Kimberly ClarkKaren- Kimberly-Clark Case Study
In 1872 four business men, John Kimberly, Havilah Babcock, Charles Clark and Frank Shattuck created a company called Kimberly, Clark and Company which initially sold manufactured paper goods. They would eventually branch out into personal care items in order to compete in a larger market with companies like Proctor and Gamble. In 1978, Kimberly-Clark introduced Huggies disposable diapers and were an instant success. In the mid 1990’s Kimberly-Clark merged with Scott Paper and found them in an unusual predicament, the merger did not go well, the integration of Scott and Kimberly-Clark was a rocky one that would lead to dissatisfaction on the part of most Scott employees and especially Scott’s senior management.
In 2002, Proctor and Gamble released a line of high end Pampers disposable diapers that not only was a substitute for Huggies, but also captured a large portion of Huggies market share. Around 2003, Kimberly-Clark decided to restructure the way that the company focused on business products. They chose to use a system of “grow, sustain and fix”, which split all products in to areas that needed growth, needed to sustain market share or items that needed to be reformulated. This system was a total failure and caused the company to take several steps back in market share in most of their areas.
Had Kimberly-Clark gone for a more product related divisional structure, it is possible that they would not have lost so much of its market share to begin with. By going with a divisional structure they would have been able to bring together related products, for example, baby related, paper products, and personal hygiene, making the flow of the company and the divisions much smoother. This would allow for the employees in each division to be more focused on their specific products, have more flexibility in newer product design and to be held accountable when things do not go as planned. By pursuing this type of...