Management of strategic change at Procter and Gamble East Africa Limited

Abstract

Subsidiaries of Multinational companies in Kenya could a basic good focus for economic development inform of foreign direct investment, and the legal framework should be such as it allows them to playa crucial role in the country's economic growth. Key benefits that accrue from such parented companies include job creation and inflow of finances inform of taxes paid in the host country. The study sought to establish how Procter & Gamble East Africa Limited, a local subsidiary of the Procter & Gamble Company, had handled reforms initiated by the corporate organization in their change program, and if the reforms have had any impact on the overall performance of the local subsidiary in terms of improving its sales and profit, as well as improved operating efficiency. The study was conducted using the case study research design. The researcher conducted indepth interviews with the top management of Procter & Gamble East Africa Limited, who were involved in the change program and gave management view of the reforms. Also reports from the firms records did provide useful information, which was useful in the compilation of this study report. .The study identified that the firm, though not quite distinct did use John Kotter's Transformation Process model for parented company change management. Kotter indicates that the change process takes time and is not something that happens overnight. He outlines an eight step process with suggestions to~m...a•naging change in subsidiaries of multinational companies. The VI steps include: Increase urgency, Build the Guiding Team, Get the Vision Right, Communicate for Buy-in, Empowering Action, Create short term wins, Do Not Let Up and Make Change Stick. From the interviews conducted, it was evident that the reforms have had a great impact on the overall performance of Procter & Gamble East Africa Limited, as they have been able to increase revenues and become a profitable organization, and have continued to grow their profit and revenue base by at least 10% year on year. The organization had also become more effective and efficient in its operations. The results from these studies can be used as a lesson to the other local subsidiaries of multinational firms who are undergoing or a likely to undergo similar reforms. For academicians and other researchers wishing to carry out further research, the studies will contribute to existing literature in the field of strategic change management. VII