Proctor and Gamble 2004 Annual Report Download - page 10
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Please find page 10 of the 2004 Proctor and Gamble annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.abletocapturethebenefitsoffocused,smallercompanies
throughdedicatedGBUswhilecapturingthego-to-
marketstrengthsandcapabilitiesofa$50billioncompany
throughlocalmarketdevelopmentorganizations,the
sharedbusinessservicesorganizationandleancorporate
functionsthatensureP&G’sfunctionaldisciplinescontinue
toleadtheindustry.
GlobalBusinessUnitsareabletodevelopclearer,better
long-termgrowthstrategiesforP&Gbrands.Theyidentify
commonconsumerneedsandquicklyexpandbrands
andproductinnovationstodifferentmarketsaroundthe
world.TheyarealignedbehindTotalShareholderReturn
metricsandarefocusedexclusivelyonleadershipintheir
individualindustries.
Othercompanieshavethissingle-mindedstrategicbusiness-
unitfocus,butP&Ghastwoadditionaladvantagesthat
Inaddition,thereisanintangiblebutimportantbenefitthat
comesfromP&G’s“promotefromwithin”culture.Themen
andwomenworkingintheGBUsandMDOsoftenknoweach
otherbecausethey’vespenttheirentirecareersatP&G.They’re
focusedonthesamepurpose.Theyhavesimilarvalues.They’ve
hadsimilarcareerexperiences.Thisstrengthenstheirabilityto
debateissues,makedecisionsandexecutewithexcellence.
ThethirdadvantageofP&G’sstructureisGlobalBusiness
Services,whichdeliversbetterserviceandbettertechnology
atbest-in-classcoststoP&Gbusinesses.Veryfewother
companiesinanyindustryhaveglobalbusinessservices
capabilitythatrivalsP&G’sforquality,innovation,cost
andscale.
Multiplythesebenefitsacrosscategories,marketsandtrade
channels,andyoucanseethescaleadvantagesavailable
toP&G:
•Wecancompeteonmultiplefrontssimultaneouslywithout
spreadingourselvestoothin.
•Wecandeliverahigherfrequencyofnewproductsacross
multiplemarkets.
•Wecanplanlongtermgloballywhilefocusinglocallyon
superiorexecutioneveryday.
Inshort,wecanreapthebenefitsofglobalscalewhileacting
likealocalcompanyeverywherewecompete.P&Gnowhas
sufficientexperiencewiththenewstructuretobegintaking
fulleradvantageofthebenefitsitcreates.
FocusonCostandCashIsKeepingP&GBrandsCompetitive
ThefinalchangeIwanttohighlightisthedegreetowhich
cashandcostdisciplineisnowingrainedintheorganization.
We’redrivingacost-reductionandcash-improvement
mindsetdeeperintotheCompanywithclearerreporting
structures,cleareraccountabilityandthedisciplineduseof
TotalShareholderReturnatthebusinessunitlevel.
playtoouruniquecombinationofstrengths:Market
DevelopmentOrganizationsandGlobalBusinessServices.
TheMDOteamsknowlocalmarkets:people,retailers,
supplychainsandlocalgovernments.Theyhaveabroader
portfolioofbrandstomeetawiderrangeofspecific
needsforlocalconsumersandcustomers.Theyarealigned
behindtop-linegrowth,marketshare,cash,costand
value-creationobjectives,andarefocusedexclusivelyon
winninginlocalmarkets.
ThekeyadvantageofourstructureisthattheMDOscan
focus100%oftheirresourcesonlocalconsumersand
customerswithoutduplicatingproductinnovation,product
sourcing,brandadvertisingorotheractivitiesthatare
nowledbytheGlobalBusinessUnits.Wehaveeliminated
inefficientoverlapsand,asaresult,freedupresources
tocollaboratebetterwithcustomersandfocusexclusively
onwinninginlocalmarkets.
Earning
Your
Trust
P&Gstrategies,strengths,andthesystemicandstructuralchanges
we’vemadetoimprovethereliabilityofourperformanceshouldgive
shareholdersconfidencethatP&Gcansustaindouble-digitearnings-
per-sharegrowthfortheforeseeablefuture.
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