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Case Title:

Will 40/20/10 Strategy Save P&G CEO McDonald?

Publication Year : 2010

Authors: B.Sravanakumar, D.Satish

Industry: Consumer Packaged, Fast Moving Consumer Goods

Region:US

Case Code: COS0106

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
After Mr. Robert A. McDonald’s ‘Purpose Inspired Growth Strategy’ failed to deliver results in the last three years, the P&G CEO is betting big on his newly proposed ‘40-20-10’ strategy which aims to catapult P&G past its competitors who had made substantial headway over the past couple of years.

Pedagogical Objectives:

  • To analyze and discuss how P&G lost its market to its competitors.
  • To discuss why the ‘Purpose Inspired Growth Strategy’ failed.
  • To discuss why activist investor Ackman wanted McDonald out.
  • To discuss the turnaround strategy of P&G.
  • To discuss the 40-20-10 strategy of P&G
  • To debate whether the 40-20-10 strategy would make P&G number one in the FMCG sector.

Keywords : 40-20-10, A.G. Lafley, Africa, Beauty and Grooming, Bloomberg, Brazil, Colgate & Palmolive, Consumer Packaged Goods, Developed Markets, Developing Markets, Discontinuous Innovation, Economic Downturn, Emerging markets, Euro Zone, European market, Fabric Care, Fast Moving Consumer Goods, Forbes 2000, Gillette Co, Global 2000 companies, Global Business Units, Greece, Hedge Fund Manager, Hindustan Unilever Limited, Home Care, Household Care, Innovative Companies, James Gamble, James McNerney, Jay Wertz, Latin America, Middle East, North America , Oral Crest, Pampers, Paul Polman, Project Shakti, purpose-inspired growth strategy, Robert A. McDonald, Small Packs, Spain, Tidy, Total Shareholder Return, Turn Around Strategy, Unilever, US Market, William Ackman, William Procter

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