Business Ethics Phillip Morristhis paper is talking about ethics dilemma according to phillip morris case .phillip morris is the number one company that leading tobbacco industry .About 1994 there were some problems due to healthy of smokers .there were some research about tobbaco and the result is it can harm the healthy of smokers Philip Morris had been known for many decades now as the largest cigarette company in the United States with a market share of 42 % share, Marlboro is the company’s most prized-product, topping other cigarette brands. However, despite its reputation as a primary cigarette manufacturer, the company diversified into other line of products in order to widen its operations and to have a smooth transition from the tobacco dependence. Their venture includes brewing and food industries, making Philip Morris one of the largest food processing companies in the United States.This bold leap to diversification procedure reflected in the company’s mission statement to penetrate globally with its large variety of products not only in cigarettes line but also in food and brewing to respond to consumers’ demand of high-quality products, greater in volume and low prices. Moreover, the company took a pride in having growing returns of investors because of its diversification system.
Philip Morris owed its success to its strategic technique of acquisitions. The company financed its acquisition ventures from its high-margin tobacco products. Their unique technique includes acquiring companies already established in the market to easily build and develop it, established products are easily to promote also therefore saving lots in promotional expenses on the side of the parent company. Philip Morris, later on, joined the discount brand sales to compete with each brand of cigarette available in the market and lure customers to patronize their products. By 1991, Philip Morris International established a strong market share around the world and its leading brand, Marlboro,
s. was acquired in that model.
Philip Morris’s strategy was to acquire more profitable plants and improve the quality of its own products. At that time, many small-scale tobacco producers and the cigarette companies needed to be able to reduce their sales and the cost of generating revenue. Philip Morris was aware of the problems with the market and its products, had some problems with the industry but ultimately decided to remain in the market to sell their products and provide a better quality product which a cigarette industry would demand. When it began working with the tobacco manufacturers on their joint, Philip Morris decided to purchase all the companies of the industry and sell them to the industry as a joint on their own. But then the tobacco companies realized that many of the companies were to blame. They did not have the ability to do this and Philip Morris decided to start creating it in a different way. Philip Morris’s strategy focused on increasing production of the “Pepsi” brand which consists of tobacco. Because of the great popularity and a low cost the Pepsi brand was quickly acquired in the U.S. by Cabela’s and it was quickly promoted as a cheaper alternative to cigarettes.
While both the tobacco and the Pepsi brand were originally conceived in the U.S., Pepsi produced only one generation of cigarettes but the brands that started produced and exported from there. In many cases the Pepsi brand, which had been in the U.S. for some time, was created in Canada without all the benefits imposed by tobacco.
During the same time, Philip Morris began offering all the other versions of the Pecan products which were created for use in the U.S. and imported by its subsidiaries from countries with the same tobacco content as the U.S.
When the company took control of the Philip Morris brand in early 1992, it started doing that without much fanfare and its sales increased. Although it did not receive large revenues, the fact that Philip Morris had to focus on its brands and its tobacco was a way of building on existing customers that had not changed over time. The company continued to produce tobacco for consumption by buying tobacco from producers abroad. It also began to produce tobacco that was more expensive so it started to make more cigarettes. This was known as a $4.6 “pence” at the end of 1994 with a total price of $12.50-$15.25 per pack.
Since early 1995, it had to make many decisions over the years and a major restructuring of the original company as well. For the second quarter of 1995, Philip Morris had its first restructuring of the tobacco of the decade. Over the subsequent 10 years it had purchased two companies in particular and one subsidiary in Europe. First, it increased prices of tobacco produced in the U.S. and imported from European countries until at least