CASE STUDY PG global process宝洁全球流程案例研究

[Jiexi-ITLtd,ningbo]CASESTUDYP&GglobalprocessThepurposeofthisreportistohelpP&GtoinvestigateandevaluatethepossibilityofSK-IIdevelopsintoamajorglobalbrand.MainfindingsindicatethatvariousproblemswouldneedtobeovercomeifP&GwanttosuccessfullydevelopSK-IIintoamajorglobalbrand,especiallyfourmajorproblems,whichareunsuitableexistingorganisationstructureforitsglobalproject,salesisgoingdownintheJapanmarket,toughchallengesinChinamarket,andthecompetitionintheEuropemarket.

TableofContentsExecutivesummary 11.0Overview 31.1Introductionofcaseanalysis 31.2Objectives 41.3Problemslist 41.4prioritisedproblem 61.41OrganizationalStructure 61.4.2Japanchallenge–salesgodown 71.4.3Chinachallenges 81.44EuropeanChallenge 102.0AnalysisAlternatives 112.1ChangeorganisationstructureforP&G 112.2IncreaseP&Gsalesandimage/awarenessinJapan 132.3EvaluatepossibleentrymodesforP&Gtoenterintochinamarket 142.4EvaluatepossiblepromotetoolsforP&GenteringintoEuropeanmarket 173.0Recommendation 193.1Changeorganisationstructure 193.2IncreaseR&DinJapanmarket 193.3Expandintochinamarket 193.4ExpandintoEuropemarket 204.0ImplementationPlan 214.1Actionplan 214.1.0ActionplanforEuropemarket 214.1.1ActionplanforChinamarket 224.2Contingencyplan 244.2.1Contingencyplanforchina 244.2.2ContingencyplanforEurope 255.0.Conclusion 266.0References 277.0Appendix 29Appendix1 29SWOTanalysisofJapan 29Appendix2 30China(PESTAnalysis) 30537800AdvancedInternationalBusinessPAGE37ExecutivesummaryThepurposeofthisreportistohelpP&GtoinvestigateandevaluatethepossibilityofSK-IIdevelopsintoamajorglobalbrand.MainfindingsindicatethatvariousproblemswouldneedtobeovercomeifP&GwanttosuccessfullydevelopSK-IIintoamajorglobalbrand,especiallyfourmajorproblems,whichareunsuitableexistingorganisationstructureforitsglobalproject,salesisgoingdownintheJapanmarket,toughchallengesinChinamarket,andthecompetitionintheEuropemarket.Afteraseriesofin-depthanalysis,thereisonealternativetoaddresstheissueofunsuitableexistingorganisationstructureforitsglobalproject,therearethreealternativestoaddresstheissueofsalesisgoingdownintheJapanmarket,therearethreealternativestoaddresstheissueofchinachallenges,andthereisonealternativetoaddresstheissueofEuropemarket.Therearefollowingsolutionwouldbesuggested:theMatrixstructureisthebestorganisationstructureforP&Gglobalstrategy,FDIwouldbethemostthemostbeneficialandprofitableentrymodeforP&Gwhenenteringchinamarket,andexportingwouldbethelessriskyandcostforenteringintoEuropemarket,andalsoitfoundthatP&GneedtocustomisedproductsintheJapanmarket.IfP&GSK-IIcarriesoutthosesuggestionsproperly,westronglybelievethatitwillachievegreatsucceeds,becausethosesolutionsare:Veryeasytounderstandandimplement.Relatingtothefactandreflecttothemajorissues.Veryflexibleandadoptable.Andalsosomecontingencyplansareavailabletocontrolunexpectedfactors.1.0Overview1.1IntroductionofcaseanalysisThebackgroundofthisreportisresponsetoPaolodeCesare,inNovember1999,waspreparingforameetingwiththeGlobalLeadershipTeam(GLT)ofP&G’sBeautyCareGlobalBusinessUnit(GBU)topresenthisanalysisofwhetheraprestigeJapaneseskincarelinecalledSK-Пcouldbecomeatrulyglobalbrandbyexpandingintonewmarketsinchinaand/orEurope.Duringtheperiodof1980sand1990s,P&GachievedgreatsucceedinJapanmarket,soitmakesthemgainalotofexperiencesonitsglobalexpansion,forexample,P&Ggraduallyadjustitsorganisationstructuretomakeitsbusinessoperationalactivitiesmoreefficiencyandeffective,andalsoP&GarefocusingonR&Ddevelopment,tomakesureitisleadingglobalbeautyedge.AsitachievedtremendoussucceedinJapan,P&Gwanttocontinuouslydomoreexpansionsintheworldwideareas,sothepurposeofthisreportistoinvestigate,evaluateandanalysisthepossibilityofSK-Пdevelopintoamajorglobalbrand.Atfirst,thisreportwillidentifymajorissueswhicharisefromP&G,andthenitwillselectthemostsignificantproblemstodiscussandanalysisindetails,afterthatitwillprovideabigpictureofbusinessenvironment,opportunities,challengesandotherareaswhichwillinfluenceP&Ginternationalbusinessoperations.NextstepisprovidingpossibleandalternativessolutionstohighlighttheopportunitiesavailableforP&G.Finally,somespecificcourseofactionstoaddressthekeyproblemsintendstodemonstratehowtherecommendedalternativewillbeimplementedP&Gpositioninitsglobalizationproject.1.2ObjectivesThisreportofobjectivesis:Tofindouttheoptimalorganizationstructuretosolvetheexistingorganisationstructureproblems,inordertoachieveitsglobalisationproject.ToimprovetheperformanceofbusinessinJapanmarket,especiallytoextendSK-ПmarketsizeTofindthebestwaytoentrychinamarket,whichcanavoidandovercomechallengestheywillfaceinchinamarket.ToimprovethecomparabilityofSK-ПskincareproductsinEuropemarket.1.3ProblemslistTherewerelimitedprofitswithhighcostofrunningallthelocalproductdevelopmentlabsandmanufacturingplantsTherewerehighbarrierstorolloutofnewproductsandtechnologyimprovementsduetotheferociousautonomyofnationalsubsidiaries.P&GlackoflocalresponsivenessandlearninginJapan,whichrepresentonP&GneverrespondtothedemandingJapaneseconsumerandthetoughtechnology-drivenlocalcompetitors.P&GJapanhadnotadaptedtothecomplexJapanesedistributionsystem.P&GJapan’sstrongperformancebeganerodingwhenJapan’s“BubbleEconomy”burstin1991.P&Gfindoutitsorganisationstructurearenotabletosupportitsglobalstrategyattheendof1990s;ithastochangeitsorganisationstructure,inordertoexpandingintoemergingmarketssuccessfully.P&GJapanwillcreatefuturecompetitorsasusingJapanesetechnician’sskilllabor.P&GJapanwillhaveculturediversitybetweenSK-Пscienceteamandmarketingteam.P&Gwillfacemanycompetitorsinchinabeautycaremarket,becausetherearemanybeautycarecompaniesthataresetupinChinesemajorcity,suchasKao,Unilever.P&Gwillneedtoreconsideritspriceinchinamarket,becausemostofwomenarenotabletoofferSK-Пproducts.TheChinesegovernmentregulationwillmakeSK-Пproductsinthedisadvantagecompletionposition.P&GwillspendlargeamountofmoneyonadvertisingtopromotenewbrandinEuropemarket,becauseEuropeP&GarenotabletounderstandtheEuropeanconsumerwantsandneedsaslackingthebeautycounselor’sanalysisandadvice.1.4prioritisedproblemThisreportisgoingtoanalysemajorissues,whichwillhavethesignificantimpactontheP&Gglobalperformances,theyare:unsuitableexistingorganisationstructureforitsglobalproject,salesisgoingdownintheJapanmarket,toughchallengesinChinamarket,andthecompetitionintheEuropemarket.ToensureP&Gcanachieveitsglobaloperationsandglobalprojecteffectively,theyshouldfindoutappropriatesolutionstosolvethoseproblems.ThefollowingwillexpandhowthoseproblemswouldimpactonP&Gandevaluatethebestsolutionforthem.1.41OrganizationalStructureStopford’sinternationalStructuralStagesModelwillbeusedtoanalyzethestructureofProcter&Gambleorganizationinthiscase.Likemanyothermultinationalcompanies,P&Gmanageditsinternationaloperationsthroughaninternationaldivisionattheearlystageofforeignexpansion.Atthattime,multinationalstrategywasadaptedbyWalterLinglewhowasthefirstVPofoverseasoperations,asheconcentratedondifferentiatingproductstomeetnationaldifferencesandpreferences.Asaresult,aportfolioofself–sufficientsubsidiariesrunbycountrygeneralmanagerswasbuilt.However,twoproblemswereraisedbythisstructure.Firstly,thecostofrunningthesesubsidiariesisveryhigh;secondly,theferociousautonomyofnationalsubsidiarieswaspreventingtheglobalrolloutofnewproductsandtechnologyimprovements.Inordertosolvetheseproblems,AreaDivisionwasadoptedtoreplaceitsInternationalDivision.P&G’sstructurein1990,itcanbeidentifiedthatP&GorganizationwasunderthemodelofCoordinatedFederation.Thecorecompetenciescentralizedbytheparentcompanysuchasfinance,supply,R&Detc.Moreover,innovationsweremainlyhomemadeandworldwidetransferred.Althoughtheglobalcategorymanagementwasadoptedtoimprovecross–marketcoordination,thespeedofcreatingnewinnovationsisstillslowanditwouldtaketoolongtospreadworldwide.Therefore,thecurrentstructureseemednotsuitforthefurtherdevelopmentofP&Gorganization.Obviously,onebiggestchallengesfacedbyP&Gorganizationwasthestructureunfitatthattimeontheglobalbasis.(Bartlett&Ghoshal&Birkinshaw,2004)1.4.2Japanchallenge–salesgodownTherearethreeproblemstocauseP&GJapansalesdown,whichcompanydoesnotrecognisethedistinctiveneedsandhabitsoftheverydemandingJapaneseconsumer,R&Dteamisnotstrong,BubbleEconomy.Afirstsaledowntimeisfrom￥44billionin1979to￥26billionin1984becauseP&GhadnotrecognizedtheJapanesecustomer’sdistinctiveneedsandhabits,andalsoP&GdidnotadapttothecomplexJapanesedistributionsystem.AsecondsaledownperiodwasJapan’s“BubbleEconomy”burstin1991,becausepeople’sincomedecrease,sotheirpurchasingpowerwoulddecrease,andalsopeopledidnotwanttospendtheirmoneyonluxurygood,suchasbeautycareproducts.(Bartlett&Ghoshal&Birkinshaw,2004)InordertointerpretJapanmarketmorespecifically,SWOTanalysiswouldbeadopted(Refertotheappendix1).AccordingtotheSWOTanalysis,ifP&GissuccessfulinJapanmarket,itwouldalsosucceedinotherAsianmarket,suchasKorea,TaiwanandSingapore,becauseJapanisleadingthebeautycareindustry.1.4.3ChinachallengesWiththeimpressiveeconomicgrowth,lowinflationandliberalizationofforeigninvestmentduringthepasttwodecades,Chinahascreatedadesirablemarketforforeigninvestorsintheworld.Still,therearesomeconstraintsfortheinvestmentsarefairlyobvious.P&GwouldfacethreemajorchallengeswhileSK-IIlaunchingintoChinamarket:governmentpolicy,lowincome,andexistingcompetitorsinChina.First,thehighlyregulatedpoliticalenvironmentandlackofgovernmenttransparencywouldcausetheP&Gfallintounstructuredsituation,aswellascausetheproblematictotheoperationofabusiness,forexample,inordertoattractmoreimportcapitalintoChina,thegovernmentstrikethetaxcreditschemesuddenlyduring1997,whichcauseitmoreexpensivetosetupoperationsinthecountryimmediately.(Hill,2005,p218)Moreover,despiteChinaentryintoWTOin2001,theliberalizationmaystillnotbeabletoremovethetradingbarriersimmediately,suchasimporttariffswhichwilloccurinalongrun.ThelimitsecurityofintellectualpropertyandseriouscopyrightproblemwouldbeotherproblemwhileSK-IIlaunchingintoChina’smarket,takeanassumptionthattherearemanydefectivecopyrightorcopycatproductsisfullofthemarketwilldirectlyimpactontheSK-II’simageandsales.Second,lowwagerateswouldbeacompetitiveadvantageinChina,whereasinoppositedirectionslowwageratesisasingleoflowpurchasingpowerinthecountry,thatisP&GmayneedtoconsiderwhetherornottheChineseconsumercouldaffordtobuytheirskincareproductswhichasluxurygoodsforthem.Inaddition,thelowaverageeducationlevelandnationalculture,willresultasfewlocalpeopleunderstandthecomplexmodernindustrialmanagement,therefore,itmaycauseconflictbetweenmanagementandworkers,therearealsodifficultiestoseekingskillworkersinChina,tomeettherequirementofhightechnologyskincareproductofSK-II.Finally,existingskincarecompetitorsinChinabringothersignificantlychallengestoP&G,suchasKao,andUnilever,whichhasalreadybegunonagoodfootinginChinesemarket.Inordertoagainsttheircompetitors,P&GneedtounderstandtheculturedifferencesinChinamarket,doingbusinessinChinarequiresasubstantialGuanxiwhichisplayingmajorpartofthebusinessinChina.AtChina,thereisadage:WhileinRome,doasRomedose.IfP&Gcouldnotacceptthisrule,itishardtogetsuccess.Thegetthebusinessdoneisregardoninterpersonalskill,creatingconnectionsandrelationships,ratherthanapieceofpaperwork.Moreover,theagreementisdetermineonthepersonwhoplaystheparamountroleinthecompany,andGuanxiisthekeytogetintothebusiness.ThelowpriceofChineselaundryproductisanotherproblemforP&G,thepricewarmightnotabletoavoidwhileSK-IIgetintoChina’smarket.Tosumup,toachievingtheobjectivesofP&GlaunchingSK-IIintoChina’smarket,theyneedtoaccountingforthesethreemajorchallenges.(SeeAppendix2forpresentationofChinaPESTanalysis)1.44EuropeanChallengeMostofEuropeancountrieshavewelleconomicstructure,stablepoliticalsituation,advancedtechnologydevelopmentaswellaspeoplearewelleducatedandwealth.Soithasattractedmanyworld-wideinvestorstoinvestintheseWesternmarkets.Obviously,P&GwillfaceintensivecompetitionandhowtosatisfylocalcustomerswhenitislaunchingSK-IIintoEuropemarket.Atfirst,P&GhastoconsiderthebenefitsgainfromthestableeconomyenvironmentinWesternmarket.Forexample,SK-IIlaunchintoNetherlands,SK-IIwillbenefitfromthestabilityofNetherlands’economyenvironments,suchaslowinflationrate,lowcreditriskyandlowemploymentrate.(Theworldfactbook,2006)Secondly,P&GhastoconsiderlocalresponsivenessfromEuropeanmarket.Asthegeographicandculturedifferent,P&Ghavetocustomiseitsproducttosatisfylocalconsumers.Forexample,P&GshoulddesigndifferentpackageforSK-II,becausethelanguageisdifferentinEuropeanmarket.Finally,P&GhastoincreasebrandawarenessandreputationinEuropeanmarket,becausetherearemanycompetitors,andalsothosecompetitorshavebuildupverygoodrelationshipwiththeircustomer.SoP&GhavetoincreaseadvertisingChampaignforSK-IIintheEuropeanmarket,suchas,providefreebeautyconsultantandsponsorsomepublicevents.2.0AnalysisAlternatives2.1ChangeorganisationstructureforP&GResponsetothestructureproblemwhichstatedpreviously,anewstructureshouldbeconsideredtoreplacetheCoordinatedFederation.TheMatrixstructureisabetteroptionforP&Gtoadoptatthatperiodoftime.However,mostofthecompanieswouldfacesomedifficultiesbythetimeimplementtheMatrixstructureintotheorganization,becauseitishardtomanagetheirworldwideactivitiesthroughthiscomplexstructure.Forexample,dualreportingcanleadtodisagreementsandconfusion,alsooverlappingresponsibilitieswillresultinalossofaccountability,etc.InordertoovercomethepotentialproblemsofMatrixstructure,threestepsshouldbefollowedtotransfertheCoordinatedFederationintotheMatrixstructure:Psychologychange-CultureTochangethecultureisaimedtochangeindividualattitudesandmentalities.ThepresentculturewithinP&Gisviewedasslow,conformistandrisk-averse.Thiswouldleadto“nonvalueaddedwork”suchasformfillingandmemowriting;eventuallyitslowsdownthedecisionmakingandreducesthecompetitivenessandefficiencyofthecompany.“Stretch,InnovationandSpeed”istheculturethatP&Gexpectstodevelop,becausegreatideasalwayscomefromconflictsanddisagreements,forexamplethegreenlightweregiventotheLeadershipInnovationTeamtoimplementaglobalrollout.(Bartlett,Ghoshal&Birkinshaw,2004,Chp4)Physiologychange–ProcessesTochangetheprocessesisconcentratedonchanginginterpersonalrelationshipandprocesses.Inordertostimulatetherisktaking,anaccompaniedrewardsystemneedtobeconsideredisthiscase.Theperformance-basedcomponentofcompensationwasespousedbyP&G,furthermorethereachofthestockoptionplanwasextendedfromseniormanagementtoalmostalltheemployees.(Bartlett,Ghoshal&Birkinshaw,2004,Chp4)Anatomychange-StructureThefinalstageofemergingthechangeprocessistotransformtheformalstructureandresponsibilitiesofthecompany.P&G‘sglobalbusinessunitsweresetuptomanageproductdevelopment,manufacturingandmarketingoftheirrespectivecategoriesworldwide.Moreover,globalbusinessserviceunitswereestablishedtodealwiththetransactionalactivitiesintermsofAccounting,HR,IT,etc.Eliminatingbureaucracyandincreasingaccountabilityisanothermainobjectiveofstructurechange.(Bartlett,Ghoshal&Birkinshaw,2004,Chp4)2.2IncreaseP&Gsalesandimage/awarenessinJapanTosolvetheproblemofP&GsalesgodowninJapanmarket,therearethreemainalternativeslistbelow,whichareincreaseadvertisingweight;increaseservicelevelandincreaseR&DteamJapan.AndeachalternativeaddressesP&GJapansalesdownproblem.IncreaseAdvertisingWeightToachievesuccessP&GinJapan,inordertoIncreaseadvertisingandtakeadvantageof“wordofmouth”,becauseJapanisthebiggestcosmeticconsumecountryintheworld,soJapanhasahighpotentialmarket.Advertisingispowerfultoolatcurrentworld;consequentlypromotionweightneedstobeheavy.The“wordofmouth”isverypowerfultopromotecosmeticcompany,womentalktoeachanddiscussaboutwhichcosmeticisniceandintroducetoeachother.IncreaseservicelevelSetupmoreP&GcosmeticscountersinstoresandtrainingmoreP&Gbeautycounselorsforeachcosmeticscountersinstores.Nowadays,womengotoeachcosmeticscountersinstorestotrycosmeticsproductsandlisteningtobeautycounselors’viewsoropinions.Accordingtocase,“thereareover80%ofthemarketwassoldbytrainedbeautycounselorsinspecialtystoresordepartmentstorecosmeticscounters(Bartlett,Ghoshal&Birkinshaw.2004.Page470)”.Sobeautycounselorsandcosmeticscountersinstoresthesearenewwayofsellcosmeticsincurrentdays.IncreaseR&DteamIncreaseR&Dteamisequaltosupportproductdevelopmentcapability.Japanisthetoughtechnology-drivenlocalcompetitors.SoincreaseR&Doperationcouldmaintaintheproductsthattheyalreadyhaveandimprovetheirproductsinordertocompetebetterandsuccess.InthiswayP&GJapanneedtoinvestmoreinordertoimproveefficiencyandproductivity.Thiscanbedonebyfocusonmostprofitableproductsandspecializeoruniqueinproductionoftheseproducts.ItmeansP&Gcannotproducingproductsthatarenotsellingaswellandthereforesaveunnecessarycostsandresourcesonthem.ButtheproductshavetofillthedistinctiveneedsandhabitsofJapaneseconsumer.Productsaregoodorbadthatisthemainpointofproductsself,becauseconsumermakepurchasedecisiononthat.2.3EvaluatepossibleentrymodesforP&GtoenterintochinamarketTomakesureP&Genterintocomplicatedchinamarketsuccessfully,thefollowingentrymodeswouldbeapplytoP&G,whichareexporting,licensingandForeignDirectInvestment(FDI),andtheneachofthoseentrymodeswouldbediscussedindetails,inordertofindouttheiradvantagesanddisadvantages.ExportingP&GcouldadoptexportingintoChinamarket,becausethisentrymodecanavoidsubstantialcostsofestablishingmanufacturingoperationsinhostcountry,andalsoitcanhelpP&Gachieveeconomiesofscaleandlocationeconomies,becauseP&Gcanproducealargevolumeofaproducttoreduceunitcost,andalsoitcangaincostadvantagesfromincreasingthevalueofgoodsorservicestoconsumers,forexample,P&GexportitsproductstoTaiwan,TaiwanmarkethaslowcostofdistributionchannelandadvertisingChampaign,asaresult,P&GwillbearlowcostofpromotionsandlowcostofdistributingitsproductstoTaiwan’sconsumer.However,therearesomedisadvantagesforexportingentrymode:first,hightransportationcostmakeP&Gnotprofitable.Second,tariffbarrierscanmaketheexportingnotprofitable.Ingenerallyspeaking,thisentrymodeisonlygoodformanufacturingfirmsbegintheirglobalexpansion.(Hill,2005,Chp14)LicensingAccordingtotheresearch,P&Gfindthatchinamarketisveryrisk,becausechinagovernmentislackoftransparencyandlackofefficiencyoflawstoenforceintellectualproperty(IP),andalsotherearemanyexistingcompetitorsinchinamarket.SothelicensingisgoodoptionforP&Gtoentrychinamarket,becausethisentrymodecouldreducethedevelopmentcostsandrisksassociatedwithopeningaforeignmarket,andalsoitiseasytoenterintoaforeignmarketwhichisprohibitedbybarriersorimposehightariffonimportinggoods.ButP&Gmustconcernaboutthatlicensingmayresultinafirm’sgivingawayitsknow-howtoapotentialforeigncompetitor.Forexample,inthe1960s,RCAlicenseditsleadingedgecolourtelevisiontechnologytoanumberofJapanesecompanies,includingSonyandMatsushita.RCAreceivesagoodamountofincomefromJapanesecompanieswithoutthecostsandrisksassociatedwithFDI.ButSonyandMatsushitaquicklyuseRCA’stechnologytoenterintoU.SmarkettocompetewithRCA.Asaresult,RCAisnowaminorplayerinitshomemarket,whileSonyandMatsushitahaveamuchbiggermarketshare.Licensingdoesnotgiveafirmtocontrolovermanufacturing,marketingandstrategyintheforeigncountry.SoitisverydifficultforP&Gtoimplementitsglobalisationprojectinhostcountry,becausestrategicandoperationalreasons,subsidiarymaynotwanttokeepconsistentwithheadquartercompany,especiallyinthepricingstrategy,thelicenseemaybeunabletodothis.(Hill,2005,Chp14)Foreigndirectinvestment(FDI)IfP&Gisestablishingoracquiringanoperationabroad,toinsteadofexportingandlicensing,P&Gwouldhaveentirerighttocontroloveritssubsidiary.However,P&Gmustconcernaboutthefollowingproblems:atfirst,cultureissue,ifP&Gignorethisproblem,itwouldmakecostlymistakes.Astheproblemanalysisofchinachallengeinpreviousdiscussthatdoingbusinessinchina,“Guanxi”issubstantialrequire,thatisaveryimportantelementtomakethebusinessdone.SoP&GmustlearnandunderstandChinesebusinessculturewherethe“ruleofthegame”maybeverydifferent.Secondly,FDIisexpensiveandriskycomparedtoexportingorlicensing,becauseitrequiresfirmbearthecostofestablishingproductionfacilitiesinaforeigncountryorofacquiringaforeignenterprise,butitavoidstheriskofcreatingafuturecompetitorfromlicensingitsknow-how.Ontheotherhand,thebenefitsgainfromFDIwouldoverwhelmthenegative,first,transportationcost-itwillincreaseP&G’sproductpriceandcostofproduction.Inthiscase,transportationcosthasminorimpactontheP&Gprofits,becauseJapanisveryclosetochina.Secondly,FDIcanavoidtariffandbarrierstoimposeonimportedgoods,andalsoFDIcangaincompetitiveadvantage,becausethosefirmsusuallyhaveadvancementoftechnology,marketingandmanagement.Forexample,P&Gtechnologicalknow-howhasgivenitastrongcompetitivepositioninJapanandUSmarketforbeautycareproducts.Marketingknow-howcanenableP&Gtobetterpositionitsproductsinthemarketplace.Managementknow-howcanenableP&Gtomanageitsassetsmoreefficientlythancompetitors,becauseitrelatestoorganisationalstructure,humanrelations,controlsystems,planningsystems,inventorymanagement.Thirdly,P&Gcan100%controloveritssubsidiary,soitcanimplementitsglobalstrategyproperly,andalsoitcaneasyadjustitssubsidiarymarketingstrategyandorganisationstructure,inordertokeepconsistentwithheadquarterandkeepitscompetitivepositionintheforeignmarket.Fourthly,P&Gcangainthelocation-specificadvantagesinchina,forexample,thelowcostofwagerate,theefficientinfrastructures,suchastelecommunication,power,transportationnetwork,andlowcostofrawmaterials.(Hill,2005,Chp14)2.4EvaluatepossiblepromotetoolsforP&GenteringintoEuropeanmarketTomakesureSK-IIproductssuccessfullylaunchingintoEuropeanmarket,P&GcandirectlyexportSK-IIproductsintoEuropeanmarket,becauseP&GalreadyhavesetupitsowndistributionchannelintheEurop