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Philip Morris : diversifying to non-tobacco markets / Arpita Agnihotri and Saurabh Bhattacharya.
- Format:
- Book
- Author/Creator:
- Agnihotri, Arpita, author.
- Bhattacharya, Saurabh, author.
- Series:
- SAGE business cases.
- SAGE business cases
- Language:
- English
- Subjects (All):
- Organizational change--Case studies.
- Organizational change.
- Strategic planning--Case studies.
- Strategic planning.
- Business planning--Case studies.
- Business planning.
- Physical Description:
- 1 online resource.
- Place of Publication:
- London : SAGE Publications: SAGE Business Cases Originals, 2023.
- Language Note:
- English.
- Summary:
- The case explains the challenges faced by Philip Morris International Inc. (Philip Morris) as it diversified its operations in the smoke-free tobacco and healthcare sector by acquiring pharmaceutical companies. Jacek Olczak, CEO of Philip Morris, believed that the company's expertise in life and medical sciences would help develop solutions for respiratory issues. However, healthcare stakeholders such as government agencies and others that offered grants to the pharma sector criticized the move. They also criticized Philip Morris for ignoring the health risks of smoking. When the company declared its expansion into smoke-free products, criticism continued because health risks, although reduced, were not eliminated. Furthermore, research suggested that 90% of acquisitions failed in the past, mainly due to cultural integration issues. Amidst these challenges, how can Olczak succeed with diversification into healthcare through acquisitions? Is he establishing Philip Morris as a legitimate healthcare company? Can Philip Morris benefit from diversifying into the pharmaceutical sector? The case encourages students to explore how a firm can diversify into related versus unrelated sectors. It also helps students determine whether a firm can truly transform itself, especially in the tobacco industry.
- Notes:
- Description based on publisher supplied metadata and other sources.
- ISBN:
- 1-5296-2116-X
- 9781529621167
- OCLC:
- 1362529992
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