Influences of Globalization on Organizational Governance and Leadership at Procter & Gamble

Running Head: GLOBAL BUSINESS ENVIRONMENT 0
GLOBAL BUSINESS ENVIRONMENT
Student name
6/4/2019

GLOBAL BUSINESS ENVIRONMENT 1
Contents
Introduction......................................................................................................................................2
Influences of globalization on organizational governance and leadership, structure, culture and
functions at Proctor & Gamble........................................................................................................2
Influence on culture.....................................................................................................................2
Influence on structure..................................................................................................................2
Influence on leadership and functions.........................................................................................2
Decision making for Procter and gamble........................................................................................3
Key barriers in doing business internationally................................................................................3
Recommendation to overcome barriers...........................................................................................4
Critical evaluation of Procter and gamble strategies.......................................................................4
Recommendations for organizational structure and decision-making process................................4
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

GLOBAL BUSINESS ENVIRONMENT 2
Introduction
Conducting business globally provide various opportunities and threats for the company, as each
nation have a different environment which needs to be adopted or abided by the company
working globally. One of the key factors includes the culture of the nation that affects an
organization’s aspect to work in that nation, for instance, organization culture, structure and key
functions. The purpose of this report is to identify the influence of globalization and global
market over the organizational decision-making, strategy, culture, and functions. This would be
done considering an organizational case of Procter and gamble. P & G is a multinational
consumer goods company based in America founded in 1837. The company has the various
product range and sub brands that it is offering in various nations some of the key brands include
Olay, Vicks, tide, Ariel, head and shoulders, Wella and many more (us.pg, 2019).
Influences of globalization on organizational governance and leadership,
structure, culture and functions at Proctor & Gamble
Influence on culture
Procter and gamble key organizational culture has been transformed to be an innovative
organizational culture. There have been globalization factors and influences. Considering the
theory of organizational culture that could actually help an organization to gain a competitive
advantage is one of the complex phenomena and is created in various ways. This may be created
due to challenges faced or may be deliberate development by the company’s management.
Globalization factors that affect the organizational culture of P & G are social factors that are the
social trends of the customers in a particular nation that will affect the culture of the
organization. For example, in a nation like India, the key importance of the company would be
customer relations that need to be built to enhance the sale. This is the reason that the company
decided to go for an innovative organizational culture that will include innovative technology,
product and process to offer to customers from the different nation (Anitha, 2019).
Influence on structure
The key factors of the globalization that would affect the structure of Procter and gamble include
Cross-cultural differences, workforce diversity, and the emergence of global managers. For P&G
to go international lead to a change in organizational structure and the key reason is a cultural
difference in two nations. The cultures elements like language, value, ethics, and believes are
different in every nation. The key factors for Procter and gamble include various product ranges,
which make the organization structure to be divided based on product portfolio, but the
globalization affect the organizational structure of the company in the way that the structured
was required to be based on organizational function as well. Moreover, the company being one
of the leading global consumer goods company are liable to make sure that the structure of the
company are supporting the international requirements and are approachable to the current
business environment in the international market. Moreover, the company adjusts and
restructures its organizational structure over the period. Therefore, due to globalization
implication, P&G has company structure based on geographical divisions, product type
divisions, and functional divisions (Craig & Douglas, 2015).