Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (A) Harvard Case Solution & Analysis

Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (A) Case Study Solution 


Taking under consideration the emergence of such issues within the organization, a series of actions were undertaken by Tom Muccio and colleagues, which were grouped in six broad categories. Tom Muccio stressed over the significance of staying closer to the counterparts in order to have a closer look over their culture and real interest, and to develop astrong relationship based on the credibility and trust that was must to be built up, in terms of having an effective management of complex and ongoing relationship issues.

In addition to this, Tom Muccio highlighted the significance of mutual engagement both the parties in order to reach at the larger and realistic-vision for the relationship. The in-personal collaboration within six months at the P&G plant or in the stores of Walmart tended to help in evaluating and assessing the suggestions, concerns of Walmart and asking for their inputs. The joint business planning would’ve been recognized as a collaborative effort of both the parties,which tended to involve an open sharing of information,which in turn would have allowed to create amutually-agreed-to and common business plan.Muccio pioneered multi functional teams at P&G with their Walmart counterparts in order to handle the disputes between both the companies, to gain a better insights,exercise the communication skills,spur innovative ideas and to engage the employees.

Muccio built the dialogue system to foster the discussion from negotiation to joint problem solving as well as joint capitalization of the opportunities(Garvin, 2015). Another elements of effective and successful negotiation was the implementation of power of recognition and reward system, building the culture of shared information to support the joint problem solving and development of the multi-functional teams in order to support the new money negotiation in a way that the new money approach would help in realizing how to organize the teams. Combining all these elements of negotiation, Muccio was able to draw the win-win outcomes for both Walmart and P&G.


In light of the components of the negotiation process highlighted by Muccio; the shared information, mutual understanding, culture towards more informal and reciprocal-commitments, accelerated efforts of multi-functional teams, recognition of internal concerns and dialogue system to foster the discussion from negotiation to the capitalization of opportunities and joint problem solving, face-to-face meeting between Lou Pritchett (the Vice President of sales at P&G) and Sam Walton (legendary founder of Walmart), fostering the culture of an improved collaboration and communication were the key success factors behind the successful negotiation between the retailer and the supplier.

Built on growing trust (both the parties had ultimately omitted the elaborated legal contracts in favor of the letter of intent) and proximity (Walmart’s turf was relocated by Muccio in Arkansas), the new relationship between P&G &Walmart was focused on establishing a problem-solving and join vision process, information sharing as well as being immune to the lowest common denominator pricing problems.(Kumar, 2016)..............

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.

Share This


Save Up To




Register now and save up to 30%.