Activist Action

ProHub Comment

This case tests the candidate's ability to balance activist investor demands (short-term value creation) with long-term operational sustainability. The case progresses through increasingly viable options—supply chain restructuring, outsourcing functions, and finally divestitures—requiring candidates to understand when each strategy is appropriate and its trade-offs.

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
  3. Target Savings: $10B
  4. This investor likely has influence on the board and cannot be ignored.