From Philip Morris to Altria

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Case Details:

Case Code : BSTA077
Case Length : 18 Pages
Period : 2003
Organization : Philip Morris
Pub Date : 2004
Teaching Note :Not Available
Countries : USA
Industry : Tobacco

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts Contd...

Image building

Like all cigarette companies, PM used different methods to diffuse the effect of adverse publicity. In 1995 it was found that some cigarette filters used by the company had been contaminated with methyl isothiocyanate (MITC) a substance used in pesticides...

Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

Diversification to Mitigate Risk

PM introduced the food and financial services and other businesses as a risk mitigation strategy.
Foods
Kraft, North America's largest packaged food processor resulted from the 1995 merger of two businesses: Kraft and General Foods, both of which were bought by PM in the 1980s...

Others

SABMiller was the world's second-largest brewer by volume. SAB merged with Miller on July 9, 2002, and changed its name to SABMiller plc. Altria had a 36% interest in the newly formed SABMiller plc...

The Name Change

During late January 2003, PM announced it was changing its name to Altria. A two-month campaign that used photographs of trees, bridges and waterfalls drew parallels to the company and its business units...

Future Outlook

The fight for survival and growth remained a constant challenge for PM with pressures on all fronts. Not only the No. 1 cigarette seller worldwide, PM was also the biggest consumer-products company in the world with powerful brands like Kraft, Maxwell House, and Miller beer...

Exhibits

Exhibit I: Philip Morris: % of Revenue by Business Segment (2002)
Exhibit II: Philip Morris: Key Financials
Exhibit III: Philip Morris: Income Statement

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