P&G Japan: The SK-II Globalization Project

Case Solution

Christopher A. Bartlett
Harvard Business School ()

It pursues changes to P & G’s international structure and strategy culminating in the organization in 2005, a reorganization that places a strategic focus on product innovation rather than geographic expansion and shifts the power from a local subsidiary to global corporate governance. As part of these changes, introduced by Durk Jager, the new CEO of P&G, Paolo de Cesare will be transferred to Japan, where he will take over the newly remodeled beauty business. Within the renowned Max Factor portfolio he inherits is SKII, a fast growing and highly profitable skin care product developed in Japan. At more than $ 100 a bottle, this is not your typical P&G product, but its successful launch in Taiwan and Hong Kong leads De Cesare to believe that the brand has global potential. At the end of the process, he wonders if he should propose to the Global Beauty Care Business Unit to expand to mainland China and / or Europe.

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