Tracks changes in P&G's worldwide planning and structure, happening in Organization 2005, a revamping that places tactical focus on item development as opposed to geographic extension and moves power from localsubsidiary to worldwide business administration. In the setting of these progressions presented by DurkJager, P&G's new CEO, Paolo de Cesare is moved to Japan, where he assumes control over the as of late transformed beauty care business. Within the mediocre Max Factor portfolio he acquires is SK-II, a quickly developing, very lucrative skin care item manufactured in Japan. Sold at a price of over $100 a jar, this is not a usual P&G item, but rather its effective launch in Taiwan and Hong Kong has de Cesarecontemplating that the brand has worldwide potential. As the case concludes, he is addressing whether he ought to take a proposition to the global beauty care unit to develop the product in the markets of Mainland China and/or Europe.
As Paoplo eCesare, what factors do you need to consider before deciding what to recommend in your SK-II presentation to the global leadership team (GLT)? What kind of analysis will you need to do in preparing for that meeting?
Does SK-II have the potential to become a global brand within Procter & Gamble’s operations worldwide? Why or why not?
Which of the three market options should Paolo recommend to the GLT? What benefits do you expect to gain? What risks do you see?
How should he implement your recommended option? What are the implications for P&G’s new post-2005 organization? What support and/or resistance do you expect? How will you mange it?