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Las Guerras Santas

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1 Introduction

This report is a reflection of the analysis made at the Crown Cork & Seal company case.

Crown Cork & Seal company was founded in the late 1800's, with the invention of the crown cork cap. After 30 years the company almost went bankrupt, at this time John Connelly became the CEO of Crown Cork & Seal. ... The main improvements John Connelly made were, centralizing support functions to the corporate level, limiting expenditures on R&D, selling slow moving inventory to settle outstanding loans and developing a long term strategy which became the foundation for an enormous growth in profit and turnover for the next 30 years. ...

In this report will be discussed the case situation by concepts of strategy and where possible some models are used, for supporting the findings in the analysis. ...

2 Market history of Crown Cork and Seal


In August 1891, a foreman in a Baltimore machine shop hit upon an idea for a better bottle cap - a piece of tin coated steel with a flanged edge and an insert of natural cork. Soon this crown cork became the hit product of a new venture Crown Cork & Seal Company. ... Since the early 1950's, American Can, Continental Can, Crown Cork & Seal, and National Can held the top four rankings in can manufacturing. ... In 1989 Crown Cork & Steal has got four big competitors, American National Can, Continental Can, Reynolds Metals, and Ball Corporation. ...

At the moment Crown Cork & Seal has to decide if they



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