Module 04: Interpretive case - Organizational Architecture at P & G 1

Module 04: Interpretive case

Organizational Architecture at P & G

Thuany R. Cruz-Llamas

April 7, 2021

University of Mary

BUS 420 01 00 DE - International Business

Professor: Kathleen M. Hargiss, Ph.D., MBA, MA

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1. Advertising is important for most companies, espe-cially companies such as P&G

that sells mostly to end customers. But most people already know about P&G

products such as Charmin bathroom tissue and moist towelettes, Crest toothpaste,

and so on. Does P&G really need to constantly put money into advertising when its

products already have a strong-hold in the global marketplace?

Companies like P&G have a consumer base made up of end users whose toothpaste and towel

preferences are influenced by a variety of factors such as price, other enticing qualities of rivals,

freebies, and so on. To even keep the existing consumer base, a strong customer focus and scope

is needed. As a result, these businesses must concentrate on ads in order to be competitive in the

new market.

2. P&G cut its marketing and advertising agency roster by 50 percent over the past

three years from around 6,000 to 3,000 companies in a bid to increase its marketing

productivity, efficiency, and effectiveness. Given that it spends $9 billion worldwide

on adver-tising, should P&G have more or fewer marketing and advertising

agencies doing its advertising?

As long as there are enough firms customizing ads and promotion campaigns with the area of

view, the number of advertising agencies will be reasonably engaged depending on cost and

efficacy. The cost of ads could be very high if there are so many agencies doing it. If the number

of agencies is reduced too much, and the same promotional efforts are used in various types of

demographic areas, the advertising's influence and efficacy can be reduced and not as effective as

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required. To offset the cost and efficacy of ads, a sufficient number of agencies must be chosen

to cover all of the required demographic areas.

3. By consolidating and cutting 100 brands from its con-sumer portfolio of brands,

does P&G run the risk of ultimately losing out on global market opportunities?

In the new business environment, innovation will still be compensated. If we look at P&G's

overall market position, we can see that they are in a decent spot, with a strong presence in a

variety of goods for various consumer segments. Following a thorough examination of the

industry and consideration of all factors, it could be prudent for P&G to merge and exclude the

least viable companies.

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References

Hill, C.W.L . (2021. International business. Competing in the Global Marketplace (13th edition)

New York, NY : McGraw - Hill/Irwin. 978-1-260-26258-2 or 978-1-264-12388-9

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