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Business Ethics Phillip Morris

Autor:   •  February 3, 2012  •  Essay  •  464 Words (2 Pages)  •  2,016 Views

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this 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,

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