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Introduction
P&G
Restructuring
Effects
Organisation
structure at
UNILEVER
P&G
1. P&G started in Cincinnati as a candle and...
Introduction
P&G
Restructuring
Effects
Organisation
structure at
UNILEVER
P&G manufacture and distribute products in ten c...
UNIE
 In 1872, two Dutchmen, Jurgens and Van Der Bergh
 had ventured into the margarine business
 In 1927, they decided...
LEVER
 William Hesketh Lever founded ‘Lever Brothers’ in 1885
 By 1887, introduced ‘SUNLIGHT’, the world’s 1st packaged ...
Introduction
P&G
Restructuring
Effects
Organisation
structure at
UNILEVER
Introduction
P&G
Restructuring
Effects
Organisation
structure at
UNILEVER
Introduction
P&G
Restructuring
Effects
Organisation
structure at
UNILEVER
P&G
at a glance
Roadmap to P&G’s restructuring
1987: Matrix Structure
• 39 US product category
Bus were created run by
General Managers
19...
Matrix and Global Matrix Structure- 1987 to 1999
Introduction
P&G
Restructuring
Effects
Organisation
structure at
UNILEVER
In 1998, P&G started a 6 years restructuring program – “Organization 2005”
 Voluntary separations of 15,000 employees by ...
Analysis of Organization 2005
 One of its major objectives was to significantly improve all inefficient work
processes of...
GBU Structure- ‘ Organisation 2005 ‘
Introduction
P&G
Restructuring
Effects
Organisation
structure at
UNILEVER
Introduction
P&G
Restructuring
Effects
Organisation
structure at
UNILEVER
GBU Structure modified- 2013
Introduction
P&G
Restructuring
Effects
Organisation
structure at
UNILEVER
Net Earnings and Net Sales
Introduction
P&G
Restructuring
Effects
Organisation
structure at
UNILEVER
Introduction
P&G
Restructuring
Effects
Organisation
structure at
UNILEVER
UNILEVER
at a glance
1930-1979
• Strategy : Independent units at various location
• Features : Matrix organizational structure
1980-1995
• Stra...
Current Objectives of Unilever
Introduction
P&G
Restructuring
Effects
Organisation
structure at
UNILEVER
• Become lean and...
Introduction
P&G
Restructuring
Effects
Organisation
structure at
UNILEVER
• UNILEVER being a multiproduct organisation, en...
Proposed Structure
Introduction
P&G
Restructuring
Effects
Organisation
structure at
UNILEVER
Proposed
structure
Introduction
P&G
Restructuring
Effects
Organisation
structure at
UNILEVER
P&G
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P&G

P&G

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P&G

  1. 1. Introduction P&G Restructuring Effects Organisation structure at UNILEVER P&G 1. P&G started in Cincinnati as a candle and soap making company in 1830’s. 2. Now a Multinational company present in all over 180 countries. 3. 9th largest company in the world with over $80billion in sales. 4. It also operates and maintain more than a hundred manufacturing plants across the globe.
  2. 2. Introduction P&G Restructuring Effects Organisation structure at UNILEVER P&G manufacture and distribute products in ten core categories: Baby Care, Feminine Care, Family Care, Grooming, Oral Care, Personal Health Care, Hair Care, Skin and Personal Care, Fabric Care and Home Care. And, within each category, Research & Development, Product Supply, and the Brand organization develop, manufacture and market the brands and products they provide to consumers.
  3. 3. UNIE  In 1872, two Dutchmen, Jurgens and Van Der Bergh  had ventured into the margarine business  In 1927, they decided to merge to form two  companies, Margarine Unie NV, based in the  Netherlands and Margarine Union Ltd, based in the UK Introduction P&G Restructuring Effects Organisation structure at UNILEVER
  4. 4. LEVER  William Hesketh Lever founded ‘Lever Brothers’ in 1885  By 1887, introduced ‘SUNLIGHT’, the world’s 1st packaged laundry  soap  Lever & Co. was making 450 tons of Sunlight soap a week  He expanded his business from UK to Australia, North America  and other parts of Europe  In 1890, Lever & Co became a limited company –LEVER  BROTHERS LTD, by 1894, they went PUBLIC  Diversified into other businesses, acquired Pears soap and Wall’s  Launched its innovative product , VIM Introduction P&G Restructuring Effects Organisation structure at UNILEVER
  5. 5. Introduction P&G Restructuring Effects Organisation structure at UNILEVER
  6. 6. Introduction P&G Restructuring Effects Organisation structure at UNILEVER
  7. 7. Introduction P&G Restructuring Effects Organisation structure at UNILEVER P&G at a glance
  8. 8. Roadmap to P&G’s restructuring 1987: Matrix Structure • 39 US product category Bus were created run by General Managers 1995: Global Matrix Structure • Extended to rest of the world • 4 regional presidents were reporting directly to CEO 2005: Global Business Unit Structure • Annual sales grew 40% since 2000 and stock price nearly doubled 2013: Hybrid Structure Introduction P&G Restructuring Effects Organisation structure at UNILEVER
  9. 9. Matrix and Global Matrix Structure- 1987 to 1999 Introduction P&G Restructuring Effects Organisation structure at UNILEVER
  10. 10. In 1998, P&G started a 6 years restructuring program – “Organization 2005”  Voluntary separations of 15,000 employees by 2001  45% job suppressions from global product - supply consolidation  Elimination of six management layers reducing the total from 13 to 7  Dismantling matrix organization structure and replacing with interdependent organizations : GBUs, MDOs, GBS and Lean Corporate Functions.  GBUs will help to get a total feel of the local market by giving local managers power and will make P&G locally responsive. Introduction P&G Restructuring Effects Organisation structure at UNILEVER
  11. 11. Analysis of Organization 2005  One of its major objectives was to significantly improve all inefficient work processes of P&G including its product development, SCM and marketing functions  Focus was more on rolling out new products at a faster rate  Previously, the organization was more centralized coupled with separations and negative growth rate which had weakened the morale of employees  Jager decided that P&G would sell its products under the same name around the world Introduction P&G Restructuring Effects Organisation structure at UNILEVER
  12. 12. GBU Structure- ‘ Organisation 2005 ‘ Introduction P&G Restructuring Effects Organisation structure at UNILEVER
  13. 13. Introduction P&G Restructuring Effects Organisation structure at UNILEVER
  14. 14. GBU Structure modified- 2013 Introduction P&G Restructuring Effects Organisation structure at UNILEVER
  15. 15. Net Earnings and Net Sales Introduction P&G Restructuring Effects Organisation structure at UNILEVER
  16. 16. Introduction P&G Restructuring Effects Organisation structure at UNILEVER UNILEVER at a glance
  17. 17. 1930-1979 • Strategy : Independent units at various location • Features : Matrix organizational structure 1980-1995 • Strategy : Focused growth • Features : Concentration on 4 industries, 100 acquisition, 38 companies acquired in 1995 1996-1999 • Strategy :Breakthrough Sustainability Strategy • Features :Focus on core competencies, Operations were grouped by product combination of “Global Push & Local Pull" 1999-2004 • Strategy : Path to Grow Strategy • Features : Brand portfolio of 1600 became 400 for better focus. 150 units closed down for cost control, 55000 employees retrenched 2005-2015 • Strategy : Growth to vitality Strategy • Features :High concentration on Emerging markets. Company simplified its management structure, 20000 job cuts in Europe. Target: 3 - 5 % Organic growth. Introduction P&G Restructuring Effects Organisation structure at UNILEVER
  18. 18. Current Objectives of Unilever Introduction P&G Restructuring Effects Organisation structure at UNILEVER • Become lean and mean(Retrenchment). •Focus on sales maximizing products. •Reduce number of SKUs. •Improve working capital management. •Maximize margins by minimizing costs. • Expediting DM process by changing operations • Want incremental change by increasing sales in tier 2 &3 cities.
  19. 19. Introduction P&G Restructuring Effects Organisation structure at UNILEVER • UNILEVER being a multiproduct organisation, enjoys autonomy to manage the products on their own through SBUs. • VISIBILITY being their core strategy, always adopted the front bench strategy in any retail store. • Achieving price efficiency- by rationalising the middle level managerial talents. • increase from 3 to 7 marketing headquarters.
  20. 20. Proposed Structure Introduction P&G Restructuring Effects Organisation structure at UNILEVER Proposed structure
  21. 21. Introduction P&G Restructuring Effects Organisation structure at UNILEVER

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