P&G makes corporate and executive changes

- Last updated on GMT

Related tags: Management, Corporation

Procter & Gamble has announced that its current company
director is resigning as well as confirming the defining
adjustments to its business operations with Wella for the Global
Prestige & Professional Care division, reports Simon
Pitman.

Wella​ and P&G​ said that, solidifying changes that were first made to its business operations in July 2004, the companies have decided to operate Wella's global Professional businesses and Cosmopolitan Cosmetics business together with P&G's Clairol Professional and Prestige Beaute Fine Fragrance divisions within one new 'P$G Global Presitge & Professional Care' organisation.

The companies said that on the back of this the new division would be led by P&G group president Heiner Gürtler, who reports directly to the company's CEO AG Lafley. In turn Hartwid Langer, president of Prestige Products and Carsten Fischer, president of Professional Care will report to Gurtler.

"By taking advantage of both Wella and P&G expertise, this new organization will create competitive advantage, drive synergies and provide exciting growth potential for the future,"​ the companies said in a joint statement.

More recently, P&G and Wella have been working on designing the organization structure for the Prestige and Professional Care business. The new business unit will operate within the framework of the overall business model of P&G - with the basic components of Global Business Units (GBU) and Market Development Organizations (MDO) - a model that P&G has claimed to have had a proven track record.

"For the further successful development of the core businesses of Wella under the umbrella of P&G Global Prestige & Professional Care we have defined the best possible operational structure. Thus we are able to give perspectives and confidence in the future not only to the employees of Wella and Cosmopolitan Cosmetics but as well of P&G Clairol Professional and Prestige Beauté,"​ said Heiner Gürtler.

"The new business unit will contribute to Procter & Gamble to become the No. 1 Company in Beauty."

The companies said that the timeframe for implementation would be between July 1, 2005 and June 30, 2006.

P&G also announced that its company director of the past four years, Domenico De Sole, has stepped down as company director with immediate effect to pursue other business interests in the cosmetics and personal care industry.

"I am stepping off the board so I can focus additional time on a variety of businesses, including my venture with Tom Ford and Estee Lauder."​ he said.

Related topics: Market Trends

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