The popularity of P&G is nothing new and thus this company
has many ventures primarily with a high success rate up their sleeves. The
company has finally decided to layoff almost 100 of its household brands so
that it can streamline its work mechanism and come up with more focused
structure. The thing that is surprising
for the market is that P&G intends to sell two of its major and very
popular components that is Duracell and Braun. If these rumors are true then
soon we would see these two brands with an entire new image.
The reason behind this sell off is simple. P&G have not been
doing quite well since the past three years where their sales have
significantly declined resulting in major disturbance in the organizational
structure. Thus this initiative would assist the company in fighting back and
resuming their previous growth. Many
investors have forced the company to streamline their operations.
The company has not come up to meet the analysts expectations as
their revenues dropped by 0.8% for the previous three quarters. The reason behind this slaking is increasing
competition in the market and the decrease in the sales trajectory.
This step might prove to be fruitful for the company as now they
can focus on more successful ventures. It is a common saying that too many
cooks spoil the broth, which seems perfectly right for Proctor and Gamble at
this point. Streamlining and coming up with a new mechanism might just do
wonders for them. To have so many project that just keep up adding to their
portfolio as weak links can further disrupt the company’s image among potential
investors.
Hence in a nutshell, Proctor and Gamble stock need
to learn from their previous mistakes and come up with a great plan that not
only assists them in becoming the market giants again but also revive their
prior growth. The ball is still in their court it is just how they utilize it
in their benefit.
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