Business Ethics Case Study - Phillip Morris A.K.A. Marlboro Cigarettes

Background Information

„X Although this report is focused around a single company, it should be noted that Marlboro is a subsidiary of Philip Morris USA.

„X Philip Morris USA is regarded to be the largest cigarette manufacture in the United States.

„X In 1999, one out of every six cigarettes was a Philip Morris Brand (History of Philip Morris Companies Inc.). That equates to 17% of the world market.

„X Other brands under the Philip Morris banner include: Basic, Benson & Hedges, Cambridge, Chesterfield, Commander, Dave¡¦s English Ovals, Lark, L&M, Parliament, Players, Saratoga, Virginia Slims.

„X Philip Morris USA is itself a subsidiary of Altria Company. Altria consists of: Philip Morris, US Smokeless Tobacco Company, John Middleton, Ste. Michelle Wine Estates.

Mission and Values

„X Company Mission is to:

„X Own and develop financially disciplined businesses that are leaders in responsibly providing adult tobacco and wine consumers with superior branded products.

„X Invest in Leadership

„X Align with Society

„X Satisfy Adult Consumers

„X Create Substantial Value for Shareholders

„X Company Values are:

„X Guide our behaviour as we pursue our Mission and business strategies:

„X Integrity, Trust, and Respect

„X Passion to Succeed

„X Executing with Quality

„X Driving Creativity into Everything we do

„X Sharing with Others. Company Overview

„X Products

„X Cigarettes: Brands include Marlboro, Basic, Benson & Hedges, Cambridge, Chesterfield, Commander, Dave's, English Ovals, Lark, L&M, Merit, Parliament, Players, Saratoga and Virginia Slims.

„X Smokeless Tobacco: Marlboro Snus comes in four varieties - Rich, Amber, Spearmint and Peppermint.

„X Challenges/ Responses

„X Challenges: Anti-smoking campaigns, legal battles and price wars

„X Responses: Expanding overseas operations, diversifying into the food business, changing company name (Philip Morris to Altria) and changing the company¡¦s chairman.

„X Market Focus /Market Share

„X PM USA is focused on responsibly manufacturing and marketing its brands only to adult tobacco consumers in a financially disciplined way.