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Strategic Management
Case Study
P&G Japan, SK-II
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Contents
Case Summary (P&G Japan)
-Introduction of P&G
-Failure and Success
-Globalization and Suggestion
Korean Case : BBQ
-Introduction of BBQ
-Strategy in globalization
-Recommendation
Q&A
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About P&G
P&G¡¯s Global Strategy
Overseas Division(1984) drove rapid expansion
Europe, Latin America and Asia¡¯s 27 countries: $11 billion worldwide sales in 1980
Country General manager(GM) : each counter runs by expertise of local market
Problems
1. Cost limits profits: local product development costs
2. Delay of release new product
Founded in 1837 by Proctor and Gamble
Product: Consumer Goods ( detergents, diaper)
Introduction of P&G
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Early 90¡¯s:
Eroding Performance
1985:
Developing Program
1989:
Market Expansion
1. Entering Japan Market
& Accumulated Loss
2. ¡°Ichidai Hiyaku¡±
: the developing pr¡¦(»ý·«)
|
ng
the Process
Changing
the Structure
`Global Growth For P&G: Change Strategies`
- Key to P&G¡¯s Future Growth
- detergent, toothpaste, diaper is full potential
- ¡°stretch, innovation, and speed¡±
- Reduction of non-value added work
- Performance-based compensation
- Extend Stock Option to all Employees
- Integrated business planning process
-from P&G¡¯s 4 regional group to 7 global business units(GBUs)
Organization 2005 for P&G¡¯s Global Growth
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Innovation of P&G Japan
1. Launching SK-II
2. Concentration of Max Factor
3. Focusing on R&D
- Reflect Japanese consumers taste
- Targeting the prestige beauty-counselor segment
- TV advertising: well-respected Japanese actress
- Change counter design and installation
- Using leading-edge ideas from Japan Market
- R&D labs with global team
`P&G Japan: Understanding of Local Responsiveness`
Innovation of P&G Japan: SK-II
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¡°P&G¡¯s Global Strategy and Local Responsiveness(Japan Market)