Philip Morris - A case analysis
Philip Morris A case analysis Submitted to Prof A. Sahay Post-Graduate Programme in Management 2003-05 by Group -B03 Ashish Virmani 03P083 Apurva Shah 03P079 Kapil Sood 03P095 Naveen John Akkara 03P103 Suresh Sethumadhavan 03P132 Vishu Goel 03P138 Management Development Institute Gurgaon 122 001 4th August, 2004 PHILIP MORRIS LTD. "Working to Make a Difference The People of Philip Morris" Recommended Mission statement "Create quality products in the area of tobacco, beer and packaged foods. Protect our shareholders interests while being social responsible. Create an environment where our members can be challenged and grow." About the company The Phillip Morris family of companies is the world's largest manufacturer and marketer of consumer packaged goods. It has three main lines of businesses - 1) Tobacco 2) Kraft Foods Division 3) Miller Brewing. It revenues were $72 Billion in 1997. It has got 12 brands whose sales are $1 billion or more. Competition - The US market of 1999 SWOT analysis Strengths * Brand names (Marlboro, B&H) * Core Competency * High ROE * Little use of financial leverage * Management Effectiveness * Different products for same market (Cigarettes, Beer) Weakness * Product is bad for health * Government Regulation * Litigation * Social / Cultural Acceptance * Losing Ability to Promote Product
Marketing Pros and cons
Marketing In every human's life there are needs that have to be met in order to survive. These needs are laid out in Maslow's Hierarchy of needs. His diagram is a pyramid of needs that start off at the bottom, with the needs of basic survival, and it works its way to the top. The top needs are needs that are not required for human survival, but are necessary for a successful and happy life. In the diagram, some of the needs mentioned are security, comfort, the desire to be wanted and loved, to be respected and to have affectionate relationships. Needs like these are acquirable, but many of them have been so watered down that people really do not know the true meaning behind them. Because of this, companies target people that do not know any better, and tell them that their products will satisfy these needs, when in reality it will only make things worse. For example, when one sees an advertisement about a body spray, the advertisement would lead someone to believe that by simply using the body spray, people will become attracted to them. People believe these lies because of the fact that the ad suggests that one will achieve the need through the product, and unless a person views the ad analytically, the ad will work no matter how intelligent the viewer is. Another example is the advertisement of the medicine Valtrex. The advertisement makes the viewer see genital
commercial paper
REVOLVING UNDERWRITING FACILITY vs COMMERCIAL PAPER Introduction Most economic units like a financial institution, government bodies or business organisation are faced with every problems of liquidity management. Money markets are primarily present to cater to the needs of short term working capital needs of these entities. The needs of working capital may range from a measure of short to medium term periods. For medium term capital needs, a Revolving Underwritten Facility is used and for short term needs a Commercial Paper is issued. Revolving Underwritten Facility (RUF ) - A brief insight Revolving Underwritten facility is a credit facility in which a group of underwriting bankers extend a line of credit to a borrower who is unable to sell any of the Eurocurrency notes. It is similar in terms of an overdraft facility that is used by the bank's retail and institutional clients. The loan is extended to the borrower as a credit, rather than buy back the Euro note it is unable to sell. It is credible to note that , global banks which were faced with the same issues of growing competiveness of issuing short time credit , introduced RUF's and its siblings in the form of NIF's. These revolving credit facilities provided clients with the choice of arranging loans which at an spread of slightly greater than the LIBOR and also selling ECP's through the bank's dealing facilities.
MARKETING PLANNING
MARKETING MANAGEMENT: PLANNING .0 Planning Planning is a process for accomplishing purpose. It is blue print of business growth and a road map of development. It is a part of managers' roles and it helps to derive organization forwards by coordinating resources and channeling them towards the achievement of pre determined goals. Planning can help to provide a framework for considering the future, appraising the various options and developing strategies to meet the organization objectives. Planning encourages people to consider the future and to realize that change is inevitable in a rapidly developing world. It also highlights the important of long term tasks. Through planning organization will successfully identify threats and polished the opportunities in the form of competitor activity. The steps involve in planning are analysis, planning, implementation and control. Analysis is essential to understand the current situation before identifying the direction in which the organization wants to go. It involves a complete review of the external and internal environment in order to identify opportunities. The information generated from this step will help to define the future strategy and will be utilized at all stages of the planning. Planning is concerned with objectives and strategies to help to achieve these objectives. In marketing, it would be concerned with marketing
Show what would happen in a market if the government placed a tax on a normal good. Who would bear the burden the tax, and how would the burden reflect supply and demand conditions?
ECONOMICS COURSEWORK Q. Show what would happen in a market if the government placed a tax on a normal good. Who would bear the burden the tax, and how would the burden reflect supply and demand conditions? Explain why there is a tendency for taxes to have social costs, and why, even so, they may still be justifiable. Tax revenue is the biggest source of income for any government. Higher the tax revenue for the government, more funds available for it to spend on public and to regulate income in the country. Hence the implications and the consequences of tax are a major issue in microeconomics. Individuals and the businesses are the general source of tax revenues for the government in an economy. There are two types of taxation, which the government can use: Direct and Indirect Taxation. Direct tax is that tax which is levied on income, either of individuals as income-tax or on businesses such as corporation tax. On the other hand, Indirect tax is one in which the government levies the tax on goods and services such as VAT in UK. The implication of government levying the tax on a normal good is a case of an indirect tax. Normal good is a good for which, when income rises the demand for product also rises (positive income elasticity). In order to examine the burden of a tax placed by the government on a normal good, we have to look at several demand/supply situations. When a
Concept map for Motivation
Concept map for Motivation Introduction In today's community, there are numberless of projects and project leaders. Most people like to have control over everything - both in private life and in working life. Among other factors, to have control and to be a leader will give us more self-confidence, courage and willingness to work. However, to be a leader and to know how to lead people are two different things. It is true that there are many leaders, but only few in number of them can be called 'good leaders'. A good project leader should not only see to get the work done, but also how the work is done. Therefore, motivation of team members is one of the project leader's main tasks. Motivation is no doubt a big factor of influence for how projects will end up like. The project leader's challenge is laying on how to make foundation pillar for good collaboration and mutual respect. Many organisations know that motivation is important, but only few of them really do something with it. Motivation is so saying very central in this paper. My focus question in this paper will be: Why is motivation so important in teamwork? Theories In this section, I will introduce some theories from different people that I found. Later on in this paper, I will use these theories on reflecting my teamwork experience in CS5062. McConnell's theory McConnell defines motivation as the following:
Viagra - Wonder Drug or Ethical Irresponsibility?
Discussion Case 5: Viagra - Wonder Drug or Ethical Irresponsibility? .What are the ethical responsibilities for drug manufacturers? Is any drug completely safe, or is the ethical principle "do not harm" a relative guide? The biggest responsibility that the drug manufacturers have is to create a (relatively) safe product. Since there are always side effects to almost all prescriptions, the second responsibility would be to warn the potential users and distributors of the product of the risks and dangers associated with the product. There are almost no products that do not have the possibility of producing some harm. Even things such as butter, chocolate or coffee can be and are harmful, but they are still widely used. If such things are true for products that are "mild," should this not also be true for pharmaceuticals, which help in more concentrated doses, but it comes with a price because this also might cause some more severe side-effects. 2. Did Pfizer do enough by presenting its drug and warning patients of the drug's side effects through product labeling and instructions to physicians? If not, what more could Pfizer have done? No. In the case of Viagra, it does not appear that there was enough warning of the possible negative side effects. This may be just because the consumer was not warned. After some bad publicity that linked Viagra to some deaths
Change needs to be properly managed - With aid of examples, discuss the factors which influence the management of change within organisations"
Computer Based Information Systems Assignment 3 Part 1 Leslie Spiers 7th January 2002 "The introduction of new and innovative technologies into an organisation inevitably has an impact on those working in the organisation. Change needs to be properly managed. With aid of examples, discuss the factors which influence the management of change within organisations" Since the patenting of the steam engine in 1769, and the advent of the industrial revolution in the early 19th century, the pace of change within organisations has been accelerating at an ever-increasing rate. This is far from a recent phenomenon. The shift from paternalism based on agrarian serfdom to the scientific management espoused by Taylor, Fayol and Le Corbusier and implemented by the likes of Henry Ford, took place prior to World War 1. There is further dramatic evidence of change occurring during the years in which the Second World War took place; a war that began with a cavalry charge on horseback, with sabres drawn, and ended with the detonation of a nuclear bomb just six years later. The key driver behind those changes was technology. These cataclysmic changes not only impacted on society at large but on the internal dynamic of the organisations embracing the new technologies. New working methods were developed to meet the post-war demand for consumer goods and for information. As new markets
Information data analysis of tesco.
Information data analysis of tesco Introduction We have chosen Tesco as the organisation we will study. Tesco is the largest supermarket company in Britain, it holds 27% of its market share, this is almost twice the market share of its nearest rivals. Tesco is a long established firm with a good reputation and customer loyalty, it was founded in 1924 by Sir Jack Cohen and together with his tea producer T. E. Stockwell the started the brand name TESCO. Since then there stores have popped up all around the UK and then around the world. They now have 729 stores in operation in Britain and 55 new stores in the process of being built. It also has stores around the world in the Republic of Ireland, Hungary, Poland, Czech and Slovak republics, Thailand and South Korea and they are currently expanding to Malaysia and Taiwan. It employ's over 260,000 people. Tesco are a largely automated company when it comes to data handling and processing due to the incredible amount of data they deal with. Its main competitors are J.Sainsbury's, Safeway and ASDA and they keep Tesco striving to lower prices and provide the best possible service they can. With the motto "every little helps" they advertise through T.V, radio, newspapers and there own newsletter style leaflets which are delivered door to door on a monthly basis. TESCO All incoming goods are pre-labelled with a computer-readable
Environmental Analysis of Easyjet and Its Competitive Advantage.
ENVIRONMENTAL ANALYSIS OF EASYJET AND ITS COMPETITIVE ADVANTAGE BACKGROUND/DEVELOPMENT OF EASYJET Stelios Haji-Ioannou, the founder of easyJet, initially became interested in the idea of a European low-cost airline in May 1994 after being offered a stake in a Virgin Atlantic Airlines franchisee. On refusing the offer, Stelios soon after flew on Southwest Airlines, a successful low-cost carrier in the US. This experience became the catalyst in his decision to create easyJet. EasyJet was established in March 1995, with low-cost flights from London's Luton Airport to Glasgow and Edinburgh in Scotland, supported by an advertising campaign, "Making flying as affordable as a pair of jeans - £29 one way". The flight was full, and demand for low-cost flights grew rapidly. Thereafter, Stelios over the next two years concentrated on expanding easyJet and raised additional finance to invest in additional aircrafts. By 1998 easyJet owned six Boeing 737-300s and flew 12 routes in five countries. However, today it owns 64 aircraft and offers 88 routes from 36 European airports.¹ Stelios modelled easyJet around Southwest Airlines' operational techniques, in terms of having one type of aircraft, point-to-point short haul travel, with no-frills, rapid turnaround time and with very high aircraft utilization. However, Stelios had an extra innovation up his sleeve, which was based on a
