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Philip Morris Acquires Kraft: An Overview
(1)When Philip Morris, Inc. moved to acquire Kraft, Inc., it did so for several reasons: first and foremost, PM has made a lion's share (80%) of its fortune in tobacco and tobacco products. Putting aside for the moment the obvious (and numerous) health problems that such products are known to cause, and seemingly despite them, PM continues to manufacture the leading brand of cigarettes, Marlboro-and continues to sell its products internationally at a greater rate than ever before. But its management was not totally naive about the future, either: in America, tobacco has fallen at least somewhat out of favor, and may in fact someday be completely illegal. Therefore, much like R.J. Reynolds and other major tobacco companies have done and continue to do, PM leadership looked around for an even "surer thing" than tobacco and found it-in food. It's an obvious choice. As Hamish Maxwell puts it, "People may ultimately stop drinking or smoking, though I don't believe it, but you can bet your life they will keep on eating." So, the PM choice was to buy a food business while their profits from tobacco were still big enough to do it right. Many of Kraft's primary brands are foods now labeled high-cholesterol (cheese, ice cream, milk)-ironically enough, also a health risk much like tobacco-and therefore were beginning to feel a real pinch from negative sales pressure. Kraft's growth pattern has been slow and steady, led by a CEO whose area of expertise, and interest, is primary balance sheets and the bottom line. By contrast, Murphy and Maxwell of PM have established themselves as "marketing guerrillas." Murphy, as president of Miller Brewing, was responsible for creating a Lite beer brand and market; he did much the same thing for Seven-Up's "no caffeine" marketing plan (which is now mimicked by other soft drink makers). Between them, Murphy and Maxwell are known for building brands and increasing market share, something Kraft needed to do; ironically enough, the balance sheet takes care of itself once market shares increase and stock price and values go up-evidence being that Kraft stock shot up from a $60 per share price to $106…
Phillip Morris Part II Phillip Morris International as discussed in part one of this paper series is "the leading international tobacco company with products sold in over 180 countries" (Phillip Morris International. About Us. 2011). The organization concerns itself with a dual track philosophy "provide high quality and innovative products to adult smokers, and reduce the harm caused by tobacco products" (Phillip Morris International. Company Overview. 2011). While in many ways
Phillip Morris International- What recent strategic choices made top folks organization company competitive? Can categorize choices Porter's generic strategies? Explain. From SWOT perspective developed previous modules, successful strategy 1. Philip Morris International Recent strategic choices Philip Morris International was traditionally part of the Altria Group, but in 2008, it separated from the parent company in a major strategic effort and managed to become an independent organization. This strategy proved highly successful for
Phillip Morris Human Resources What do you know about Phillip Morris' "international HRM" strategies? Phillip Morris has been using international human resource strategies (HRM) to influence the views of management for newly acquired companies. What happens is they will strategically locate those corporations that are considered to be market leaders. Then, purchase them to help grow their overall bottom line results. Even though the management of the former company; may often have
(PMUSA) Locations of the Organization and Business Operations The U.S. unit has various facilities within the country, such as its Center for Research & Technology (CRT), and its manufacturing, processing and also its support facilities in the Richmond, Va., area; in Chester is situated its Park 500 plant and in York its Manufacturing facility near Williamsburg; another manufacturing facility in located in Cabarrus County, N.C.; and its sales offices are crisscrossing
The company has done research on the product and has known for quite a while that tobacco is not only dangerous, it is also addictive as well. Although the company denied knowledge of these facts when first questioned, management personnel eventually admitted to manipulating the addictive nicotine levels. The beer industry has directed the marketing of malt liquor to "inner-city gang cultures and subtly associated the beer with feelings of
Philip Morris International explain strategic plan selected company pursues regard business countries. Company: Philip Morris International Phillip Morris, one of the leading international tobacco companies, is split into two divisions: Phillip Morris International and Phillip Morris USA. The reason for this bifurcation is not administrative, but legal. Officially, Phillip Morris USA proclaims that there is no safe cigarette, and admits that quitting smoking is difficult. Its CEO recently proclaimed: "Because tobacco use