P & G:Organisational structure
P&G created global category presidencies reporting directly toCEO;
This structure allowed for the creation of global technical centersin different regions. Each with a core competency in a specificproduct category
Problems of The Global Matrix
It was never symmetrical
Management by functional conflicts led to poor strategicalignments throughout the companyfor e.g.
product supply made global efforts to reduce thenumber of chemical suppliers whereas, R&D looked for highperformance ingredients no matter where they came from. Due towhich it was difficult for regional managers to focus on particularcountries to address these global conflicts.
There was tension between product category & regionalmanagement though regional managers had responsibility forfinancial result.
R&D and global category leaders fought hard to globalize newtechnological and brand innovations quickly.
Due to the internal conflicts the competitors were catching upquickly.
The organizational structure was facing a big question mark whether it is going to sustain for long term or not.