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  • October 2014 (Revised October 2015)
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Procter & Gamble, 2015

By: John R. Wells and Galen Danskin
  • Format:Print
  • | Language:English
  • | Pages:26
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Abstract

On July 30, 2015, Procter & Gamble (P&G) announced headline double-digit earnings per share growth for the year ended June 30. A closer look at the numbers suggested a less healthy picture. Sales, volumes, and operating profits were down. Investors were not impressed; shareholders were becoming increasingly impatient with the results of Chairman and CEO A.G. Lafley's attempted turnaround. Five-year shareholder returns were well below those of the S&P 500 and the S&P 500 Consumer Staples index. After returning to the company in 2013 in the face of stalling growth, Lafley had announced that P&G would focus on 10 high-growth categories and divest 100 smaller brands in the portfolio. As of September 2015, Lafley had negotiated the sale of 93 brands. Shareholders were left wondering whether this would be enough. Two days before the results were published, P&G announced that 35-year P&G veteran David Taylor would become CEO on November 1, 2015. Lafley would remain Chairman. At the time, Taylor respectfully declined to be interviewed by the press. He had a lot to think about.

Keywords

Strategic Analysis; Strategy; Consumer Products; Global; Procter & Gamble; Corporate Strategy; Competition; Consumer Products Industry

Citation

Wells, John R., and Galen Danskin. "Procter & Gamble, 2015." Harvard Business School Case 715-429, October 2014. (Revised October 2015.)
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    • October 2014 (Revised October 2015)
    • Faculty Research

    Procter & Gamble, 2015

    By: John R. Wells and Galen Danskin
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  • Procter & Gamble, 2015 By: John R. Wells and Galen Danskin
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