Thursday, October 17, 2019

Altria Group Inc. (MO) and Philip Morris International, Inc. (PM) Essay

Altria Group Inc. (MO) and Philip Morris International, Inc. (PM) - Essay Example Over the years, the company has introduced different product lines with different brand names in order to attract different types of customers. This aspect has played a significant role in reducing the risks and uncertainties associated with concentrating on a single product. Beside tobacco it has focused on wine production. Some of the wine brands include; Chateau Ste Michelle, Snoqualmie, Erath. The company has a definite structure led by the board of directors. In addition, the company is divided into different departments depending on the area of specialization. This is to ensure that each sector specializes on a specific task. For instance, marketing and financial sectors operate differently. This has enabled the subordinates to work independently and maximize on their areas of specialization. This aspect has been critical in the overall success of the company. Philip Morris International, Inc. (PM) is a global multinational firms based in United States that deal with cigarette and tobacco production. The company’s products are sold in over 200 countries across the world. The company is mainly known for its best selling product of Malboro (Luo 352). With over 15% of its products being sold outside the United States, the firm has been able to penetrate and segment the global market. This is despite the increasing levels of competition which has emanated from the entry of multinational companies which have a huge financial base to position their products strategically in the market and create a barrier of entry for other interested investors. Before, 2008, Philip Morris International, Inc. (PM) was an operating company under the Altria Group. The idea behind the formation of the company was to provide the firm with an opportunity to pursue the emerging markets. This was aimed at increasing sales and revenues of the firm and enabling the company to avoid the challenges faced by companies in relation to US corporate ownership. The firm’s

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