Menu

Supply Chain Finance At Procter And Gamble Case Study Help

CASE STUDY

Home >> Harvard >> Supply Chain Finance At Procter And Gamble >>

Supply Chain Finance At Procter And Gamble Case Study Solution

Background and Facts

Supply Chain Finance At Procter And Gamble an office supplies store for little and average sized companies has actually just recently been associated with planning for a merger with its competitor House Deport, which has actually affected effectiveness levels in departmentswith the elderly supervisor associated with lawful issues put forth by the federal Trade Commission. With the Marketing Head advancing the information of his separation from the firm in one year, Jeannie Lewis, the current head of procedures has been asked to take the role in the future. With difficulties in the type of a potential social adjustment and also low worker morale, the company needs a full reengineering effort at the advertising department.

Trouble Declaration
Porter's 5 Forces Analysis
The possible cultural adjustment at the marketing division of Supply Chain Finance At Procter And Gamble is enhancing uncertainty in the workplace bring about various obstacles for the Jeannie Lewis who would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in affecting critical choices because Stapes Inc. had to desert its plans of merging with Workplace Deport after the Federal Trade Compensation's intervention at the same time. Given the truth that the shop has a worldwide presence with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these countries may have the ability to impact performance or critical goals. Federal Profession Compensation's antitrust match versus the merging took up important time of the company's senior management suggesting that 'political' factors can have major ramifications for a worldwide business.

Economic Factors: Economic factors such as the appearance of local business in the global scenario suggest that Supply Chain Finance At Procter And Gamble is growing in an environment where there is possible growth of organisations. Along with this, reality that shop clients are mainly seeking workplace products for office recommends that the market has an increasing fad of entrepreneurs and also online companies.

Social factors: Social fads in the economic climate reveal that clients are seeking comfort as well as attractive rates. Market research shows how the customer for Supply Chain Finance At Procter And Gamble lacks awareness regarding discovering services which can provide a mix of ease and also low costs.

Technical factors: Modern technology plays a vital function in Supply Chain Finance At Procter And Gamble's company strategy specifically as the organization is piloting Innovation facilities which would certainly use innovation sales and assistance in the kind of memory upgrades, outer setups. (Summary of PARASITE in appendix 2).

OB Issues as well as Effects.

A number of underlying Business Behavior issues can be seen in Supply Chain Finance At Procter And Gamble's case as highlighted in this section.

Concerns concerning cultural adjustment: There is concern concerning a cultural adjustment that would certainly take place when Todd Krasnow leaves from his setting as the Executive Vice President of Marketing with a lot of the employee currently showing discontent over this prospective step. This predicted adjustment has actually developed tension in the office which has actually been coupled with the previous stress and anxiety of preparing the firm for a possible merger with Residence Deport.
Pest Analysis
Stressful Work Atmosphere for Newcomers: There is shortage of personnel that can match the demanding atmosphere of a fast-paced organization. Not only does this bring about difficulty in locating the best individuals, it places stress on brand-new hires as can not stand up to the speed and also pressure that the company expects them to bear.

Dual Reporting Lines: Novices locate this organizational culture troublesome as well as difficult to cope with especially as populated line partnerships are indicated to be weaker as a whole and also objective setting as well as efficiency analysis is still done by the strong line manager. This implies that novices could shed quality regarding their respective duties and also objectives especially as populated line reporting does not keep them in direct communication with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles despite the fact that it had been hypothesized that the latter would certainly take Krasnow's position came as a blow to her morale. Lewis may have been qualified as well as suitable for the task however the reality that Kransnow's separation would certainly make Coles a direct report to Lewis might have been the reason for Coles' resignation from services.

Fear & Work Instability: Worry and instability can be identified as 2 significant concerns that Lewis would be taking care of especially as the merger has actually currently be cancelled as well as two senior executives of the advertising and marketing division would certainly be leaving. The whole responsibility of the division would certainly be falling on Lewis's shoulders that would certainly not simply supervise of brining about a cultural modification but would certainly additionally have to show herself in her brand-new duty.

Incompatible Administration Style of Leader: Lewis's administration design and also its incompatibility with the advertising department's duty can likewise be seen as an OB challenge specifically as she has actually been utilized to dealing with problems in the operations department where employees are educated to focus on procedures as well as obtain them right. The advertising and marketing division on the various other hand can be seen as a team of individuals who are used to being supported by Krasnow that focused much more on output than processes.

Interdepartmental Differences: Interdepartmental arguments between 3 departments, marketing, merchandizing and also operations respectively over the appropriation of the advertising mix can be identified as an additional OB concern. Although the advertising and marketing division does not share the very same vision as the various other 2 divisions pertaining to the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing as well as operations divisions do not concur over the marketing mix allowance amongst each other either.

Fragmentation in Advertising Division: Disintegration between the marketing and advertising divisions can be determined as an additional OB concern which can require more focus. The truth that the marketing and advertising sections in the marketing division are separated is stopping both divisions from getting from each other's experience and also knowledge. Assimilation of advertising and marketing with merchandising and operations would certainly come to be harder if the advertising division itself is disintegrated which can be one more potential OB issue.

Supply Chain Finance At Procter And Gamble Analysis

Various concepts have been used to explain the circumstances to obtain further clearness regarding the scenario available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of managers think that staffs are easy as well as careless, have little passion as well as stand up to change. The hard version of this concept highlighted browbeating, limited controls, hazards and punishments. Over time it produces reduced performance, subtle sabotage and competition (Offer, 2003). The situation at Supply Chain Finance At Procter And Gamble is not completely following Concept X, it can be seen that brand-new hires are discovering this atmosphere instead stressful which may at some point lead to a higher inclination of the monitoring in the direction of Theory X. According to McGregor's supported sight, which he called Theory Y, the essential job of the administration is to set up organizational conditions to make sure that individuals can accomplish their own objectives best by routing their initiatives in the direction of organizational rewards. If people locate no satisfaction in their job, the administration would certainly have little selection but to depend on concept X as well as external control (Offer, 2003). Also while examining Lewis's administration style, concept X may have appropriated in the operations division somewhat but the Advertising division would certainly need reliance on Concept Y so as to get the creativity and originality from the groups.

Tuckman's Synergy Concept: As far as Lewis's concern regarding bringing harmony in between the marketing as well as advertising department is concerned, this would originally lead to clash as discussed by Bruce Tuckman in his 'Teamwork Concept'. By combining the marketing and marketing division's job, there might be the very same preliminary separate which might lead to the second phase of 'storming' where the groups test one an additional.

When individuals are offered with modification, they get in stage one and also so there may be emotions like unhappiness, unpredictability, frustration, temper, worry, rejection and disorientation.The situation at the marketing division of Supply Chain Finance At Procter And Gamble is similar so Lewis can obtain comfy with the suggestion that it is not phenomenal habits. It is throughout this stage that Lewis will certainly have to offer support to the division so that they can find a sense of instructions. It can be seen how Krasnow has actually already made this shift simpler by making Lewis obtain included in the division a year prior to his actual separation.
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has talks about the relevance of 'safety needs as being a lower degree requirement of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to really feel secure as well as out of threat' is at the 2nd degree of demands. Prior to a worker can be made to establish psychologically, he requires to have his 'Physiological 'and 'Safety and security' requires satisfied.

SWOT Analysis for Supply Chain Finance At Procter And Gamble Case Study



Ramification of Analysis.

The OB analysis has checked out different theories to comprehend just how to deal with the present situation available. The complying with 3 choices have actually been recommended to aid Lewis take care of the business obstacles in the advertising and marketing division. Each of these alternatives has actually been recommended for easing the shift needed to bring the advertising and marketing department in line with the needs of the market as well as for making the cultural modification that would certainly follow when the existing leader leaves.

Assimilation of advertising and marketing functions. Dividing Adverting and also Production features. Integration of Marketing with Procedures.

Evaluation of Alternatives.

Integration of Advertising And Marketing & Marketing Functions: The in-house marketing firm of Supply Chain Finance At Procter And Gamble is already toughness for the company in terms of conserving up on expenses related to advertising and marketing and also promo. Since no new recruitment has been done after Bridget Cole's separation with the reporting line being directly assigned to Krasnow for the advertising function, this is a favorable opportunity for incorporating the advertising and marketing features. Judith Shapiro who has actually earlier been talked to by Lewis throughout the earlier merger days has know-how in business-to-business marketing together with firm and retail advertising experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to take care of both advertising and marketing functions.

The advantage of this approach is that it will certainly incorporate the two functions while lowering the demand for employing an added resource for advertising and marketing. In addition to this, Lewis would certainly be heading the advertising and marketing division and all the same her substitute would certainly be needed for the existing duty that she is performing. The drawback of this choice is that external hiring might produce resentment from internal personnel that might be eying the placement of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting and also Manufacturing: Offered the affordable pressures as well as high top quality work needed from the advertising company, it is suggested that Lewis needs to enable the manufacturing system to be a separate function from the advertising system. Given that most marketing firms had these 2 functions as different devices, it makes even more feeling to follow the norm.

Integration of Marketing with Procedures: Because Lewis is already taking care of the marketing and also procedures divisions concurrently; it makes sense to integrate the 2 functions given that she has been efficiently taking treatment of both ends. The reality that Lewis has to adapt her administration style for the marketing department suggests that these 2 departments would certainly be culturally diverse.

Suggestion.



An evaluation of the three alternatives suggests that assimilation of marketing and operations would not be a possible move because of the huge differences in between the two departments despite the fact that currently Lewis is handling both. While separation of the production feature might have been a desirable step for the marketing division, the fact that it would suggest placing a 3rd feature under Lewis's wing suggests this must be stayed clear of. The assimilation of the advertising department is the best choice in regards to obtaining the ideal results from the division. An activity plan for this choice is discussed listed below.

Action Strategy.
Recommendation
Lewis will certainly take over the role of EVP Marketing after Krasnow leaves.

Marketing and advertising features would be merged.

Judith Shapiro will certainly be employed to take Lewis's area as SVP of advertising and marketing.

Manufacturing feature will remain component of advertising under advertising feature.

Lewis will certainly separate herself from procedures.

A democratic leadership style with worker empowerment will certainly be used in advertising division.

Open up door policy and also emphasis on cross department interaction will certainly be focused on getting rid of dissonance.

Backup plan.

If the assimilation does not exercise as planned, a backup strategy would follow which would certainly divide the production feature from the advertising and marketing feature to lower the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will be heading the marketing division without an SVP. In that case the manufacturing feature will most definitely be divided by positioning it under an SVP manufacturing.