School of Business and Law
Case Study of Procter & Gamble Management Structure
P&G’s history and background:
P&G was established on 31, October 1837 by two British named William Procter and James Gamble, together with their father-in-law at American market. At the beginning, they specialize on manufacturing soap and candle. After time, in 1859, P&G started to develop more on it organization, they reached the sales of $1 million, with about 80 employees in the company. For its growing, P&G as the first company in American industry spending money for research laboratory in 1890. Besides that, they also produced and launched more kinds of soap in the market at that time.
Many years after, P&G launched the new sorts of product in many different industries such as cooking, household, and hair care in 1911, 1933, and 1934 respectively. Those brand names was known as Crisco, Dreft, etc. that helped P&G extend their company scale larger and larger. One of that, known as TIDE, one of most popular products of P&G so far, was introduced in 1946. After this year, a range number of P&G product has been appeared in the market that included granulated and liquid detergents, shampoos, toothpastes and household cleaning products.
Together with developing product categories, P&G also focused on extending market in US as well as foreign. In 1915, they first extension of business was developing manufacturing in Canada that helped them to approach the market nearby United State. Fifty years after, P&G bought Thomas Hedley & Co in England as the first overseas subsidiary, this was the great market of for P&G to approach the bigger like Europe. In Asian market, P&G had other strategy, they first established company in Philippine in 1935, is contributed to the number of $230 million in global sales in 1937. Finally, in the period of 1948 – 1954, P&G started to officially jump up to the market in Latin American,...