This Case is about CUSTOMERS, ORGANIZATIONAL CULTURE, PRODUCT DEVELOPMENT
PUBLICATION DATE: June 02, 2013 PRODUCT #: 413127-PDF-ENG
On the 12th of July, 2012, Bill Ackman’s Pershing Square Capital Management declared publicly that it had procured approximately $2 billion of Procter and Gamble (P&G) stock. Shares in the company closed up 3.75% the day the revelation was made public. Ackman related to the New York Times that Pershing would be a crucial P&G shareholder. “We consider it’s an underrate stock,” he supposed.
“We believe there’s lots of excellent chance there.” During the following several months there was little or no public discussion of the issue although individuals comfortable with the scenario reported that Ackman held dialogues with separately managers P&G.
Subsequently, on April 24, 2013, P&G announced that its 3rd earnings had risen 6%. Yet its 4th quarter outlook fell short of Wall Street’s expectations. Shares dropped 5% based on this particular prognosis.
P&G consequences were lagging its peers by 4% in 2012 and by 2% in the first phase of 2013. Then, suddenly in late May, CEO Robert A. McDonald, who was 59, resigned. The board chose A.J. Lafley, (65) who had remained McDonald’s predecessor to go back to direct the company. There was assumption concerning how long Lafley would wait and on what track he would direct the organization. On June 6th, P&G declared that Lafley had designated four senior executives to direct the organizations substantial businesses, reporting directly to him.