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Its aggressive international expansion and innovation-driven strategy enable the company to achieve economies of scale as well as to differentiate itself from strong competitors like Unilever, and Kimberly-Clark. Due to its large size and complexity, the organizational structure tends to be centralized. The standardization process in the early 2000s, resulted in significant cost-saving and speedy new product roll-outs. Given the nature of the consumer-product industry, however, local responsiveness and flexibility are the key to survive and stand out. Therefore, P&G coordinated a new matrix structure in which market development divisions complement product sectors, and added a supporting service unit to enhance horizontal linkages...
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