Jim Johnston addresses his first breakfast meeting of managers. He talks about R.J.Reynolds' strengths and weaknesses, his vision for the company and what is needed to implement that vision. He points to problems confronting RJR including an acceleration in the rate of decline of smokers, an increase in prices by Philip Morris, an increase in state excise taxes, a decline in the social acceptability of smoking, the aging of the RJR customer base, their customers switching to competitors' lower priced brands, and trade loading. He cites RJR's strengths including an increase in young adults smoking Camel, Doral and Magna, effective sports marketing, excellent direct marketing, the technological capability of Tobaccoville and Whittaker Park, and computer resources. He wants to change the corporate culture, be more responsive to consumers, have tighter quality control, and support the freedom of people to choose to smoke.
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