...Collaboration and Innovation at Procter & Gamble Autumn J. Thorpe National Paralegal College Collaboration and Innovation at Procter & Gamble Case Study Questions 1. What is Procter & Gamble’s business strategy? What is the relationship of collaboration and innovation to that business strategy? Procter & Gamble have three main strategies these include: 1) Maintaining the need for current products. 2) Making new developments to current products. 3) Creating brand new products. Since most of P & G’s global business is centered on brand maintenance and new brand creation it’s very important that the company use collaboration and innovation technologies to communicate between all departments. Having everyone at every level on the same page is necessary with such a large corporation allowing for less hassle and more results. 2. How is P & G using collaboration systems to execute its business model and business strategy? List and describe the collaboration systems and technologies it is using and the benefits of each. They have found ways to now make sure that all employees have access to any documents, research, and data. Allowing for all aspects of the business to work on a more efficient basis. 1) SharePoint allows for store presentations, research, data, and any other documents to be shared between all employees. Making sure that unlike old systems everyone who could possibly benefit from the information has access to it. 2) Teamcenter...
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...Innovation in Outsourcing: The Case of The Procter & Gamble Company Case Study by the Academic Team from The University of Tennessee, College of Business Administration GEO IAOP’s Global Excellence in Outsourcing Award www.IAOP.org P&G: Taking Innovation to New Levels of Value through Partnership INTRODUCTION Many people believe innovation springs serendipitously from some kind of “aha” moment – literally a bolt out of the blue. P&G knows differently. Innovation has been the corporate lifeblood since P&G’s humble beginning in 1837 when William Procter and James Gamble signed a partnership agreement formalizing The Procter & Gamble Company. Today, P&G’s products touch and improve the lives of over 4.8 billion consumers in 180 countries. Fifty “Leadership Brands” include some of the world’s most well-known household names with 25 of these 50 brands each generating more than $1 billion in annual sales. Simply put, this degree of corporate growth could not be achieved without significant innovation across all aspects of the business even extending to our relationships with suppliers and partners. In 2001, P&G radically changed its approach to Research & Development (R&D). Instead of relying solely on its own, highly capable R&D resources, P&G welcomed ideas from individual entrepreneurs and scientists from other companies, and universities, the concept came to be known as Connect & Develop; the goal was to gain half the ideas from inside and half from outside the...
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...Collaboration and Innovation at Proctor & Gamble Proctor & Gamble is the largest manufacturer of consumer products in the world. P&G has a reputation for developing successful brands and maintaining their popularity with unique business innovations. Beauty Care, Household Care, and Health and Well-being are the three main units of business operations at P&G. Each of these business units are further subdivided into more specific units. P&G has three main focuses as a business in each division. First, it needs to maintain popularity of its existing brands. Second, it must extend its brands to related products by developing new products under those brands. Third, it must innovate and create new brands entirely from scratch. Much of P&G’s business is built around brand creation and management. To effectively run P&G’s business operations, it is critical that they facilitate collaboration between researchers, marketers, and managers. This is the reason that P&G has been actively implementing information systems that foster effective collaboration and innovation. In early 2000, P&G was in disarray and the company’s share price had fallen by nearly 50 percent, wiping out $85 billion in market capital (Lash, 2012). Despite spending heavily on research & development, productivity had plateaued and the company’s innovation success rate was around an unsatisfactory 35 percent (Lash, 2012). When A.G. Lafley became P&G’s CEO in 2000, he recognized that collaboration would be the key...
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...Company (P&G) is focused on providing consumer packaged goods. The company’s products are sold in more than 180 countries primarily through mass merchandisers, grocery stores, membership club stores and drug stores to name a few. It has on-the-ground operations in approximately 80 countries. Currently P&G finances show that the cash for 2011 from operations alone was over $13 million, and revenue was well over $80 million. www.quote.morningstar.com/Stock/s.aspx?t=PGND P&G is comprised of three Global Business Units: Beauty Care, Health Care, and Household Care. www.topics.nytimes.com/top/news/business/companies/procter_and_gamble/indexND P&G focuses on five core strengths required to win in the consumer products industry: Consumer Understanding, Innovation, Brand-Building, Scale, and Go-to-Market Capabilities. www.pg.com/en_US/Company/Purpose_people/IndexND P&G invests more in market research than any other company in the world, interacting with more than five million consumers yearly in nearly 100 countries. P&G conducts over 20,000 research studies yearly and invest more than $400 million annually in consumer understanding. These insights help P&G identify opportunities for innovation and to better serve and communicate with their consumers. www.pg.com/en_US/Company/Purpose_people/IndexND P&G is widely recognized as the industry’s global innovation leader. Over the past decade, nearly all organic sales growth came from new brands or improved products. P&G collaborates...
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...------------------------------------------------- Innovation at proctor and gamble Pritesh Tarte- 11906296 ------------------------------------------------- Innovation at proctor and gamble Pritesh Tarte- 11906296 Assignment 1 Assignment 1 I INDEX 1.Introduction to Proctor & Gamble ……………………..…….……………….3 2. Innovation at Proctor & Gamble……………………………………………...4 3. Connect & Develop Program & Open Innovation……………………………5 4. Voice of Customer……………………………………………………………6 5. Conclusion……………………………………………………………………7 6. References……………………………………………………………………8 1. Introduction to Proctor & Gamble ( P&G) William proctor and James Gamble established Proctor and Gamble in 1837 as a soap and candle company in Ohio USA. P &G has now developed into global manufacturing and marketing company of branded consumer products. Its markets are over 180 countries including America & Asia regions. Its Business is mainly into five segments. * Fabric & home Care * Beauty * Baby care * Family care * Health care & groom. The fabric care and home care compromises bleach and laundry additives, laundry detergents, pet care, dish care, fabric enhances and surface care products. Beauty care consist of cosmetics, deodorants, hair care & skin care, female personnel cleansing products, salon professional product. Baby care and family care contains products such as baby wipes, diapers, pant towels, tissues and toilet...
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...McDonald, who assumed office in July, is on the road promoting P&G's ‘purpose-inspired growth’ strategy of ‘touching and improving more consumers' lives in more parts of the world... more completely’"(Kanter, 2009). In 2007, P&G created a five prong business strategy to assist the company in growth, both financially and organically. Its business model focused on innovation in all parts of the company. Using the core strengths of consumer understanding, scale, innovation, go-to-market capabilities, and brand-building, virtually all the organic sales growth delivered in the past nine years has come from new brands and new or improved product innovation. Not only did the company want to ensure that its products were what the customers desired, they wanted to create a lasting positive effect on the community. The five strategies were as follows: Products: “Delight the customer with sustainable innovations that improve the environmental profile of [the] products” (P&G Strategies, Goals and Progress, 2010). In order to provide the most innovative products to the consumers, P&G invested hundreds of millions of dollars of research and development to conduct more than 15,000 studies per year. Operations: “Improve the environmental profile of P&G’s own operations” (P&G Strategies, Goals and Progress, 2010). P&G’s model is to help the environment by reducing its companies’ environmental footprint. This model required P&G to become more efficient in it...
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...In which industry does P&G compete? Apply Porter’s Five Forces Model to the industry. Is this an attractive industry? P&G is one of the leading companies that are operating in the household consumer product industry. P&G’s threat of substitution is extremely high as there are many companies producing household consumer products, both national and international such as Clorox, Kimberly-Clark and Colgate-Palmolive CL. Also, P&G is also competing with retailers private label brands such as Walmart’s Great Value. Because the consumer’s switching costs between products are low, the quality, price, brand loyalty and differentiation of a product is very important in influencing consumer’s purchasing decision. The barrier to entry of an average incumbent firm for this industry is relatively low. This is because the capital investment that is needed to enter this industry is relatively low. However, because of the extremely high competition and also the existence of very established companies such as a P&G, it is very hard for a new entry to be as big as current products. This is because these companies have been able to capture a large market share over the years of their existence as well as able to create brand loyalty among their customers. Therefore, for a new firm to be successful, they would have to invest a lot in research and development to be able to produce a differentiated product. The threat of substitutes for this industry is low because most of the...
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...Innovation Leadership MBA6006 Capella University Introduction When one thinks of innovation, it is a term used to describe new ideas and new beginnings. One who introduced this concept to a failing organization, was an innovative leader named. Alan Lafley former CEO of P&G, adapted the five discovery skills that were displayed in Dyer, Gregersen, & Christensen ‘s Innovator’s DNA associating, questioning, observing, networking, and experimenting. Lafley applied these skills to create an innovative organization and gave a blueprint for other innovative organizations to follow. Although, leadership is a group experience that includes interpersonal influences or persuasion, is goal directed and can lead others through certain actions or to achieving goals through influence, and has hierarchy within the group that can be formal and well defined or informal and flexible. Leaders assist in establishing goals and reaching those goals through actions, allowing individuals in leadership positions to be effective (Nahavandi, 2006). Analyzes which leadership model and practices would encourage innovation considering the global context of the organization in your chosen case. Leadership research has been and will be completed by many individuals and has led to many theories and models to be developed that have both similarities and differences. Four theories or models of leadership that have been researched...
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...Collaboration and Innovation at Procter and Gamble (Chapter 2) 1: What is Procter & Gamble’s business strategy? What is the relationship of collaboration and innovation to that business strategy? Procter and Gamble strategy is to maintain the popularity of its existing brands and in developing new products by extending existing brands and by creating new brands from scratch via innovation. It innovation is at the top of Procter and Gamble’s strategy and collaboration is a critical part to attaining this innovation. In order to constantly come up with new lines of products, Procter and Gamble must incorporate innovation in every aspect of its business. All objectives and business processes must be aligned in a way to foster and generate innovation. And the most critical tool in attaining such alignments is collaboration. Procter and Gamble is one of the top 10 largest companies in the world, operating in over 80 countries so it is very important to attain successful innovation, to develop a cooperative and collaborative environment so as to encourage sharing of ideas and resources and avoid duplication of efforts. Better collaboration results in faster and more efficient brainstorming across locations, and faster generation and sharing of ideas and feedback, this in turn leads to savings in Research and Development costs. Collaboration helps maximize efficiency, encourage communication across locations and ultimately foster innovation. 2: How is P&G using collaboration...
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...the CEO A.G. Lafley used. Lafley used these processes in conjunction with the five skills of discovery to promote growth within the company and to increase sales. This paper will discuss the different models that could be used to encourage innovation within Proctor and Gamble that will help innovative leaders in their roles and responsibilities. Lastly, this paper will also discuss how the information discussed correlates with the five skills of discovery. The leader’s actions will then be assessed and scored on how well they implemented change and shaped a culture that is more innovative in their organization. Supportive Leadership Model There is one model in particular that could be chosen to help increase the progression in the Proctor and Gamble organization. The Transformational leadership model could have been a great assesst in the development of new ideas in Proctor and Gamble. Proctor and Gamble first used the “closed innovation” model and then switched to the “open innovation” model to create growth within their organization. According to Venkatesh & Devi (2006), In 2003 Alan Lafley developed the “Connect and Development” model to generate ideas from scientist, engineers, and enterpauners and individuals outside the company. P&G already had some strong models in place to help with the change within their organization. The global context of the organization looked promising, but the transformational leadership model could have been implemented. According to Doyle...
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... Table of Contents Brief History and Background of the Organization: 3 Structure of the Organization: 6 Structural Dimensions of the Organization: 7 Goals, Strategies and Effectiveness: 10 P&G Goals and Objectives: 10 P&G Company Strategies: 13 Organizational Strategies: 14 The External Environment Analysis: 16 Technology: 17 Life Cycle Assessments: 20 Innovation and Change: 21 Conflict, Power and Politics: 25 Procter and Gamble Brief History and Background of the Organization: Procter & Gamble is the largest consumer goods company in the world and sells products under more than 80 brand names. The Procter and Gamble Company is today more familiarly known as P&G, and it has grown from its humble roots as a Cincinnati soap maker to one of the 20 largest multinational corporations in the world (based on sales). P&G took a long time to become the wonder brand they are today. The path to success took a lot of creativity and innovation. P&G invented branding in the 19th century; since then it has acquired products and companies like wildfire, from Cover Girl to Pepto Bismol. Here's how the little soap and candle shop transformed itself into a global giant. 1837: Two Ohio brother-in-laws start soap and candle company: P&G was founded in 1837 by William Procter and James Gamble, working-class immigrants from England and Ireland, respectively. William Procter was a candle-maker and businessman by...
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...Contents Executive Summary 3 Report On Globalization Of P&G 4 1) How did the company initiate its first global business? 4 2) Its Global business activity during the last 5-10 years ………………………………...6 3) What global initiatives the company has taken up currently and in the immediate future? 8 4) Can you suggest any alternative to its given future plan of expansion abroad? 10 5) Due to recent financial meltdown and the continuing recession/ slowdown in some developed countries , have some of the recently introduced expansion plans of your company become vulnerable? 12 6) What remedial measure / plan can you suggest? 14 7) Your suggestions for taking the company’s global businesses to the next level? 15 8) References…………………………………………………………………………….17 Executive Summary Procter and Gamble (P&G) was founded by William Procter and James Gamble on October 31, 1837. The company is now the largest company and brand in Fast Moving Consumer Goods (FMCG) industry. The company, today, deals with personal care product, pet food and cleaning agents. The company scored $83.86 billion sales in 2012 and ranks 1st in the Fortune magazine’s “Global Top Companies for Leaders.” The company as on February 19, 2013 has a market capitalization of $ 211.38 bn (Source: Yahoo Finance). The company has simple expansion plan. They have, since early days, have believed in both organic and inorganic growth. The company cultivated and grew in house...
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...corporate culture, employees learning and development attitude, management long-term vision, situation in a particular market, and competitors’ strategy, to name a few. This condition occurs in Gillette, the leader in razor and blades market in the world, where they currently face the maturity of the industry and get stuck in the old-fashioned strategy. Many times, they commit a product innovation on continual basis as a means to position Gillette as a leading company in the razor and blades market. Unfortunately, their main competitor, Schick-Wilkinson Sword, also responds the competition by innovating products in terms of number of blades in a single razor. As Gillette makes more profits from the blade sales rather than initial razor purchase, the company needs marketing innovation rather than product innovation. Concerning this issue, this paper will elaborate Gillette’s product innovation, the battle with Schick, and recommendation for improving its leadership in razor and blades market. Product Innovation at Gillette One common strategy in facing competition is to nurture product innovation. Sometimes, the idea to develop a new product comes from an observation of previous products and...
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...significant competitive advantage. The company is engaged in producing beauty, health, fabric, home, baby, family and personal care products. In addition, the company’s product portfolio includes pet health products and snacks. P&G’s purpose is to touch and improve people’s everyday lives. Currently, there are nearly seven billion people on the planet and P&G reaches about 4.4 billon people. (Citation) The company is executing its growth strategy by innovating products and services to improve people’s lives in all markets. Innovation is the driving force behind the company’s strategy. As stated by, CEO Robert McDonald “our experience has proven that price promotion may win a quarter here and there, but innovation wins decades”. (Citation needed) There many examples to prove this, the company’s laundry business in the U.K., for instance. In the late 1970s, the company was competing hard to defend and maintain its 35% market share leadership position. In the three decades since, P&G stepped up innovation efforts which introduced a series of game-changing innovations such as Daz automatic detergent, concentrated liquid detergent and most recently Liqutabs. These new innovation efforts now allow the company to enjoy around a 50% share. (Citation needed) P&G seeks huge opportunities for growth and for consumers behind its Purpose-inspired Growth strategy. This strategy will allow the company to expand into more categories, countries and channels. Company Heritage William Procter...
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...l Internal Analysis 1. Resources (what we have) ● Innovation P&G is widely recognized as the industry’s global innovation leader. We collaborate with a global network of research partners, and more than half of all product innovation coming from P&G today includes at least one major component from an external partner. Their contributions have consistently helped us earn honors from the IRI New Product Pacesetters Report—the annual list of the biggest innovations in our industry. Procter & Gamble was this year’s leader for the 2013 New Product Pacesetters list, launching seven of the top 10 most successful nonfood products of the year. Since the first Pacesetters list, P&G has had 155 products make the top 25 Pacesetters list in nonfood categories – more than our six largest competitors combined. ● Scale As one of the world’s largest consumer packaged goods companies, P&G has scale advantages across our brands, businesses, operations and people. This allows us to share knowledge, transfer technologies, optimize our spending and flow resources to better serve consumers and continuously improve our efficiency and productivity. ● Our unique organizational structure offers the global scale benefits of an international company and the local focus to be relevant for consumers in more than 180 countries. Our corporate structure and strong governance practices ensure that we conduct our operations with consistently high standards and integrity...
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