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Philip Morris USA: Life After the Master...

Moore, Marian Chap...

Case

Philip Morris USA: Life After the Master Settlement Agreement (A)

Moore, Marian Chapman; Wicks, Andrew C.; Powell, Elizabeth A.; Correll, Brooke

S-0157 | Published March 25, 2010 | 12 pages Case

Collection: Darden School of Business

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When Philip Morris USA (PMUSA) president and CEO Michael Symanczyk took office in 1997, he began to re-envision how to take his company forward in the midst of public outrage over the negative health consequences related to smoking, especially among youth. The case reviews the social and economic history of tobacco and smoking in the United States and provides context surrounding the crisis related to the Master Settlement Agreement (MSA) between four major tobacco companies, including PMUSA, and 46 states. The A-case concludes with Symanczyk contemplating how he will draft a new mission, values and strategy statement for the company.

The learning objectives of this case are particular to the crisis that PMUSA faces, but also to the general question about why any company ought to be in business. This controversial case challenges students to work with their positive and negative preconceived ideas about tobacco companies - are they a great investment or a public health scourge? The case takes an enterprise perspective, not only of general management but a multi-disciplinary and stakeholder point of view, and lends itself well to team teaching across disciplines such as marketing, operations, fnance, ethics, business policy, and corporate communication. The case also sets up an assignment in which students are asked to write Philip Morris USA's new mission statement, underscoring the relationship between precise language and articulating strategy.