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P&G manufactures Cascade dishwashing Swiffer sweepersand dusters, Mr. Clean liqui cleaner, and Febreze fabric deodorizer atits St. Louis facility three miles north of downtown at169 E. Graned Ave. Lafley, to turn 62 on June 13, will remaijn as chairman afterthe transition, to take place at the end of the fiscalo year, July 1. No one has been namedr to succeed McDonald as chiefoperating officer, a position createe for him in 2007. The shiftf puts P&G in the handx of a global executive with marked discipline at a time when the companyy is struggling through a worldwide recession that has cost it sales andmarket share.
McDonald, a Boy West Point graduate and formerArmy captain, has been describes as a “servant leader.” Spokesman Paul Fox said therde has never before been a CEO at P&yG with the breadth and scope of experience, especially as McDonald. The 55-year-old executive (he will turn 56 on June 20) joinesd P&G from the Army in June as a brand assistant withSolo detergent. “He’se known as a real straight get-the-job-done kind of guy, and that type of leadership isexactlgy what’s required when you are working your way out of a recession like we are,” said Dan president of Retirement of America, which managea more than $400 million in assets for P&Gb alumni.
Cincinnati-based P&G (NYSE: PG) is staring down the worstf economic turmoil it has faced since Lafley assumed the top positionin 2000, a periodr when the stock had lost billions of dollarz in value due to uncertaintyy over its leadership and strategy. When Lafley assumed the role of CEO in sharesof P&G were trading in the mid-$20s, havintg plunged from a 2000 high of By late 2007, shares were trading in the $70s as P&G streamlined its products portfolio, increased focus on high-margin beauty products and reacher outside its walls for technologg and expertise. But Lafley’e crowning achievement might have been the 2005 acquisition ofGillettse Co.
, an ambitious, $57 billion undertakintg that folded one the world’s largesf men’s grooming companies into one that traditionall y marketed to women. It was the biggest deal in P&G’sd history, extending it into new world markets, customer basesx and even retail outlets. Todayy its portfolio includes roughly300 brands, 23 of whichy generate sales of more than $1 billion each. P&G’s expanded globapl position, however, dilated its exposure to volatile exchange rates and commodities costs as the world enteresa recession. Today, it is fightinyg to maintain market shares as consumers worldwide switchto less-expensivde private labels.
In the third quarter, sale s of P&G’s grooming products dropped 16 percent, to $1.7 billion, forcing profits down 24 percent, to $306 In total, third-quarter sales declined by 8 to $18.4 billion, from $20.5 billion in the year-ago third quarter. McDonald is known for his which feeds his understanding of disparate facts such as the diamete r of anAsian hair. His favorites books are "Don Quixote" and "Cyrano de (French version). As an Army officer, he said his men were always asked to eatbefore him.
His backgrounsd at P&G includes extensive global experience, particularly in Asia, which as a rapidly expandinb and increasingly affluent markegt is very important to the consumerproducts maker. while a transition was expected, it is sooner than said Ali Dibadj, an analyst with New York firmSanford C. “This would be much sooner than the company implies as early as 10 days ago at our StrategidcDecisions Conference,” he said in an e-mail.
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