Crown Cork And Seal

4890 Words20 Pages
Executive Summary Crown Cork & Seal Company was founded in the late 1800’s, with the interference of the crown cork cap. Crown Cork & Seal Company, Inc. is one of the world's leading packaging manufacturers, making one out of every five beverage cans used in the world and one out of every three food cans used in North America and Europe. In addition to making metal food and beverage cans, Crown Cork also produces other metal packaging, including aerosol cans, specialty packaging, can ends, and closures and crowns. The company also makes plastic containers for beverages, food, household and industrial products, personal care products, cosmetics and fragrances, and medical and pharmaceutical products; composite packaging, such as that used for frozen juice concentrate; and can making equipment. (CCS 1) In the face of a changing business landscape in the metal can industry, William J. Avery, Crown’s new CEO, had planned on revising his forerunner, John Connelly’s business strategy. Suppliers and customers of can makers were beginning to integrate into can makers themselves, which was redefining the metal industry. Under Connelly, Crown attained success over three decades due to Connelly’s strict strategies, which emphasized cost efficiency, quality and customer service. Avery was trying to determine whether or not to break with tradition or expand Crown’s product line due to the changing nature of the metal can industry landscape and/or participate in the supplier and customer consolidation that had become traditional in the metal can business. In order to understand how the industry is changing, the company first look at the forces involved and trends that are emerging. One fact in particular that immediately stands out is that industry operating margins began to fall in spite of persistent demand for metal cans. This can be attributed to several
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