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Reducing complexity at Procter & Gamble : a complexity approach towards product portfolio management

Hartog, Eef-Jan den (2012) Reducing complexity at Procter & Gamble : a complexity approach towards product portfolio management.

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Abstract:In an industry as competitive as the Fast Moving Consumer Goods (FMCG) industry, continuous innovation and operating with business excellence are key drivers for success. Many organizations tend to use differentiation of products, processes or services as the key enabler to outperform competitors. However, despite the obvious business rationale behind differentiation, only few firms are truly able to cope with the increasing complexity that comes with increased differentiation. RESEARCH MOTIVATION: Within Procter & Gamble Benelux, we observed this very same trend, as the number of SKUs has increased over the past 2 years, while the sales per SKU have decreased. Consequently, there is a clear mismatch between the invested organizational resources (here conceptualized by the number of SKUs) and the benefits received (i.e., the sales) for these ‘expenditures’. Despite previous attempts to tackle this increasing complexity, Procter & Gamble has not been able to develop the organization-wide supported approach needed to permanently ban complexity from the organization. RESEARCH GOAL: This research aims to contribute to managing the increasing complexity within Procter & Gamble by defining and implementing a more effective complexity management process, ultimately with the goal to reduce the organizational complexity of Procter & Gamble Benelux.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
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