Introduction
I did some research on the Altria Group, Inc. and found that they are using a growth strategy known as conglomerate diversification. What this means is that the industry they are currently in is unrelated to the industry they have entered, through diversification. With this strategy, managers are more concerned with financial concerns such as cash flows. This is usually due to a company's current industry achieving maximum growth and has to enter into other industries to gain more opportunities for future growth. Altria is a parenting company who parents Kraft Foods, Philip Morris International, Philip Morris USA, and Philip Morris Capital Corporation (Altria, 2008). What products they produce are tobacco, packaged food, beverages, and financial services. The USA and Europe are their primary producers.
SWOT Analysis
Strengths:
Versatility?they produce several products such as tobacco, packaged food, beverages, and financial services. Their versatility comes with their cigarette companies. Philip Morris International's leading cigarette brands are Marlboro, L&M, Philip Morris, and Parliament (Altria, 2008). Philip Morris USA's leading cigarette brands are Marlboro, Basic, L&M, Parliament, and Virginia Slims (Altria, 2008). John Middleton, Inc.'s brands include Black & Mild, Carter Hall, Middleton's Club, and Kentucky Club (Altria, 2008).
Diversification?they have recently entered into other industries to achieve more growth such as the Philip Morris Capital Corporation. This is an investment company whose portfolio consists of leveraged and direct finance lease investments and other tax-oriented and third party financing. Altria also has 28.6 percent interest in SABMiller, which is the world's second largest brewer (Alt ...