Proctor and Gamble :: Consumer Goods Industry PG P&G

Exe jumpive Summary P&G was founded in 1837 by William Procter and James Gamble as a maker of soaps and candles. P&G was known in Corporate America as a company to be admired and imitated. In addition, it was envied for its profitability as vigorous as strong brand name. P&G has a great standing reputation as having life massive employees. This dedication and verity by P&Gs employees created the notion that outside sources were unwelcome and all products and ideas must(prenominal) come from within, however, this is not the way of the future. Durk I. Jager was named CEO in January 1999 but essay to fulfill too much too fast. Jager entered into this position at a very difficult time in P&Gs history and seek everything he knew to keep the company going. He introduced new high rarity products, which did not fit within P&Gs culture. His solution to keep P&G going was to cut costs, however this was not a long term solution. He alienated the employee population in 17 brief months. Acknowledging Jagers failure, P&Gs board forced him to submit his resignation. P&G employees ask a face lift and fast. A.G. Lafley, a Harvard graduate who spent his consummate career with P&G was named CEO. He showed P&G employees that a family culture within the company was still attainable. Lafley focused on the employees and ensured the employees retained focus on the consumers, as consumers are the basis of the market. He belatedly began to change the old views of P&G. Not long after Lafleys appointment to CEO he replaced more than half of the companys top 30 officers and cut 9,600 jobs. P&Gs old view of internal creation was halted by Lafley. He acquired Clairol in 2001 P&Gs largest acquisition in its history. He also outsourced P&Gs information-technology operation to help maintain its focus on the consumer and its brands. Lafley was able accomplish these non-traditional moves without alienating the family that was P&G. Although Lafley has had succes s, the underlying problem remains. How will Lafley return P&G to its rightful place in Corporate America? P&Gs solution to its problems is through product line extensions, expansion into non-premium brands, as good as acquisitions, licensing, reinforcing market orientation through consumer focus, and outsourcing. This recommendation was based on following items