P&G Japan: The SK-II Globalization Project Coursework (Coursework Sample)

P&G GLOBALISATION
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Like most business P&G had gone through a series of ups and down in its global business. Failure of its leaders to be proactive enough had lead it to make losses while its competitors did well at the same time. Its overseas divisions merely represented a duplication of tasks as each division had its own research and development personnel in addition to its production plant which was later regionalized to reduce cost. Its failure to fully identify specific customers’ needs gave a simple ride to its competitors making business tough for them.
Through its 2005 strategic move, P&G positioned its strategic position majorly on its product innovation as compared to its initial geographic development and moved authority from local subsidiary to worldwide business management. This change is introduced by D Jager, P&G's company CEO, who relocated Paolo de Cesare to work with P&G Japan taking over the beauty care business. He inherited SK-II a Max Factor portfolio. The product was accepted in Japan and its sales volume and profitability rose rapidly making him believe in its global business potential.
Though not a typical P&G product, SK-II attainment in Japan made him interested in presenting the idea to the Global leadership team (GLM); due to his strong will to globalize the product under P&G international. But while the strategic opportunity was clear, De Cesare had to recognize his organization’s reality; it needed to make more sales volume from other products like Shampoos which were in line with P&G production as even the Chief executive officer D Jager openly questioned how well this products fit in the P&G Company’s portfolio. On the other hand, the 2...