Altria Corporation
1. What is your impression of the world wide operation of the company?
The impression I got from the Altria Corporation is they are a company that utilizes the Conglomerate Diversification Growth Strategy. With conglomerate diversification the company will diversify into an industry that is not related to the industry they are currently in. Usually strategic managers that adopt this strategy are more concerned with financial concerns of cash flow or risk reduction. This is a good strategy to use if your company can transfer its excellent management system to a less excellent managed firm. Conglomerate diversification is a good strategy to use when you can no longer grow in your current industry and want to move into a different industry where there are more opportunities.
Altria is the parent company of Kraft Foods, Philip Morris International, Philip Morris USA, and Philip Morris Capital Corporation. Altria produces products like tobacco and packaged food and beverages. Altria is primarily operating in USA and Europe. Altria receives 65.8% of its revenue from the tobacco industry, 33.9% of its revenue from the food and beverage industry, and .3% of its revenue from the financial service industry. Altria is not more dependant on any one region or product segment (Altria Group, Inc., 2007). Altria acquired General Foods in 1985 and acquired Kraft in 1988 in order to diversify its business (Schneiderman, 2007).
2. Conduct a SWOT Analysis of Altria.
IFAS:
Factors Weight Rate Weighted Score Comments
Strengths
Many Product Lines .15 4.0 .6 Parent to Kraft Foods, Philip Morris USA, Philip Morris International and Philip Morris Capital Corporation.
Good Marketing Techniques .10 4.0 .4 Simultaneou ...