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  • Crown, Cork & Seal's Strategy

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    Parin Shah
    294 visualizzazioni6 pagine
    Crown's strategy is shaped by its industry analysis. Crown has strengths in its metal cans and low costs, but also faces threats of smaller size than competitors, reliance on metal cans only, and customer consolidation. Opportunities exist in becoming the market leader in metal cans and expanding globally. Recommendations include expanding volumes through acquisition, aggressive international expansion, relocating plants to lower costs, expanding into food packaging, and potentially acquiring part of Continental Can. Diversifying brings risks of failure in new businesses, neglecting the core business, and falling behind technological changes.

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    This is a classic case of strategy, which focuses on the ambiguities which were faced by Crown, Cork & Seal company to decide whether they should continue in the same business or diversify.

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    Crown's strategy is shaped by its industry analysis. Crown has strengths in its metal cans and low costs, but also faces threats of smaller size than competitors, reliance on metal cans only, and customer consolidation. Opportunities exist in becoming the market leader in metal cans and expanding globally. Recommendations include expanding volumes through acquisition, aggressive international expansion, relocating plants to lower costs, expanding into food packaging, and potentially acquiring part of Continental Can. Diversifying brings risks of failure in new businesses, neglecting the core business, and falling behind technological changes.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Scarica in formato PPTX, PDF, TXT o leggi online su Scribd
    Segnala contenuti inappropriati
    294 visualizzazioni6 pagine

    Crown, Cork & Seal's Strategy

    Caricato da

    Parin Shah
    Crown's strategy is shaped by its industry analysis. Crown has strengths in its metal cans and low costs, but also faces threats of smaller size than competitors, reliance on metal cans only, and customer consolidation. Opportunities exist in becoming the market leader in metal cans and expanding globally. Recommendations include expanding volumes through acquisition, aggressive international expansion, relocating plants to lower costs, expanding into food packaging, and potentially acquiring part of Continental Can. Diversifying brings risks of failure in new businesses, neglecting the core business, and falling behind technological changes.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Scarica in formato PPTX, PDF, TXT o leggi online su Scribd
    Segnala contenuti inappropriati
    di 6

    Crown's strategy & how is it shaped by the industry analysis.

    By Himaja Manda (34) Kritika Nigam(38) Parin Shah (46) Raamya Shrivastav(48)

    Strategy Post April 1957


    Connelly took over the presidency and applied

    Common Sense. A lean organisation with 24% of payroll eliminated. Discarded divisional accounting practices and divisional staff concept. Disbanded central R&D facility. Control at corporate accounting level staff. Owner-Operators Slow production to a halt and liquidate $7mn inventory. Sales forecast to avoid excess dumping. Sales increased from $115mn-$176mn and profits soared. Control cost, improve quality and improved customer

    RENGTHS THREATS WEAKNESS Rely on metal can not diversified. No.4 in USA Few R&D innovation Smaller than its Competitors Steady market growth in US. OPPORTUNITIES To be market leader in metal can maker. Expansion Globally. Little growth in metal can Growing Glass and Plastic container Customer Consolidation: Customer base shrinked. Price Pressure.

    TIME DELIVERY

    H QUALITY

    ATIONAL SALES

    OMER DRIVEN

    GH PROFIT

    OW COST

    ED PRODUCT LINES

    nelly Strong adership

    low cost steel in plate

    Self Manufacturing trend of Beer

    abour Relation

    Recommendations
    Due to high volume ,low margin business Crown cork needs to expand & gain on

    volumes .
    To pick the opportunity of taking over Continental can which catapults the market

    share from 7% to 25% making it on par with American National Can


    The low debt equity helps raise funds for this take over Aggressive expansion in international markets returning 18% operating ratios De risking by relocating old manufacturing plants from US to developing countries.

    Expansion into food & other packaging industry and other uses of 2-piece cans.
    Diversify into plastic can business to supplement the soft drinks business. Part of Continental can be acquired.

    What are the risks of diversification?


    Three major risks.

    First: There is no guarantee that a firm will enjoy success in new business. Second: Diversification brings with it the risk of neglecting the core business. Third: This neglect can be especially harmful if there is technological change in the industry.

    Thank You

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