International Strategy the Altria Group

International Strategy

The Altria Group Corporate Strategy

The Altria Group is consisted of Philip Morris USA, John Middleton and Philip Morris Capital Corporation, and 28.5% of SABMiller brewing company. The Group's most important brands are: Benson & Hedges, Cambridge, L&M, Marlboro, Parliament, and others.

When managing so many complex brands, any group must implement a strong strategy in order to maintain control over these important brands, and to further develop these large businesses into even more complex ones. Any corporate strategy must rely on a clear mission statement and clearly established corporate objectives. The Altria Group's mission is "to own and develop financially disciplined businesses that are leaders in responsibly providing adult tobacco consumers with superior branded products" (Altria Group, 2008).

The group's corporate strategy is based on attaining the following objectives: investing in leadership, aligning with society, satisfying adult consumers, creating substantial value for shareholders. In order to achieve these general objectives, the group intends to promote excellence as far as employees, leading brands, and external stakeholders are concerned. But the group does not stop here, as Altria intends to take part in resolving societal matters. The group's products will also be continuously developed. One of the most important objectives is the sustainable financial growth and substantial return for shareholders that the Altria Group aims at creating.

The group's strategy is based on the following values: operating with integrity, trust and respect, demonstrating a passion to succeed, executing with quality, driving creativity, and sharing with others.

The strategy components described above represent the group's general strategic guidelines. More specific aspects of the group's strategy are presented in the following lines. For example, the group's strategy for development and growth relies on restructuring. This restructuring refers to Kraft Foods. The reason behind developing Kraft Foods into an independent company relies on enhancing growth and creating long-term value. By gaining its independence, Kraft Foods will benefit from increased flexibility, which will allow the company to address the market in new and diverse manners. Also, the company will benefit from: "access to an acquisition currency that is not available to it today; engaging in alliances that potential partners will pursue eagerly, given the absence of a controlling shareholder; enhancing its ability to pursue divestitures in a tax efficient manner; access to greater debt capacity" (Camilleri, 2006).

The group's Camilleri further stated that "Philip Morris USA's overarching financial objective is to balance moderate share growth behind the strength of Marlboro and its three other focus brands with sustainable and predictable earnings growth" (Camilleri, 2006).