Philip Morris : diversifying to non-tobacco markets /

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 an...

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Bibliographic Details
Main Authors:	Agnihotri, Arpita (Author), Bhattacharya, Saurabh (Author)
Format:	eBook
Language:	English
Published:	London : SAGE Publications: SAGE Business Cases Originals, 2023.
Series:	SAGE business cases.
Subjects:	Organizational change > Case studies. Strategic planning > Case studies. Business planning > Case studies. Changement organisationnel > Études de cas. Planification stratégique > Études de cas. Business planning Organizational change Strategic planning Electronic books. Case studies
Online Access:	Connect to the full text of this electronic book

Description
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.
Physical Description:	1 online resource.
ISBN:	9781529621167 152962116X