Global Economic Environment
MBA 6008 - Global Economic Environment
Professional Challenge – Company Analysis
Philip Morris International, Inc.
Sangbolu Tamba
November 16, 2012
Introduction
Philip Morris International, Inc. (PM) is an American tobacco company that earns most of its revenue from countries outside the United States. “It sells cigarettes around the world - with 40% of its sales coming from the European Union, 24% from EMEA (Eastern Europe, the Middle East, and Africa), 22% from Asia, and 12% from Latin America and Canada.” (Rising Star Portfolios, 2011) In the analysis, we will explore PM financial strategy of being the market leader, the microeconomic and macroeconomic environment and challenges that the company faces.
Company Background
The history of Philip Morris can be traced back as far as 1847 when the company opened its first shop, selling tobacco and cigarettes. Roughly three decades later in 1881, the once private company made a decision to go public. Four years later, the company became known as Philip Morris & Co., Ltd. In 1902, the company became incorporated in New York, by Gustav Eckmeyer. During that time the ownership of the company was divided 50-50 between the British parent and American partners. Then in 1919, they went through another transformation—an acquisition of the Philip Morris Company in the U.S. From the acquisition, Philip Morris & Co., Ltd moved to Richmond, Virginia and became incorporated…the new name Philip Morris & Co., Ltd., Inc. “By the end of the next decade, the Company had begun to manufacture cigarettes in its factory in Richmond, Virginia; in 1924, what was to become its most famous brand, Marlboro, was introduced. By the mid-1950s the company had become a part of American culture and soon after it launched Philip Morris International to manufacture and market its products around the world.” (Philip Morris, 2011).
Currently, Philip Morris International (PM) is one of the world’s top leading tobacco
Professional Challenge – Company Analysis
Philip Morris International, Inc.
Sangbolu Tamba
November 16, 2012
Introduction
Philip Morris International, Inc. (PM) is an American tobacco company that earns most of its revenue from countries outside the United States. “It sells cigarettes around the world - with 40% of its sales coming from the European Union, 24% from EMEA (Eastern Europe, the Middle East, and Africa), 22% from Asia, and 12% from Latin America and Canada.” (Rising Star Portfolios, 2011) In the analysis, we will explore PM financial strategy of being the market leader, the microeconomic and macroeconomic environment and challenges that the company faces.
Company Background
The history of Philip Morris can be traced back as far as 1847 when the company opened its first shop, selling tobacco and cigarettes. Roughly three decades later in 1881, the once private company made a decision to go public. Four years later, the company became known as Philip Morris & Co., Ltd. In 1902, the company became incorporated in New York, by Gustav Eckmeyer. During that time the ownership of the company was divided 50-50 between the British parent and American partners. Then in 1919, they went through another transformation—an acquisition of the Philip Morris Company in the U.S. From the acquisition, Philip Morris & Co., Ltd moved to Richmond, Virginia and became incorporated…the new name Philip Morris & Co., Ltd., Inc. “By the end of the next decade, the Company had begun to manufacture cigarettes in its factory in Richmond, Virginia; in 1924, what was to become its most famous brand, Marlboro, was introduced. By the mid-1950s the company had become a part of American culture and soon after it launched Philip Morris International to manufacture and market its products around the world.” (Philip Morris, 2011).
Currently, Philip Morris International (PM) is one of the world’s top leading tobacco