International Case : Reengineering the Business Process at Procter & Gamble
1) The reengineering efforts of P&G focused on the business process system. Do you think other processes, such as the human system, or other managerial policies need to be considered in a process redesign?
2) What do you think was the reaction of the brand managers, who may have worked under the old system for many years, when the category management structure was installed?
3) As a consultant, would you have recommended a top-down or a bottom-up approach, or both, to process redesign and organizational change?
4) What are the advantages and disadvantages of each approach.
How should Mr. Durant assess the opportunities in various countries around the world? Mr. Durant, the new CEO since 2005, embarked on the new strategy by offering 15percent new products in its hypermarkets and 10 percent in its supermarkets. Moreover, he wants to employ more staff, extend the operating hours in certain hypermarkets, cutting prices, trying small stores, and pushing down decision making. Mr.
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Durant aims to stay only in countries where Carrefour is among the top retailers.
2. Should Carrefour adopt Wal-Mart’s strategy of “low prices everyday”? What would be the advantage or disadvantage of such a strategy? Yes certainly they have to adopt the strategy of low pricing every day, In France, where Carrefour is well established, the company made the big mistake in its pricing policy. Itprobably started with the 1999 merger with Promodes, the French discount chain.Carrefour confused the French clientele by losing its low-cost image. The new strategy which they want to implement discounts and cutting prices, trying small stores certainly will help Carrefour to keep their competition in all over the world. 3. How could Carrefour differentiate itself from Wal-Mart?
Wal-Mart is more than just the world’s largest retailer. It is an economic force, a cultural phenomenon and a lightning rod for controversy. It all started with a simple philosophy from founder Sam Walton: Offer shoppers lower prices than they get anywhere else. That basic strategy has shaped Wal-Mart’s culture and driven the company’s growth.
Now that Wal-Mart is so huge, it has unprecedented power to shape labour markets globally and change the way entire industries operate.