This report would examine how Procter and Gamble initiated change to become the most reputable product producers in the world. To show this, the candidate would reflect on the analysis of the current state of the organisation which would be explored throu

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EXECUTIVE SUMMARY

Firstly, it should be highlighted and duly noted that the candidate has not been directly involved in the organisational change of a company. This is because the candidate has very little work experience and has not been exposed to the changes in the organisation. However, in order for the candidate to conduct an analysis of this assignment, exposure to the knowledge and information for the company; Procter and Gamble were made accessible, therefore the candidate made an assumption that she was personally involved in this change in the organisation of Procter and Gamble.

Procter and Gamble is one of the leading organisations in the production of household products. The company’s headquarters is based in Cincinnati and their most popular product is the disposable diaper.

This report would examine how Procter and Gamble initiated change to become the most reputable product producers in the world. To show this, the candidate would reflect on the analysis of the current state of the organisation which would be explored through the use of the External Environmental Analysis.


ORGANISATIONAL CHANGE OF PROCTER AND GAMBLE

Change may be defined as any alteration which occurs in the overall work environment of an organisation. When an organisational system is disturbed by some internal or external force, change may occur. The change is the modification of the structure or process of a system, which may be good or even bad.

Structural and organisational change is a common aspect in any company may it be small, medium or large scale. An organisation undergoes change in order to ensure the products and services that will be given to consumers are excellent, as well as, the performance of the employees within the company. Change in an organisation can occur at the upper management, the employees, and products.

Organisational Change is the design in which the organisation changes its system in a wider scale, as opposed to smaller transformations in the company such as adding a new person, or altering a program. Changes in the organisation are provoked by external forces of the organisation, usually an organisation undergoes organisational change in order to evolve to a higher level of entrepreneurial activity.

Change may be reactive or proactive in nature. When change takes place due to external forces, it is called reactive change. However, proactive change is initiated by the management on its own to enhance the organisational effectiveness.

Due to the fact that the candidate has no experience in the working environment an analysis of this report would be challenging. Therefore, the candidate would make the assumption that she was directly involved in the organisational change of Procter and Gamble and their planned change strategies.

The candidate would examine the implementation of change that is concerned with the planned strategic development of Procter and Gamble. The current state of Procter and Gamble will be determined by applying the concept of External Environmental Analysis.

According to Procter and Gamble (2007), the company is one of the leading organisations in terms of producing household products. One of the most popular products of the company is the disposable diaper, due to the fact that Procter and Gamble was the first company to create and develop it. The company was established in the year 1837 wherein its main headquarters in Cincinnati. The company has evolved into one of the most reputable manufacturers of consumer products. In addition, the company has already produced more than 300 brands worldwide. Procter and Gamble’s product ranges from laundry detergents, beauty products and dental care.

HOW PROCTER AND GAMBLE INITIATED CHANGE

The company was formed by the in-laws William Procter, who was a candle-maker and James Gamble, a soap maker. In the year 1859, the merged company of Procter and Gamble grew and became one of the largest companies in Cincinnati. From then on, the company became a success, spanning generations from generations and even across the world.

“Touching Lives, Improving Life” is the corporate motto which is exemplified in their 138,000 employees and loyal customers worldwide. The worldwide demand for P&G’s products and services has forced management to focus on global marketing and innovation. This worldwide marketing and innovation success was achieved by making sure that what they produce is of highest quality and most importantly is what customers need.  P&G is very adaptable to changing customer demands by carefully and clearly defining its innovative strategies; however, it almost lost its market dominance to competition in the mid 80’s had it not been its aggressive play-to-win strategy.

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WHY PROCTER AND GAMBLE INITIATED CHANGE

Procter and Gamble initiated change in their organisation because it was simple, globalisation, international competition and the spread of information technology. These factors led to escalated competition and this inspired the need to change in order to maintain competitive advantage.  The organisation realised that they had to be faster, more responsive, and produce higher quality. Procter and Gamble is one of the companies that utilises change in the organisation in order to become one of the most distinguished and recognised product producers in the whole world.

Prior to making a statement regarding the changes ...

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