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WPP is a global group of companies offering a variety of marketing, advertising and communications services. Altogether it employs 153,000 people (including associates) working in 2,400 offices in 107 countries. It is part of the FTSE100 Index.
To date, the group has acquired over 150 companies, which appear to retain and operate under their own names. These companies include: Burson-Marsteller, Cohn & Wolfe, ghg, Hill & Knowlton, JWT, Kantar, Landor Associates, MediaCom, Millward Brown, Ogilvy Group, TNS, Wunderman, and Young & Rubicam.
The parent company WPP has offices in London, Dublin, New York, Shanghai, Tokyo and Sâo Paulo, employing 300 people. It conducts a number of central administrative functions, including recruitment and training, property management, procurement and IT, and knowledge sharing. Its financial responsibilities include: planning, budgeting, reporting, treasury, tax, mergers and acquisitions, investor relations.
Martin Sorrell, the group’s founder, has become known for his determined pursuit of fast-growing markets.
The parent company also has a client co-ordination role. As clients increasingly expect multidisciplinary expertise and a number of different services, WPP companies are increasingly working together to meet client demands. When this happens, their work is co-ordinated by the parent company. According to WPP’s website, more than 700 of its clients are currently provided with services in three distinct disciplines and over 460 served in four.
Clients range from multinationals to single nation start-ups. WPP claims that its companies work with 336 of the Fortune Global 500. Big name clients include:
The group states that its services are aimed towards companies facing competition, and that over-capacity and over-supply in virtually every consumer market today keep its business alive.
Sir Martin Sorrell, the founder of WPP, attributed the firm’s before-tax profit growth of 37% in the first half of 2011 to a shift in clients’ priorities: to remain competitive in a difficult economic climate, organisations invested in branding instead of, or more than, buildings and equipment.
Moving east
Founder Sorrell has become known for his determined pursuit of fast-growing markets, particularly in the Asia-Pacific, and WPP has been described by commentators as the ‘most Asian’ of the holding companies. Through acquiring companies with strong ties in India, China, Japan, Singapore and Vietnam, Bangladash, Pakistan and Indonesia, the group has established a strong presence in the east. It has also acquired companies with ties in Latin America.
Economic growth in India, China, Brazil and Latin America is outpacing Europe and North America.
This is a shrewd move, as economic growth in India, China, Brazil and Latin America is outpacing Europe and North America. In fact, in its 2010 annual report WPP stated that clients are focusing on expansion in faster-growing markets, and ‘cost containment and caution’ in the west. At 2010 year-end fast-growing and emerging regions accounted for 30% of WPP revenue – close to $15 billion – and the group stated that it planned to further increase this share to counteract underperformance in other regions.
Going digital
WPP has fought against the recession and adjusted to the rise of the internet by adapting to advances in technology and changes in media consumption. WPP Digital was created in 2007 to develop its capabilities in this area, and the group continues to invest in its technological expertise:
Although Sorrell has said that traditional advertising should not be written off, WPP’s annual report claimed the focus would be on ‘new markets, new media and consumer insight.’ Sorrell has also predicted a strong future for public relations, as the skills it uses may be applied to popular blogging and social networking. According to The Guardian, the group is feeling a sense of ‘cautious optimism’ and make small to mid-sized acquisitions in companies with strong portfolios in new markets, new media and consumer insights.
WPP states that it aims to pay basic salaries ‘at the median for the sector and position’ and regularly reviews its compensation package against those of its competitors. Additionally, employees may receive performance-related remuneration following an end-of-year appraisal.
One graduate working in a WPP company in London has indicated that salaries are by no means the level of those in a career such as investment banking but certainly enough for employees to live comfortably and socialise in the capital.
The benefits package includes:
WPP also operates a worldwide ownership plan, which offers employees a financial stake in the company. Typically, share awards are given to around 45,000 eligible employees a year in over 76 countries. Since its introduction in 1997, WPP has made awards to over 97,714 employees.
It is likely that the day-to-day working environments and cultures vary from one WPP company to the next.
WPP has introduced several internal reward schemes that appear to encourage mutual respect, collaboration and creativity among professionals across its network.
The Atticus Awards reward employees’ original thinking with cash prizes of up to $55,000. Winning entries are chosen by a panel consisting of marketers, academics and writers, and are published in WPP’s annual Atticus Journal.
Employees’ original thinking is rewarded with cash prizes of up to $55,000.
WPP has also established an internal Worldwide Partnership Program. This recognises collaborations across marketing disciplines that have resulted in a valuable contribution to a client’s business objectives. Winning teams may be partnerships, alliances or even individuals working across companies, and are rewarded with up to $90,000 to share.
Additionally, the annual WPPED Cream Awards celebrate the best work across all disciplines within the Group. The categories are:
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