Crown Cork & Seal in 1989

Group-4

What are the key strategic issues that Avery needs to consider?
What strategic option are open for him?

Growing opportunities in plastic containers and glass

containers, since slow growth in metal containers.?
Whether or not to get in the bidding for continental
Can?
Options in front of him:
Diversify beyond manufacturer of container since
Crowns competitors had expanded in variety of
directions.?
Acquisition of Continental Can
1. Largest single presence outside US
2. CCC would double size of domestic operation

metal, plastics, and glass container industry.

Crown cork was revived under john Connelly as he stepped up as the president of
crown cork, when the company was on the verge of bankruptcy .The companys
vision changed to emphasize on cost efficiency, quality and customer services.
This was done by recognizing crowns position as a small producer and developed a
product line built around the companys traditional strength in metal forming and
fabrication.
Industries Attractiveness
Declining profit margin
Standardized Items
High requirement of capital to enter the market.
Highly Competitive with a small number of large Competitions

Crown Cork was doing great under John Connelly.

Their keys to their success was the change in the following functional
company policies
Product Line
Marketing
Manufacturing
Research & Development
Organization
International Market Strategy
Financial strategy

In light of changes happening in the industry how shall Avery

responds? Is it the time to change the Crown strategy?
Buy all or part of Continental Can can help Crown Cork as..
They would be co-equal leader in the world with Pechineys American
National
Acquiring Continental Canada would make Crown the leading supplier of all
types of cans in Canada
This can help Crown cork to diversify their business segments & would be a
departure from Crowns traditional strategy but it could be justified as
similar to its country-based strategies in the rest of the world.
Due to this acquisition, Crown cork can become second largest
manufacturers of Can in US with market share of nearly 32%
They can get opportunity to enter in to upcoming Plastic Can Manufacturing
segment which is having potential to become future of packaging industry.