P&G has a matrix organizational structure (Galbraith, 2009). The company deployed numerous country subsidiaries in those regions it operated and global business units (GBU) are charged with particular products and brands operation. P&G categorized its global business into three GBU, consisting of beauty & grooming, health and well-being, and household care. The matrix structure did help the company's multinational management and boost its worldwide expansion by 1990s. However, since competing in more than 75 countries by the mid-1990s, the overseas expansion opportunities left rather limited for the company. The company consistently treated innovation as its core strength and pressures from distinctive markets' local responsiveness also required the company to develop its research capability. Nevertheless, incremental coordination was needed to innovative new products, leading to reductions in organizational flexibility and efficiency. Therefore, the matrix structure revealed its shortcomings for P&G which threat the company's sustainable development in the global market. .
3. PESTLE Analysis.
The PESTLE analysis will be conducted to examine the current external environment for P&G in the world market.
Political With operations in more than a hundred countries of different continents, P&G has to deal with distinctive political patterns influencing its business operations. On one hand, the company has to deal with and adapt to political pressures in different nations. On the other hand, with regard to the corporation's size, it plays integral roles to cooperate with and affect local government. Economic The world economy is presenting a pattern of rejuvenation from the recession and world demand is forecasted to grow in the next years. Hence, the company can have a relatively positive expectation on its sales performance. However, the development in different market may vary because unbalanced development situation in different regions.
