When Lafley entered the scene in 2000, he stressed that the company must concentrate on what it sells well rather than build new products. However the company diversified and brought in novel brands into the market through various mergers and acquisitions. After Lafley entered the scene, P&G made the largest acquisitions ever in the year 2001 as it purchased Clairol for $5 billion. It also agreed to purchase Germany's Wella. Other companies that joined P&G included Intuit Inc, Clorox Co., SpinBrush (brainchild of four entrepreneurs from Cleveland), Coke, Wrigley Co. to name a few. The old idea that all of P&Gs products come from its laboratories was challenged and Lafley brought in more products from outside, a strategy that did wonders for the company. As buying best-selling innovation is a difficult business P&G relied on testing products at Wal-Mart for customer response. With its feet firmly on ground with a range of brands, now P&G is likely to invest in businesses of pharmaceuticals and beauty care (considerably weak areas of P&G).
The leadership strategy of P&G reflects a lot of qualities of its leader, Lafley: strong, silent and pioneering. Whether the brand was made within P&G or acquired, it was ensured that it was not just good quality, but also novel in its line. ...Show more