1. Briefly highlight how the Diamond Philosophy acts as a guide to P&G’s business’s product innovation efforts. Explain how P&G employs the SIMPL™ as its winning strategy to withstand global business pressure.
Procter and Gamble is a leading manufacturer of household products within the United States of America. The organization has used the diamond philosophy as a guide to its product innovation. The organization has also used the SIMPL™ model as a strategy to thrive in spite of global business pressures. Hibbert and Cunliffe (2015, p.179) posit that the diamond philosophy adopted by the organization is designed to create driving factors to guarantee organizational success. The company has determined that it is essential for it to have a technology strategy and product innovation strategy in place for business development. The product innovation strategy has enabled the company to continually develop products that are comparable to the needs of its customers.
Admittedly, the technology strategy that has been put in place within the organization has guided the management to adopt groundbreaking technology as a way of improving organizational productivity levels. Slack and Brandon-Jones (2018, 36) assert that the organization has embraced effectiveness and efficiency within the company to manage staff members from the policies that are designed to ensure that staff members generate optimum output for the organization. The adoption of the latest technology has enabled the management to supervise all the organization's regional branches.
Proctor and Gamble has introduced efficiency measures in the idea launching process. The organization has created a reliable mechanism to foster a culture of innovation. The diamond philosophy adopted in the company has enabled it to focus on the right projects by having a strategy that is centered on portfolio management. Slack and Br`andon-Jones, (2018, p. 36) assert that Procter and Gamble consider people to be an essential resource and has therefore created an organizational culture that increases the functionality of cross-functional teams and the senior management committee. The company is committed to new product development and efficiency levels in organizational production processes. Product development in the company has been made possible through the adoption of innovative measures to integrate consumer feedback in product design processes.
The diamond SIMPL™ has been demonstrated through the cosmetics business as the company has created an innovation strategy to implement its policies. The use of the SIMPL™ model has also allowed the organization to engage in successful initiatives to increase its profitability levels. Hibbert and Cunliffe (2015, p.181) extrapolate that the SIMPL™ has also been used to generate products that are successful in the market in the pre-launch phase and the post-launch phase (Slack and Brandon-Jones, 2018, p. 78). The SIMPL™ created has been ideal and has enabled organizations to execute their tasks effectively. Procter and Gamble believe in a policy of using a SIMPL™ to form project teams that execute their tasks early and on time.
By and large, the organization has been engaged in consumer research to gather product development information to guide innovation processes. As a consequence, the company has introduced a long-lasting lipstick and a 10-hour lipstick. The company has also focused on innovation strategy by using their idea to launch process SIMPL™ as a rigorous criterion to determine the timing of its products (Morden, 2016, p. 36). The use of the SIMPL™ has created different stages through which the organization can create superior products within the market. The SIMPL™ model has a unique focus as it identifies consumer demands to foster a culture of innovation in the company.
The principles behind the SIMPL™ adopted by the organization have been focused on innovation through success in the marketplace. Procter and Gamble have developed criteria for making strategic decision-making and execution maneuvers. The company has also succeeded by practicing effective implementation of managerial product development decisions. Slack and Brandon-Jones, (2018, p. 123) observe that the management of the organization has developed strategies to improve product visibility in the market place (Binder, J., 2016, p. 77). The organization has established a precise mechanism to ensure that innovation is sanctioned by the management to create benchmarks and a system of accountability and supervision. Post-launch reviews have been critical in gathering client feedback and ascertaining whether the products meet consumer needs.
Granted, the company has used the diamond strategy SIMPL™ to cope with global pressures by clearly stipulating its expected objectives. Accordingly, the company has clearly defined its expected sales levels, expected profitability levels and its planned launch date. The planning and decision-making process in the organization is based on expected sales objectives. Hibbert and Cunliffe, (2015, p.186) state that the use of a SIMPL™ has also enabled the company to evaluate their projects in different faces to focus on developing products that meet consumer needs based on the size of the investment and the level of risk. The production process established by the company is unique as it differentiates it from other global businesses. The company has also benefited by having a unique SIMPL™ for each business in different geographical regions. Heding et al. (2015, p.67) assert thathe management has allowed regional business segments to design strategies that enable them to adapt to their business environments.
In the same manner, the diamond strategy has defined the relationship between resource planning, communication strategy, project selection, and production processes. The organization has determined that effective implementation is an essential part in ensuring that businesses can increase their profitability levels and efficiencies by cooperating with initiative teams. Heding et al. (2015, p. 34) argue that the company also values the diamond SIMPL™ in establishing a business culture that motivates its staff. Procter and Gamble continually generate a consultative framework with its staff members to allow them to provide their contribution in implementing business ideas.
The planning stage of the company is considered to be strategic and provides an opportunity for the management to develop structures by holding consultative sessions with staff members. Strategic planning has also been achieved through the creation of strategies that promote the vitality of business growth and increased levels of innovation. Hibbert and Cunliffe (2015, p.185) opine that the success of Procter and Gamble in the past three decades can be attributed to the adoption of the latest forms of technology. An improvement in the production processes has assisted the company to generate superior consumer products to out-compete other organizations in its market niche.
To counter global competitive pressure, the organization has engaged in efficiency measures to reduce its inventory levels. Company planners within the organization focus on production targets for 126 weeks. The objective of the organization is to develop safety stock SIMPL™s and to cut out excessive stock holding cost. The company has also achieved considerable growth and revenue levels by introducing a holistic and disciplined approach in its product management. Deben (2009, p. 3) relates that the research and the development process conducted by Procter and Gamble is critical to understand consumer needs and to introduce product lines that have significant value to clients.
2. Describe in detail how management functions such as organizing, motivating and controlling are executed at P&G.
Organizing is an important management function in Procter and Gamble. The coordination of different company processes has been instrumental in defining the tasks that need to be executed in the company (Degen, 2009, p. 7). Through the organizing committee, the company has established coordination mechanisms based on organizational goals and missions to achieve the objectives set by the management team.
The organizational design of the company has improved the decision-making processes in the company. Procter and Gamble have developed a decision-making framework, a matrix structure and a divisional structure to meet the needs of the organization. Degen (2009, p. 13) reiterates that the business needs of the company are based on the organizational function and the relationships that exist within the company. The management of Procter and Gamble constantly aspires to create structural characteristics that will enable the company to respond to the external business environment.
To organize its staff and resources, Procter and Gamble have evolved and adjusted the organizational structure in the company to create a high degree of competitiveness. The company has optimized the strengths of employees by creating a business environment that encourages staff to be innovative and to maximize their strengths. External and internal factors have therefore been critical in determining the capabilities and the performance of the organization (Hibbert and Cunliffe, 2015, p.184). The company’s organization strategy has been based on its ability to effectively solve problems and respond to the challenges experienced by sales representatives in the industry.
Notably, the company has a divisional organizational structure that offers different kinds of products (Degen, 2009, p. 21). The organization is also involved in the development of business processes and the creation of a suitable framework to influence managerial decisions. Degen (2009, p. 27) contends that the structural characteristics of Procter and Gamble are critical in ascertaining the primary workforce units that are required to improve productivity levels and efficiency in the generation of business products.
To a large extent, the company has increased its successes by establishing a strategic plan and a corporate culture within the organization. The organizational function has been made possible through a digital investment which has transformed the nature of the company and increased its agility and transparency levels. Moreover, the company has developed innovative analytics to assist the management better organize its resources. Luca, (2016, p. 4) elucidates that the just-in-time model of production has also been strategic in enhancing the level of consistency within the organization and reducing the risk of micromanagement. The progress made by Procter and Gamble has been associated with the focus of the management in eliminating an unhealthy and competitive attitude.
Motivation is also a critical part of Procter and Gamble. The company’s management has offered monetary and non-monetary rewards to staff members to increase their productivity level and improve their participation in the decision-making matrix. The incentives provided to employees include training programs and stock options. Hibbert and Cunliffe (2015, p.186) illustrate that employees have demonstrated their motivation by continually innovating new product lines. Procter and Gamble have a policy of rewarding stock options to employees who comply with the codes and ethics within the company. The remuneration package in the company is established to ensure that the workforce is sufficiently motivated.
In the same manner, Procter and Gamble have used training programs as a non-monetary reward to increase success in the global divisions of the company. Since people are the most valuable resource of the organization, opportunities for training are given to those who perform well. A training program has been used in the company to improve efficiency levels and to reward staff members who play at considerable levels (Luca, 2016, p. 7). The intention is to increase the leverage of staff members and to ensure that they participate in leadership development programs (Luca, 2016, p. 9). The organization has developed programs to improve the motivations of employees and to increase the attractiveness of the company to outside parties. Proctor and Gamble has placed emphasis on performance management to improve employee performance.
Team leaders in the company are encouraged to use motivational methods such as providing incentives to improve goal setting and objective achievement within the company. Procter and Gamble have also established an award for innovation on an annual basis to reward the employees who generate projects and ideas that can out-compete their competitors. Lewis et al. (2007, p.13) demonstrate that Procter and Gamble have been engaged in controlling functions as the organization has established strategic control by implementing vital tools of planning. Lewis et al. (2007, p.16) also assert that the management of the organization has demonstrated its focus on planning by establishing an operating budget and basing its decisions on statistical reports.
The organization and management rely on setting clear procedures and policies to generate periodic reports and to establish control systems within the company. The administration has also introduced different methods for financial analysis to determine the profitability levels created within the company. vom Brocke et al. (2016, p. 489) assert that bureaucratic control in the company is a common feature as processes have been introduced to impact staff behavior positively. To control organizational resources, the management has been encouraged to conduct regular performance reviews.
Accordingly, supervisors have set key performance indicators that assess the performance of each employee to determine deviations. After discrepancies are recorded, employees are then corrected based on their capabilities and organizational goals (Mntzberg, 2007, p.3). The control philosophy of the organization is placed on the importance that the company holds to implementing social values, focusing on company traditions and cultivating an environment of trust and belief within the company. The organization holds annual general meetings during which annual income reports are presented, and budgets are scrutinized based on organizational objectives and targets. The general assembly is essential in motivating stakeholders by issuing rewards such as dividends for their shares.
3. Elaborate on the leadership traits found in Mr. A.G.Lafley and explain how these qualities foster a healthy organizational culture and enhance organizational performance.
The chief executive officer has demonstrated unique leadership traits. A.G. Lafley was an assertive leader who was humane in making strategic decisions. During his tenure, the chief executive officer made prudent decisions to lead the organization through a financial crisis (vom Brocke et al. 2016, p. 492). During that period, the chief executive officer was able to eliminate unnecessary business operations. The chief executive officer also demonstrated an element of creativity in the manner in which he encouraged staff members in the organization to be innovative. Mntzberg, (2007 explains that the CEO’s achievements in the company, which were witnessed, were as a result of the administrative ability of the creation of an environment of trust and urged employees to focus on improving profitability levels.
The leadership traits demonstrated by A.G. Lafley were instrumental in improving the financial performance of Procter and Gamble. One of the significant organizational achievements under his leadership was innovation as he was involved in introducing new product lines to meet consumer needs. The chief executive officer was able to demonstrate a friendly attitude towards staff members by rewarding their commitment to the organization (Mntzberg, 2007, p.5). The responsibility of the chief executive officer was also crucial in ensuring that an enabling atmosphere was created to enhance organizational success. The chief executive officer will be remembered for creating a positive working environment and improved organizational efficiency levels (Mntzberg, 2007, p.13). A.G. Lafley also proposed policies to reduce unnecessary costs.
4. How does P&G adopt sustainable practices along with its entire value chain? Also elaborate on how the company addresses issues such as gender equality, diversity, and globalization.
The company has adopted an elaborate system of accountability to address sustainability issues within the context of change. Procter and Gamble have demonstrated a commitment to creating an environment that determines the social conduct of its staff members. In spite of the differences that the organization has recorded, the management has demonstrated commitment in raising the awareness of employees towards change factors. vom Brocke et al. (2016, p. 495) assert that the company considers it an item of necessity for all staff members to be informed of continually changing environmental policies. As such, structures, processes, and policies have been adopted to improve employee success.
The management has created a sustainability strategy by increasing the level of employee awareness and advocating for change at an organizational level. The administration has determined that employees who focus on the paradigm change of practicing sustainable innovation practices will ensure that the company is profitable in the long run (Durant et al. 2017, p. 857). Procter and Gamble has implemented strategic policies and goals to monitor and evaluate the implementation of its strategies at the national and global level.
In the same manner, the organization has adopted a strategy to integrate sustainability practices into its business processes. The sustainability that has been proposed is designed to respond to environmental and social concerns and to address all economic issues. The company has demonstrated its commitment to addressing sustainability issues by creating a strategy that focuses on the whole product cycle. Mntzberg (2007, p.17) explains that sustainability is a critical component of Procter and Gamble mainly because the company relies on the production and the purchase of mass consumer goods.
Notably, the company has already introduced policies to have substitutes for phosphate in its dishwashing products. The policies adopted by the organization are designed to meet environmental standards set by state governments in Maryland and Virginia. The management of the company has also focused on addressing customer issues regarding ingredients in some of its bathroom products (Durant et al. 2017, p. 862). In this manner, the organization has demonstrated that product safety is a fundamental element in its business processes.
Additionally, the company has established policies to deal with globalization, gender equality, and diversity. The organization has increased its commitment to gender equality by introducing action, responsibilities, and partnerships in its creative supply chain system. The company has increased its focus on positive portrayals of women in media and advertising by ensuring that all its activities are designed to improve gender sensitivity. Mntzberg (2007, p. 34) elucidates that the organization has been engaged in calls to achieve positive portrayals of women in the media and advertising. The company has also created organizational policies in hiring to ensure that men and women are equally represented within the company.
Procter and Gamble have determined that it is an organization committed to diversity by including minority groups in its production processes. To deal with the challenges of globalization, the chief executive officer has created policies to co-operate with other organizations and critical industry stakeholders. Durant et al. (2017, p. 862) claim that one of the initiatives that the chief executive officer undertook was to cooperate with Walmart to distribute its products in specialty stores. The company has also benefited from globalization by upgrading its products and ensuring that the organization meets the needs of its target clientele.
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