Purchase Solution

Crown Holding's Analysis

Not what you're looking for?

Ask Custom Question

Please assist with the following for Crown Cork (http://www.crowncork.com):

1. Assess Crown Cork's profitability within the industry and identify any threats or opportunities; perform a General Force analysis.

2. Utilize Porter's "5 Forces Model" to analyze Crown Cork. Examine and articulate threats of entry, the power of suppliers and buyers, threats of substitute goods, and rivalries among existing competitors.

Reference:

http://www.investopedia.com/terms/p/porter.asp

Purchase this Solution

Solution Summary

This paper provides an analysis of Crown Holdings both ratio analysis and Porter's five force model.

Solution Preview

Introduction
Crown began inception in 1892 when William Painter patented the 'crown cork' and then started Crown Cork & Seal Company of Baltimore. Painter invented a better way to package soft drinks and beer. His vision revolutionized the bottling industry. With Painter's innovation and leadership, Crown Holdings became a world class company it is today and is the leader in industry with innovative packaging technology (Crown Holdings, Inc. 2013).
Crown manufactures packaging products from 139 plants located in 41 countries. Their business-level strategy includes growth, diversification, and quality improvement processes while focusing on keeping costs low. In addition, through a series of acquisitions and mergers, the company increased its sales from $1.9 billion in 1989 to $8 billion in 1997. The company began to enter new markets and introduce new products and was the leader in research and development activities in the market (Crown Holdings, Inc. 2013).
Profitability Analysis
In 2002, Crown completed the sale of 89.5 percent of its shares in Constar (a subsidiary of Crown) through its Initial Public Offering by Constar. By 2003, Crown completed a $3.2 billion refinancing plan and forms Crown Holdings, Inc. as a new public company (Crown Holdings, Inc. 2013).
Crown Ball Corp Rexam Silgan Holding's Inc.
Market Cap 5.94B 7.17B 6.68B 2.68B
Employees 22,800 15,000 11,000 9,000
Qtrly Revenue GrowthYOY 0.04 0 0.01 0.03
Revenue 8.62B 8.59B 6.97B 3.7B
Gross Margin 0.17 0.18 0.45 0.14
EBITDA 1.10B 1.15B 1.02B 502.48M
Operation Profit Margin 0.11 0.10 0.11 0.09

Source: Yahoo Finance, 2013
Crown's main competitors are Ball Corp, Rexam, and Silgan Holding's Inc. Crown has more employees than its competitors and a lower market cap than Bail and Rexam. The market cap indicates the total dollar value of the firm's outstanding shares. Although Crown ...

Purchase this Solution


Free BrainMass Quizzes
Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Motivation

This tests some key elements of major motivation theories.