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British American Tobacco Bangladesh

Brief description of British American Tobacco
British American Tobacco Bangladesh is one of the oldest and largest multinational companies operating for over 100 years in Bangladesh. British American Tobacco Bangladesh is a member of the British American Tobacco Group that is based in UK and one of the leading players in the global tobacco business. With a long established reputation for providing its consumers with consistently high quality brands, British American Tobacco Group was formed at the turn of the 20th century with the objective of establishing a worldwide business. British American Tobacco is World’s most global tobacco company. BAT has 85,000 employees selling more than 300 brands in more than 180 markets worldwide. Today, the company produces some 2 billion cigarettes every day. More than a billion people across the globe enjoy smoking tobacco. One in every eight chooses a British American Tobacco brand. In order to support the company’s business goals, the merger of British American Tobacco with Rothmans International had been announced on 11 January 1999. This global merger was completed on 7th June 1999. This brings together the number 2 and 4 players which together will boast a combined volume exceeding 900 billion cigarettes around the world with some 120,000 employees and a world-wide market share of 16 percent (Phillip Morris has a 17 percent share). The merger is a major step forward in British American Tobacco’s vision of becoming the world’s leading International Tobacco Company. British American Tobacco Bangladesh Company Limited, a market leader in the country, is a subsidiary of British American Tobacco PLC and is one of the 66 countries in which the British American Tobacco Group has manufacturing plants. British American Tobacco Bangladesh has operated in Bangladesh since pre-independence and has it’s headquarter in Dhaka, with a tobacco leaf processing operation in Kushtia. It is one of the oldest, largest and most respected multinational companies operating in Bangladesh. BATB markets major international cigarette brands like Benson & Hedges, State Express 555, John Player Gold Leaf and Pall Mall, which are complemented by local brands such as Capstan, “STAR” and Scissors. The company also exports processed tobacco leaf in the

So it is really difficult for the competitor to easily penetrate in the market. To compete in the market BAT Bangladesh has potential to hold their position . The Cigarette Manufacturing Factory (Dhaka Factory) is located on the same premises as the Head Office in Mohakhali. In line with the global identity change of British American Tobacco PLC. British American Tobacco Bangladesh has two factories in Bangladesh. British American Tobacco Bangladesh currently employs more than 1. The Company is listed on both the Dhaka and Chittagong stock exchanges in the country. market. 1978). . 1981). Dhaka. which lead to employee satisfaction and retention. train. This inference must be tangible and measurable. distributors and suppliers. Currently.BAT Bangladesh and Dhaka Tobacco Industries together hold more than 80% of the cigarette market share. and reward. Fifteen Practices of British American Tobacco Bangladesh 1.500 farmers. Possible reason for the success of BAT in light of such human resource practices. BTC was renamed as British American Tobacco Bangladesh Company Limited (BATB) in 1998. Employee Security BAT always said that for an organization to be successful it will have to hire.300 people and provides indirect employment to a further 24. so that they provide the best services to customers. Competitive advantage of British American Tobacco Bangladesh Competitive advantage is the unique position that an organization develops in relation to competitors that allows it to outperform them consistently (Hofer and Schendel. mainly in the European Countries with its effort to create an international market of its products. It also leads to increased profits for the organization. the best employees. The Green Leaf Threshing Plant (GLTP) is situated in Kushtia. and it must be preferable over time (South. As this definition suggests. advantage can only be achieved by establishing a clear and favorable differentiation from competitors.

that they intend to pay at the median wage for comparable people in the industry. The level of salaries sends a message to the firm's work force—they are truly valued or they are not. Selectivity in Recruiting: BAT Bangladesh is all the time serious about obtaining profits through people will expand the effort needed to ensure that they recruit the right people in the first place. It is amusing to see firms announce simultaneously that first.2. Among them: Domestic Aid’s Wage. and second. This creates a positive image for the employees. Personal / Special / Other incentives. it is nonetheless the case that some relationship exists between what a firm pays and the quality of the work force it attracts. Employee ownership: Providing the employee with stock option has positive effect on employee. 4. Transport Allowance. they compete on the basis of their people and that their goal is to have the very best work force in their industry. BAT has a large recruitment pool from where they recruit employees for the accurate position. Information Sharing: BAT follows a very open culture and information is decentralized so employees get to do their work according to the decision made by the higher level authority. BAT also follows a long process to recruit people. It provide employee with more commitment with the organization and BAT is providing the employees with the opportunity to become the part of this organization. this is to make sure about the authenticity of their personality according to human resource staff 3. High Wages: Although labor markets are far from perfectly efficient. . Incentive Pay BAT Bangladesh offer range of incentive pay to the employees. After passing the preliminary test and screening process applicants will need to go to a series of interview and they must agree to have a background check. They are extremely careful and selective in its recruiting practices. Meal Allowance. 6. Children Education Allowance 5. Medical Allowance. Utilities / Maintenance.

Their corporate culture and organizational behavior reflects the British culture and they embraced their home country culture in their Bangladeshi subsidiary as well. Employees of this organization are active and able handle the biggest percentage of market share is the market. 8. . 9. 11. They are able to minimize the gap between the owner and employee. A key part of their work is helping nurture an open. BAT Bangladesh provides On-the-job Training. Training and Skill Development: An integral part of most new work system is a great contribution towards training and development. apprenticeship Training On-the-job Training. Wage Compression: To evaluate the various components of the total compensation package BAT Bangladesh offer cafeteria benefit to the employees. This helps them to have contribution from an every member of the team and this concept is a very effective concept. where they are all aligned in delivering employee satisfaction. 12. Participation and Empowerment: The company is a British company and it is guided by their principles. Self Managed Team: One of the most interesting things among BAT is that they follow a complete self managed team. 10. Cross-Utilization and Cross.Training: Cross training program has a greater benefit to the organization because it makes employee to be more productive and able to complete multiple task. confident and winning culture. This relation is critical for the employee to sustain in the organization. apprenticeship Training program to the employee. Symbolic Egalitarianism: BAT is an example of today’s corporate culture. Employee gets to choose from combination of Benefit packages and this creates wide variation in salaries. Training and development creates skilled and knowledgeable work force.7. Employees recognize the importance of wage compression because wage compression increase wage dispersion.

1978). 16. Hofer. Measurement of the Practices: Measuring the activity of the organization is another vital factor for BAT because evry work has to be accountable to their respective authority so this reduces the misunderstanding and increases unity among the organization. For a vacant post first they search eligible candidate from the organization and next alternative is to hire the market.E. 15-25. and mobilize support from external and internal constituencies. Paul. "Competitive Advantage: The Cornerstone of Strategic Thinking.. Moreover. justify it. D. 1(4). On the other hand this increases the productivity o the employee. and Schendel. such philosophy explain what organization are doing. 15. Their corporate culture and organizational behavior reflects the British culture and they embraced their home country culture in their Bangladeshi subsidiary as well. 14. The company is a British company and it is guided by their principles. 2. MN: West.13. (St. S. Promotion from Within: When it comes promoting employee they are very concern about that fact because they belief is employee equality." The Journal of Business Strategy. C. References: 1. Taking the Long View: The Vision that motivates BAT Bangladesh employees and drives their operation is the desire to extend the market leadership through world class performance across all areas of BAT Bangladesh business. pp. Strategy Formulation: Analytical Concepts. Overarching Philosophy: Overarching philosophy is a fundamental issue that is essential organization a organization. .