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(Revised from original 2007 version)
Procter & Gamble: Organization 2005 (A)
In response to a huge crisis in 2000, the new CEO of Procter & Gamble has to decide whether to continue with an unusual organizational design or to revert to the old matrix organization. Describes all the organizational designs used by Procter & Gamble from the 1920s onward, including geographic, product, and matrix architectures. Market development organizations, global business units, and global business services unit, each of which is heavily interdependent with the others and none of which has a clear decision-making advantage, comprise the unusual organizational design. Examination of the different organizational designs, trade-offs associated with each organizational architecture as well as the accompanying implementation problems.
Keywords: Global Strategy;
Globalized Firms and Management;
Piskorski, Mikolaj Jan, and Alessandro L. Spadini. "Procter & Gamble: Organization 2005 (A)." Harvard Business School Case 707-519, October 2007. (Revised from original January 2007 version.)