Imasco Ltd
1. IMASCO Limited: The Roy Rogers Acquisition 1990 A Corporate Strategy Class Presentation by Kivenda Mokuba Diane‐Corinne Agbamu Kenoma Giovanni Luatti Wu Zhaoyun Wen Junjie Universita della Svizzera Italiana, Lugano, Switzerland
2. Contents 01 Background Information 02 Diversification of IMASCO 03 Roy Rogers Acquisition 04 Post-situation Analysis
3. IMASCO Ltd. A Canadian company founded 1970 intended to diversify the operations of the former Imperial Tobacco Company. 1908: Imperial tobacco was created by a formal merger of the American Tobacco Company of Canada and Empire Tobacco company. 1920s-1960s: Acquired other tobacco companies. 1964: Start to diversify due to the smoking and health issue was really heating up. Acquire Canada Foils Ltd, Welland winery Ltd. 1970: Change it’s name to IMASCO (IMperial and ASsociated COmpany ) 1970s-1990s: Diversifying all the time. 1990: Mainly in 4 business: Tobacco, Finance, Fast-Food, Drugs.
4. 5 Forces Analysis (Canadian Tobacco Industry) - What they supply can easily be found from other suppliers Buyers: Suppliers - - - 6.6 million customers spread -Brand is everything in this Competitors Market. out across country. - Most Smokers are addicted. -Large economy of scale - Numerous wholesalers and - - Expensive Machine and retailers in the highly professional sales force are competitive market. needed. Substitutes New Entrants - -Few goods can directly - substitute the Tobacco. This is a FIVE STAR industry!
5. Sudden Change Health Concern Health Concern Regulations Health concern Canadian government heated up in 1960s enacted the after the scientific Tobacco Products proving of harm of Control Act smoking. Life Style A Negative A trend of a healthier Expectation of the life style, less smoking population. Industry began to emerge. 6. A New Strategic Direction Emerged DIVERSIFICATION
7. Route to Diversification Company To build a broadly based corporation that would rely less on the
2. Contents 01 Background Information 02 Diversification of IMASCO 03 Roy Rogers Acquisition 04 Post-situation Analysis
3. IMASCO Ltd. A Canadian company founded 1970 intended to diversify the operations of the former Imperial Tobacco Company. 1908: Imperial tobacco was created by a formal merger of the American Tobacco Company of Canada and Empire Tobacco company. 1920s-1960s: Acquired other tobacco companies. 1964: Start to diversify due to the smoking and health issue was really heating up. Acquire Canada Foils Ltd, Welland winery Ltd. 1970: Change it’s name to IMASCO (IMperial and ASsociated COmpany ) 1970s-1990s: Diversifying all the time. 1990: Mainly in 4 business: Tobacco, Finance, Fast-Food, Drugs.
4. 5 Forces Analysis (Canadian Tobacco Industry) - What they supply can easily be found from other suppliers Buyers: Suppliers - - - 6.6 million customers spread -Brand is everything in this Competitors Market. out across country. - Most Smokers are addicted. -Large economy of scale - Numerous wholesalers and - - Expensive Machine and retailers in the highly professional sales force are competitive market. needed. Substitutes New Entrants - -Few goods can directly - substitute the Tobacco. This is a FIVE STAR industry!
5. Sudden Change Health Concern Health Concern Regulations Health concern Canadian government heated up in 1960s enacted the after the scientific Tobacco Products proving of harm of Control Act smoking. Life Style A Negative A trend of a healthier Expectation of the life style, less smoking population. Industry began to emerge. 6. A New Strategic Direction Emerged DIVERSIFICATION
7. Route to Diversification Company To build a broadly based corporation that would rely less on the