From Philip Morris to Altria


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Please note:

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.

Case Details:

Price:

Case Code : BSTA077 For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Rs. 25 for Shipping & Handling Charges

Themes

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

Abstract:

Philip Morris (PM) is the largest cigarette manufacturing company in the world, controlling half the market share in the US. Over the years, it has faced various challenges: anti-smoking campaigns, legal battles and price wars. The company has responded to these challenges by expanding overseas operations and diversifying into the food business through the acquisition of Kraft and General Foods. In 2003, PM changed the group name from Philip Morris to Altria. Simultaneously, Louis Camilleri became the new chairman. The case closes with the question as to what strategy Camilleri should follow to take Altria to further heights.

Contents:

  Page No.
Introduction 1
Background Note 1
Early History 2
PM and Tobacco 3
Anti-Smoking Campaigns 5
Law Suits 5
PM's Response 9
Globalisation 9
Image building 10
Diversification to Mitigate Risk 11
Others 12
The Name Change 12
Future Outlook 13
Exhibits 15

Keywords:

Philip Morris, Altria, Cigarettes, Tobacco, Smoking, Environmental Protection Agency, Marlboro, Fast moving consumer goods, Kraft Foods, Louis Camilleri, Millers Brewing Company, Food and Drug Administration, PM International, Smokers, Strategy

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