StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

British American Tobacco - Essay Example

Cite this document
Summary
BAT is an acronym standing for British American Tobacco, a leading global tobacco company based in London, United Kingdom. For the purpose of this essay, the term will be used exclusively to refer to the British American tobacco plc together with its subsidiaries and affiliates worldwide…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER93.8% of users find it useful
British American Tobacco
Read Text Preview

Extract of sample "British American Tobacco"

Download file to see previous pages

It is documented that the company was formed in 1902 by joining Imperial Tobacco Company of United Kingdom with American Tobacco Company of USA. The resulting company was then referred to as the British-American Tobacco Company Ltd. The name later changed to British American Tobacco plc which immediately began earnest diversification in countries all over the world except the United Kingdom and USA, the parent countries. This essay attempts to present a critical appraisal of the strategies adopted by BAT since 2003, an analysis of its environment of operation as well as an evaluation of its potential to remain a major player in the global tobacco business.

There is also a brief conclusion given at the end of the essay. Since the year 2003, British American Tobacco Company put in place significant strategic initiatives which saw it grow from a regional company to a global conglomerate. To attain its current status, BAT employed a myriad of strategies. At the outset, the tobacco company decided to grow organically by increasing its market share in existing markets and also through entering new markets. This strategy required BAT to increase its market penetration in the tobacco industry while at the same time observing cost efficiency.

Interestingly enough, organic growth was reportedly very successful though with enormous cost implications. To this effect, BAT managed to increase organic sales volumes of its four main brands namely Dunhill, Kent, Pall Mall and Lucky Strike (as cited in Lee and Collin, 2006). Additionally, these top brands are reported to have seen an increase of 8% in volumes in 2003 as indicated in Lee and Collin (2006) with further expectations of even better performance in 2005. This projection in growth by volume was indicative of some organic growth especially in the face of difficult situations in some key markets (Lee and Collin, 2006).

On the other hand, to enhance its diversification programme, British American Tobacco went into partnership with R. J. Reynolds Tobacco Company on 11 June 2006 to manufacture Camel brand of cigarettes in Sweden. This marked part of the company's strategy of growth through careful acquisitions as well as some organic growth and share exchanges in the long term to realise high single figure earnings (Glantz, 2000). For this reason financially attractive mergers and acquisitions were concluded in close succession to provide BAT with growth opportunities.

A land mark acquisition came in 2003 when BAT acquired Ente Tabacchi Italiani, Italy's state tobacco company, thereby elevating BAT to the number two slot in Italy. This acquisition had come on the heels of an earlier one of Rothmans International in 1999 which had some presence in Burma (Glantz, 2000). Finally, in 2008 BAT acquired Turkey's state-owned cigarette maker Tekel (as cited in Glantz, 2000). In my commends about organic growth for BAT, its veracious appetite for market penetration raised a lot of criticism from human rights groups particularly with the Rothmans International hence forcing BAT to sell its share of the factory in 2003 purportedly after an exceptional request from the British government (Mackey, Mackey and Barney, 2007).

Advertising and promotion also marked another strategy employed by BAT since 2003. This strategy was

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“British American Tobacco Essay Example | Topics and Well Written Essays - 3500 words”, n.d.)
Retrieved from https://studentshare.org/miscellaneous/1530644-british-american-tobacco
(British American Tobacco Essay Example | Topics and Well Written Essays - 3500 Words)
https://studentshare.org/miscellaneous/1530644-british-american-tobacco.
“British American Tobacco Essay Example | Topics and Well Written Essays - 3500 Words”, n.d. https://studentshare.org/miscellaneous/1530644-british-american-tobacco.
  • Cited: 0 times

CHECK THESE SAMPLES OF British American Tobacco

Managing People - British American Tobacco

British American Tobacco (BAT) is also another big company in the U.... BT (formerly british Telecommunications) is one such company in London that provides flexible working environment.... Flexible Working Flexible working has become a common practice in the business world today....
3 Pages (750 words) Essay

The Analysis of the Contested Nature of Corporate Social Responsibility

Corporate Social Responsibility A) Explain why Corporate Social Responsibility is such a contested concept.... The analysis of the contested nature of corporate social responsibility (CSR) encompasses several observations, factors and aspects that have been assessed by researchers to comprehend the exact nature of the concept and how it impacts the operations of modern organizations with respect to the dynamics of today's business landscape....
11 Pages (2750 words) Essay

Tobacco Industry

his has resulted in the formation of the British American Tobacco company as the industry for the produce to the people for their consumption in different forms.... his has resulted in the formation of the British American Tobacco company as the industry for the produce to the people for their consumption in different forms.... tobacco is one of the farming manufactured goods that are acknowledged as being addictive drug, developed from the new leaves of the vegetation....
8 Pages (2000 words) Case Study

From Backoffice to the Boardroom: A Critique

This article entitled “Taking IT from the Backoffice to the Boardroom: Educating the Line to Lead at British American Tobacco” written by Bradley Wheeler, George M.... Marakas and Peter Brickley talks about the initiatives of the British American Tobacco company on how they… This critique would examine the different ideas presented in this article and show some point that they missed to mentioned and took into consideration in this article. The article talked about the 24 August 2007 From Backoffice to the Boardroom: A Critique This article en d “Taking IT from the Backoffice to the Boardroom: Educating the Line to Lead at British American Tobacco” written by Bradley Wheeler, George M....
2 Pages (500 words) Essay

Strategic Analysis of British American Tobacco

One of the major companies in the tobacco industry is the British American Tobacco (BAT).... In almost all parts of the world, tobacco is consumed and cigarettes are the most iconic of tobacco consumption (Moerman and Van, 2005, p.... Cigarette is a simple object made from shredded tobacco rolled on a paper and it was invented in the nineteenth century.... By 1830s, France was producing hand rolled cigarettes but this was later overtaken by pipe tobacco and snuffs that was being consumed US (Thompson, 2004, p....
12 Pages (3000 words) Essay

Analysis of Investment and Risk

The companies which have been chosen for this purpose are BG Group, BHP Billion, BP, Barclays, British American Tobacco, HSBC, Glaxo Smith, Glencore, Unilever, Tesco....  This essay discusses investment and risk.... In the field of finance, the relevance of investment and risk has its own recognition in the current economic scenario....
4 Pages (1000 words) Assignment

Marketing Plan for British American Tobacco Company (BAT)

ritish american tobacco (BAT) has market presence in more than 200 countries across the world but has received criticism due to its controversial products that have adverse health effects on the consumers.... The report entails the marketing plan of BAT and considers the current marketing environment, situational analysis and marketing objectives that should be implemented in order the changes in consumer attitudes towards consumption of the traditional tobacco products such as cigarettes and cigars....
7 Pages (1750 words) Essay

British American Tobacco Services Marketing Mix

This work called "British American Tobacco Services Marketing Mix" describes the service market mix for British American Tobacco.... British American Tobacco (BAT), operate in a highly controversial market since the main products offered are cigarette....
7 Pages (1750 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us