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Procter & Gamble

Procter & Gamble (P&G) has evolved its organizational structure from a functional model to a product-based structure in the 1980s and 1990s, and later to a complex model with Global Business Units and Market Development Organizations to better address global and local market needs. In the mid-2010s, P&G streamlined its portfolio and adopted a 'One P&G' approach to enhance agility and efficiency amidst rising competition. As of the 2020s, P&G has embraced digital transformation, focusing on data-driven strategies and e-commerce to adapt to changing consumer behaviors.

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Đinh Tấn Tài
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49 views1 page

Procter & Gamble

Procter & Gamble (P&G) has evolved its organizational structure from a functional model to a product-based structure in the 1980s and 1990s, and later to a complex model with Global Business Units and Market Development Organizations to better address global and local market needs. In the mid-2010s, P&G streamlined its portfolio and adopted a 'One P&G' approach to enhance agility and efficiency amidst rising competition. As of the 2020s, P&G has embraced digital transformation, focusing on data-driven strategies and e-commerce to adapt to changing consumer behaviors.

Uploaded by

Đinh Tấn Tài
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Discuss how P&G's structure has changed over time and why.

Procter & Gamble (P&G) has undergone significant changes in its organizational
structure over the years, adapting to shifting market conditions and consumer demands.
Initially, P&G operated with a functional structure, where the company was organized
into departments like marketing, manufacturing, and research and development (R&D).
This structure was effective during its early years when the company had a smaller
product portfolio. However, as P&G expanded globally and diversified its offerings, the
functional structure became less efficient. In the 1980s and 1990s, the company
transitioned to a product-based structure, where it organized its business around key
categories such as detergents, personal care, and health. This allowed P&G to focus on
specific markets and tailor strategies to individual products. In the early 2000s, P&G
adopted a more complex model with Global Business Units (GBUs) responsible for
product categories across regions, and Market Development Organizations (MDOs) to
handle region-specific strategies. This was driven by the need to better leverage P&G’s
global scale and respond to both global trends and local market needs.

In the mid-2010s, P&G underwent another restructuring, focusing on streamlining its


product portfolio by cutting back on non-core brands and simplifying its organizational
structure. This restructuring was designed to increase agility, improve efficiency, and
focus on P&G's most profitable brands amid rising competition from smaller, more
nimble companies. Additionally, the company began emphasizing a “One P&G”
approach, which fostered collaboration across teams and regions. In the 2020s, P&G
continued its evolution by embracing digital transformation, creating more agile teams
that focused on data-driven decision-making, digital marketing, and e-commerce. The
rise of e-commerce and shifting consumer behavior further pushed P&G to adjust its
structure to remain competitive in a rapidly changing market. These structural changes
over time reflect P&G's efforts to adapt to globalization, technological advancements,
and evolving consumer preferences, ensuring its continued success in the competitive
consumer goods sector.

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