| dc.description.abstract | Subsidiaries of Multinational companies in Kenya could a basic good focus for economic
development inform of foreign direct investment, and the legal framework should be such as it
allows them to playa crucial role in the country's economic growth. Key benefits that accrue
from such parented companies include job creation and inflow of finances inform of taxes paid
in the host country.
The study sought to establish how Procter & Gamble East Africa Limited, a local subsidiary of
the Procter & Gamble Company, had handled reforms initiated by the corporate organization in
their change program, and if the reforms have had any impact on the overall performance of the
local subsidiary in terms of improving its sales and profit, as well as improved operating
efficiency.
The study was conducted using the case study research design. The researcher conducted indepth
interviews with the top management of Procter & Gamble East Africa Limited, who were
involved in the change program and gave management view of the reforms. Also reports from
the firms records did provide useful information, which was useful in the compilation of this
study report.
.The study identified that the firm, though not quite distinct did use John Kotter's Transformation
Process model for parented company change management. Kotter indicates that the change
process takes time and is not something that happens overnight. He outlines an eight step
process with suggestions to~m...a•naging change in subsidiaries of multinational companies. The
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steps include: Increase urgency, Build the Guiding Team, Get the Vision Right, Communicate
for Buy-in, Empowering Action, Create short term wins, Do Not Let Up and Make Change
Stick. From the interviews conducted, it was evident that the reforms have had a great impact on
the overall performance of Procter & Gamble East Africa Limited, as they have been able to
increase revenues and become a profitable organization, and have continued to grow their profit
and revenue base by at least 10% year on year. The organization had also become more effective
and efficient in its operations.
The results from these studies can be used as a lesson to the other local subsidiaries of
multinational firms who are undergoing or a likely to undergo similar reforms. For academicians
and other researchers wishing to carry out further research, the studies will contribute to existing
literature in the field of strategic change management.
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