Strength

There are strengths for the company which is being regard as the plus point for P& G as of good elements is there. One of the strength will be the existence of variety of trading division especially in consumer goods manufacturing. As of having various operation P&G divided especially in the consumer goods industry into five segments which are fabric and home care such as baby, feminine, and family care such as beauty care, health care such as food and beverage. This variation of consumer products made it so clear that P& G is showing good performance and efficiency in output all over the years. (1995). The thing that can be concerned here will be the application and practice of trading divisions which enables the company in applying complex and combined system of production which can get along with global market. (2006). It seems to be the same method which was discussed in previous case study of (2003) about P&G having intercontinental recognition as well as the availability of the product universally. P &Gs product has already being well known in areas such as United States, Latin America, Europe, Middle East, Africa, and Asia

Next, the strength is already in the history of P&G especially in offering the best quality products for the customers which creates good perception and name among consumers. As of the good start for the company in 1837 in the United States, this gives wider opportunity for succession and achieving the status of highly ranked international business. The achievement by the company can be said because of having good leaders. Based on the study (1999) the companies stepping stone starts from the management of the company which is the crucial part. Besides that, leadership is also important because as leader he or she will supervise the company from top to bottom especially involved in dealing with this organization 2005 in P&G. This

leaders who comes out with program called organization 2005 is something unique and unbeatable by other competitors strategy.

This P&G organization 2005, is being draft which is mainly for boosting up the sales and income by coming out with new products, closing unwanted manufacturing plants and cutting down unnecessary jobs. Organization 2005 has greater advantage towards the marketing and management outlook which gives importance to the top in term of decision making process by coming out with strategies that will be effective for all range of management. These strategies will be applied mostly in departments such as production, finance, and human resource. On the other hand, it also works as an element in indentifying non performing division, applying

innovations in organizational workforce and being competitive as well as retaining P&G strong global brand. As being discussed above the top management who comes out with policy that will be applicable from top to down in divisions such as production, finance and human resource. This organization 2005 is mainly for the advancement of the company at a pleasant stage. Once the program being used there will be positive elements especially in general managerial and working environments. As of the implementation of Organization 2005 it is believed that there will be tremendous change in the overall operation. (2003). In P& G the programs targeted towards the financial matters as it related with the goals in increasing the sales and income. Next, would be the operation methods where it is being standardized with sophisticated expertise as a substitute of existing operation method. In term of human resources during Jagers period he restructures the paying method in conjunction with companys workforce. Consequently, its a must for P &G to manage well production cost and employability aspect which can be done easily with the existence of organization 2005.

Next, it also will be useful in detecting and coming out with solution especially in management section during Jagers supervision period as he realizes that management must well managed. With this new program it clarifies slow functional area and requires in depth development. The specialty of this organization 2005 is in indentifying inefficient jobs, divisions and others mainly the whole business of P&G in the long-term and when the strategy being applied. The new program emphasizes more on R&D and sustaining good position in the industry. The goal of organization 2005 mainly in expanding the market place and operating efficiencies. In term of management functions it will be enhanced with further industrialist dynamism by aiming for visions and some achievement even it is not 100% achievement. Under this program it is entitled that everyone must contribute their share by working and its implementation and not forgotten the role of improvement in management as well as operation areas.

Organizational Weaknesses

P&G was going fine at first when organization 2005 was introduced but lately it gives negative feedback especially in management as the implementation was done without examining it. The quick reaction would be seen in management especially Jager who was unable to cope with unexpected changes. Things reflect to be worst when more problems raised and at the same time Jager made his mind of leaving the company. The worst thing would be the flop of share price from $117 to $90 in January 2000. Good expectation from result went upside down. Moreover, management functions were affected especially for the delivery department due to this the managers are responsible. The following effect can be seen in human resources especially when P&G relocate their employees to different part of world and the employees can get along with this change. On the other hand, huge limitations of organization 2005 hit the human resource management which is unavoidable of their working hierarchy. The problem in managing starts as of Jager practices challenging way where not all of the employees can adapt it. Finally, there is insufficient research and development done for the organization 2005 program therefore the implementation doesnt go on the flow.

Next, weaknesses would be seen where there is no development on their current brand. This might make the customer get bored of using the same product for a long time and high chances for them in switching to different brand if P& G continuous the operation without innovation. This low attention towards product development gives difficulty even if P&G wants to do product improvement. The obstacle that P&G is facing reflects the tendency of not having flexibility and being disinterest. (2006). The obstacle P&G faces regarding product development

is something like hot cake as it is known that the current product that available in the market already reached the maturity stage where the consumers already have huge knowledge about the product. In fact when the product already reaches the maturity stage at once the product will start to decline as it an economic cycle. Therefore if the company unable to come out with new product the demand for the product will start to decline day by day till it affect the profit of P&G. This situation get worst as there is no stability of improvement in the product brands of P&G and at the same time the consumer product industry stands alone which means there is no control.

Organizational Opportunities One of the opportunities can be seen will be the application of principle towards latest event. This new event will be advantage for these upcoming markets, highly distributed service arrangements, growing economics as well as competitors weakness. Basically, P&G will have a strategic plan for their business so that they will be better off than the competitors especially gaining more customers and obtain higher profit even being the best in the industry.1985 In companies its really important to maintain new or upgraded operation with the new vision. This organization 2005 is an element which plays one of the important roles especially on management with the use of advanced information technology in performing well. Technology is globalized yet it is sophisticated therefore technology transfer from one area to the plant which supports high technology. Besides that, the revolution towards the well organized system into business aspects by focusing on global business units (GBUs), market development organizations (MDOs), global business services (GBS), corporate functions, and company culture. Next, would be the reorganizing where it will indentify the division that requires consideration and progression from the person in-charge. The existence of organization 2005 shows possibilities of high production and new collaborative dealing. As P&G being the market leader is also opportunity where the managers show good performance as well as the organization 2005 strategy application. Cost is one of the element which exists when production process takes place therefore there are ways to deal with it therefore P&G has come with a solution for it which will be their opportunity. P&G is having business worldwide even their production plant and storehouse available in big overseas market which helps in lowering the cost. Next, P&G do have good

knowledge of the market therefore it is easier to get along with the consumers behavior and the market culture in the prcised market where their product is available. Furthermore, P&G also involved in the localization process therefore the globalization demand will be considered under this localization operations of multinational firms. Multinational company must respond differently when it comes to in-house demand through survey done in particular place. The aim of lowering the production cost solely depends on the company. At the same time P&G has the idea of opening factories in other regions and also investment on plants and factories. Basically, the labour cost is not the same at all places so in other operating places which are lower will benefit P&G where higher allocation can be given to other areas which really required. The money that being saved can also is used for R&D of current product in order to make it famous and available at all the places. The product that P&G produces is mature so P&G can use this opportunity and offers a better product yet being competitive. Organizational Threats The threat that being faced by P&G will be on change management due to the implementation of organization 2005 mainly in all departments. Apparently, financial background of the company is important in order for P&G to adopt and apply the system. In fact if financially they are not strong they might not have enough facilities to maintain the system and at the same time the stake holder who has been involved also wont be able to help especially in financial part. Then it will be the human resource management which will be major contributor for operation process will have difficulties in managing the change and also hazardous if change takes place without prior notice. This sudden change will have effect on each and every single aspect of the company.

Basically, it doesnt matter of what type the business is yet there will be competition no matter the location distribution of the business.The main importance is given towards the expansion between global industries seems to be purposeful. As of that P&G do face threats in form of worldwide trading policies, trade and industry factor, unpredictable consumer culture and buying behavior shows ambiguity. Technology advancement also being seen as threat where it is changing constantly as new technology is being introduced in the market as well as the role of IT in term of expansion even though P&G uses latest technology they are still outdated. Not only P&G involved in this industry yet there are many companies out there which will be competing with P&G in order to be the market leader.

Basically, when it comes to implementation of policy the essential aspect will be market situation. The combination of policy and market situation acts as an element which will give feedback for better production and performance of a company. P&G has low consideration towards improvement on R&D therefore the technology that being used by the competitors are upgraded version and they are almost can compete strongly with P&G. The next main threat would be a complex competition from Unilever towards P&G. Both this company has been in the market for a long time in fact their production are almost the same but only difference is branding. These two companies are fighting each other in order to be the first in the market by using their own way. This organization 2005 in some areas has pin point the negative outcome of P&G especially the drop in sales and also the cash flow which would give bad impression among the customers.