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ARTICLE SUMMARY: Cincinnati-based Proctor & Gamble, the maker of a variety of well-known household products, has been losing market share to competitors and experiencing declining sales growth. As a result, new CEO Robert McDonald introduced plans to cut prices, increase promotional spending, and position new versions of traditional products as low-priced value brands.


  1. What benefit is realized by the plans Robert McDonald announced?
  2. Would you characterize the Proctor & Gamble’s plans as long- or short-range? Strategic or tactical? Why?
  3. What planning tool would most likely lead to the plans Proctor & Gamble announced?

SOURCE: E. Byron, “P&G Plots Course to Turn Lackluster Tide,” Wall Street Journal (Retrievable online at

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