Executive Summary of the recommendation to acquire Teracycles

Executive SummaryExecutive Summary
• The report is designed by Philip Morris International in order to evaluate the
recommendations to acquire Teracycles. In the report the decision are analysed
the corporate finance even studying the outcome of those applications . By
evaluating the investment options utilizing the best option for the future growth.
Even the cash management models are studied through analysing the working
capital policy.

Strategic Rationale
• Investment needs is a vital part of the decision-making process. Some
of the main process encompassing the non-financial factors can be
seen with Philip Morris International meeting the regulatory
requirement of US norms.
• Additionally, it has emphasized on long-term sustainability initiatives
towards the stakeholders.
• The financial reasons for the investments can be recognised with
increasing net revenues, Operating income and Dividends declared
per share.

Background- Current Situation facing
the company
• In 2017, the international market share stood at 28%.
• The competing factor of the company can be traced with its excellence in the
product quality, loyalty, taste, customer service, innovation, R&D and setting of
retail price.
• The primary competitors of the company can be further depicted in terms of
three large international tobacco entities.
• The present portfolio of the company comprises of both international and local
and international brands of the is seen to be led by local brand which accounts
for 35% of the total cigarette shipment.
• Marlboro is considered to be complemented as a premium category of product
by the Parliament.

Project Objectives
 Providing a full investment analysis and recommendations which is needed for the
management for the purpose of accepting the project.
 The primary objective of the study has also included the approach which are
followed from inside the company and thee same is presented within the
investment committee of the company.
 The discussion and evaluation of the project objectives are further considered as
per the project risks, business performance and risk factors.
 The project has also aimed at discussing the main process encompassing the non-
financial and financial factors for investors. (Balazs et al. 2016).