Steve Darrah presents his report on Philip Morris' business activities for 1993 and 1994. His presentation includes a discussion of Philip Morris Companies' financial status, PMUSA, and competition from other tobacco companies. He lays out his assumptions about the industry in 1994, provides statistics and states objectives. He concludes with an analysis of the operations area, productivity, the manufacturing improvement process, cash flow management, a potential increase in the federal excise tax, and diversity within the workplace. Issues covered include: the impact of consumers purchasing cigarettes based on price rather than trademark, the necessity of returning to an equity-based cigarette business, the drop in prices for Marlboro, the increased interest in the Marlboro Adventure Team and the Marlboro Country store, and private brand labels.