Benefits of Scale Project with Procter & Gamble

Economists cite economies of scale as (a) a source of competitive advantage for companies and (b) a rationale for mergers and acquisitions that create value for shareholders. In the CPG industry, companies seeking to gain economies of scale have driven a wave of large M&A activity in recent years. Using Procter & Gamble (“P&G”) as an illustrative example, what is the value of economies of scale for P&G shareholders? Be comprehensive in your analysis by assessing the benefits as well as any costs associated with P&G’s economies of scale. TEAM MEMBERS: Tom Weishan, Peter “PJ” Hopkins, Ryles Kjellsen and Scott Furlaud.