As investors have learned from General Motors and AIG, a company’s huge size, long history, and global reach don’t guarantee a safe investment. That doesn’t bode well for consumer-goods giant Procter & Gamble: While P&G’s overall stability remains head and shoulders above that of the fallen auto and insurance titans, its current growth prospects are looking dubious.
It’s no secret that Procter & Gamble faces serious challenges. The owner of the ubiquitous Tide, Gillette, and Olay consumer brands has reported declining volume on the heels of price increases, and management expects fiscal 2010 earnings to be flat or slightly up as it invests in rebuilding market share. Given the shaky economy and uncertain consumer habits, there’s reason for caution in that situation alone, but what really has me concerned is the company’s official launch of Mr. Clean Car Wash and Oil Change, a questionable venture that’s been in the works for years.
Operated through P&G’s franchising subsidiary Agile Pursuits Franchising, 13 Mr. Clean locations opened on July 1st in the Atlanta area…