Critical analysis of the role and significance of technology on the business strategies of MNCs (Multi National Corporations): The Case of Procter and Gamble

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BRUNEL BUSINESS SCHOOL

COVERSHEET FOR ONLINE COURSEWORK SUBMISSIONS 

Project title:

 Critical analysis of the role and significance of technology on the business strategies of MNCs (Multi National Corporations): The Case of Procter and Gamble

Student Number: 0828980

Project Leader: Dr Farouk Missi

Date submitted: 9th March 2011

Word Count: 7454

Contents

Abstract

Gone are those days when firms used to just blindly invest in technology and forget. In this era of rapidly changing market needs and increasing use of technology, it is extremely significant and almost mandatory for firms to formulate a strong socio-technical network involving both technical and non-technical artefacts and structured around the organizational business strategies in order to attain set goals. Corporations all across the world especially Multi National Corporations (MNCs) which work twenty four hours round the clock and possess some of the best brains of the world, innovatively use technology as part of their business and operational processes. Similarly, this piece of study attempts to explore the way, one of the world’s best consumer goods manufacturer i.e. Procter & Gamble (P&G) uses the power of technology innovatively as part of its business strategies for achieving long term success and sustainable profitability.    

This research is a mix of secondary and primary research approaches and data has been collected from a variety of sources which include interviews, surveys, historical archives, online journals, articles, library, text books etc. The study is divided into a number of chapters and based upon the data gathered attempts to analyse the role and significance of technology in organizational business strategies.

Acknowledgment

On being provided an opportunity to study at one of the world’s best university along with having a brilliant chance to conduct research and write this thesis, I would like to thank my parents.

I am also extremely grateful to my supervisor, Farouk Missi, who guided me at all the stages and helped me gain access in the organization to gather data. This study would not have achieved a quality output without the support of his guidance.

Lastly, I would like to appreciate the support of my friends and seniors for making my stay and study period, a memorable one.

Thanh Vu.

  1. Introduction        

  1. Research Overview

In this era of fierce competition and rapid globalization, almost every organization across the world uses technology as part of its business processes and strategies to attain maximum output. However, according to Carr (2003), what now matters is to use technology innovatively and uniquely. Additionally, a number of researches have also indicated that establishing a link between the technical and non-technical artifacts is also a major contributor to the success of the organization.

This research is a step ahead and explores the case of Procter & Gamble. The company is a well known MNC dealing with consumer goods and has a reputed image all across the globe. Through the medium of both the secondary and primary research, this study will explore the way, organization uses technology in its business strategies innovatively to attain long term sustainability and competitive edge. It focuses on the “Connect and Develop” strategy of the firm and the manner it in which the technology facilitates the search of talent and resources globally.  

  1. Aims and Objectives

According to Maylor (2006), it is a known fact that all projects in this world have a definite set of goals and objectives associated with them and so is this dissertation research as well. The study aims to critically analyse the role and significance of technology on the business strategies of MNCs (Multi National Corporations): The Case of Procter & Gamble. This study is basically structured around both the primary and secondary data gathered from online journals, articles, historical archives, past studies, statistical data, organizational trends and interviews. The strategic aim of the research is to explore the way P&G uses the technology innovatively as part of its business strategies and process to attain long term and sustainable competitive edge.  

Moving ahead, the section below will now list the sub research questions for this piece of study.

  1. Research Questions

Like every other research study, this dissertation is also linked with a set of research objectives, and aims to address the following mentioned research questions:

  1. To explore the various approaches adopted by Procter & Gamble worldwide to explore the benefit of technology in business strategies.

  1. To understand the benefit of socio-technical linkage in better embedment of technology in the organizations and society.

The following section will now detail the overall structure of the study.

  1. Structure of the Dissertation

The introduction chapter above has clearly provided an insight into the research topic along with the strategic aims and objectives. Besides this, the thesis comprises of four other chapters i.e. Literature Review, Research Methodology, Discussion and Findings and lastly, Conclusion. Starting with the Literature Review, this chapter defines all the key terms and concepts associated with the study such as the concept of business environment, technology, socio-technical framework and SWOT framework. Basically, the role of literature review chapter in every piece of study is to prepare a background for the study based upon previous studies and available literature. After that comes the Research Methodology chapter. This chapter explains the key research terminology i.e. approaches, methodology, paradigm that will be adopted to gather primary and secondary data related to the study. Here the interpretative research paradigm will be used as it focuses upon understanding human perceptions and minds (Darke et al., 1998). This chapter will also detail the ethical issues taken into consideration during the period of study along with the alternative approaches and challenges encountered. The chapter after this will be Discussion and Analysis, which will firstly detail the case i.e. Background and working of the chosen organization (Procter & Gamble) and secondly, analyse the collected data to address the research questions. Through the help of SWOT (Strength, Weakness, Opportunities and Threats) Framework (Houben et al., 1999), the organization will be analysed and the role of technology in increasing business effectiveness and efficiency will be explored. According to Hill and Westbrook (1998), SWOT is an excellent research tool to determine the internal and external environment of an organization. Lastly, the conclusion chapter summarises the key findings of the study along with the challenges encountered, limitations and opportunities for future research.

  1. Literature Review        

  1. Introduction

Does technology shape society? Or is society shaped by technology? The question which is still unanswered. With strategic aim of the study to explore and investigate the way Procter & Gamble uses the technology as part of its business process and strategies, this chapter of the dissertation attempts to explore and define the key concepts and theories associated with the study. The study starts with explaining the 21st century business environment as a socio-technical infrastructure and the way different technical and non-technical artefacts interact with each other to achieve set strategic business goals. This discussion is then carried ahead by the notion of technology where two concepts are studied i.e. SCOT (Social Construction of Technology) Framework and ANT (Actor Network Theory) Framework.

  1. The 21st Century Business Environment

According to Thrift (2002), there now prevails a new way of working in business organization which focuses upon enhanced level of success and its measurement in terms of performativity instead of productivity. The concept of ‘performativity’ is perceived as a theory formulated around creativeness and innovation in the form of ideas which individuals and group continuously exchange with an organization. Thrift (2002) adds here stating that this constant interchanging of ideas helps create a snowballing affect amongst the employees and this is one of the main reason behind the high success level of open business environments. The 21st century business environment desires employees to be performing not just constantly but innovatively (Beck, 1992). Multi National Corporations (MNCs) such as Google and Accenture have even inscribed on their websites the idea of continuous learning and exploration of new opportunities as part of the business strategies. Zuboff (1985) further add to it by mentioning that work place can now be understood as a playground where information continuously revolves between technical and non-technical artefacts. In this era, intelligence is not just generated by investing in technology but intelligently and innovatively using them as part of the organizational business strategies (Carr, 2003). It is now believed that a well informated organization is one in which technology and social actors are linked to each other. They formulate an architecture in which technical and non-technical actors communicate with each other in several ways and develop a dependency to fulfil long term organizational goals (Zuboff, 1985).

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Adding to above, today business environments not just comprise of infrastructure and huge buildings, but a highly complex structural object which is a result of intense strategic planning and implementation. Moreover, modern workspaces are both bright and open with enormous amount of talent, illustrating young minds with fresh ideas, which helps generate a sense of freedom, comfort and prosperity at work to motivate employees and encourage them to communication to ensure that they are most performative and innovative. Becker and Sims (2001) describe business environment as geographic sites structured around truth which intend to develop conditions that are both innovative ...

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