Wayne Patterson, Tammy Runnion, Rachel Johnson & Catherine Garcia
This research is being submitted on December 2, 2012, for Tom LeNeau’s B233/MAN2021 Section 05 Principles of Management course.
This summary will discuss the information that team 3 has retrieved from annual report of Philip Morris International. The annual reports we obtained shows the management changes and how the four functions of management have improved the operational efficiencies of Philip Morris International. All of the information in this summary, will be interesting to management students and managers.
On March 28, 2008, Louis C. Camilleri became the ...view middle of the document...
The action taken by Philip Morris brought several benefits that had an immediate impact. One of the benefits of this was an improved focus on varied market dynamics, competitive frameworks, challenges and opportunities. The elimination of Altria and the management structure has also nurtured faster decision making and a more optimum and efficient capital allocation, coupled with greater financial flexibility (Camiller, 2008).
A benefit of controlling and leading was increased net revenues, “excluding excise taxes, reached $25.7 billion, which was up $2.9 billion or 12.7% versus 2007, and up $1.3 billion or 5.6% on an organic basis, which is excluding acquisitions and currency, representing the high end of our long-term, constant currency target growth rate of between 4% and 6%” (Camiller, 2008).
In 2009 Philip Morris international kept changing and management evolved. According to the 2009 annual report, there has been extensive progress as PMI continued to nurture the management talent pool and the future leadership. The appointment of several new members of the Senior Management Team at Philip Morris has energized the entire organization (Camilleri, 2009).
Philip Morris is proof that companies do use the function of organizing in management. The management team continued to evolve with the addition of Jennifer Li to the Board in 2010. Li was praised both internally and externally. She brings strong financial expertise, experience in a fast-growing, high-technology business, and an Asian background that have further strengthened the Board’s depth and global perspective.
The use of the four functions of management are shown to have a benefit as the leading function was in play when Philip Morris set a three year productivity target and...