P&G Japan the Sk-Ii Globalization Project
P&G Japan: The SK-II Globalization Project
When looking at the archetype of P&G it can be seen that it is an Multi Centred MNE. Which consists of a set of entrepreneurial subsidiaries abroad which are key to knowledge-based FSA development. National responsiveness is the foundation of the international strategy. The non-location bound FSAs that hold these firms together are minimal: common financial governance and the identity and specific business interest of the founders or main owners.
Later on a transformation can be seen. P&G tends to be a combination of a Multi Centred MNE with an international projector. This because an international projector is built upon a tradition of transferring its proprietary knowledge development in the home country to foreign subsidiaries, which are essentially clones of the home operations. Knowledge based FSA’s developed in the home country are transferred to subsidiaries in host countries (via projection). Walter Lingle said: we must tailer our products to meet consumer demand in each nation. But we must create local country subsidiaries whose structure, policies and practices are as exact a replica of the US Procter & Gamble organization as it is possible to create. This lead to 2 problems: * The cost of running all the local product development labs and manufacturing plants was limiting profits. * The ferocious autonomy of national subsidiaries was preventing the global rollout of new products and technology improvements.
When relating this to the theory, Walter Kuemmerle has shown that many MNE’s are changing their strategic approach to R&D. in particular international projectors are decentralizing their R&D. In this case of P&G it can also be seen that the R&D departments are located in the individual locations to adapt more to the specific needs of the region, and to act faster. So instead of keeping all their R&D activities in their home country, they are building
When looking at the archetype of P&G it can be seen that it is an Multi Centred MNE. Which consists of a set of entrepreneurial subsidiaries abroad which are key to knowledge-based FSA development. National responsiveness is the foundation of the international strategy. The non-location bound FSAs that hold these firms together are minimal: common financial governance and the identity and specific business interest of the founders or main owners.
Later on a transformation can be seen. P&G tends to be a combination of a Multi Centred MNE with an international projector. This because an international projector is built upon a tradition of transferring its proprietary knowledge development in the home country to foreign subsidiaries, which are essentially clones of the home operations. Knowledge based FSA’s developed in the home country are transferred to subsidiaries in host countries (via projection). Walter Lingle said: we must tailer our products to meet consumer demand in each nation. But we must create local country subsidiaries whose structure, policies and practices are as exact a replica of the US Procter & Gamble organization as it is possible to create. This lead to 2 problems: * The cost of running all the local product development labs and manufacturing plants was limiting profits. * The ferocious autonomy of national subsidiaries was preventing the global rollout of new products and technology improvements.
When relating this to the theory, Walter Kuemmerle has shown that many MNE’s are changing their strategic approach to R&D. in particular international projectors are decentralizing their R&D. In this case of P&G it can also be seen that the R&D departments are located in the individual locations to adapt more to the specific needs of the region, and to act faster. So instead of keeping all their R&D activities in their home country, they are building