Crown Cork and Seal
Crown Cork and Seal Competitive Environment Analysis Exercise
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Corporate Purpose Crown Cork and Seal had three segments Metal Containers (cans), Closures (crowns), and packaging equipment. Metal containers are cans used in things such as soft drinks or aerosol cans. These were made from steel until being switched over to aluminum in the early 80’s. Crowns which are closures for any type item such as a jar. “Metal containers generated 65% of Crown’s $1.88 billion 1988 sales, while closures generated 30% and packaging equipment 5%.” The mission of Crown Cork and Seal was to “be successful.” To do this Connelly had to take control of cost. He did this by first trimming the workforce by letting go anyone not needed which reduced payroll by 24%. “The second step was to institute the concept of accountability.” He did this by instilling pride and a sense of workmanship in the employees. He also gave plant managers “responsibility for plant profitability” as well as quality and customer service. Last but not leased he focused on the company’s debt. He paid off the banks through “inventory reduction and liquidation.”His vision and strategy for the future emphasized “cost efficiency, quality, and customer service.” Connelly did this by focusing on the company’s strengths. He was able to improve on their strengths by focusing on the beverage can and new aerosol market. Simultaneously, he improved manufacturing including adapting to customer needs. Environment Analysis: General Environment: Demographic: 1989 over 120,795,000 metal cans were sold. Socio-Culture: The movement away from metal cans to plastic and glass has been a problem as they gain a bigger market share. Political-Legal:Political will play a big part in recycling and the push for “going green.” This will also take effect for the legal aspects as new laws will be in place for more recycling and cleaners running manufacturing plants.
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Corporate Purpose Crown Cork and Seal had three segments Metal Containers (cans), Closures (crowns), and packaging equipment. Metal containers are cans used in things such as soft drinks or aerosol cans. These were made from steel until being switched over to aluminum in the early 80’s. Crowns which are closures for any type item such as a jar. “Metal containers generated 65% of Crown’s $1.88 billion 1988 sales, while closures generated 30% and packaging equipment 5%.” The mission of Crown Cork and Seal was to “be successful.” To do this Connelly had to take control of cost. He did this by first trimming the workforce by letting go anyone not needed which reduced payroll by 24%. “The second step was to institute the concept of accountability.” He did this by instilling pride and a sense of workmanship in the employees. He also gave plant managers “responsibility for plant profitability” as well as quality and customer service. Last but not leased he focused on the company’s debt. He paid off the banks through “inventory reduction and liquidation.”His vision and strategy for the future emphasized “cost efficiency, quality, and customer service.” Connelly did this by focusing on the company’s strengths. He was able to improve on their strengths by focusing on the beverage can and new aerosol market. Simultaneously, he improved manufacturing including adapting to customer needs. Environment Analysis: General Environment: Demographic: 1989 over 120,795,000 metal cans were sold. Socio-Culture: The movement away from metal cans to plastic and glass has been a problem as they gain a bigger market share. Political-Legal:Political will play a big part in recycling and the push for “going green.” This will also take effect for the legal aspects as new laws will be in place for more recycling and cleaners running manufacturing plants.