Activist Action

ProHub Comment

This case tests the candidate's ability to balance competing stakeholder interests—satisfying an activist investor's short-term value expectations while protecting the company's long-term operational health. Success requires quickly filtering through multiple strategic options (supply chain restructuring, outsourcing, divestitures) using both quantitative analysis and qualitative business judgment. The case rewards candidates who recognize that activist investors operate on a 1-2 year timeline and identify the most operationally realistic option that meets the $10B savings target.

Estimated Time 15 minutes
Difficulty Hard
Source Duke
50 / 100
Your client is a large CPG company with multiple business units including snacks, beauty, and home (cleaning) products. Your client is under pressure from a high-profile activist investor that has built a 7% stake in the company. The client has asked you to help predict the new investors likely demands that could increase stock price or company performance. What are your ideas to deliver short-term and long-term value back to the shareholder?

Clarifying Information

  1. Large business in North America. The client operates in ~70 countries.
  2. Revenue: Snacks $19B, Beauty $31B, Home $29B; EBITDA: $24B - Target Savings: $10B
  3. This investor likely has influence on the board and cannot be ignored.