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Crown Cork & Seal

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Submitted By jotace
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1. What are the key strategic issues that Avery needs to consider? What strategic options are open to him?

2. How attractive has the metal container been over the years? (Hint: use the Five-Force Framework for industry analysis)
3. How well did CCS do under John Connelly? What were the keys to the their success?
4. What significant changes are taking place in the industry? How should the new CEO, Bill Avery, respond? Is it finally the time to change the Connelly strategy that has been successful for over 30 years?

The main changes and challenges faced by the container can industry are the increment in the aluminum price, increment of the in-house manufacturing (especially in the case of glass with respect to the beers), growth of plastic as a substitute for the container cans, and diversification of the industry into totally unrelated fields.

Debido al aumento del alumnio y del in-house manufacturing, las container cans ya no son tan rentables como lo fueron en el pasado, por lo tanto debería considerar ampliar el negocio hacia otras áreas como el plástico y el vidrio ya que son los principales sustitutos de las latas y por lo tanto se especializaría más en el negocio de beverages containers. En vista de la tendencia de la industria hacia la diversificación, Avery debería ser parte de este cambio buscando la coopetencia con el resto de los participantes del mercado, tanto sustititors como complementators. La posición financiera de CCS permite una reestructuración profunda a través de la diferenciación de productos en forma vertical y horizontal, manteniendo los principios de cultura organizacional y las bases cimentadas por Connelly para así dar continuidad a la identidad empresarial que CCS posee.

Mantener la cultura organizacional de la empresa.

- Acquisition of some or all of Continental Can assets;
- Entering the plastics business, either by building internal capability or acquiring it;
- Expanding the metal container line to reduce focus on beverage and aerosol;
- Diversify into other packaging materials or product categories;
- Diversify into other less-related businesses;
- Exit or sell the business.

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