Procter & Gamble Co May Be in for a Shake-up -- The Motley Fool

For several years, Proctor & Gamble (NYSE:PG) has grappled with declining revenue and market share. Despite significant changes to its brand portfolio and product strategy, a turnaround has yet to take hold.

This type of distress can often attract the attention of activist investors who hope to quickly boost the value of their holdings by pushing for changes in management, spin-offs, and more.

Let's look at the challenges the company faces and how one particular shareholder could influence its future outlook.

Image source: P&G.

Stuck in a rough patch

With revenue trending downward for four fiscal years straight, management has been trying to right the ship by selling off brands that it deemed nonessential to the core business. Major divestitures have included Duracell, Clairol, and Covergirl.

Even then, its portfolio is still home to 65 different brands sold all over the world:

RegionFiscal 2016 Sales
North America44%
Europe 23%
Asia Pacific9%
Greater China8%
India, Middle East, and Africa8%
Latin America8%

Data source: P&G. Chart by author.

Procter & Gamble has also made the shift from a highly centralized organization with most decisions coming from top management to a more decentralized model with teams spearheading 10 different consumer goods product categories. Each business unit has its own president who is empowered to drive decisions and operate independently. With this change, the company hopes to make its business more flexible, allowing each brand category to opti....

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