P&G
Proctor & Gamble entered foreign markets early in its existence, and relied on semi-autonomous foreign subsidiaries to manufacture market and distribute products that were developed in the United States. This tactic relied on P&G owning the subsidiary, but giving the subsidiary considerable operational leeway, so that the arrangement almost worked more like a licensing deal. This strategy persisted for P&G through the 1980s.
In the 1990s, this strategy became less viable, at least relative to the alternatives. The strategy had arisen and persisted in an era where barriers to trade between nations were high, and by the 1980s these barriers were beginning to fall -- it was the beginning of the modern era of globalization. National markets were becoming regional markets -- for example with the common market in Europe and the Canada-U.S. Free Trade Agreement. In addition, P&G's retail partners were becoming global in scale, something that demanded P&G adopt a more globalized approach to production and even to distribution. Thus, it was changes both in the legal environment of international trade and in the competitive environment of its major customers that drove the internal change at P&G.
3) P&G has in the past several years been working towards becoming a global company, rather than a multinational one. A global company is one that operates predominantly on a global scale, with little change to accommodate regional conditions....
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