Altira Group the Altria Group

¶ … Altira Group

The Altria Group is the parent company of the internationally acknowledged Phillip Morris and along their existence they have registered utmost successes. "By nearly all measures, 2007 was an excellent year for Altria Group, Inc. (Altria), and as I write this letter I am deeply excited by the prospects for Altria and its principal subsidiary, Philip Morris USA Inc. (PM USA), as well as for the newly independent Philip Morris International Inc. (PMI). [...] We took numerous steps in 2007 and early 2008 to restructure Altria, in order to better equip its component parts to more effectively and successfully grow their respective operations and enhance shareholder value" (the Altria Group 2007 Annual Report). There have not been registered any major problems within the multinational organization as the shareholders are highly satisfied with the sustained increase in revenues, and consequently the increase in the received dividends.

The latest changes have however had several impacts upon the management of the Altria Group. First of all, with the spin off of the Kraft Foods, Altria no longer has control over its former subsidy. The situation also occurred in early 2008 when a spin off was achieved for Phillip Morris and led to the creation of two powerful organizations: Phillip Morris International and Phillip Morris United States. From a financial standpoint, the spin off generated increased sources of revenue and better opportunities for organizational growth. From a managerial standpoint, the spin off resulted in that the same capable people had to be divided into two groups and carefully handle the new arising operations. "In conjunction with the restructuring of our business, the independent members of the former Altria have essentially split evenly to form the initial core for the Boards of Directors of Altria and PMI" (the Altria Group 2007 Annual Report).

The full list of Altria Group's shareholders is currently undisclosed to the public, but the website does mention the possibility to purchase shares through a broker or a bank, or directly from the corporation. They still continue to handle the shareholders who own Kraft Foods stocks as to best help them (Official Website of the Altria Group, 2008).

The Altria Group currently has three major components: Phillip Morris USA (PM USA), Phillip Morris Capital Corporation and Phillip Morris International. Each one of these components has the ability to influence the managerial and ultimate business outcome of the group. "Phillip Morris USA is the largest component of the company, with its focus on domestic sales of cigarettes and smokeless tobacco products" (the Altria Group 2007 Annual Report). A most recent and relevant way in which they influenced the management of the group was of having them allow and fund the purchase of John Middleton Incorporated, a leading manufacturer of machine-made large cigars.