Pharmaceutical and Over-The-Counter Drugs (Organizational Structure's Analysis)
Internal strategic analysis
a) Organizational Structure
Most organizations just like Procter & Gamble do not have structures that coincide with facts; most of these structures evolve in operational action. Organizational structures adapt to requirements of the process (Burns, T. and G. Stalker, p22).
Procter & Gamble have adopted a bureaucratic structure. Bureaucracy enhances speed, subordination that is very fast, reduced cost, unambiguity and precision.
This system is more suitable for Procter & Gamble because of its complexity and height, being a tall organization. Other qualities that makes Procter & Gambler to adopt a bureaucratic structure are need to define roles and responsibilities, respect for performance as well as hierarchy (Mohr, San Francisco, 89).
b) Models of analysis
Procter & Gamble applies the mixed effects model of analysis. This model is preferred for its random and fixed effect which appropriately conforms to different analysis and interpretation.
c) Type of structure
It includes a simple plan that is centralized. This makes authority and power required for setting of goals in the hands of one person or two. Procter & Gamble requires standard procedures and methods are executed to enforce performance at work place.
Procter & Gamble is a line organization whereby authority flows from the chief executive to lower level officers in a chain that is unbroken. Such like organizations have strict rules and regulations which staffs have to abide by and failure to abide by them attracts a disciplinary action from the office in charge of personnel management (Grey, Sage, p79).
Porter's Five Forces of P&G: Pharmaceutical and Over-The-Counter Drugs
Bargaining power for Porter’s Five Forces of P & G: Pharmaceutical and Over- The- Counter Drugs customers is high. This is because;
i) They have substitutes for most of over the counter products.
ii) Generic products are available in the market and are cheaper
iii) Some of the products are mere supplements and hence not very basic
iv) Competitors release cheaper products in the market
v) Lately, there has been enough information on lifestyle change as an alternative to drugs.
Reference list
Burns, T. and G. Stalker. 1961 The Management of Innovation. London: Tavistock
Grey C., Garsten C., Trust, Control and Post-Bureaucracy, Sage Publishing
Mohr, L. B. 1982. Explaining Organizational Behavior. San Francisco: Jossey-Bass Publishers.
Weber, M. 1948. From Max Weber: Essays in Sociology, translated, edited and with an introduction by H. H. Gerth and C. W. Mills. London: Routledge and Kegan Paul.
