Question

For several years, Colgate-Palmolive Company, which manufactures and markets personal-care, household, and specialty products, used a global geographic structure of the form illustrated in Exhibit 6.6. Colgate has a long, rich history of international involvement and has relied on regional divisions in North America, Europe, Latin America, the Far East, and the South Pacific to stay on the competitive edge. Well over half of the company's total sales are generated outside of the United States. The regional approach supports Colgate's cultural values, which emphasize individual autonomy, an entrepreneurial spirit, and the ability to act locally. Each regional president reports directly to the chief operating officer, and each division has its own staff functions such as human resources (HR), finance, manufacturing, and marketing. Colgate handled the problem of coordination across geographic divisions by creating an international business development group that has responsibility for long-term company planning and worldwide product coordination and communication. It used several product team leaders, many of whom had been former country managers with extensive experience and knowledge. The product leaders are essentially coordinators and advisors to the geographic divisions; they have no power to direct, but they have the ability and the organizational support needed to exert substantial influence. The addition of this business development group quickly reaped positive results in terms of more rapid introduction of new products across all countries and better, lower-cost marketing. The success of the international business development group prompted Colgate's top management to add two additional coordinating positions-a vice president of corporate development to focus on acquisitions, and a worldwide sales and marketing group that coordinates sales and marketing initiatives across all geographic locations. With these worldwide positions added to the structure, Colgate maintains its focus on each region and achieves global coordination for overall planning, faster product introductions, and enhanced sales and marketing efficiency. Question: How executives at Colgate-Palmolive overcame some of the problems associated with the geographic structure?

Answer 1

Colgate-Palmolive overcame geographic structure issues by forming an international business development group for coordination, adding a VP for acquisitions, and creating a worldwide sales and marketing group for better efficiency.

Step-by-step explanation:

To overcome some of the issues associated with a geographic structure, executives at Colgate-Palmolive Company implemented several strategic measures. One key approach was the establishment of an international business development group, responsible for long-term planning and worldwide product coordination and communication. This was vital in enabling faster introductions of new products and achieving better, lower-cost marketing.

Moreover, Colgate added a vice president of corporate development to focus on acquisitions and a worldwide sales and marketing group to synchronize initiatives across all regions. These changes ensured that the company retained its focus on regional autonomy and entrepreneurial culture while achieving a greater level of global coordination and efficiency.