Work Sheet for Case

RAJAGIRI COLLEGE OF SOCIAL SCIENCES (AUTONOMOUS)

(Affiliated to Mahatma Gandhi University, Kottayam)

STRATEGIC MANAGEMENT
ASSIGNMENT
CASE STUDY
“CROWN CORK AND SEAL IN 1989”

SUBMITTED TO
Dr. SMITHA R NAIR
ASST. PROFESSOR

BY
RIYA VARGHESE
ROLL No: B2286

MASTER OF BUSINESS ADMINISTRATION (MBA)

(2018 – 2020 Batch)

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 Work Sheet for Case
Name: RIYA VARGHESE Enrollment No: B2286

Case Name/No: CROWN CORK AND SEAL 1989

Identify the issues/problems : Identify the type of case and the problem(s) or issue(s)
contained therein. You will focus your analysis on them.

This case is an elaborative type of case study.

The key issues or problems in the case are:
 Whether or not to get involved in the bidding for continental can
 Whether to expand their product line beyond metal cans
 Whether to enter the plastic container industry as a growth agent.

Recapitulate all principles, frameworks or theories that can be applied to this case.

1. Porters five forces model can be used to do the market analysis

2. SWOT analysis can be also used

List relevant qualitative data : Evidence related to or based on the quality or

character of something.

 Crown prospered in the 1930’s selling more than half of the US and world
supply of bottle caps.
 When Crown started facing losses Conelly began buying its stock in 1956.
 He reduced and eliminated 1647 jobs as a part of corrective action. He took
control over stocks.
 He invested in number of developing nations and also exited from the oil can
market. He provided good and flexible working conditions for his employees by
a 12 hour working shift He formed s wholly owned recycling subsidiary.
 He invested in R&D He focused on both effieciency and quality by providing
good quality customer service.
 He improved the financial structure of the company by reducing the debt/equity
ratio.

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 Work Sheet for Case

List relevant quantitative data: evidence related to or based on the quantity or

number of something- cull it from the case.

 Auction of 24% of jobs Increase of Sales from $115 miilion to $176 million 14%
increase in profits.
 Spending of $82 million on rellocation of facilities.
 Crown invested $10 million in recycling. $120 million of new equipment installed.
Reduction of debt/equity ratio from 42% to 18.2% to 5% Investment in the
international market that generated 44% of sales and 54% of operating profits.
 Crown’s worth was $30000 million in 1989.

List the results of your analysis: What are the interpretations that may be proposed
based on the evidence you have gathered.

Crowns overall performance imposed under the leadership of John F Connelly rather than
McManus. The company paid pf the bank and reduced the debt equity ratio to less than
2%. Focused on location i.e. went close to customers rather than raw materials. The
company has high competition and it has a great scope on expanding to the international
market.

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 Work Sheet for Case

Identify alternative actions: List and prioritize possible options based on your analysis
(actionable items alone).

 The company can improve on their research and development division.

 Expansion of company nationally and internationally.
 Improve recycling
 Expansion of product line (plastic and glass)

Select your preferred action plan: Recommend the way forward : it may have steps
to be taken in the short term, medium term and long-term.

Short term: improve recycling, maintain relationship with customers

Medium term: expansion into the international market, enter into the plastic container
industry

Long term: acquisition of continental can for the better growth, controlling of costs and
quality of customer service

Your comments & observations

There is a lot of risk involved when we change the business strategies. The people
behind decision-making should consider all the factors.

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