Global Communications Benchmarking
Oliver
MBA 500
University of Phoenix
September 26, 2007
Many companies throughout the world face opportunities like Global Communications daily. Just like Global Communications, their management decisions, both ethically and morally, can have a long bitter sweet taste on their employees and the communities for which they live. Pillowtex, Inc and Philip Morris, USA are two such company’s. One thought about restructuring with ethics and morals in mind. The other did not.
Conventional wisdom holds that cigarettes are relatively recession proof. However in today’s difficult economy, U.S. smokers are paying more per pack than ever before. Thanks to hefty tax hikes, more consumers are quitting smoking, than starting. The industry has also has increased competition from discount brands. The merger of tobacco giants, R.J. Reynolds Tobacco Corporation and rival Brown & Williamson and lastly, numerous lawsuits that prompting the Master Settlement Agreement reached with State Attorneys Generals, has eroded the once lucrative and profitable tobacco environment. As a Result, in June of 2007, The Altria Group, Inc., the parent company of Philip Morris, USA, announced to it would discontinue operations at its Cabarrus, NC manufacturing center. The move would also force employees at the facility to relocate and/or face termination.
The June decision was announced at a press conference at the Cabarrus County, NC location, given by Philip Morris, USA’s Chief Executive Officer, Michael Symansky. In his announcement, Mr. Symansky, acknowledged that “Philip Morris, would make every effort to do what is feasibly, morally, and ethically right, for the 2,500 Philip Morris employees and communities, during this transition p ...