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Case Study Comparing Change in Proctor and Gamble and Vanust

The full name of P & A ; G is Procter and Gamble Company, it was founded by William Procter and James Gamble, in 1837, in Unite States. P & A ; G is the leader of doing family merchandises in the universe. Its merchandises cover three series ‘Beauty and Grooming ‘ ‘Health and Well-Being ‘ and ‘Household attention ‘ , about 300 trade names is selling over 160 states.

Under the leading of the old CEO ( Durk Jager ) , he was the on P & A ; G CEO place on September 1, 1999, his term of office merely last 17 months, but during the 17 months, the company lost $ 50 billion in market capitalisation and the stock monetary value declined 50 per centum.

A.G Lafley started his Chief executive officer occupation in P & A ; G in 2000.

What changes he did in to P & A ; G?

He brought five alterations into P & A ; G:

He set a end to do cognition throughout P & A ; G more easy and smooth.

He emphasized listening more than lecture.

He required regular interactions between director and non-manager.

He changed leaders work environment manner, simple manner replaced plush.

He take the employees as company ‘s nucleus success factors, he give tangibly wages to frontline employees.

What are alterations ‘ grounds?

The direct ground is that under ex-CEO ‘s ( Durk Jager ) lead, P & A ; G lost $ 50 billion in market capitalisation, its stock monetary value declined 50 per centum and half of its trade names were losing market portion, all of these mean that P & A ; G company was confronting some job. The CEO Lafley did the alterations to seek to repair them and convey company to another growing period.

Case 2 — Vanust Restaurant

Vanust Restaurant located in Melbourne, it was purchased by John and Mia in 2001, it ‘s a partnership company, the site had antecedently been a eating house for some old ages, before John and Mia purchased it, it already closed for several months. They refitted it, it could sit around 40 clients at a clip. After they opened, they served breakfast, tiffin and dinner.

Changes and grounds

These alterations were non taken topographic point at a clip, they came in different clip with different grounds.



They stopped breakfast and tiffin, merely dinner were available.

No net income for breakfast and tiffin

They do n’t take engagement, client should come and wait be served.

Many lost gross revenues when brush frequenters cancel.

Another spouse ( Jennifer ) was invited in 2006.

They brought a 3rd concern, and their work load were great in direction.

Jennifer planned to increase monetary values and renegotiate trade footings.

Jennifer want acquire more net income

Jennifer was traveling to increase the place capacity and open farther eating houses.

Part B Role of leading, ideals & A ; constructs

Case 1-Role of leading

After Lafley came to P & A ; G, he took the duty to reconstruct selling human dynamo of the company, increase the company ‘s values for stockholders, he besides took duty for public and staffs. But he was non merely individual in this company making these, he was seeking to allow all of the employees to take company ‘s duty. The difference with the ex-CEO, in his alterations, he chose to swear employees, he thought that they were non useless, they were the nucleus of company ‘s success and they were the nucleus of doing company growing. He figure out five new schemes, his new schemes gave company a blast fresh air, the bureaucracy was taken off with the older plush offices, without bureaucracy director like to pass on with staffs, and staffs could pass on with director easy and swimmingly, listening accomplishment was enhanced by Lafley in this company every bit good, all of these worked together and helped P & A ; G turning into larning organisation. He have a great vision on company ‘s development, he is besides a greater mind, he did n’t believe company ‘s jobs in market were merely market jobs or production ‘s job, he dug deep, he found all of these job came of organisation system. He changed them, now cognition could go through the organisation fast, it means staff could acquire company ‘s new determination more easy and understand well, company can respond fast.

What ideals or constructs were used in alterations?

He trusted their hunt the best net income for stockholders and company.

Lafley thought their employees were the right people who could reconstruct P & A ; G ‘s market place.

He thought listening was more of import than talking.

He thought communicating is really of import to company ‘s development.

He thought leader should put a good illustration to staffs.

Case 2 — Role of leading

There were three spouses, they were Mia, John and Jennifer. Both Mia and John were eating houses laminitis, Mia and Jennifer were bossy leading manner, they like to command others, they did n’t like be controlled, they were portion of laissez faire leading manner, they did n’t hold long vision, they were easy satisfied with immediate involvements, e.g. when Jennifer suggested to increase the capableness of eating houses to acquire more net income, but Mia and John thought client waited for tabular array that was a sort of pride and a sort of eating house ‘s tranditional. they did n’t hold system direction to the company, they did n’t hold a end for development of eating houses, they want to maintain eating house ‘s traditional. E.g. they used manual accounting system, in a manner, manual accounting system could be used to account a little eating house, but it much more slower than computing machine system. At last, Mia and John became the opposition of company ‘s development.

Jennifer had a rational leading manner, she took alteration to eating houses, she brought system direction to eating houses, and she took new engineering to accounting system that made accounting easier and clearer, She did n’t care people ‘s feeling. she did n’t care the civilization of eating houses, e.g. when she suggested to increase eating house ‘s place capableness to cut down client ‘s waiting clip, she was non know of Mia and John prided with client waiting. She analyzed and trusted informations, she made determination from analysing of informations, she was traveling to acquire the best net income for eating houses. she mended the deficiency of leading of Mia and John, but at the same clip, she besides became the unstable factor in eating house ‘s partnership. E.g. each of the proprietors agreed with Jennifer ‘s new schemes in rule, but they did n’t wish them.

What ideals or constructs were used in alterations?

Mia and John cut off low net income production, maintain hard currency cow.

Mia and John thought client ‘s waiting was counted as an award.

Mia and John thought a new spouse was better than a director.

Jennifer preferred new technique.

She thought concern should seek the best net income.

Part C comparing between P & A ; G and Vanust

In the large concern instance, P & A ; G CEO ‘s ultimate ends was to convey company back to former illustriousness and acquire net income every bit more as possible, he did n’t travel directly to file away them, he did n’t with an oculus on productions, he implemented alterations in company ‘s organisation and work flow, he through enhance communicating channel in company to allow people to acquire cognition fast, cognition non merely means cognition, it could be leader ‘s ideal, company ‘s new schemes, new technique coming with new merchandises and anything can be passed as cognition, after communicating channel was set up, company would run more efficiency, efficient running could convey more net income. There are a relationship between efficiency and net income. We can see this from P & A ; G ‘s one-year study in 2007, there are some impressive informations.

In 2000

In 2007

Growth rate

Up or Down

Annual gross revenues $ 30 one million millions

Annual gross revenues $ 76 one million millions

153.00 %


11 trade names individual one-year gross revenues & gt ; = $ 1 billion

23 trade names individual one-year gross revenues & gt ; = $ 1 billion

109.00 %


Market capitalisation $ 148 one million millions [ 1 ]

Market capitalisation & gt ; $ 200 one million millions

35.13 %


2007 comparison with 2000

Through above informations we can see Lafley got large success for P & A ; G in six old ages.

In the 2nd instance, they were running a little concern, their organisation construction were non complex, when their needed alterations, their focused on their production, they had merely merchandise line, their through alteration production schemes to acquire net income. E.g. their merely cut off low net income merchandises ( breakfast and tiffin ) , they did n’t believe system direction was necessary, they chose a ‘friend of a friend ‘ to fall in their partnership, that ‘s more similar household concern.


Both have same end that was to acquire more net income.

They all through alterations to repair job.

They all tried utile and suited schemes to fit their fact demands.


For the P & A ; G ( large concern ) , it was long clip before the alterations took consequence, usually use twelvemonth as measuring.

For the Vanust ( little concern ) , the alterations took consequence fast, usually use hebdomad or month as measuring.

For P & A ; G, due to complicated organisation construction and wide merchandise line, the CEO chose better communicating and production efficiency to acquire more net income.

For the Vanust, spouses through changed major merchandise to cut down costs and increase economic efficiency.

P & A ; G ‘s CEO took attending on macroscopic, the eating house ‘s proprietor focal point on inside informations.

From the leading, P & A ; G CEO Lafley had a great vision, his alteration schemes were long term schemes. The proprietor of eating house had a narrow vision, all alterations were used to repair the job right in forepart of them.


After five old ages, Mia and John opened the 3rd eating house, P & A ; G ‘s one-year gross revenues increased 153 % in six old ages subsequently, both of them got large success, even their had different leading and schemes. So, we can see that no leading and scheme suit for every concern, merely suited leading and scheme. P & A ; G ‘ CEO and eating house ‘s proprietors had different leading, even Mia and John had a narrow vision, no 1 is incorrect. Recalled hundred old ages ago, P & A ; G ‘s laminitis Procter and Gamble, they besides had no thought how large their company could be. Different concern and different phase demands different leading and schemes.

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