Contemporary Development in Business Management

Topics: Third World, First World, Second World Pages: 9 (2644 words) Published: March 10, 2011

Philip Morris International is the leading tobacco company in the world. The company that produces popular cigarettes brands like Marlboro and L&M holds 15.6% of the total cigarette market of the world. Its business is spread over 160 countries of the world and its net revenues excluding excise tax in 2008 was $25.7 billion. The headquarters of the company is in New York and it employs 75000 people worldwide. The chairman of the company is Louis C Camilleri and it has 60 manufacturing units worldwide.

The company thus is doing well, with a market of 15.6% worldwide its profits are plummeting every year. So what are the strengths and weaknesses of the company, an analysis:

SWOT analysis of Philip Morris International:

SWOT analysis helps one to fine out the strengths, weaknesses, opportunities and threats of an organization or a company. Strength and weakness are internal to organization whereas opportunities and threats are external. Strength and weakness both related to internal environment of organizations but opportunities and threats are the outsiders and can be evaluated using PESTLE analysis. The followings are the Strengths, weaknesses, opportunities and threats of Philip Morris International.


Strong finance: The Company has a base of strong financial situation. According to its corporate website, its operating income in 2008 was $10,284 million, and its net earnings were 6,890. There was an increase as the same for the year 2007 was $8,894 and 6,038 respectively.

Well established Brands: The Company produces famous brands like Marlboro, L&M, Chesterfield, Philip Morris, Parliament and Virginia Slims. When the product establishes itself as a brand there is a less need of spending money on its promotion.

Strong manpower and employees: The Company boasts of more than 75,000 employees throughout the globe from different culture and ethnicity. With the variety in their workforce there is a variety of ideas and concepts, which can be beneficial for the survival in the global environment.

Strong Management team: the company under the chairmanship of Mr. Louis C. Camillieri has a strong and efficient management team. David Bernick , a senior Vice president and General counsel is university of Chicago, law graduate, André Calantzopoulos , chief operating officer ,Kevin Click, chief information officer and Doug Dean, research and development make the strong management team of the company.

Leading Markets: The Company boasts of leading 11 markets out of the top 30 international markets. That is equivalent to occupying 33% of total top market shares. This is one of the strength of the company.

These are the basic strengths of the company, a strong financial condition with plummeting profits, well established brand names of the product, skilled, well trained and diverse work force, a strong leading management team and the huge share in top international markets.

As far as a weakness of the company is concerned the litigations seem to be the only weakness. Government policy on the promotion and sale of tobacco related product stops the company from aggressive marketing and promotion of its products. It is the weakness of the company.

Increasing tobacco market: Although anti tobacco activists are raising their voices against the production and distribution of tobacco, the tobacco market is still lucrative. It raises billions of pounds as revenue to the government as well as the producers.

Advantage of globalization: Globalization offers the company an opportunity to take an advantage of cheap labour cost and cheap production cost offered by third world countries. Factories established in China, Nepal offers the company cheap production of its products hence huge profits.

Mergers and collaborations: The Company tied its knot with Altria and it recently announced its partnership with fortune Tobacco Corporation. These kinds...

References: Hill, C. W. L. (2003) International Business: Competing in the Global Marketplace. 4th Edition. New York: McGraw-Hill/Irwin.
Jones, G.R. & George, J.M. (2003) Contemporary Management. 3rd Edition, New York: McGraw-Hill/Irwin.
Tayeb, M. (2000) International Business: Theories, policies and practice. Harlow: FT/Prentice Hall
Worthington, I. & Britton, C. (2003) The business environment. 4th Edition. Harlow: Prentice Hall
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