On July 12, 2012, Bill Ackman's Pershing Square Capital Management declared openly that it had bought about $2 billion of Procter and Gamble (P&G) stock. Ackman reported to the New York Times that Pershing will have remained a major P&G shareholder. "We believe it's an underrated stock," he said. "We think there's lots of great chance there." During the next several months there was little or no public discussion of the issue although individuals familiar with the scenario reported that Ackman held conversations with P&G managers individually.
Then, on April 24, 2013, that announced its 3rd earnings had risen 6%. Nonetheless its 4th quarter outlook fell short of Wall Street's expectations. Shares fell 5% based on this particular outlook. P&G results were lagging its peers by 4% in 2012 and 2% in the first quarter of 2013. The board selected A.J. Lafley, (65) who had been McDonald's predecessor to return to direct the business.
There was conjecture about in what direction he would take the business and Lafley would remain. On June 6th, that announced P&G Lafley had made four senior executives to head the firm's major companies, reporting
Procter & Gamble Case Study Solution
PUBLICATION DATE: June 02, 2013 PRODUCT #: 413127-PDF-ENG
This is just an excerpt. This case is about ORGANIZATIONAL DEVELOPMENT
