Strategy Execution with Balanced Scorecard

Professor Kyriakos Kyriakopoulos

ALBA Part Time MBA
April 29, 2014

Konstantinou Phoebos
Moschofidou Sotiria
Sfykti Dimitra
Floros Evangelos

Introduction: Company Profile & History

Papastratos AVES, Philip Morris Internationals affiliate in Greece, is the largest tobacco company in the country,
producing and distributing the worlds best-selling cigarette brand Marlboro, well-known global brands such as
L&M and Philip Morris, as well as established local brands, Assos and Zante. Papastratos became an affiliate of
Philip Morris back in 2003, which initiated a period of great market share growth for the company but also the
introduction of a new factory in Aspropyrgos, an investment of 100 million euros.
Papastratos uses three main types of tobacco; oriental, virginia and burley. Given the Greek climate, virginia and
burley tobaccos are imported from Asia and other EU countries whereas a large proportion of oriental tobacco is
bought locally. Presently, Papastratos absorbs 50% of the Greek tobacco production through an official
agreement that took place between PMI Global CEO and the Greek president. More than 75% of the portfolios
SKUs currently in the Greek market are produced locally while the site has a production capacity of more than 18
billion cigarettes. On the other hand, exports constitute less than 5% of total production, mainly due to the high
costs of production in comparison to sites in Poland or Lithuania. Currently, the company employs approximately
800 people in manufacturing and administrative positions.
The Greek tobacco industry is a 15 billion cigarette sticks market with 4 international players PMI, BAT, JTI and
Imperial Tobacco and two local players, Karelias and SEKAP. PMI is currently the market leader, with a market
share of more than 40% with JTI and BAT following. Over the last few years, the Greek tobacco industry has seen
a great decline in terms of consumption (sales volume), profitability (due to taxation structure) and a great
increase of illicit trade, which has grown from approximately 4-5% (2006) to approximately 20% (2013), based on
Papastratos internal estimations. As it can be easily assumed, the market leader has been mostly affected by
these circumstances. In 2009, Papastratos had an annual turnover of 222 million with a profit of 89 million .
Within four years of crisis, while the annual turnover has slightly increased (244 mil. ), 2012 was the third year in
a row where the company had losses of more than 6 million .
In 2012 Papastratos attempted to revitalize the whole tobacco industry by decreasing the price of the top selling
brand in the market, Marlboro, 0.50 lower. The aim of this effort was to readjust the whole industry, since most
players would have to follow the lead of Marlboro but also, worked as a safety net for consumers trading to illicit
tobacco products. At the same time, all major competitors showed declining versus previous years- profits. BAT
repositioned its leading brand, Stuyvesant, in the below premium segment earning within few months a market
share of 4%. Imperial tobacco showed profits due to the continuous growth of rolling tobacco and the small
decline of its mega premium brand, Davidoff. JTI took advantage of the huge growth of rolling tobacco, where the
heritage of established brands such as Old Holborn increased their volume enormously. Finally, Karelias mostly
depends on exports, which account for ~85% of its total production volume. Overall, since early 2013, a new
taxation scheme took over in tobacco products that resulted to extreme decline of profits and even losses for all
companies apart from Karelias. These results will become more evident in the 2013 income statements.
As far as the value chain of tobacco industry in Greece is concerned, there is a great similarity to foreign ones.
Companies with factories based in Greece (PMI, Karelias and SEKAP) receive raw material and distribute the final
product, through outsourced storage houses to wholesalers. On the other hand, the rest companies import their
final product and again through storage houses deliver the products to wholesalers. In 2013, PMI was the first
tobacco company to introduce an exclusive distribution network of wholesalers with the ambition to serve the
company in a better manner. Up until then, each tobacco company was distributing its products via a large
network of wholesalers, who based their revenues on a mark-up charge of ~3%. Under this context, each
wholesaler was not focusing on companies or brands but rather on the total market, as this was what affected
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their business income and profitability. This network had remained unchanged for half a century, since there
were high barriers for new players to enter. PMI initiated in June 2013 an exclusive zonified distribution system,
where in each sub-territory there is a unique wholesaler distributing the companys products. Some months later,
the rest tobacco companies followed this example, under a different scheme this time, as they have created a
unified distribution system for the rest five companies.
For the purpose of this project, our Key Success Factors, Balanced Scorecard and Strategy map will be focusing on
the Marketing department for Philip Morris Greece.

Mission, Vision & Values, Culture

Philip Morris International is driven by four key goals that guide the company as they grow the business in a
responsible manner. Those goals are:
to meet the expectations of adult smokers by offering innovative tobacco products of the highest quality
available in their preferred price category;
to generate superior returns to stockholders through revenue, volume, income, and cash flow growth and
a balanced program of dividends and share repurchases;
to reduce the harm caused by tobacco products by supporting comprehensive regulation and by
developing products with the potential to reduce the risk of tobacco-related diseases; and
to be responsible corporate citizens and to conduct business with the highest degree of integrity.
The successful history and leadership of the company offers a series of great opportunities to further grow the
companys business in Greece, enhance its competitiveness and provide further development opportunities to its
employees.
One of the major factors that lead to the companys success is the coherent culture among its employees within a
cooperative and friendly environment. There is also a shared understanding of the organizations mission; to offer
the best smoking experience to each adult smoker in the world, both today and in the future.
Papastratos culture and philosophy encourage freedom, bottom up initiatives, open and honest feedback, and
efficient teamwork through communication, processes and tools provided. In this context, the majority of people
feel secure within a fair working environment, confident that their efforts are recognized, proud of their
contribution, committed to the companys mission and vision, motivated to continue for the best business results
and happy around others with whom they can efficiently communicate and cooperate with. Some facts that
support the above is the 3rd position of the company in the current years results of Best Work Places survey as
well as the high and increasing percentage Employee Engagement rates of the Global PMI Employee Opinion
survey taking place every two years in each country affiliate.
Culture at Papastratos is strong with differentiated characteristics that spread across all levels in order to
constantly encourage constructive communication, open and honest two-way feedback and efficient teamwork.
Alignment and innovation in the way people think, behave and act is considered as one important opportunity
route for learning and improvement. Compensation policies, recognition awards, promotion opportunities, open
routes for continuous development and performance processes are the official organizational structures that
reflect the importance the company provides to its people considering them as one of its asset. Business updates
and alignment to the organization by the Managing Director, circulation of the achievements per function and
new programs for young talented people for fast track career progress are some of the initiatives promoting the

people centric direction. Friendly environment is supported through various initiatives, such as open door policy
and team bonding activities within and among departments.
PMIs employees share the common values that guide decision-making and activity at all levels in the
organization. Specifically:
Safety the physical safety of staff and the public
Security the protection of information and other assets
Integrity the reputation of the organization for honesty, high ethical standards, reliable outputs, and
impeccable methodologies, integrity in the way of doing business
Continuous improvement with mistakes seen as learning opportunities
Continuous learning the creation of rich opportunities for employees to gain new knowledge and skills
Employees think highly of their relationships with management, one-another, partner organizations, and clients.
Relationships are collegial and mutually supportive.
In its day-to-day business, the company follows effective routine processes; decisions are made based on dialogue
and cooperation with huge responsibilities being funneled each layer of the organizational culture.
Moreover, an indication of the culture is the existence of an appraisal system in order to set goals, develop
criteria for successful performance, and create metrics for evaluating performance. In that way an environment of
trust and fairness is established and all the employees feel that they are all evaluated on the same basis.

External Industry analysis

Value Chain

The Industry
The tobacco industry is one of the most controversial industries, and one that has recognized many changes over
the recent years. As a mature industry, facing many regulatory pressures, growth prospects are limited.
Therefore, this market has only a few key players, which actually turned the industry into an oligopoly. Pricing
power helps to offset declining volume. Sales and earnings are fairly stable throughout the economic cycle.

Porters Five Forces

Industry Rivalry: The overall rivalry in the tobacco industry in Greece is characterized as high and is considered an
oligopoly. The major players and their main brands, who dominate the market, are the following:
Philip Morris International (Papastratos) (Marlboro, Assos, Philip Morris, L&M, Muratti, Zante)
Japan Tobacco International (Camel, Winston, Old Holborn)
British American Tobacco (Pall Mall, Lucky Strike, Prince)
Imperial Tobacco (Davidoff, Gauloise, Golden Virginia)
Sekap (GR & BF)
Suppliers: The suppliers of the tobacco industry are usually relatively small in size and in power when compared to
the tobacco companies they supply. Therefore, they have very low bargaining power. This is also due to
government involvement in the most cases (tobacco farmers, laws, prices etc.)
Substitutes: In todays tobacco industry in Greece, the main substitutes that exist are electronic cigarettes, bulk
tobacco and nicotine alternatives. Despite the fact that most of these substitutes have received increased
popularity among consumers, the addictive nature of the product, makes the overall threat of substitutes low.
Buyers: Buyers in the tobacco industry have strong bargaining power as there is an addiction and strong bonding
with the product involved. Buyers are extremely price sensitive and are affected by the economy and their level
of disposable income. When their disposable income declines, switching costs are very low, and buyers are likely
to buy a cheaper brand of cigarettes.
Threat of entry: The barriers to entry in the tobacco industry are very high. The economies of scales the big
players recognize in manufacturing, distribution and marketing costs render it very difficult for new players to
enter and compete. Furthermore, the capital requirements for cigarette manufacturing facilities are extremely
high.
Finally, brand identity poses a significant threat for new entry. With the heavy restrictions on advertising and
promotional activities imposed by the government, it is extremely difficult for new players to gain the brand

awareness that they need in the market. For example, PMIs Marlboro is a brand with great awareness and
loyalty. It is very difficult to a new brand to compete with the established and successful Marlboro.

PESTEL analysis
The Greek tobacco industry has always been a major
contributor to the country both in terms of tax deriving
from sales (government revenues) but also in terms of
field employment. In recent years, with the economic
recession affecting peoples disposable income, tobacco
legal consumption has seen a vast decline and
competition amongst tobacco companies has become
fierce. Cigarette pack prices have risen to levels that
Greeks are not able or willing to pay, the government
continues to seek for income through continuous tax
increases and illicit trade is becoming more and more
popular.
From a political point of view, the government sees the
tobacco industry as a mean to increase its revenues in a
quick and guaranteed fashion, since tax is already
imposed during production via on-pack stickers.
Tobacco contributes to the Greek government a great 4% of the annual GDP, which highlights the economic
importance of the industry. On the other hand, the ministry of health has put into action a smoking ban to all
public spaces such as nightclubs, restaurants and government facilities, aligned with the Eurozone standards.
Greek tobacco culture has always been very strong since the early 20th century and people associate smoking
with their night out entertainment. These issues, coupled with the economic difficulties, have created a strong
trend for youngsters towards home entertainment via gatherings. In addition, it further affects the governments
income as people spend less money in entertainment, increasing unemployment rates and generally shrinks the
market.
The tobacco industry has also seen strict regulatory restrictions over the past decade through various forms of
bans such as the aforementioned smoking ban but also advertising bans on TV, cinemas and outdoors.
Furthermore, promotional activities have been restricted within the point of sale (e.g. promoters have to be
inside kiosks), which makes the various products even less identifiable to the audience of adult smokers, making it
tough for a company to promote their legal products. Finally, distribution of tobacco products has continually
been controlled since the 1950s through a specified network of wholesalers, making it almost impossible for new
entrants to access the value chain of tobacco. Finally, a recent voting that took place in the EU has launched a
new tobacco product directive which adds more restrictions that have to do with types of cigarettes such as slims
and flavored cigarette propositions, cigarette packaging and generally the directive introduces an even stricter
environment where the companies will compete.
Technology has also invaded the tobacco industry as consumers are becoming more and more prone to global
markets and insights, looking for differentiation. From this point of view, tobacco companies had to serve this
need through innovative propositions and developments such as bio-filter tips, flavor capsules and new packaging
that subsequently increase R&D costs. In addition, tobacco companies are lately finalizing a new product

proposition which will minimize the harm effect of tobacco consumption, introducing new products such as
electronic cigarettes using heat rather than burning of tobacco products.
Finally, what is important to highlight as mentioned before, is the very high smoking incidence in the Greek
population. Around 30% of Greeks are believed to be habitual smokers, with a consumption of minimum 3
cigarette sticks per day. This strong smoking culture has led the Greek market to be of great importance for local
and international players, while at the same time there is a great decline of smoking incidence evident in the rest
of the European countries. As in any other European country, selling tobacco products to persons under the age
of 18 years old is prohibited in an attempt to forbid children getting addicted to smoking. In this context, tobacco
companies also seek for ways to reduce the harm done by tobacco consumption, introducing electronic cigarettes
and other innovations which reduce health risks. Concluding, the emerging markets of the eastern world such as
India and China are increasing their demand for tobacco consumption, in their attempt to copy the western
civilization trend. This trend will increase demand of raw tobacco products and eventually will generate issues for
tobacco farmers. Tobacco companies such as Philip Morris and British American Tobacco have already raised their
concerns towards environmental protection and have initiated processes for certified alliances that will ensure
the smooth farming of tobacco, while helping authenticated farmers as well.
Based on the P.E.S.T.E.L. analysis above, it is evident that the tobacco industry is highly influenced by many
factors which have changed the industry over the years and will continue to dramatically change it in the future.
Therefore, based on the above, in the coming years, we expect that the survival and profitability in the tobacco
industry will become increasing more challenging for the companies operating in it.
Key trends that we foresee include:
-

EU Tobacco Products Directive: The directive which will be implemented in Greece in 2016, will limit the
types of products the companies can sell (ex. Flavors etc.)
Illicit trade: If not controlled, illicit trade could continue to grow and hurt the tobacco companies bottom
lines but also affect the government as their income from taxes from tobacco products will reduce as
well. However, the aforementioned EU directive will introduce EU-wide tracking and tracing to combat
illicit trade of tobacco products which if successful, will help solve this industry-wide issue.
Taxation: Increasing taxation with not only continue to increase the price of cigarettes but if it continues
to increase, consumers will be unable to afford the products and it is possible that the threat of
substitutes will increase and become a more substantial threat for the industry.
Increased Restrictions: The EU directive requires requires that health warnings appear on packages of
tobacco and related products. Combined (picture and text) health warnings must cover 65% of the front
and back of cigarette and roll-your-own tobacco packages and sets minimum dimensions for warnings
and eliminates small packages for certain tobacco products. All of this means additional costs for the
tobacco companies which is some case are already struggling to survive.

Internal Analysis: Resources & Capabilities

The most important resources of the company are briefly described below along with the importance the
company provides and the relative strength to competition;

IMPORTANCE/
RESOURCES & DESCRIPTION

RELATIVE
STRENGTH

R1. Strong equity Brands

9/10

Brands with strong equity, balanced portfolio includes both brands with international presence
and brands connected with local pride
Top quality products & smoking experience, consumer loyalty
R2. Experienced, committed, and motivated People with strong customer focus

10/8

Recruitment structures
Interim & annual appraisal system that;
- encourages the structural and constructive discussion of subordinates with managers, fairness
cultivation since the 2nd level manager should approve the qualitative & quantitative evaluation
of the employer
- ensures common language and understanding of the core competencies required based on
the level (manage self, manage others, manage managers) across organization
Talent Pool Cross functional structural discussion on talents, development plan & career path,
reporting to HQ
Open feedback & cooperation cultural set
Continuous opportunities for learning and development, cross functional moves, Short-term
assignments to PMI HQ or other market affiliates
Employee Satisfaction, loyalty and low turnover rate
R3. Local Factory

7/6

Quality assurance standards

Geographical proximity to customer and consumer in the value chain, meet fast market needs,
better alignment of the needs
R4. Technology & Infrastructure

8/7

Technology and systems facilitate the realization of better information flow, significant and
complex business projects implementation, efficient physical resources allocation and
flexibility, sharing among departments and affiliates, systems introduction to Operations to
optimize the critical KPIs
R5. Company reputation

7/5

Long history with strong credentials of Papastratos founders (employee sponsorships and

caring, local ceremonies), local pride

Enhanced and credible relationships with suppliers & customers, PMI multi-national guarantee
R6. Financial resources

7/4*

PMI HQ internal funding to Papastratos to allow the recovery and smooth business continuation
*Low rating of relative strength since the same situation applies (if needed) with the key players
apart from Karelias whose main profitability is based on exports.

The constructive and efficient gluing of the key resources create strong capabilities for the company that
contribute to the differentiation from the competition.
IMPORTANCE/
CAPABILITIES & DESCRIPTIONS

RELATIVE
STRENGTH

C1. New Product development & innovation

9/9

R&D investment through technologies in order to meet the customer needs/challenges ahead,
cross functional efficient communication based on market current & forthcoming dynamics,
secure relevant & fast introduction of high quality and innovative product offerings
C2.Commercial approach - Marketing & Sales

9/9

Marketing & Sales efficient collaboration, integrate work between brands and territories, field
force empowerment, consumer & customer centricity through brands activation toolbox
Strong company asset and global reputation within PMI affiliates due to flexibility, critical
thinking, quick respond to external environment fluctuations and open to radical internal
changes
C3.Succession of Talented managers

9/8

Systems, processes and communication that allow the talents identification, retention and
development in order to be prepared for tomorrow
C4. Corporate Social responsibility

5/6

A company that responds to societal concerns and acts in ethical manner | funding and network
because of PMI international presence & revenues
C5.Exclusive Distribution Network

7/9

Recent change of distribution network due to leadership company position and strong brands
portfolio | wholesales contribute to the company & brands image building and increasing sales
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volume

C6. Extended investment in Consumer Engagement Sales force

8/9

Priority focus and investment of the company to an expanded network of promotional teams
comparing to competition that communicate the brands with the aim to increase consumer
reach and brand image improvement
C7.Cross-functional quick and efficient communication and coordination, alignment

8/7

Efficient processes and structures that encourage efficient communication among departments
and understanding of interdepartmental requirements, eg. Marketing timely alignment with
Operations, Procurement, Product development, and Sales Forecast team for efficient
production project management and sales volumes
Opportunities or threats identification and response, alignment with corporate mission, vision
and strategy, leverage on multi-tasking employees, initiative encouragement
Honest and direct communication | Timely & constructive flow of information
C8.Speed-to-market

8/9

Local factory contributes to better alignment and understanding of the needs offering speed to
market & flexibility
C9.Learning Management

7/6

Learning opportunities through similarities & patterns identification across regions (eg. EU
region), best practices sharing through networking
Adaptive culture and learnings actionability; e.g. the difficult economic situation demonstrated
that consumers within such an environment are not open to experimentation and complex
product offerings. A price banding option with multiple new functional attributes failed while
MARLBORO Pocket Pack was a highly successful launch due to clear product proposition (The
MARLBORO taste you know in a Pocket dimension and better price)

Celebrate failure & act upon

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Key Success Factors

As a leader in the market, PMI Greece is focused on maintaining that position for years to come. As illustrated in
the figure below, understanding customer and market needs and how the company should be positioned to
survive competition are prerequisites for success. Therefore, by analyzing customer demand, it becomes evident,
that Key Success Factors for the Marketing department of PMI Greece are the following:

Strong & balanced portfolio competing in all segments

Champion innovation for the future in the context of legal restrictions
Develop leadership & managerial effectiveness

Competitive advantage
In this very difficult and demanding environment, establishing strong competitive advantages are the only way in
which tobacco companies can not only survive but lead the market and capture major shares of the market. To
this effect, Philip Morris demonstrates three areas in which they are stronger than the competition.
Customer Value
As we have highlighted, Philip Morris has a strong brand portfolio which allows it to meet customer demands in
different consumer target segments. Different customers have different demands, and the breadth of Philip
Morris guarantees that there will be a product to meet each consumers individual needs and desires. They
capitalize on this strength by offering products within brand families that respond to the both and emotional
needs that they have identified for their customers. This demonstrates companys flexibility; they are able to
adapt themselves and learn quickly, even in difficult and demanding situations and are able to respond with
meaningful and substantial innovation which is delivered to the market in a speedy manner. Finally, all of this
would not be possible if Philip Morris had not cultivated strong and mutual beneficial relationships with their
trade partners.
Resources
At the core of the companys competitive advantage are its brands and its people. Philip Morris has the worlds
top selling cigarette brand, Marlboro, with a total of seven brands in the top fifteen selling brands globally. Apart
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from their strong brand equity, they also offer high quality products. The success of the brands however is not
limited to the product they offer, as the success would not be possible without talented, committed and
passionate Philip Morris employees to promote and support them.
Value Chain activities
Philip Morris was able to capitalize on the strong relationships that they had developed in the market. To this
extent, they were the first company in Greece to radically change the distribution network environment for
tobacco companies. The distribution network of the past was well established and present for almost 50 years.
Philip Morris initiative allowed for fewer distributors that would have a stronger focus on their products and
would also realize greater margin by selling Philip Morris products as opposed to competitive brands. Therefore
distributors were given additional incentives to become brand ambassadors. Through this network, Philip Morris
was able to build on trade engagement. The distributors would be educated and engaged by the company and
would be properly positioned to effectively speak about the company, promoting it to customers. Once again,
Philip Morris demonstrates their ability to identify opportunities, act in a flexible and quick manner. They
successfully applied their capabilities of interdepartmental communication and operations and factory close to
the customer and end consumers in order to sustain and strengthen their competitive advantage.

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Strategy Map

Analyzing the strategy map from the bottom up, we can see that the main objective of the marketing department
is to have the right people onboard in the right position in order to build strong brands for a long term
sustainability. Therefore the company focuses on retaining and attracting high performance and high potential
employees. They invest heavily in their human capital with a variety of personal and professional development
initiatives and training courses. Philip Morris is confident that in this way they will enable the shaping of their
organizational culture.
Philip Morris talent will allow the company to effectively carry out internal activities such as defining appropriate
pricing, selecting effective promotion channels, focusing on targeted marketing activities and building a strong
portfolio. In order for these activities to be effective, it is critical that the utmost attention is focused on ensuring
cross-functional alignment is maximized and guidelines are followed strictly.
Careful and meticulous execution of the above activities will properly position the company to improve their
brand image and strengthen brand equity, identify consumer needs, drive product innovation and ultimately
retain attract more consumers.
Finally, success will be realized by maximizing the departments return on investment through increased market
share and revenue generation.

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Balanced Scorecard

14

Strategic Recommendations for PMI Greece

Today
To survive in todays environment and exit the crisis as a powerful and resilient company, it is critical that Philip
Morris continues to build on its action-oriented philosophy by empowering middle levels to make decisions and
reducing level and group approvals. Additionally, the company should focus on their continued investment in
systems and processes that enable sharing and best practices exchange that will lead to increased flexibility and
work de-duplication. Finally, the business should expect further communication channels restrictions and be
prepared to invest in other communication channels (trade, direct marketing communication).

Tomorrow
In the immediate future, Philip Morris will need to emerge as a leader in Product & Processes Innovation. This
means investing in infrastructure and capabilities to be properly positioned to respond to future challenges and
achieve long term targets for customers and internal processes.

Ahead
Philip Morris has all the potential to competitively lead the business into the new regulatory framework which is
in the immediate future. It is also critical for the company to identify and seize competitive opportunities that will
arise from new regulation. Furthermore, secure supply chain readiness, proper management of LOGDs (loss of
goods diminished), CAPEX and smooth implementation of initiatives will inarguably place Philip Morris is a highly
competitive position in the market.

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Appendices:
The most important resources of the company are briefly described below;
Brands
Papastratos owns brands with strong equity addressing to different adult smokers target segments. Marlboro is
the leading tobacco brand in the world and by far the number one smoking brand in Greece. The brand history
goes decades back while the logo recognition scores among the top 20 in the brands history.
L&M is a brand with high popularity across the world and the last years is being built in Greece in the below
premium price segment as a brand offering high value for money.
Among the main brands, Papastratos supports is ASSOS local brand and Philip Morris; the first one is the number
one local tobacco brand in the Greek market while the second one currently positions itself in the medium price
segment, carrying however strong brand equity and respect among niche loyal customer base.
PMI Headquarters sets the brand framework in terms of brand values, character and brand promise in universal
language across the markets. As such, Papastratos leverages on ready-made communication campaigns and
product innovation which are offered by PMI parent company. Each country affiliate based on the market
business and dynamics decides on the target audience, competition, positioning and communication channel
investment per brand.
People
Papastratos strongly communicates the idea that results and business success is derived from its people. The
company culture and actions cultivate the continuous development of people through trainings, cross-functional
moves, opportunities for mobility to other markets in order to expose to different dynamics and encourage a
broader and deeper business perspective.
The majority of people in the company feel that Papastratos is a fair working environment that offers equal
opportunities due to the appraisal system based on a common language dictionary of the core competencies
required depending on the level of management as well as the remedies and training sources for their
development. There are also structured and periodical reviews for the pool of people have been identified as
talents within company for alignment among the top managers and reassurance that the managers provide to
them all required opportunities for quick career opportunities based on their skills and aspirations.
Local Factory
Another critical resource that should be recognized for Papastratos is the factory in house which is the key
determinant for the speed to market factor. Although the last year losses in the Operating Company Income, top
management prioritizes the smooth continuation of Papastratos factory as key priority in order to further allow
flexibility and better understanding of the needs in order to provide top quality products and smoking experience
to the adult smokers.
The above resources lead to key capabilities that Papastratos leverages on in order to continuously be
competitive and response to the business challenges lying ahead.
The culture of Papastratos and the values shared among its employees on the one hand and the competencies
required along with the importance for continuous development create a philosophy of open, direct and efficient
communication among the employees.
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PAPASTRATOS Profitability
100

87,68

80
60
40
20
-6,3

-7,87

-17,86

-20
-40
2009

2010

2011

2012

PAPASTRATOS Turnover

Million

350

316,89

300

244,9
250

222,28
186,82

200
150
100
50
0

2009

2010

2011

2012

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Greek Tobacco Industry

70
60
50
40
30

58,7
47,7

20

22,5

10
0

2,9

-6,3

-10
PMI

JTI

BAT

Imperial

Karelias

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References:
http://www.pmi.com/grc/pages/homepage.aspx
2013 Philip Morris International Inc. Annual Report http://investors.pmi.com/phoenix.zhtml?c=146476&p=irolreportsannual
http://technorati.com/business/article/future-of-tobacco-industry-depends-on/
http://ec.europa.eu/health/tobacco/products/revision/index_en.htm
http://ec.europa.eu/health/tobacco/eurobarometers/index_en.htm

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