P&G Concedes Missteps in Expansion – The Wall Street Journal.
May 23, 2012 Leave a comment
P&G Concedes Missteps in Expansion
http://online.wsj.com/article/SB10001424052702304707604577422492258467260.html
Procter & Gamble Co. PG +0.28%said it would stop spending money on further expansion in emerging markets until it stabilizes its largest and most profitable businesses, putting on hold a key priority of Chief Executive Bob McDonald.
Mr. McDonald has steered the company aggressively into new corners of the globe in order to boost the number of customers under P&G’s reach. But the limits of that strategy were evident last month when the company reported a drop in earnings and falling market share for the first three months of the year.
Chief Financial Officer Jon Moeller, addressing Wall Street analysts and investors Wednesday, said the consumer-products giant may have been overzealous in chasing growth overseas. He laid out a strategy to prioritize spending in its coming fiscal year around its 40 largest business lines, mainly in North America and China.
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