1

P&G and Unilever :

Organizational Structure

Presented By:-
Abhisek Patra (UM16064)
Aditya Vikram Khemani (UM16065)
Ajayesh Mohanty (UM16067)
Anubhav Behera (UM16071)
Bhabana Tripathy (UM16077)
Mahasweata Mukherjee (UMF16003)
Issues at P&G 2
After CEO Durk Jager
Before CEO Durk Jager
Power Coercive change management
Tall and conservative hierarchical Exclusion of employees (especially
structure middle management) from the decision
Complacent and stagnant making process; thereby showing lack
employee mindset of communication
Centralized decision making Lack of adequate influence and control
process at times of new investments and
acquisitions

The Structure now (before alteration)

Net earnings from core product category fell by

6% from 2011-12
Decline in operative income and net earnings
Fall in the investment on innovative practices
Issues at Unilever 3

The company was owned jointly Concept of strategically

by two parent companies, independent units local
problems in striking a balance initiative and decentralised
between British and Dutch control
interests

Lack of coordination between Two masters confused

the board of directors of the followers (Coalition
two holding companies Governance)

Matrix structure, implying high

cost structure, duplication of
manufacturing facilities at
various locations
Solutions for issues at P&G: 4

Change brought by Lafley

Focus on Industry basis and
geographic segments
Market penetration and
Change brought by Jager expansion strategy
Implemented Product Divisional
structure
Flexible environment
Cross functional learning
Customer centric
Formation of GBU, MDO, GBS
Solutions for issues at Unilever: 5
Critical Analysis of P&G: 6

Power coercive Rational empirical

Glopat training for line managers

Connect and Develop strategy for

innovation
Aggressive vision - Steady and
sustainable growth
Critical Analysis of Unilever: 7

Lean management
Matrix organization
structure
Inculcating Socio-technical
approach