Procter & Gamble Case Solution

July 12, 2012, Pershing Square Capital Management, Bill Ackman has publicly announced that it had bought about 2 billion Procter and Gamble (P & G) stock. Shares of the company closed up 3.75% on the day of the revelation was made public. Ackman told the New York Times that Pershing would be a major shareholder of P & G. “We believe that this is an underrated language,” he said. “We believe there are many opportunities out there.” In the coming months, there was little or no public debate on the issue, although sources close to the situation reported Ackman held talks with executives from P & G individually. Then, 24 April 2013, P & G announced that its third-quarter profit rose 6%. However its fourth quarter forecast below Wall Street expectations. Shares fell 5% on the basis of these perspectives. Results of P & G colleagues have been 4% in 2012 and 2% in the first quarter of 2013. Then suddenly, at the end of May, CEO Robert A. McDonald, who was 59 years, has resigned. The board chose AJ Lafley, (65), which was the predecessor of McDonald to redirect the company. There was speculation Lafley how long they stay and what direction should the company. On June 6, P & G announced that Lafley had appointed four executives to lead large corporate companies, which directly depends on it.
by
Jay W. Lorsch,
During Kathleen
Source: Harvard Business School
2 pages.
Release Date: June 2, 2013. Prod #: 413127-PDF-ENG
Procter & Gamble Case Solution

Procter & Gamble Case Solution
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