The Contextual Variables That Led To P&G’s Restructuring

The Contextual Variables That Led To P&G’s Restructuring


Restructuring for the New Reality—Male Beauty

Once upon a time, women made up the market for skin and hair care products, cosmetics, and fragrances. Many women now regard these items as a part of their normal routines. Packaged goods manufacturers counted on personal care items becoming a necessity, and female consumers did not disappoint. Women continue to splurge on beauty products despite overall decreases in discretionary income. According to Male Grooming Trends: Profiting in 2009 and Beyond, women dominate spending in the personal care industry. But personal care is not just for women anymore. The male grooming market, though not as lucrative as the women’s market, is expanding and has great potential for companies that position their products to meet the needs of beauty-conscious men. Proctor & Gamble (P&G) is “making a play” for these men and announced plans in early April 2009 to restructure its beauty and grooming division to “better serve ‘Him and Her.’”

Ed Shirley, P&G’s global division chief, acknowledges that the company’s redesign will be a challenge. After all, P&G does not have a reputation for being the most operationally agile organization. To the contrary, it has one of the most bureaucratic structures in the industry. According to Shirley, the new structure “will require a cultural shift” in order to repair its fledgling beauty business unit and reach out to a relatively “ignored” market.

Male beauty is one aspect of the new reality. Men’s needs extend beyond a simple haircut, shower, and shave. Men may no longer be satisfied with personal care products and brands that are targeted for women and may relish at the chance to buy male-only products. After all, men have distinct needs and concerns. Companies will have to change the way they do business in order to capitalize on the concerns of today’s male. That may mean following in P&G’s footsteps and redesigning their operations to fit this new reality.

How will P&G’s redesign affect their employment recruitment and selection practices?
Discuss the contextual variables that led to P&G’s restructuring.
Give me examples of other companies that have done this! Have they been successful? Are there companies that SHOULD be doing this?

Remember to CITE your references and to use examples and definitions above and beyond just answering the questions.

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