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  • Philip Morris EU Lobbying

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    Ratri Ika Pratiwi
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    Philip Morris International is an American tobacco company and the largest cigarette manufacturer in the world. The document discusses Philip Morris' use of lobbying and non-market strategies in the European Union. Philip Morris spent over 5 million Euros in 2013 lobbying members of the European Parliament to influence tobacco regulations. Their lobbying aimed to loosen the EU's Tobacco Product Directive, which restricts tobacco marketing and increases health warnings on packaging. Despite partial success through lobbying, the EU still passed regulations limiting menthol flavors and requiring larger health warnings on cigarette packs.

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    Case 2 Philip Morris

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    Philip Morris International is an American tobacco company and the largest cigarette manufacturer in the world. The document discusses Philip Morris' use of lobbying and non-market strategies in the European Union. Philip Morris spent over 5 million Euros in 2013 lobbying members of the European Parliament to influence tobacco regulations. Their lobbying aimed to loosen the EU's Tobacco Product Directive, which restricts tobacco marketing and increases health warnings on packaging. Despite partial success through lobbying, the EU still passed regulations limiting menthol flavors and requiring larger health warnings on cigarette packs.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    79 views3 pages

    Philip Morris EU Lobbying

    Uploaded by

    Ratri Ika Pratiwi
    Philip Morris International is an American tobacco company and the largest cigarette manufacturer in the world. The document discusses Philip Morris' use of lobbying and non-market strategies in the European Union. Philip Morris spent over 5 million Euros in 2013 lobbying members of the European Parliament to influence tobacco regulations. Their lobbying aimed to loosen the EU's Tobacco Product Directive, which restricts tobacco marketing and increases health warnings on packaging. Despite partial success through lobbying, the EU still passed regulations limiting menthol flavors and requiring larger health warnings on cigarette packs.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 3

    21/10/2015

    Overview
    Company Profile
    Main Strategic Issue
    Non-market Strategy

    Management Implications
    Conclusion
    Amirul Khair
    Dhinda Vitriani
    Ratri Ika Pratiwi
    Salena Nur Adinda

    COMPANY PROFILE

    PHILIP MORRIS EESTI


    American global cigarette tobacco company.
    Started from a single shop in Londons Bond
    Street in 1847.
    It owns 7 of the top 15 tobacco brands in the
    world

    Industrys Position

    Main Strategic Issue


    TOBACCO

    Lobbying in EU
    Theoretical Application
    4I
    Role of Legal Factors
    Strategic Types : Information Strategy

    21/10/2015

    THEORETICAL IMPLICATION

    Lobbying in EU

    4I

    As of 2012, Philip Morris spent 1,125,000


    Euro for lobbying in EU commission
    As of 2013, that amount jumped to 5,250,000
    Euro for lobbying
    161 Members of European Parliament were
    approached by lobbyist in 2013
    About 31% of MEP had been approached
    once by Philip Morris Lobbyist

    Issues : loosening the EUs tobacco


    regulations (EUs Tobacco Product Directive)
    Institution : EUs comission
    Interest : Tobacco manufacturers (like Philip
    Morris)
    Information : Expected decrease in Tobacco
    consumption among younger generation
    (below 18 years old)

    Philip Morris Lobbying Spending

    Role of Legal Factors


    Each nation has similar stance towards tobacco
    products

    $10.000.000

    Strict regulations
    Limited distribution
    Restrictive packaging

    $5.000.000

    EUS TOBACCO PRODUCT DIRECTIVE


    $0
    2011
    Philip Morris Lobbying
    Spending

    2012

    2013

    2014

    2015

    65% of surface area of the cigarette pack should be


    covered in health warnings
    E-Cigarettes are classified medicinal products (which
    means stricter regulations than tobacco products)
    Menthol flavors are forbidden to sell

    MANAGERIAL IMPLICATION

    Strategic Types : Information Strategy


    Businesses provide government policy makers with
    information to influence their actions.
    Lobbying
    Lobbyists communicate with and try to
    persuade others to support an organizations
    interest or stake as they consider a particular
    law, policy, or regulation.
    Political Action Committees (PACs) are groups of
    businesses that use financial resources to influence
    policy.

    Conclusion
    Philips Morris International (PMI) uses lobbying
    as a their non-market strategy
    The highest spending for any company in the
    European Union in 2013 (5.25 million)
    PMI employed 161 lobbyist to combat a
    proposed tobacco products directive (TPD)
    Tobacco industry need lobbying specifically
    because of the tobacco regulation itself is strict
    The lobbying process is PARTIALLY SUCCESS.

    PARTIALLY SUCCESS!!

    21/10/2015

    References

    THANK YOU

    http://corporateeurope.org/lobbycracy/2012/11/mapping-tobacco-lobby-brussels-smoky-business
    http://www.forbes.com/sites/greatspeculations/2014/10/03/why-did-philip-morris-spend-more-thananyone-else-lobbying-the-e-u/
    http://www.trefis.com/stock/pm/articles/256091/an-uruguayan-lawsuit-with-international-implications-forphilip-morris/2014-09-19
    http://www.trefis.com/stock/pm/articles/193927/philip-morris-sues-thai-government-over-anti-tobaccolaw/2013-06-28
    http://www.trefis.com/stock/ahii/articles/235399/philip-morris-finds-its-footing-in-the-electronic-cigaretteindustry/2014-04-22
    http://www.euractiv.com/sections/public-affairs/philip-morris-tops-ngos-lobbying-spending-table-308820
    http://www.euractiv.com/health/meps-approve-eus-new-tobacco-dir-news-533781
    http://www.theguardian.com/business/2013/sep/07/tobacco-philip-morris-millions-delay-eu-legislation
    http://www.theguardian.com/world/2012/oct/26/eu-tobacco-crackdown-lobbying-scandal
    https://www.opensecrets.org/lobby/indusclient.php?id=A02&year=2010
    https://www.opensecrets.org/lobby/indusclient.php?id=A02&year=2011
    https://www.opensecrets.org/lobby/indusclient.php?id=A02&year=2012
    https://www.opensecrets.org/lobby/indusclient.php?id=A02&year=2013
    https://www.opensecrets.org/lobby/indusclient.php?id=A02&year=2014
    https://www.opensecrets.org/lobby/indusclient.php?id=A02&year=2015
    http://tobaccocontrol.bmj.com/content/early/2015/02/06/tobaccocontrol-2014-051919.full

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