Boston, MA 04/23/2014 (wallstreetpr) – The Procter & Gamble Company (NYSE:PG) under its present CEO Bob McDonald’s tenure increased its revenue, but there was a decline in the net income. PG took a harsh decision by letting Bob McDonald’ go and bring back A.G Lafely. Lafely immediately went to work, by losing the loss making divisions and working on a profit making division of the company. A.G Lafely sold the pet care business for $2.9 billion to Mars Inc.
The company generated cash from selling the non core business; so it can focus on the core & profitable business.
The company has operations in around 70 countries worldwide. One product of the company may earn million in one market but may have a very sluggish performance in another market; that is the sole reason why company hires many brand managers in different markets. Selecting a brand manager is a very rigorous process.
The Procter & Gamble Company (NYSE:PG) is a proud owner of 300 brands globally. A self-evident principle in the world of business is that, 80% of business is produced by 20% of all the brands owned by the company; still company can clock $84 billion sales.
PG having a market cap near to quarter trillion dollars. It is very difficult run a company this size. The company is divided into many divisions and subdivision, for the management to understand profitably brand wise and also focus on the division which needs help.
Innovation key to survival:
The Procter & Gamble Company (NYSE:PG) is one of the well respected blue chip companies, which is also one of the largest and most profitable companies in consumer care industry. PG can survival by be innovative making better products, improving their existing product line. Thus keep the costumers loyalty