his team to work on the conservative strategy - which P&G was practicing before Jager. The approach has made the company boost its share price in the stocks, and within 30 months; the company has achieved a 58 percent increase in the share price. Lafley became the idol for P&G, with the advent of 21st century; however, the business analyst and researchers were not quite sure about the measures ...