Taking A Look At Proctor & Gamble

It is critical for organizations to structure their company when going international. To remain competitive and to be effective, there has to be a skeletal design of how power and authority and distributed and how communication will work. As a company is developing its structure, it needs to determine whether or not they will globalize or localize their practices (Laureate Education, Inc., 2008). There tends to be pressure to globalize to save the cost of operating as opposed to localizing to local economy in a view to meet the local needs and values of the new market (Laureate Education, Inc., 2008). Proctor & Gamble (P&G) is an MNC that has many brands that cater to your daily household needs such as toothpaste, shaving cream, detergent,

These country directors oversee water and waste management activities and report to regional heads as well. The regions include “Asia, Australia/New Zealand, Latin America, North America, Central and Easter Europe, Northen Europe and France” (Veolia, 2016). The regional divisions fall under the operation authority of the Chief Operating Officer (Veolia, 2016). Veolia may have used this structure because of top management philosophy where local executives are better qualified to running operations due to having their ears on the ground (Fatehi, 2008). An additional advantage of this type of structure is that each region can be treated as a market where operations can be modified for individuals countries (Fatehi, 2008). Veolia also uses a functional structure regarding strategic departments. Veolia has an Innovation and Markets department whose head reports to the CEO and a Techincal and Performance department whose head reports to the COO. These departments are headed by a top executive who has wordwise responsibility for their department (Fatehi, 2008). Veolia may have chosen this structure because coordination among the functions are is of strategic value to the organization (Fatehi,