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Supply Chain Finance At Procter And Gamble Case Study Analysis

Background and Facts

Supply Chain Finance At Procter And Gamble a workplace products store for small and average sized services has actually recently been associated with preparing for a merging with its rival House Deport, which has actually affected effectiveness degrees in departmentswith the senior manager involved in legal issues put forth by the government Profession Payment. With the Advertising and marketing Head advancing the information of his departure from the firm in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the function in the near future. With obstacles in the kind of a potential social modification and low employee morale, the company is in need of a complete reengineering effort at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The potential social adjustment at the marketing department of Supply Chain Finance At Procter And Gamble is increasing uncertainty in the workplace leading to numerous challenges for the Jeannie Lewis who would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in impacting critical choices considering that Stapes Inc. had to desert its strategies of combining with Office Deport after the Federal Profession Compensation's treatment at the same time. Given the fact that the store has a global presence with branches in UK, UNITED STATES, Canada as well as Germany, political factors in each of these nations might be able to impact efficiency or tactical goals. Federal Trade Compensation's antitrust match versus the merger used up important time of the organization's elderly administration recommending that 'political' factors can have severe ramifications for a global business.

Economic Factors: Economic factors such as the appearance of local business in the worldwide situation suggest that Supply Chain Finance At Procter And Gamble is prospering in a setting where there is potential growth of organisations. Fact that store clients are mainly looking for workplace supplies for house workplaces recommends that the market has a climbing trend of entrepreneurs as well as house based organisations.

Social factors: Social trends in the economy show that consumers are searching for convenience along with eye-catching prices. Market research shows how the client for Supply Chain Finance At Procter And Gamble lacks awareness concerning discovering remedies which can supply a mix of benefit and inexpensive.

Technical factors: Modern technology plays an essential duty in Supply Chain Finance At Procter And Gamble's business method particularly as the company is piloting Technology centers which would provide innovation sales and support in the type of memory upgrades, peripheral installments. (Summary of INSECT in appendix 2).

OB Issues as well as Manifestations.

Numerous underlying Business Actions issues can be seen in Supply Chain Finance At Procter And Gamble's case as highlighted in this section.

Uneasiness regarding cultural adjustment: There is worry about a social adjustment that would happen once Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising with most of the employee currently showing unhappiness over this possible action. This expected modification has actually developed stress and anxiety in the office which has actually been combined with the past tension of preparing the firm for a possible merging with Home Deport.
Pest Analysis
Stressful Job Environment for Newcomers: There is scarcity of employees that can match the demanding environment of a busy company. Not only does this result in trouble in discovering the best people, it places stress and anxiety on brand-new hires as can not endure the speed as well as pressure that the company anticipates them to birth.

Double Coverage Lines: Newbies locate this organizational society cumbersome and tough to handle especially as populated line connections are meant to be weaker generally and unbiased setting and also performance analysis is still done by the strong line supervisor. This means that beginners could shed clearness concerning their respective roles and objectives specifically as populated line reporting does not keep them in straight communication with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles although it had been hypothesized that the last would take Krasnow's placement came as a blow to her morale. Lewis might have been capable and also ideal for the task but the truth that Kransnow's departure would certainly make Coles a direct report to Lewis may have been the factor for Coles' resignation from services.

Anxiety & Job Instability: Anxiety and instability can be identified as 2 significant problems that Lewis would be taking care of especially as the merging has actually currently be terminated and also 2 elderly execs of the marketing division would certainly be leaving. The entire obligation of the department would be dropping on Lewis's shoulders who would not simply be in charge of brining regarding a cultural modification but would likewise have to show herself in her brand-new duty.

Incompatible Administration Style of Leader: Lewis's monitoring style and also its conflict with the advertising division's duty can also be seen as an OB obstacle particularly as she has actually been made use of to managing concerns in the procedures division where employees are shown to concentrate on procedures and get them. The advertising and marketing department on the various other hand can be viewed as a group of individuals that are used to being supported by Krasnow who concentrated much more on output than procedures.

Interdepartmental Disputes: Interdepartmental disagreements between 3 departments, advertising, merchandizing as well as operations respectively over the allocation of the marketing mix can be identified as an additional OB issue. Although the marketing department does not share the same vision as the other 2 divisions pertaining to the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing and operations departments do not concur over the marketing mix allocation amongst one another either.

Fragmentation in Advertising Division: Disintegration between the marketing and advertising divisions can be identified as an additional OB issue which might require further attention. The reality that the advertising and marketing sections in the advertising and marketing department are detached is preventing both departments from getting from each other's experience as well as proficiency. Combination of marketing with retailing and also procedures would certainly end up being more difficult if the advertising division itself is disintegrated which can be an additional potential OB worry.

Supply Chain Finance At Procter And Gamble Analysis

Different concepts have been made use of to discuss the conditions to obtain additional quality concerning the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, the majority of managers believe that staffs are easy and also careless, have little aspiration as well as withstand change. The circumstance at Supply Chain Finance At Procter And Gamble is not entirely complying with Theory X, it can be seen that new hires are finding this setting rather difficult which may ultimately lead to a greater inclination of the administration in the direction of Concept X. Even while evaluating Lewis's management style, concept X may have been suitable in the operations department to some level however the Marketing department would require reliance on Theory Y in order to get the creative thinking and also originality from the groups.

Tuckman's Synergy Theory: As far as Lewis's issue regarding bringing harmony in between the marketing and advertising division is worried, this would initially bring about conflict as discussed by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). As per Tuckman's concept received appendix 3, during the preliminary stage of group advancement, people might not bond, as they are busy locating their place in the team. By incorporating the advertising and marketing division's work, there may be the same initial detach which can lead to the 2nd stage of 'storming' where the teams test one another. It is only during the 3rd phase or 'norming' when they would come together to share suggestions prior to the team can bring about harmony in the 4th stage 'doing'.

Bridges' Change Model: According To William Bridge's concept (appendix 4), people are rather uneasy with change, which is obvious by the circumstance at Supply Chain Finance At Procter And Gamble The situation can be seen as a normal program of life if is researched as per Bridge's theory where he discusses that individuals undergo 3 phases of transition when they experience change. 'End, shedding and Letting go', The Neutral Zone and 'The New Beginning' (Bridges, 2004). When individuals exist with change, they enter stage one and so there may be feelings like despair, unpredictability, frustration, anger, anxiety, denial and disorientation.The situation at the marketing department of Supply Chain Finance At Procter And Gamble is similar so Lewis can get comfy with the concept that it is not phenomenal habits. In the 2nd stage, there might be a demand to bridge the void in between the new and also old society so Lewis may need to face this challenge once Krasnow leaves. There might be reduced morale and also reduced productivity at this stage which must not be taken as a problem. It is throughout this phase that Lewis will certainly have to give support to the department so that they can discover a sense of direction. It can be seen just how Krasnow has already made this transition easier by making Lewis get involved in the department a year before his actual departure. Based on Bridges' Model, phase three will certainly bring about openness to understanding, High power as well as dedication as people will certainly welcome the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Power structure' (appendix 5) has discusses the significance of 'safety and security requires as being a lower degree need of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to really feel protected and also out of threat' is at the 2nd degree of needs. Before a worker can be made to establish mentally, he needs to have his 'Physiological 'and 'Safety' needs fulfilled.

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

Ramification of Analysis.

The OB analysis has taken a look at numerous theories to understand how to cope with the existing scenario available. The adhering to 3 choices have actually been suggested to aid Lewis manage the organizational obstacles in the advertising and marketing division. Each of these options has actually been suggested for easing the change needed to bring the advertising department according to the demands of the market as well as for making the social adjustment that would follow once the present leader leaves.

Combination of advertising and marketing functions. Separating Adverting and Production functions. Integration of Marketing with Operations.

Evaluation of Alternatives.

Judith Shapiro that has actually earlier been talked to by Lewis during the earlier merging days has know-how in business-to-business advertising and marketing along with company and retail marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to take care of both marketing as well as advertising features.

The benefit of this method is that it will certainly integrate both functions while reducing the requirement for working with an additional source for marketing. Along with this, Lewis would certainly be heading the advertising and marketing division and regardless her substitute would certainly be required for the present function that she is performing. The disadvantage of this alternative is that external hiring might produce bitterness from inner personnel who may be considering the position of EVP after Lewis takes control of Krasnow's position.

Separating Adverting and Production: Provided the affordable stress and also high quality job required from the advertising agency, it is recommended that Lewis should permit the production device to be a different feature from the advertising and marketing unit. Because the majority of advertising agencies had these 2 functions as different systems, it makes more sense to follow the norm. Both functions might be able to focus on their core activates a lot more effectively. Nevertheless, the drawback of this technique would certainly be that added costs would certainly have to be birthed for establishing different production features. Along with this, a production head may have to be employed which could boost expenses for the organization.

Combination of Advertising with Procedures: Considering that Lewis is already taking treatment of the advertising and also procedures departments all at once; it makes feeling to incorporate the two features considering that she has been effectively taking care of both ends. The truth that Lewis has to adapt her management style for the advertising and marketing division recommends that these two departments would certainly be culturally diverse.


An assessment of the three options indicates that assimilation of advertising as well as procedures would certainly not be a practical move due to the large distinctions between both departments despite the fact that currently Lewis is managing both. While splitting up of the production feature may have been a favorable step for the advertising department, the reality that it would certainly suggest placing a 3rd feature under Lewis's wing means this should be avoided as well. The assimilation of the advertising and marketing division is the best alternative in regards to getting the optimal arise from the department. An activity plan for this alternative is talked about below.

Action Plan.
Lewis will take over the duty of EVP Marketing after Krasnow leaves.

Marketing and advertising functions would be merged.

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

Manufacturing feature will continue to be component of marketing under advertising and marketing feature.

Lewis will separate herself from procedures.

A democratic leadership style with staff member empowerment will be utilized in advertising department.

Open door policy and emphasis on cross department interaction will be aimed at eliminating discord.

Backup strategy.

If the integration does not work out as prepared, a backup plan would follow which would certainly separate the manufacturing feature from the advertising and marketing function to lower the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising department without an SVP. Because case the production function will certainly be separated by positioning it under an SVP production.