Case | HBS Case Collection | March 1989 (Revised October 1994)

Philip Morris Companies and Kraft, Inc.

by Richard S. Ruback


Gives students the opportunity to explore the effect of substantial free cash flow on corporate acquisition and operating strategies. Students are also given the opportunity to extract information from the common stock prices of the participating firms. A variety of valuation techniques are employed to assess the plausibility of a restructuring plan.

Keywords: Cash Flow; Strategic Planning; Acquisition; Strategy; Restructuring; Valuation; Stocks;


Ruback, Richard S. "Philip Morris Companies and Kraft, Inc." Harvard Business School Case 289-045, March 1989. (Revised October 1994.)