REPORT ON

Coordinator/Instructor: Zerin
Momtaz Chowdhury (ZMC)
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NAME & ID

TASNIM AKTER MIM 2021424630

Chowdhury Hisham Bin 2031569630
Alim

Fatin Tajuer 2132048630

Ajmain Faieq Abir 2131946630

MD. ASHABUL MAHMUD 2131221630

Jahid Al Meraj 2131343630

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TABLE OF CONTENT

EXECUTIVE SUMMARY 4

External & internal situation analysis 5-6

Swot analysis 7-8

Bcg matrix 9

Strategies 10-11

Covid-19 12-13

Bibliography 14
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EXECUTIVE SUMMARY

By 2025, the number of individuals dying each year from tobacco-related diseases will have increased from 3.5
million to 10 million. In recent years, Philip Morris, RJ Reynolds, and British American Tobacco (BAT) have
all seen a double-digit increase in foreign cigarette sales. Philip Morris and RJ Reynolds are currently selling
more cigarettes outside of the United States than they do in the United States. The tobacco business has been
revolutionized all over the world as a result of its international development. Cigarette businesses are among
the world's most affluent advertisers. To escape the legal, political, regulatory, and cultural issues they confront
in the United States, cigarette firms spend millions of dollars lobbying. Cigarette firms have always been able
to count on the full assistance of the United States government to help them sell cigarettes all over the world.
The fear of sanctions was utilized by the US Trade Representative, working hand-in-hand with the tobacco
industries, to pry open critical markets in Japan, South Korea, Taiwan, and Thailand in the 1980s. Even though
the United States Congress has made some efforts to curb these abuses, cigarette corporations are still exploring
new ways to expand international markets under the pretense of "free trade." They've tried to tie China's
membership in the World Trade Organization to the openness of its cigarette market. They're pushing for
approval of the Multilateral Investment Treaty, which would give them more leverage to challenge nations'
tobacco control policies. Approximately a third of all cigarettes entering international trade are illegally
smuggled to avoid taxes and import restrictions each year. Analysts believe that tobacco firms encourage and
profit from smuggling, and there is strong evidence from court cases in Canada and Hong Kong to back this up.
However, these corporations have increasingly employed tobacco farms outside of the United States in
domestic and international facilities. Most of what they buy comes from Universal Corporation, Dimon
Incorporated, and Standard Commercial Corporation. These three enormous U.S.-based firms dominate the
worldwide tobacco leaf trade and have begun to play a vital role in funding international tobacco.
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External & internal situation analysis

The term "internal environment" refers to all of the factors and situations within a firm and can influence how
it operates. Exogenous influences that can affect the organization's performance, profitability, and operation are
referred to as the external environment. The internal environment depends on the customers, competitors, and
suppliers. The external environment depends on technological, political, environmental, and social factors.
British American Tobacco Bangladesh is a Direct Reporting Business Unit (DRBU). (British American
Tobacco Bangladesh - About Us, n.d.) Most of the customers of BATB are smokers as their main product is
cigarettes. As BATB produces cigarettes of various price ranges depending on the customers’ affordability, they
can reach customers of different classes all over Bangladesh. The Bangladeshi society does not support
smoking and sees it as a bad influence on the younger population. Smoking is harmful to smokers and the
people around them. BATB doesn't encourage creating more smokers, but they generate quality cigarettes for
the customers to smoke a better cigarette, and it doesn’t harm them as much as the other cigarettes do. There is
also gender inequality in the acceptance of smoking. So most of their customers consist of men because of
social and cultural factors.
The government has artificially raised tobacco prices in Bangladesh to decrease tobacco usage in recent years.
However, price regulation has had a negative trade-off. Price-stressed customers turn to illegal items, resulting
in a loss of government money that could have been utilized for public welfare and infrastructure development.
Climate change and natural habitat issues have risen, especially since the pandemic has brought the necessity
of a stable ecosystem to the forefront of public attention. Bangladesh is no exception, as the government strives
to combine its development aspirations with the need to preserve and conserve the environment. At BAT
Bangladesh, they support the government's objectives and work hard to establish new environmental measures
that will help lower the overall carbon footprint. They have achieved incredible successes across their
organization, including 98 percent garbage recycling, widespread use of renewable solar power in our
manufacturing, partially offsets grid-based electricity, and deliberate attempts to attain 100 percent water
recycling by 2022.
BATB gets its supplies of tobacco from its farmers. They have a different company called LEAF to research
tobacco leaves and seeds. They get the main supply of tobacco from there. The other products like paper are
mainly exported from various places. As they produce their own tobacco, they can ensure the quality of their
cigarettes.
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The technological factor is vital for BATB as the production depends mainly on the machines. Improving
technology is a constant process, which needs continuous improvement over regularly modifying machines, but
they are changing the devices regularly. They also have supervisions and servicing regularly.
The main competition BATB gets from local brands and a multinational company, Japan Tobacco INC (JTI).
BATB produces various kinds of cigarettes, facing competition from multiple companies for multiple products.
The lower segment cigarettes like Derby and Hollywood are superior in the market and do not have much
competition. Like Star, the cigarettes that are valued for money do face competition from the Navy, but Star has
the upper hand in the market share. For aspirational premium cigarettes like Goldleaf they don't have any
serious competition, and they are the market leaders in that segment. However, they face tough competition for
their premium cigarettes like Benson & Hedges. They mainly face competition from Marlboro for premium
cigarettes. However, they have a better reach and distribution for premium cigarettes to reach them outside the
main cities.
The management of BATB appropriately handles the internal and external situations and factors. They are not
facing any significant troubles from the external and internal problems, which will have a setback in their goal.
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Swot analysis

SWOT analysis is a cipher of Strengths (S), Weakness (W), Opportunity (O), and Threats (T). It is a strategic
planning tool that every company uses to know the position of their business in the recent market. So British
American Tobacco plc. Managers also do a situational analysis in their business. Now, we will talk about
SWOT analysis in British American Tobacco plc. (Guide, n.d.)

British American Tobacco plc. is a market leader in the tobacco sector. They maintained their place by doing a
SWOT analysis. SWOT analysis is an interactive process that effectively coordinates among different
departments within institutions such as strategic planning, management, finance, and marketing and
information systems.

A business SWOT analysis identifies the internal and external strategic factors. Strengths and weaknesses are
inner, and the opportunities and threats are external strategic factors—the British American Tobacco plc
managers. Take help from SWOT analysis to develop their four types of strategies. One of the main goals of a
SWOT analysis is to determine what methods a business can use to take advantage of external opportunities,
counter threats, build on and safeguard British American Tobacco plc. Strengths, and eliminate its weaknesses.

Strengths of British American Tobacco plc.:-

As a leader in its company, British American tobacco has a lot of strength to grow its business at the upper
level. Like,

1. British American Tobacco plc. has invested much in creating a solid brand portfolio throughout the
years. British American Tobacco plc reinforces this fact. SWOT analysis. This brand portfolio might be
precious if the company wants to branch out into new product categories.

2. Reliable raw material suppliers – The Company has an extensive network of reliable suppliers, allowing
it to bypass any supply chain bottlenecks.
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Weakness of British American Tobacco plc.

Weakness is an area where a company develops its lacking. And they are built on their competitive advantage
and strategic exiting. Like,

1. Financial planning is ineffective. So the current asset ratio and liquid asset ratios indicate that the
corporation can better use its cash than now.

2. There are some gaps in the company's product line. This scarcity of options may allow a new competitor
to get a foothold in the market.

Opportunities for British American Tobacco plc.

Many opportunities take a business to show their performance in this recent market. Like,

1. Reduced transportation costs, as a result of decreased shipping costs, can cut the cost of British
American Tobacco plc. Products give the corporation the option of either increasing profitability or passing on
the savings to customers to win market share.

2. Lower inflation rate - A lower inflation rate provides better market stability and allows British
American Tobacco plc. Clients obtain credit at a lower interest rate.

Threats British American Tobacco plc.

Many threats are faced in the marketplace to exit their business. Like,

1. The present physical infrastructure-driven supply chain paradigm may be threatened by changing
customer buying behavior through internet channels.

2. In the medium to long term, new technologies produced by a competitor or market disruptor could
threaten the sector.
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Bcg matrix

The hottest selling product of the British-American Tobacco Bangladesh (BATB) company is Gold leaf. Due to
solid brand and range activations, John Player Gold Leaf had a 12 percent increase in volume this year
compared to the previous year. BATB intends to invest in marketing campaigns to keep this main product area
growing. Benson & Hedges is the standout company for BATB, which is highly competitive in the market.
Benson & Hedges avoided any volume losses compared to the previous year by addressing the price increase
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(17%) impact by offering consumer-relevant improvements. Because the brand is also sold in duty-free stores,
any future price adjustments must be made with caution and prudence to avoid an inflow of duty-free cigarettes
entering the nation. Thus, Benson & Hedges is regarded as the cash cow as it has a considerable market share
and low market growth as they are already popular in demand. On the other hand, Capstan is BARB's least
selling product this year and the previous year. The market is such that BATB decided to stop the production of
this company’s cigarettes by this year. The brand image and popularity are not good in the market; thus, it had a
low market share and growth making it the dog.

Strategies

Tobacco Marketing Strategy

Regardless. Thus, where they are in the shop network or target a B2B or B2C audience, tobacco organizations
must adopt a specialized marketing strategy to successfully sell their products and services. Following that,
we'll go over the most common tobacco showing tactics.

1. Market/product enhancement approach

An item/market improvement technique entails creating new things or altering old ones and selling them to
existing or new business sectors. These approaches frequently appear when there is little room for advancement
in an organization's present market.

The four most common techniques in this classification are derived from the Ansoff Matrix (below): market
entry (developing sales of an existing item in existing business sectors), market improvement (dispatching a
current article in another market), item advancement (bringing an existing object into another market), and
expansion (bringing another thing into another call).

2. Income procedure

An income model approach (or, more casually, a company system) is a strategy often centered on framing an
item or administration by which promoting or permitting income can be made in this manner, or, more
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completely, a methodology focused on producing income.

This technique is followed by magazines and distributes, but on other levels where a client base is usually
worked to be exploited. In this case, the article group is authorized to write material packed into a printed
distribution and for a web-based crowd that can buy-in, which is then used to drive promotional cash from
organizations that wish to publicize to this crowd. Co-branded innovations and rundown rentals are prevalent in
this area. They are not restricted to media and distribution associations alone, as other organizations outside of
this space can use this approach to achieve their business objectives.

3. Target showcasing technique

Each tobacco promoting technique will involve a component of focus. Focusing on enables organizations to
narrow their focus and target their marketing efforts and messaging to a specific market segment, making them
more relevant to the crowd and increasing their chances of becoming a client or customer and essentially. Then,
focus on the clientele that an association can best serve.

4. Situating and separation procedure

The preceding section briefly examines positioning and separation in areas and sub-markets - elements that are
important to the client. On. Companies can position their items and administrations based on four criteria:
product quality, administration quality, pricing, and satisfaction time. By examining your inner attributes and
contrasting them with those of your competitors, a separation process that sets your contribution above those of
your competitors can be achieved, giving the association an advantage.

5. Techniques for gaining client commitment

A well-known method that most firms will employ in one direction or another. The strategy aims to create
compelling content and experiences, as well as to foster connection and investment.

6. Multi-channel techniques

A multi-channel advertising correspondences technique investigates numerous types of client contact with an
organization to see how these touchpoints might be integrated into a marketing plan to achieve goals.
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Covid-19

Finally, how Covid-19 has influenced managerial issues of the organization?

From manufacturing to marketing, all significant businesses worldwide are changing how they operate in the
wake of the deadly coronavirus. As a response to the outbreak becomes a long-term shift in how people work,
organizations that support and adopt new ways of working can thrive more than the others going forward. The
new working conditions for organizations include diverse factors such as employee experience, digital tools,
and talent acquisition to implement such seismic shifts effectively. Businesses need to rapidly adjust to
changing needs of employees, suppliers, and customers while navigating the financial and operational
challenges. The coronavirus pandemic has made this question more urgent. Workers across industries must
figure out how they can adapt to rapidly changing conditions, and companies have to learn how to match those
workers to new roles and activities. It is about how leaders can reskill and upskill the workforce to deliver new
business models in the post-pandemic era. (COVID-19 and Reskilling the Workforce | McKinsey, n.d.)

What is the organization’s strategy to combat?

The rapidly evolving threat around the COVID-19 virus, commonly referred to as coronavirus, is impacting the
business and investor community across the world. Today’s business environment’s global and interconnected
nature poses a severe risk of disruption of global supply chains that can significantly lose revenue and adversely
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impact global economies. The impact on the worldwide economy may increase depending on the extent of the
geographic spread of the virus. However, the pandemic has already negatively impacted the global economy.
(COVID-19 Impact on Organizations: A New Reality Amidst the Chaos of Crisis - LightCastle Partners, 2020)

Companies take measured approaches to safeguard employees and mitigate financial and operational exposure
as the event evolves. For example, at the time of publication of this paper, many multinational businesses have
reduced the output of facilities and or suspended operations in affected regions, as travel restrictions, mandatory
social distancing, and homeworking have been invoked. Companies and governments around the world
continue to monitor the situation closely.

While cyber risk is a relatively recent consideration in resilience planning, companies have long maintained
various resilience plans for business continuity, disaster recovery, and crisis management. While effective for a
range of business disruptions, these plans may fall short during a global crisis such as coronavirus or other
pandemic events. Companies must incorporate pandemic planning considerations into existing resilience
management activities to provide a comprehensive response and continuity for their most critical products and
services. Additionally, companies should consider establishing pandemic-specific policies and procedures,
capabilities for employee communications, telecommuting, and personal/family leave to minimize disruptions.

During the Ebola crisis, for example, a company operating in West Africa set a goal of rapidly improving its
post-crisis performance. It executed a large-scale skill strategy that made the return to the physical workplace
smoother, introduced new skills and training that boosted performance, and, last but not least, worked to create
a more deeply engaged workforce. The company distinguished between critical and noncritical skills for the
return and, realizing that its workforce lacked flexibility, moved to upskill people in adjacent skill areas. For
instance, truck drivers learned how to be excavator operators. This approach yielded multiple benefits for the
organization. COVID-19 has accelerated the adoption of entirely digitized strategies to re-create the best of
in-person learning through live video and social sharing. (COVID-19 and Pandemic Planning: How Companies
Should Respond | EY - Global, 2021)

Opinion: To meet this challenge, companies should craft a talent strategy that develops employees’ critical
digital and cognitive skills and adaptability and resilience. Now is the time for companies to double down on
their learning budgets and commit to reskilling. Developing this muscle will also strengthen companies for
future disruptions.
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Bibliography
British American Tobacco Bangladesh - About us. (n.d.). British American Tobacco Bangladesh - About us.
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COVID-19 and pandemic planning: How companies should respond | EY - Global. (2021, NOVEMBER 30).
COVID-19 and pandemic planning: How companies should respond | EY - Global. Retrieved
DECEMBER 18, 2021, from
https://www.ey.com/en_gl/covid-19/covid-19-and-pandemic-planning--how-companies-should-respond
?fbclid=IwAR1Ol915sqfnXeAD_bVX5K2OFfAKnqrzzdpaAxxL5Mno17-QYrQ3yc6GEJ0

COVID-19 and reskilling the workforce | McKinsey. (n.d.). McKinsey & Company. Retrieved DECEMBER 18,
2021, from
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COVID-19 Impact on Organizations: A New Reality amidst the Chaos of Crisis - LightCastle Partners. (2020,
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Ks
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Guide, S. (n.d.). British American Tobacco plc [SWOT Analysis] Weighted SWOT Matrix. Fern Fort University.
Retrieved December 18, 2021, from
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