1. CNP532 Crown Cork & Seal Case Study

2. Factors affecting competition Self-manufacture Self-manufacture New materials (Aluminium, Plastic, Fibre-foil) New materials (Aluminium, Plastic, Fibre-foil) New production processes (Two piece cans) New production processes (Two piece cans) Changing customer needs Changing customer needs Distribution distances and costs Distribution distances and costs Changing government regulations Changing government regulations

3. Have these factors changed over time? Government regulations changed Government regulations changed Removal of CFCs from aerosolsRemoval of CFCs from aerosols Single use cans / recyclingSingle use cans / recycling Recommendation of two piece cans by FDARecommendation of two piece cans by FDA Consumer acceptance of new products Consumer acceptance of new products Fibre-foil, AluminiumFibre-foil, Aluminium

4. Crown Cork Strategy High level of customer service High level of customer service Personal involvement by PresidentPersonal involvement by President Stick to core tin can business Stick to core tin can business Low R&D costs, focussed on customer requests not new products / incremental change to existing product lines Low R&D costs, focussed on customer requests not new products / incremental change to existing product lines International expansion in developing countries International expansion in developing countries Low debt-equity ratio Low debt-equity ratio Streamline workforce Streamline workforce Re-use of old equipment in new products (tin aerosol cans) Re-use of old equipment in new products (tin aerosol cans)

5. Advantages of size Ability for the president of the company to get involved with customers Ability for the president of the company to get involved with customers More responsive to customer requests More responsive to customer requests

6. Financial Performance High return on equity by focussing on core tin can business and low R&D costs High return on equity by focussing on core tin can business and low R&D costs Reduced debt resulted in a better equity/debt ratio than American or Continental Reduced debt resulted in a better equity/debt ratio than American or Continental Higher income as % of sales due to efficiencies Higher income as % of sales due to efficiencies

7. Major problems Regulations limiting the use of non- recyclable containers Regulations limiting the use of non- recyclable containers Growing market share of aluminium, lack of aluminium production facilities Growing market share of aluminium, lack of aluminium production facilities Lack of innovation in new technology Lack of innovation in new technology

8. Recommendations Innovation in new products Innovation in new products Aluminium, Plastics, Foil-fibreAluminium, Plastics, Foil-fibre Continue international expansion Continue international expansion Strategic acquisitions Strategic acquisitions