Gilette Case Analysis

OM CASE STUDY: GILETTE

1. What principles and practices have allowed quality to flourish at Gillette in Argentina over the years?

Being open to changes and opportunities were the very first principle Gillette had to accept for them to get where they are now. Shifting from the traditional system of doing things in the late 1980s was a daunting decision for a start-off company to make however, Gillette was able to get pass through it by introducing and integrating quality as a top priority. For example, the implementation of Quality Action Teams (QATs) and cross-functional teams increased their productivity and efficiency. Gillette realized that they had to focus on customer satisfaction by filling them in what they really need rather than asking who their customers are. Overseeing the benefits of total quality management (TQM) in the long run rather than being discouraged by the initial problem of how the strategy could flourish now made them better off after the Argentine market became open from competitors in United States and European companies.

The application of TQM (Total Quality Management) basically helped flourish Gilette in Argentina as well which also gave room to a cohesive force where cultural change in the organization emerged. The Organizational Dynamic Initiative (ODI) at the same time propagated the quality initiative for Gilette. Strategic directions which include the execution of the established quality programs were based on customer focus, total participation, systematic support of the effort, measurement of results and continuous improvement.

As a matter of fact, quality action teams were formed and several workshops were conducted with all personnel to inform them about the new culture and working style to be achieved and executed. The culture of teamwork was then strengthened coupled with addressing top client priorities and satisfaction. Actually, the said teams were guided in the process by the ODI methodology. As the total quality manager in Argentine Gilette, Victor Walker portrayed a great contribution to the company’s growth by monitoring the aforementioned teams’ progress, giving workshops on problem-solving and statistical analyses to inspire everyone to render their fullest potential.

1. How can management ensure that quality performance in Argentina continues to be high in the future?

Management can ensure that quality performance in Argentina will continue to be high in the future by getting quality into focus. So to speak, patience must be maximized and put in practice, win people over by persuasion and with hard data on the benefits of Total Quality Management. Systematic support from the quality council must always be displayed for the improvement of a working culture. Participation among people in the company must continually increase specifically their participation in teams.

New steps and processes as part of team objectives must also be highlighted to increase the likelihood of proper execution. Specifying how their efforts will be done and manifested that would contribute to favourable business outcomes is also another important thing to be considered. The measurement of the depth of people’s commitment to the program can also be the basis of sustaining the existing business state. Giving incentives to workers would also deepen their commitment and initiative to produce efficient results in the long-run. The formation of monthly trainings and workshops would also enable a more proficient return in the future and the fact that the degree of team collaboration and solidarity can also be heightened at exactly the level of company benefits.

In addition to this, the management should continue consulting to TQM experts as the previous years they did with Organizational Dynamics Inc. (ODI). Well, they may continue consulting with ODI however, certain activities should be conducted to investigate if ODI still is the best consultancy company for TQM. This will help Gillette maintain and improve what they have started. It is also important to note that the steering committee is one of the great influencers in making this happen. The steering committee should be composed of individuals who are truly committed to the company, has the eye for details such as Sharp, and has the initiative and focus like Micozzi.

1. How should the quality practices and principles be exported to the rest of Latin America?

Quality practices and principles can be exported to the rest of Latin America through collaboration and globalization. As what Micozzi had thought, we are convinced that the Argentine quality program should be forwarded to the rest of Latin America. Gillette Argentina can deploy to the other subsidiaries of the company how the Argentine quality program was implemented and continue their partnership with ODI or any other best consultancy company in finding the best fit for these other subsidiaries. Certain adjustments could be made to see which part of the program could best work for them and which part could not.

Emphasizing the value of teamwork more than ever is another thing to forward quality principles to the rest of Latin America. It is evident to categorize that team unity is very crucial to success and that in the overall general business process, the basics of Total Quality Management must be well-practiced. Business transformation here will greatly reside with teamwork and customer focus for the business to gradually improve itself. The quality initiative is tough to carry out but emphasizing the phases of TQM specifically in terms of teams’ given objective in each company process will lead to continuous improvement.

OPERATIONAL PLAN

1. INTRODUCTION

Gillette is the world’s number one provider of men's grooming product category as well as in certain women's grooming products. After 117 years of cultivation, Gillette globalized its consumer products by incorporating quality as their competitive advantage and adding value to personal care and personal use products. The company believes that sustained profitable growth is necessary in building shareholder value.

Mission Statement

Gillette has been at the heart of men’s grooming for over 100 years. Each day, more than 800 million men around the world trust their faces and skin to Gillette’s innovative razors and shaving products. This commitment to giving men the very best is carried into our line of personal care products, including deodorant and body wash. All designed for the unique needs of men – helping them to look, feel and be their best every day.

Strategic Priorities

1. Mission Effectiveness
2. Sustainability
3. Market Expansion
4. Advertisements
5. First mover

Corporate Risks

1. Increased competition in this stage may lead to falling prices as the company competes with others to gain and keep hold of market share. (New competitors)
2. When the maturity stage is reached the product life cycle sales growth ultimately peaks, then slows as the product reaches widespread acceptance, and competition is fierce. (Market maturity)
3. Focusing more their market offerings to men’s category may lead to decreased market share to women’s category. (Decreased market share)

1. KEY PERFORMANCE AREAS

The high-level actions are based within the framework of five categorized KPI’S. These are appropriate in the context of Gilette Argentina credited to launch the Total Quality Management (TQM) programme.

The aforementioned KPI’s are:

1. Organizational Sustainability
2. Employee Empowerment
3. Financial Health
4. Brand Positioning
5. Customer Focus and Satisfaction

Current Status Assessment

Flexible and appropriate leadership styles were practiced by Gilette Argentina together with the implementation of TQM. Various changes in operations and culture particularly in the realm of choice, practice and payoff contributed to the overall business success. Quality is practiced as the company continues to change in the long-run which paved way in approaching quality to such a degree that it endows both value and economic gain to both employees and the company in general.

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