Read Case 17, “P&G SK-II (Skin Care Product): Damage Control in China,”

I’m studying for my Management class and need an explanation.

One month has gone by since P&G pulled all of its SK-II products off of the shelves in China as a result of the public relations disaster surrounding the luxury skin care line. Top management recently met to decide how to minimize the damage caused by the crisis, how to move forward, and how to use the lessons learned from the experience to prevent future entanglements with such negative consequences. At the conclusion of this meeting, you were asked to prepare a written report and a 10-minute oral announcement for presentation to managers and employees throughout the company. The purpose of the report is to summarize the discussion and decisions made by top management. The announcement is intended to communicate P&G’s strategy for re-entering the Chinese cosmetics market and to share methods the company will employ to improve crisis management in the future.

Your report should include the following content:

1. Describe the negative consequences of recent events.

2. Discuss P&G’s errors in judgment and missteps throughout the crisis.

3. Identify environmental factors in the company’s favor to justify reentry into the market.

4. Describe an appropriate international strategy and implementation considerations from a strategic management perspective, and discuss the advantages of international cooperative alliances.

5. Discuss a plan for moving forward and improving the company’s ability to manage unexpected crises in the future.


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