Proctor and Gamble 2004 Annual Report Download - page 10

able฀to฀capture฀the฀benefits฀of฀focused,฀smaller฀companies฀
through฀dedicated฀GBUs฀while฀capturing฀the฀go-to-฀
market฀strengths฀and฀capabilities฀of฀a฀$50฀billion฀company฀
through฀local฀market฀development฀organizations,฀the฀฀
shared฀business฀services฀organization฀and฀lean฀corporate฀
functions฀that฀ensure฀P&G’s฀functional฀disciplines฀continue฀
to฀lead฀the฀industry.฀
Global฀Business฀Units฀are฀able฀to฀develop฀clearer,฀better฀
long-term฀growth฀strategies฀for฀P&G฀brands.฀They฀identify฀
common฀consumer฀needs฀and฀quickly฀expand฀brands฀฀
and฀product฀innovations฀to฀different฀markets฀around฀the฀
world.฀They฀are฀aligned฀behind฀Total฀Shareholder฀Return฀
metrics฀and฀are฀focused฀exclusively฀on฀leadership฀in฀their฀
individual฀industries.
Other฀companies฀have฀this฀single-minded฀strategic฀business-
unit฀focus,฀but฀P&G฀has฀two฀additional฀advantages฀that฀฀
In฀addition,฀there฀is฀an฀intangible฀but฀important฀benefit฀that฀
comes฀from฀P&G’s฀“promote฀from฀within”฀culture.฀The฀men฀
and฀women฀working฀in฀the฀GBUs฀and฀MDOs฀often฀know฀each฀
other฀because฀they’ve฀spent฀their฀entire฀careers฀at฀P&G.฀They’re฀
focused฀on฀the฀same฀purpose.฀They฀have฀similar฀values.฀They’ve฀
had฀similar฀career฀experiences.฀This฀strengthens฀their฀ability฀to฀
debate฀issues,฀make฀decisions฀and฀execute฀with฀excellence.฀
The฀third฀advantage฀of฀P&G’s฀structure฀is฀Global฀Business฀
Services,฀which฀delivers฀better฀service฀and฀better฀technology฀฀
at฀best-in-class฀costs฀to฀P&G฀businesses.฀Very฀few฀other฀
companies฀in฀any฀industry฀have฀global฀business฀services฀
capability฀that฀rivals฀P&G’s฀for฀quality,฀innovation,฀cost฀฀
and฀scale.
Multiply฀these฀benefits฀across฀categories,฀markets฀and฀trade฀
channels,฀and฀you฀can฀see฀the฀scale฀advantages฀available฀฀
to฀P&G:
•฀฀We฀can฀compete฀on฀multiple฀fronts฀simultaneously฀without฀
spreading฀ourselves฀too฀thin.
•฀฀We฀can฀deliver฀a฀higher฀frequency฀of฀new฀products฀across฀
multiple฀markets.
•฀฀We฀can฀plan฀long฀term฀globally฀while฀focusing฀locally฀on฀
superior฀execution฀every฀day.
In฀short,฀we฀can฀reap฀the฀benefits฀of฀global฀scale฀while฀acting฀
like฀a฀local฀company฀everywhere฀we฀compete.฀P&G฀now฀has฀
sufficient฀experience฀with฀the฀new฀structure฀to฀begin฀taking฀
fuller฀advantage฀of฀the฀benefits฀it฀creates.฀
Focus฀on฀Cost฀and฀Cash฀Is฀Keeping฀P&G฀Brands฀Competitive
The฀final฀change฀I฀want฀to฀highlight฀is฀the฀degree฀to฀which฀
cash฀and฀cost฀discipline฀is฀now฀ingrained฀in฀the฀organization.฀
We’re฀driving฀a฀cost-reduction฀and฀cash-improvement฀฀
mindset฀deeper฀into฀the฀Company฀with฀clearer฀reporting฀
structures,฀clearer฀accountability฀and฀the฀disciplined฀use฀of฀
Total฀Shareholder฀Return฀at฀the฀business฀unit฀level.฀
play฀to฀our฀unique฀combination฀of฀strengths:฀Market฀
Development฀Organizations฀and฀Global฀Business฀Services.
The฀MDO฀teams฀know฀local฀markets:฀people,฀retailers,฀
supply฀chains฀and฀local฀governments.฀They฀have฀a฀broader฀
portfolio฀of฀brands฀to฀meet฀a฀wider฀range฀of฀specific฀฀
needs฀for฀local฀consumers฀and฀customers.฀They฀are฀aligned฀
behind฀top-line฀growth,฀market฀share,฀cash,฀cost฀and฀฀
value-creation฀objectives,฀and฀are฀focused฀exclusively฀on฀
winning฀in฀local฀markets.฀
The฀key฀advantage฀of฀our฀structure฀is฀that฀the฀MDOs฀can฀
focus฀100%฀of฀their฀resources฀on฀local฀consumers฀and฀
customers฀without฀duplicating฀product฀innovation,฀product฀
sourcing,฀brand฀advertising฀or฀other฀activities฀that฀are฀฀
now฀led฀by฀the฀Global฀Business฀Units.฀We฀have฀eliminated฀
inefficient฀overlaps฀and,฀as฀a฀result,฀freed฀up฀resources฀฀
to฀collaborate฀better฀with฀customers฀and฀focus฀exclusively฀฀
on฀winning฀in฀local฀markets.฀
Earning
Your
Trust
P&G฀strategies,฀strengths,฀and฀the฀systemic฀and฀structural฀changes฀฀
we’ve฀made฀to฀improve฀the฀reliability฀of฀our฀performance฀should฀give฀
shareholders฀confidence฀that฀P&G฀can฀sustain฀double-digit฀earnings-฀
per-share฀growth฀for฀the฀foreseeable฀future.฀
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