The Advantages & Disadvantages for Working at P&G - Essay Example

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The reporter states that in 2013, P&G generated revenue of $84.16 billion, up from $83.68 billion earned in 2012. The company’s net earnings also grew from $10.75 billion in 2012 to $11.31 billion in 2013 (P&G). The numbers indicate that P&G’s sales and profits are nearly flat…
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The Advantages & Disadvantages for Working at P&G
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Case Study #3: Procter & Gamble How is business performing for P&G? In P&G generated revenue of $84.16 billion, up from $83.68 billion earned in 2012. The company’s net earnings also grew from $10.75 billion in 2012 to $11.31 billion in 2013 (P&G). The numbers indicate that P&G’s sales and profits are nearly flat. The behemoth intends to follow a focused-growth strategy to boost its revenue. The company will divest 100 odd brands and focus on 80 top brands that generate 90 percent of its revenue and 95 percent of profits. Thus, the existing businesses, with shortened product lines, will be the source of future growth at P&G.
What is P&G trying to accomplish strategically by restructuring & repositioning 300+ brands?
P&G is restructuring its product portfolio as part of a $10 billion cost cutting plan. Nearly 100 brands that collectively generate revenue of $2.4 billion are likely to be divested (Kumar). P&G has 23 billion dollar brands in its portfolio which will be retained. The success to a brand restructuring program is to identify and weed out low performing brands and retain the cash cows. P&G is treading on the right path and therefore investors should feel encouraged. The leaner, trimmed down P&G is likely to be more focused, nimble and responsive to customer needs which will help the company in the long run.
Who is A.G. Lafley?
A.G. Lafley resumed the position of P&G’s CEO in 2013. He had been at the helm of P&G from 2000 to 2009. Thereafter, Bob McDonald steered the P&G ship for four years (Coolidge). Lafley returned as CEO to guide P&G out of the woods. He is presently overseeing a massive restructuring plan (Green). He is committed to reducing costs and increasing efficiency. Lafley’s leadership style is bound to make a profound difference for the business going forward. The incumbent CEO intends to refocus on innovation; an attribute that helped P&G reach dizzy heights during his first tenure (Coolidge). Lafley is an astute strategist who is willing to take calculated risks. He believes in the philosophy that customer is the boss. Lafley’s assertiveness, creativity and infallible administrative ability have won him many accolades and awards (
How does P&G’s hiring process work?
P&G offers job opportunities across functional areas, geographical territories and hierarchical levels. The company offers full-time and part-time jobs, temporary work as well internships. P&G scouts for people who are curious and innovative. People who are able to establish a rapport with other people are seen as potential employees. P&G hires agile people who are prepared to meet the challenges head on. Employees having these traits mesh well with P&G’s organizational culture and help fuel future growth of the company. The reasoning test checks the cognitive ability of the candidate. P&G uses this test to ensure that people who can deal with dynamic and complex business situations join the organization ( I can prepare for a P&G job by diligent preparation which includes taking practice tests and appearing for mock interviews. I intend taking up a job in the functional area in which I have specialized to ensure that the fitment is correct.
What would be the advantages & disadvantages for working at P&G?
Working with a global behemoth like P&G would provide an ideal platform to learn the business as well as the tricks of the trade. Moreover, the growth opportunities within and outside the organization would be immense. The disadvantage of working with a large company is that the employee is merely a cog in the wheel. The processes and procedures are already streamlined leaving little room for the employee to bring about changes that have a positive impact in the organization.
Works Cited
Coolidge, Alexander. A Year At P&G: Lafleys 5 Big Moves. N.p., 2014. Web. 9 Mar. 2015.
Green, Sarah. What A.G. Lafley’S Return Means For P&G. Harvard Business Review (2013): n. pag. Web. 9 Mar. 2015.
Kumar, Devika Krishna. UPDATE 4-P&G To Sell Up To 100 Brands To Revive Sales, Cut Costs.Reuters 2014. Web. 9 Mar. 2015.
P&G,. 2013 Annual Report. 2013. Web. 9 Mar. 2015.,. Steps_V1. N.p., 2015. Web. 9 Mar. 2015.,. Evaluation Of AG Lafleys Leadership In Procter And Gamble. N.p., 2015. Web. 9 Mar. 2015. Read More
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