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Procter & Gamble: Organizational Culture

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Gloria Benedict
Procter & Gamble: Organizational Culture

Procter & Gamble, commonly referred to as P&G, is an American global corporation, headquartered in Cincinnati, Ohio that deals majorly in consumer goods ranging from homecare products, individual personal (hygiene) care products to pet foods. In years prior, when it also possessed the entity Pringles, it delved into the food and beverages market, though later strategic corporate management saw it fit to drop the service industry facet. By the end 2012, the entity had recorded gross sales of up to $83.68 billion in revenues, hence the company’s top ranking as accredited by Fortune Magazine on its list of existing Global Top Companies for Leaders. Overall, the entity was placed on the 5th place in the list of the World’s Most Admired Companies.  According to the analysis of the results of the  legal case brief writing service the magazine "Executive Director" was to crown all this, calling it the best company in general, as stated in the list of the magazine "40 best companies for leaders". 

The organizational culture existent is one, which has been nurtured over the years, basing itself on the moral ideal of family cohesion and development. This is best evident in its roots, emanating because of the business partnership between two individuals married to sisters, which resulted in the founding of the entity in the year 1837.  William Procter (candle maker) and James Gamble (soap maker), embarked on what was their (Alexander Norris) father-in-law’s ideal of partnership. William Arnett Procter, grandson to one of the founders, initiated a crucial move in 1887, which fundamentally changed its organizational culture. By correctly assuming that through a profit-sharing program for its workforce, as stakeholders in the entity, the workers would be less likely inclined towards striking, he initiated a well-knit, effective, efficient and most promising cultural organization, which has resulted into the multi-billion dollar industry entity it is today.

I was able to determine the above through further analysis of the corporation’s historical upbringing, spread and subsequent rise to the global entity it is now. Fundamentally so is the fact that it has and continues to base its products on the family unit as its core consumer base, with various products being targeted towards family and individual hygiene, home care and cleansing agents. From contracted supply of soap and candles to the Union Army during America’s Civil War to making inexpensive soaps to sponsorship of radio programs, soap operas, the entity has grown into other jurisdictions, both in terms of product sales and manufacturing. Laundry detergents, shampoos, toothpastes, toiletries, fabric softeners, children’s diapers (pampers), cleansers, sprays and deodorants are amongst many other products which comprise its pool of production.

Furtherance was its enhanced expansion through the strategic acquisition of Gillette, thereby forming the world’s largest company based on the consumer products, 2nd placing Unilever Ltd. As such, basic household products, such as Duracell batteries, Oral-B toothpaste and shaving razor blades amongst others, came under its fold, further solidifying its place as a one-stop-shop for all family home products. Its place in the deodorant arena was solidified through its merger with Dial Corporation in 2005, hence pooling production capabilities towards enhanced fragrance and deodorant production. From all the above, the entity’s dominance in many categories of consumer market products, provides for a unique case study as pertaining to its brand management decision making procedures. There is an accounting provided in cases where some of its products do cannibalize the greater sale of other products.

Factors crucial towards causing the greater endorsement of its unique organizational culture, are traceable, as aforementioned, to its family oriented products’ affiliation, primarily founded on the family foundation the entity is anchored on. With its founders being primarily entrepreneurs of various home products, and further associated by their marriage to sisters, it was rewarding to venture into family care products and other household products, all being requisite towards greater family wellness and general being. This is principally rooted in the entity’s Purpose, Principles and Values. Together, these form the basis of its unique culture, with this having undergone tremendous nurturing, sacrifice, regress (at times), to the eventual success story it is in the contemporary arena.

Its purpose unifies the entity’s pertinent stakeholders towards a common cause, in addition to envisioned growth strategy, which is practically rooted in the greater improvement of existent consumers’ lives. This inspires small but precise contributions on a daily aspect, with its values reflecting the organizational behavior and culture requisite towards shaping its workplace system, not only between its employees and consumers, but also with other pertinent stakeholders. Furtherance is its existent principles, which generally articulate its unique approach towards everyday work conduct, striving towards enhancing production of the branded services and products of superior value and quality towards greater improvement of its consumers’ lives.

Befittingly, the type of leader best suited towards optimally steering the entity would be the one focused on achieving a play-to-win innovation strategy, with key focus being on the retention of industry leadership. While existent management style is more inclined to that of delegation, participatory and individual empowerment, a bit of dynamism would further enhance its overall output and efficiency. Further decentralization of decision-making processes, the enhanced aspect of customizing (localizing) consumer products, in addition to the enhanced consumer services would be the top priority of its leadership. Thus, the best-suited leader would above all else be consumer focused with the slogan “Customer is boss”, best capturing the requisite mindset.

Declines in sales are often inevitable, with various social contexts affecting global trade and commerce. Thus, though general decline in the product and/ or services demand would hurt overall sales volumes of such an entity, there would be required a shift of focus, mainly targeted towards enhancing the production and marketing of best-selling products, as well as the promotion of novel items rated as potential successes. With the slow-moving products, a gradual reduction in production and marketing expenses focused on such items would enable strategists to analyze market trends, hence providing further opportunities for rejuvenation and/ or re-entry into market-arenas as rebranded or initial products. Saved monies would enhance other facets of the company, hence balancing all its business arenas.

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