When L’Oréal said last week it would stop selling Garnier products in China, many outsiders assumed the French cosmetics group was joining a wholesale retreat by big western brands, led by Revlon of the US, which last month closed all its operations in mainland China, eliminating 1,100 jobs, including those of 940 beauty advisers. It all looked pretty ugly.
In saying AG Lafley is “uniquely qualified” to lead Procter & Gamble – again – Jim McNerney, the board’s presiding director, somewhat understates the case.
Not only was Mr Lafley one of P&G’s most successful ever leaders between 2000 and 2009, he has literally written the book on how he achieved the corporate turnround – Playing to Win, co-authored by Roger Martin and published this year. But the record of chief executives who return to the top job is mixed: while there are benefits to bringing back the former CEO, there are pitfalls too. Read more
Rakesh Kapoor has been in charge of Reckitt Benckiser for less than a year but already he’s changed the world. Or, more accurately, he’s changed Reckitt’s view of the world, by merging its European and North American operations into one Amsterdam-based unit, and splitting the rest of the world into two reporting areas.
Like three ugly sisters, the new operations are called Ena, Rumea (Russia, Middle East, Africa) and Lapac (Latin America and Asia-Pacific). Stefan Wagstyl has pointed out on the FT beyondbrics blog that the clear message is that “emerging markets matter” for the multinational consumer goods group.
Reckitt’s change is more than a laborious redrafting of the corporate organigram. Pankaj Ghemawat wrote in World 3.0 that General Motors’ decision to make many of its non-US, non-European operations report to China was “a basic realignment of power”. The impact of Reckitt’s move to aim resources more directly at growing markets could be just as profound. Read more
Fear is back.
Sitting in the Financial Times’ New York office this afternoon watching the Bloomberg screens and CNBC as the stock, bond and currency markets went into spasm was eerily reminiscent of the same experience in autumn 2008. Read more