Pest analysis on marlboro company

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Pest analysis on marlboro company

Philip morris Pest analysis Essay 3. Cigarette is a product which has bad effect on the health, therefore imposes many strict regulations.

Moreover, details in Wikipedia shows that by the year there are more than countries with active smoking ban. These indicate falling of revenue to PMI. It has been almost impossible for PMI to promote its brand to public through the restriction of government on advertising and sponsorship.

Diagram 8 is taken from PMI official webpage demonstrating the composition of the price of a cigarette pack.

Pest analysis on marlboro company

Combination of Excise tax and VAT is nearly three forth of the cigarette price. It is clear that the price of cigarettes is mainly determined by government. Diagram 8 According to WHO, price is the primary instrument of tobacco. International Tax and Investment Centre ITIC reported that current tax plans in Russia second largest tobacco market could cause the cigarette price to be five times higher by Therefore, PMI is not sensitive to recession and economic downturn.

Cigarettes are considered as a product with price inelastic. As aforementioned, the price elasticity estimated by World Bank shows that the percentage change in price will not affect the demand of cigarette at the same level.

Thus, slightly increase of the price will not have much effect to the tobacco demand Diagram below indicates the overall cigarette consumption since PMI spun off from Altria group has slightly improved, despite the slight fall on EU region mainly due to tougher restrictions in countries such as Australia and Russian etc.

On top of it is quite stable, maintaining at a range between billion to billion units of cigarette regardless of economic factor such as unemployment, inflation, government policy and taxes. In order to rehabilitate itself in the public eye, PMI has contributed significantly to the public.

In addition, it supported regulation and is developing products based on the principle of harm reduction. Despite all these, PMI is held guilty of causing 6 million tobacco-related deaths every year.

According to WHO, tobacco-related deaths will increase to more than 8 million each year by Actions has taken from few countries by anti — smoking groups to reduce the population of smoking, such as the proposed of smoking license in Australia, forcing young smoker to take test of health risk knowledge and pay fee to smoke.

At the same time, encourage smokers to quit by rewarding with financial incentives for permanent license surrender. The whole world is fighting against smoking to the greatest extent particularly in Europe region.

As a result, PMI was awarded as the winner of the Global Supply Chain Operational Excellence Award for its 3 years hard work in implementing product development times, superior supply chain performance and improve financial returns.

If you are looking for a specific type of business or organization, use the drop-down box here to select the category. There is also a category for those members that accept Chamber Gift Certificates. M‐DCPS Registered Vendor List (By Vendor Name) Date Run: 04/29/ Vendor Name Vendor City State Zip Code Country Vendor # &A DISCOUNT SERVICES . A company analysis includes a complete and comprehensive analysis of the selected company, an overview of the industry the company operates in, a PEST Framework Analysis of the industry, and then moves on to analyzing the company itself.

PMI trying to create something better than current electronic cigarette targeting products that not only contained less harmful nicotine but also maintain the taste and sensory experience similar to the traditional cigarettes.As the global food economy struggles to reconcile itself with new concerns about bioterrorism and the emerging implications of foodborne illness outbreaks, its response has been to take greater control over processing and distribution channels through the traceability of ingredients and finished.

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Pest analysis on marlboro company

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