Philips Case

1. I believe it is extremely beneficial for DeCesare to do the necessary research to determine why the expansion idea would fail and why it would succeed and discuss the associated risks. I would see how past companies have done in the area and pay close attention to companies currently doing well in the area. The order of 5 forces model would provide a clear understanding of how lucrative it would be to go into another country. This model would provide DeCesare with a clear way or organizing the buyers, substitutes, potential entrants, and suppliers in order to organize industry rivalry. "We must create local country subsidiaries whose structure, policies, and practices are as exact a replica of the U.S. Procter & Gamble organization as it is possible to create." I think the goal of basing themselves on a successful company in another country may be too much too fast as they are marketing to a new kind of consumer.

2. Does SK-II have the potential to become a global brand within Procter & Gamble's worldwide operations? Why or why not?

I think with time SK-II can definitely develop into a global brand within Procter & Gamble but it is important to see that they are dealing with a different type of consumer and that business strategies and tactics cannot be recycled to use for totally different consumers. "Reinforcing the new culture were some major changes to P&G's traditional systems and processes. To emphasize the need for greater risk taking, Jager leveraged the performance-based component of compensation." The idea of performance based compensation may not be a good idea at first as the sales of a company need time to develop before going into a new region. This will definitely be a benefit in the long run to leverage net revenue and to make sure your managers are aiming to be profitable.