Professional Documents
Culture Documents
British American Tobaco Bangldesh
British American Tobaco Bangldesh
British American Tobacco P.L.C. is the worlds most international tobacco group.
Based in London, UK it is a market leader in more than 50 countries selling over 300
brands in some 180 markets world-wide with the strength of almost 90,000
employees.
British American Tobacco Bangladesh, a market leader in the country, is a subsidiary
of British American Tobacco p.l.c. Operating in Bangladesh since pre-independence,
the company headquarters and cigarette factory are based in Dhaka, with a tobacco
leaf processing operation in Kushtia. The company employs more than 1300 people
and provides indirect employment to a further 24,500 farmers, distributor and
supplier. British American Tobacco Bangladesh is a company with world class
people, products, system, process and tools.
We are the first company in Bangladesh to be awarded Class A status as part of the
international and prestigious total business excellence programmed, MRPII, audited
by internationally renowned consultants Oliver Wight. We have a total company
commitment to excellence and drive for continuous improvement, aspiring to be
among
the very best in the world.
Our world class people work as a team to meet challenges in an ever-changing
business environment. We have an open and transparent culture with customer
service that exceeds expectations. We continuously seek to improve our
manufacturing efficiency without compromising on quality. As a result our company
is recognized as benchmark for quality in the region when we were the first
company to be given the license to manufacture Benson & Hedges in-house, within
this region of BAT Group which stretches from Pakistan to Australia. Our utilization
of information technology is at the core of our business strategy and is a benchmark
among other fast moving consumer goods companies in the country.
BATB give too much priority to internal communication so that they can meet
customer need effectively. They have own intranet within their organization to
maintain communication to everyone in the company. They always try to meet
customer expectation by maintaining a standard level of communication.
1.1 Background:
To be operating in a controversial and challenging industry like the cigarette
industry successfully, communication plays a very important part. It is the
responsibility of the
communication and the trade marketing team together to let the consumers know
about the new products or changes in the existing products; this becomes even
more challenging as they can not promote their products using any media vehicle.
Besides tasking care of the new regulations and talking to stakeholders is also a
very important role for the communication team. Internal communication, that is
letting the employees and factory workers know more about their product and
leasing their cognitive dissonance through proper communication and keeping them
informed about the company happenings, is even more important.
1.2 Objective of the study :
Measuring the effectiveness of the tools used for internal communication in British
American tobacco Bangladesh.
1.3 Scope :
The study was limited to the permanent employees of British American Tobacco
Bangladesh. No comparison or analogy has been drawn taking other BAT companies
or other tobacco companies in Bangladesh. The survey respondents were asked
questions about the tools and services driven by BAT Bangladeshs CORA
Communications team. Other forms of organizational communication were not
taken into consideration.
1.4 Methodology :
The report is mainly based on the survey findings. So major part of the report
represents the survey result and analysis; hence most of the information is primary
a few officials were questioned regarding the products, their price and placement.
Some information about the company and its operations has been taken from the
brochures and previous reports.
1.5 Sources of data collection:
The primary respondents were the employees of company. Both management and
non management employees were considered to get a clear and non biased answer.
The sample size taken was 37 for management and 33 for non-management
employees that make it a total of 70 employees.
The sampling method adopted is stratified clustered sampling. It was kept in mind
that almost all the strata have at least one representative in the survey. to keep the
survey unbiased, employees from all job grades and territories were brought under
the survey. Separate questionnaire (English and Bangle) for both management and
non management employees were prepared. The questionnaire was prepared based
on semantic differential and Likert scale and ratings. The sample questionnaire can
be found in the annexure.
1.6 Activity Schedule:
Activity 1 2 3 4 5 6 7 8 9 10
A
B
C
D
E
F
G
H
I
J
Activities:
A= Collecting information about the research contents and theory.
B= Preparation of proposal for research.
C= Collect informal information about priority banking.
D= Directly observer
E =Selection of samples.
F =Asking the internal employees.
G=Organizing and evaluating collected information.
H=Preparing the final report.
I=Assessment by the course instructor.
J=Submission of final report.
1.7. Limitations:
Although while conducting the survey, the employees of BAT provided great support
but there were sonic unavoidable problems that worked as limitations.
Conducting the survey proved to be a bit difficult as it included both the
management & non management workers. The management employees part was
manageable as they more or less were able to comprehend the questionnaire.
Although they were not willing to sacrifice much time for the survey but they
answered by understanding the essence of the survey.
Though some questionnaire was sent outside Dhaka, but the number was not
substantial, so the survey results are biased towards die employees of the Dhaka
Head office to some extent.
But with the non-management workers, it was a bit difficult to make them
understand the scale and rating, and in some cases, they gave wrong ratings.
Getting the factory workers in the working hours was a bit difficult, so 1 had to
wait for the road show. I was able to attend only one road show as others were
scheduled in the night shift.
1.8 Conceptual framework of the report:
This study seeks to analyze the role played by Internal Communication in British
American Tobacco Bangladesh; how this role is accomplished and how effective
Internal Communication has been in fulfilling this role. The problem statement
from the client (British American Tobacco Bangladeshs Corporate Communications
Team) Was:
How effective are our Internal Communication tools and service in aligning our
employees with the companys business strategies and objectives; and how
satisfied are the users with the tools and services?
2.0 Overview of the Industry:
The industry background includes the background of the product category, current
situation of the industry, the competition, the segments in which the companies
operate and the environmental analysis.
2.1 Major Brands, Manufacture and Segments:
British American Tobacco Bangladesh has been present in Bangladesh for a very
long time and it is still doing its business dominantly with four of its key drive
brands i.e.
Benson & Hedges, John Player Gold Leaf, Pall Mall and Star. Among the competitors,
Dhaka tobaccos Navy gives good competition to Star into he Tk 1 segment. The
other brands present in the market are:
The industry life cycle has been shown in the following:
The cigarette industry in our country is still in a growth stage mainly because,
among all the tobacco products most are Bidi and low priced brands. Among the
cigarette brands, the most sold ones are tk 1 brands; like for BAT the brand that
sells with the largest volume is star. The following table represents the current
situation of the brands sale:
The table shows that a higher priced brand that is in the higher segment of the
market is far below the sales volume of the other lower priced brands. The highest
selling brands are Star and Navy. This shows that the cigarette industry is mainly
depending on the high volume but the profit margin is very minimal. With star, BAT
is selling a lot, but they are literally making profit near to zero. An industry liked this
which is living on volume more than value can be called to be in the growth stage.
2.3 SWOT Analysis:
SWOT analysis is done to find out the factors important to the operation of a
business in the environment, both internal and external. The internal factors help to
find out the strength and weakness; the threats and opportunities can be
comprehended by scanning the external environment. The SWOT analysis of the
cigarette industry is given below:
Strength:
Because of high regulations, high cost and high entry barriers, new entrants are
discouraged, which is good for the current and already established market players.
As they are not allowed to go for public promotion, the tobacco companies can
use their resources for other purposes. Like BAT is investing for and increasing their
filed force.
Weakness:
Dealing with a product which is sensitive in may issues.
Can not promote their products using public media vehicle.
A high volume but low value industry
Opportunity:
In Bangladesh, tobacco market is pretty strong. Among the sale of all tobacco
products, 68% is Bidi and the rest 32% is cigarette. But with the up gradation of
purchasing power and good economic condition, high rate of migration from Bidi to
cigarette is also expected. Even now; the migration rate is good enough to sustain
the cigarette industry. Total no even if reduce, but the migration will make it
sustainable. The cigarette market depends not on increasing number of customers,
but on switching to cigarette brands.
Threat:
Increasing amount of awareness among the consumers about the health hazards
caused by smoking.
Increasing number of regulations and laws imposed by the government about
smoking and selling cigarettes.
2.4 PEST analysis:
A PEST analysis is an analysis of the external macro-environment that affects all
firms. PEST is an acronym for the political, economic, social and technological
factors of the external macro-environment. Such external factors are usually beyond
the firms own control and sometimes present themselves as threats. For this
reason, some say. PEST is an appropriate term for these factors. However, changes
in the external environment can also create new opportunities and so the letters
can be rearranged to construct the more optimistic team of step analysis. The next
page shows how PEST analysis is helpful in analyzing the overall environment.
The following are examples of some of the factors that might be considered in a
PEST analysis:
Political:
Government regulations have increased in the recent years. Tobacco companies can
not use any vehicle to promote any of their products and they also can not organize
any event.
Or competition with their brand name. That is the reason BAT had to stop organizing
a popular program of their B & H Star search.
Economic:
Usually price increased do not affect the brand loyal segment, but the lower
segment gets influenced with he price increase. Like, even if BAT increases the price
of B & H, it might not affect the brand loyalty of the customers, but the price
increase of JPGL or star may influence the customer to shift to navy. Price increase
may depend on lot of factors, like increase in tax or the price increase of the raw
materials. And with his increase in the purchasing power and economic
emancipation, consumers will shift to higher segment brands; like every year a big
number of people migrate to cigarette from bidid.
Social:
Increasing awareness of the consumers might well affect the sale of the brands.
Increasing health campaign, awareness and lifestyle of people also affect the
consumption of cigarettes. Like more stressful life can lead to more consumption of
cigarettes. People also get influenced in choosing their brands influenced by their
peer or reference group.
Technical:
The production of cigarettes and quality control and checking can have influence on
the overall production process to a great extent. Import of new machinery includes
a lot of internal communication with the factory workers to make them understand
the operation and also to reduce their fear of getting laid off because of the new
machinery.
2.5 History of Tobacco:
1,000 BC
Ancient temple caring depicts Mayan priests in Central America Smoking tobacco
through a pipe. Tobacco leaves become widespread in medicine for use on wounds
as a means of reducing pain. Later the Aztecs incorporate smoke inhalation into
religious rituals.
Two castes of smokers emerge: the pipe smokers at the court of Montezuma and
lesser Aztecs who roll the leaves into crude cigars.
470-630 AD
Mayan tribes begin to scatter and tobacco travels with them. The leaf moves
southwards to South America where it is wrapped in maize and palm leaves and
smoked and north where it is introduced to the native Americans into him
Mississippi area.
In North America pipes are made from clay, marble or lobster claws. Some pipes
with two stems, are used for inhaling through the nostrils. Tobacco chewing is
common, especially in South America, where the leaf is mixed with lime.
1492
Arawk people in the Bahamas, on an island Christopher Columbus christens San
Salvador, offers the explorer dried leaves. Not understanding their significance,
Columbus discards them. A month later Rodrigo de Jerez and Luis Torres returning
from a trip into the interior of Cuba- Stumble on villagers inhaling the smoke from
burning dried tobacco leaves through a hollow Y-shaped piece of cane called a
tobacco or tobacco. Jerez is though to be the first smoker outside the Americas.
When Jerez returns to his home town of Ayamonte, during the Spanish Inquisition,
the holy inquisitors accuse him of consorting with the devil when they see smoke
coming from his mouth. He is imp rosined for seven years. By the time he is
released, smoking is a custom in Spain. Jerez perhaps sets a precedent for the
plants controversial future.
1518
The discoverer Juan de Grijalva lands in Yucatan, Mexico, and sees local people
smoking tobacco leaves. The following year, the conquistador Cortez finds Aztecs in
the capital of Mexico smoking strong, scented tobacco.
1526
In his history of the West Indies, Fernandez de Oviedo y Valdes writes: Among other
evil practices, the Indians have one that is especially harmful, the inhaling of a
certain kinds of smoke which they call tobacco. I cannot imagine what pleasure they
derive from this practice.
1561
Jean Nicot, the French ambassador to Lisobon recommends tobacco snuff to his
royal
Patron, Catherine de Medici, who suffers from sever migraines. The snuff provokes a
relieving sneeze which astonishes her staff but becomes fashionable. In Nicots
honors, the tobacco genus Nicotinic was later given its botanical name.
1570
Conquistadors bring tobacco back to Spain as a luxury for the wealthy. But when
Seville beggars begin to pick up discarded cigar butts, shared them and roll them in
scraps of paper for smoking, they become known as cigarillos, meaning little cigars.
1570
King Philip II of Spain ponders tobaccos medicinal properties not for the benefit of
his subjects, but for commercial gain. He charges Royal Physician Francisco
Hernandez with making a study of the plants properties.
1571
Nicolo Monardes, a famous physician at the University of Seville, recommends
tobacco as a cure for more than twenty ailments, including tooth ache and asthma.
Certainly not recommended today!
1573
Sir Francis Drake returns from the Americas with what is through to be the first
consignment of tobacco to the UK.
1587
Virginian colonists disembark at Plymouth smoking clay pipes.
1592
A century after Columbus voyage, tobacco is grown in Belgium, Spain, Italy,
Switzerland and England, and by the turn of the century the crop has spread to the
Philippines, India, Java, Japan, West Africa and China- from where merchants take it
to Mongolia and Siberia.
1603
By the time of Queen Elizabeth its death, England has become the wealthiest
country in Europe (partly thanks to its dominant role in the tobacco trade) and is
taxing the crop at 2d (2 shillings) per pound weight.
King James I publishes A Counterblast to Tobacco, one of the first anti-smoking
polemics. But his disapproval doesnt stop the King from increasing the duty on
tobacco
by more than 40 times as much as the tax levied by Queen Elizabeth, to 6/10d ( 6
10 shillings) per pound weight. Consumption of tobacco increases as belief spreads
that the leaf helps ward off the plague.
1606
King Phillip III of Spain decrees tobacco could only be grown in Spanish colonies.
Production by foreigners is punishable by death.
1614
James I grant two traders exclusive rights to import tobacco-paying 3,500 for the
first year, raising to 7,000 each year for the next decade.
1619
King James I bans domestic cultivation of tobacco and announces that it is to
become a royal monopoly.
1623
Holy Roman Emperor Ferdinand III bans tobacco drinking under threat of indeed
but smoking continues.
1624
Pope Urban VIII bans snuff claiming it takes users too close to sexual ecstasy. King
James I decrees that all tobacco should arrive at the port of London. Smuggling
increases and sizeable amounts of duty are lost. The British Government widens the
number of ports where tobacco can land.
1629
Following the advice of his minister Cardinal Richelieu, Louis XIII of France levies a
tax of 30 sols on every pound of tobacco. Two centuries later Napoleon III would
observe: This vice brings in one hundred million francs in taxes every year. I will
certainly forbid it at once- as soon as you can name a virtue that brings in as much
revenue. Government monopolies prove so lucrative them persist in several
European countries late into the twentieth century.
1633
Turkish sultan Murad IV forbids smoking with the threat of execution. He also
demolishes coffee-houses in Constantinople and confiscates the assets of executed
1640
Tsar Michael of Russia declares smoking a deadly sin. Arrested smokers are flogged
or have their lips slit. A 1643 visitor to Moscow says: Those convicted of taking
snuff, both men and women, can expect to have their noses taken away.
1699
The court physician to Louis XIV, Fagon, offers a contemporary view: When he
opened his snuffbox, did he not know that he was opening a Pandoras Box, from
which would spring a thousand ills, each worse than another? Louis XIV is said to
hate tobacco but does not ban it, as it would have meant giving up money from the
state monopoly.
1700
An increasing number of protectionist barriers are created, particularly in the
eastern United States, to safeguard English interests.
1725
Following the fashion of the day, Pope Benediet XIII allows the use of snuff in St
Peters Church, reversing a ban imposed 75 years earlier by Innocent X.
1779
Scenting a business opportunity, the Vatican opens its own tobacco factory.
1800
British and French soldiers fighting in Spain during the Napoleonic wars bring cigars
back home. Their popularity grows quickly.
1820
A smoking room is established in the British House of Commons.
1827
Cigar consumption increases with the invention of the friction-activated
phosphorous match.
1846-48
The Mexican war leads to a huge increase in the popularity of cigars smoked by
soldiers trying to relieve fatigue and quash hunger. Soldiers develop a taste for the
darker tobaccos from the south.
1850
In the United States, tobacco is linked to the temperance movement. Reverend
George Trask, a former smoker, sets up the American Anti-Tobacco Society for which
he serves as president, vice president, secretary, treasurer and auditor.
1868
Smoking compartment is introduced on English railways.
1881
James Bonsack, a Virginian, invents a machine that can produce 120,000 cigarettes
a day. James Buck Duke, destined to become the first chairman of BritishAmerican
Tobacco 21 years later, buys two machines and his familys tobacco company
moves into cigarettes.
1890
In America, 26 states pass laws banning the sale of cigarettes to minors.
1899
Lucy Page Gaston, an Illinois teacher and journalist and member of the Womens
Christian Temperance Union, establishes the Chicago Anti-Cigarette League.
1900
The Anti-Cigarette League publishes a pamphlet claiming links between cigarette
smoking and brain disease.
1902
The Imperial Tobacco Company of the United Kingdom and The American Tobacco
Company of the United States agree to end a trade war by forming a joint venture,
the British-American Tobacco Company Ltd. James B. Duke becomes the ventures
first Chairman.
1908
The New York City authority bans women from smoking in public, Two weeks later
Katie Mulcahey is arrested for violating the rule. As she is led away she declares,
No man shall dictate to me. Cigarette smoking was often seen as a symbol of
womens emancipation.
1914
Outbreak of World War I. General John J. Pershing, commander-in-chief of the
American forces in France in 1917, calls tobacco indispensable to the daily ration.
In Europe, troops use cigarettes to pass time and to try to calm their nerves. The
popularity of cigarettes in the armed forces associates tobacco with patriotism.
1921
US State of Idaho bans cigarette sales.
1925
Despite the bans, cigarette sales continue to increase. The American Mercury
reports, The more violently it has been banned, the more popular it has become.
1941
US President Roosevelt makes tobacco a protected crop as part of the World War II
war effort. His wife Eleanor was dubbed the first lady to smoke in public.
1945
During World War II, smoking increases. By the middle of the next decade, more
than a quarter of American women and more than half of American men smoke
cigarettes.
1952
Two British researchers, Richard Doll and A. Bradford Hill, report the results of a four
year study comparing 1,465 lung cancer patients to an equal number of patients
with other diseases, matched for age, sex and region. They conclude that lung
cancer patients are considerably more likely to be smokers and much more likely to
be heavy smokers.
1960s
Public health warnings emerge.
1964
The American Surgeon General publishes a 387 page report stating: Cigarette
smoking is a health hazard of sufficient importance in the United States to warrant
appropriate remedial action. For the first time smoking is banded in the State
Department auditorium.
1980s
The tobacco industry sees substantial annual duty increases which result in
cigarette taxation increasing by 85 percent or more in several countries, including
the UK.
1990s
Litigation issues tend to dominate the news headlines around the tobacco industry.
In the US, five years after the first State lawsuit was filed, major US tobacco
companies signed a Master Settlement Agreement with 46. State Attorneys-
General, giving these US states more than $200 billion in total over 25 years in
settlement of lawsuits seeking reimbursement for the Medicaid costs of treating sick
smokers. The Master Settlement Agreement restored stability to the tobacco
companies, allowing them to concentrate again on running their business.
2000 and beyond
Litigation continues to be a significant issue for the tobacco industry, especially in
the US, but the de-certification of lawsuit activity. The Framework Convention on
Tobacco Control (FCTC) is adopted by the World Health Organization; it calls for
restrictions on tobacco advertising and sponsorships, new labeling standards clean
indoor air controls and stronger action against cigarette smuggling. Tobacco
companies work with governments to reduce smuggling. Bans on public smoking
are enacted in some places and proposed in other; the ban in New York State is
unpopular with a majority of voters. British American Tobacco test-markets Swedishstyle snus in Sweden and South Africa, giving smokers the chance to enjoy a less
harmful form of tobacco, without lighting up.
2.6 About British American Tobacco Bangladesh:
British American Tobacco Bangladesh began its operations in the subcontinent in
1910 as Imperial Tobacco Company Ltd with its head office in Calcutta; where
cigarettes were made in Carreras Ltd Calcutta. Imperial and Can-eras merged into a
single company in 1943. After the partition Pakistan Tobacco Company (PTC) came
into existence with its and office in Karachi in 1949. The then PLCs East Pakistan
office was situated in Armanitola and ultimately moved to ALICO Building, Motijheel
Dhaka. In 1954 PTC established its first cigarette factory in Chittagong although
high-grade cigarettes still came from West Pakistan.
The Dhaka factory of PTC went into production in 1905. Currently, our only Cigarette
Manufacturing Factory (Dhaka Factory) along with the 1-Icacl Office premises is
situated in Mohakhali, Dhaka while we run the Green Leaf Threshing Plant (GLT) in
Kustia. After independence, Bangladesh Tobacco Company Pvt. Limited (BTC) was
formed ill 1972 with British American Tobacco holding majol-i1y shares in
Bangladesh Tobacco Company. In March 1998 Bangladesh Tobacco Company
changed its name and Identity to British American Tobacco, Bangladesh
pronouncing its common Identity with all other operating companies of the group.
History of BATB
1910 Formation of Imperial Tobacco Company
1949 Formation of Pakistan Tobacco Company (PTC)
1954 PTC opened its first factory in Fouzdarhat, Chittagong
1965 Building of a factory in Mohakhali Dhaka
1972 Incorporation of Bangladesh Tobacco Company with a paid up capital of Tk
400 million
1998 Changed its identity from Bangladesh Tobacco Company (BTC) to British
American Tobacco Bangladesh Company Limited (BATB)
British American Tobacco Bangladesh Company Limited is a subsidiary of British
American Tobacco Group and is one of the oldest and largest multinational
companies operating in Bangladesh The UK-based BAT group holds G5.91% share in
the company.28.7% is owned by Government of Bangladesh agencies while 5.39%
share Is owned by other shareholders.
This leading business organization in the industrial sector is employing more than
1,300 people directly and a further 40,000-+- indirectly as farmers, distributors and
suppliers. They have business contracts directly with 18,000 registered farmers who
produce high quality tobacco leaf.
In 2002 BATB developed a new corporate slogan Success and Responsibility go
together.
2.7 Guiding principles and People Management at BATB:
British American Tobacco Bangladesh is 11uidcd by a set or principles and follows n
vision of Extending leadership through world class performance. The four guiding
principles describe key characteristics of the organization and guide its employees
in their working lives. They attempt to capture the way BAT employees work
together, deal with or (Tanzanians, communities, partners and other Companies and
are tile key to its success. The company pronounces and interprets its guiding
principles in the following manner.
Strength from Diversity: We actively utilize diversity of people, cultures,
viewpoints, brands, markets and ideas- to create opportunities and strengthen
performance.
Open minded: We strive to be an active listener, genuinely considering others
viewpoints without pre-judging.
Freedom through responsibility: The freedom to take decisions and act on them
obliges us to accept personal responsibility for the way they affect our stakeholders.
Enterprising spirit: The confidence to seek out opportunities for success, to strive
for innovation, and to accept the considered risk taking that comes with it.
BATB has consistently developed high quality people. At this moment, more than 25
Bangladeshi managers are working in BAT companies around the world. Many of the
todays business leaders in Bangladesh are the ex-employees of BATB. This strong
tradition remains even today and BATB still is the employer of choice for the talent
pool of Bangladesh.
2.8 BAT Bangladeshs business:
BATB is the leader in the local cigarette industry currently holding nearly 51/o
volume share and 70% value share of the Bangladesh cigarette market. The total
volume (18.9 b in 2004) has grown by nearly 90% since the 1999 levels of 10 b.
They have also been able to grow annual contribution to the Government revenue
to nearly Taka 17 b in 2003 and Taka 18.5 b in 2004.
Product Profile:
The market presence is summarized as below:
Super Premium: Dunhill cigars have been launched through an exclusive Cigar
Lounge in the Hotel Sheraton.
Premium: Launched in 1997, B & H maintains BATBs dominance in premium
segment and drives the growth of premium segment in Bangladesh market. Within
a short time Bangladesh became a leading B& H market across the BAT world. After
a price increase ill Q1 2004, B&I-1 still remains a Successful and happening muscle
in our portfolio. British American Tobacco Bangladesh was the first market to launch
the new pack of E&1-1 at the beginning of September 2005.
Medium: Launched in 1980, John Player Gold Leaf is one of the highest selling
brands of BATB the medium segment. In 2005 they launched three flavored Limited
Edition Product and Packs under the Taste the World campaign, which were
extremely well received by consumerLow: Star, launched 40 years ago is till a dominating brand in this segment.
Recently a new pack of Star was launched and currently it is the highest volume
generating brand for the company (more than 900m per month). On August l3,
2005 the new Anchor Pack of Star was launched in the market while the cigarette
stick also wore a new look with brighter paper and bi-color dye.
Pall Mall
Pall Mall has been launched in March 2006 with three variants full flavor, lights and
menthol; it is one of the leading brands in the global BAT portfolio. It offers choice to
the adult informed smokers with a full range, great taste and innovative packaging.
Pall Mall, with all its innovation, is seen to be offering more value for the
consumers money.
The market situation of the products of BATB can be described with the help of BCG
matrix. BCG matrix has two determinants-market share and growth. Based on these
two, products are defined as star, question mark, cash cow and dog.
For BATB the BCG Matrix will be like the following:
Market Share
H Ma
Ir
G ke
Ht
L Gr
O ow
W th
2.9 About cigarette:
Not all cigarettes are the same. Smokers around the world prefer many different
tastes and strengths and our companies aim for excellence in every step of
manufacturing.
Cigarette design is more complicated than it may seem. Our companies work to
understand the preferences of adult consumers and to design cigarettes to meet
them. Its
the preferences Of adult consumers that guide our tobacco blends- the mix of
tobaccos that we use- and we work to ensure that these grades are available longterm to keep the tastes of our products consistent.
The tobacco in the rod includes tobacco lamina (the flat part of the
tobacco leaf), tobacco stern (midribs of the leaf), and expanded lamina.
The cigarette paper includes paper and adhesive. The filter is made
mainly from Cellulose acetate fibers, known as tow. Cellulose acetate is derived
from wood pulp. The fibers are bonded together with a hardening agent, triacetin
plasticizcr, which helps the filter to keep its shape. The filter is wrapped in paper
and scaled with a line of adhesive Sometimes charcoal is added to filters. The filter
paper includes paper and adhesive.
it produces tiny particles mixed with gases this is smoke. A cigarette filter traps
some of these Particles. When a smoker puffs on a cigarette, whole smoke, including
both fine particles and access is sucked through the tobacco rod and the filter.
Gases pass through the filter, and some particles are trapped in it. It is this
particulate matter, minus nicotine and water that is called tar.
Smoke has over 4,000 constituents, many of them also found in the air we breathe
and our food. These constituents include the emissions listed on packs, such we
branch and our food. These constituents include the emissions listed on packs, such
as tar, nicotine and carbon monoxide. Water vapor is also produced by the
combustion, because the burning of any organic material breaks down the chemical
components and produces water.
Tobacco blends:
Cigarettes often contain a selection or different types of tobacco Leaf from different
countries, blended for aroma, taste and character to meet smokers taste
preferences. Three main types of tobacco are used in cigarettes: Virginia or Fluecured, Burley and Oriental.
Virginia, or flue-cured a selection of tobacco, is named after the US state where it
was First Cultivated. It is also called `bright tobacco because of tile yellow to
orange colour it achieves during curing. It grows particularly well in subtropical
regions with light rainfall, such as Georgia, Florida and the Carolinas in the USA,
Southern Brazil and Zimbabwe. Cigarette brands like Dunhill use effusively Virginia
tobacco. Virginia blends contain only flue-cured Virginia tobaccos.
Burley is a slightly lighter green than Virginia. It requires behavior soils and more
fertilizer than Virginia. Some of the best Burley IS Irown in US statcs such as
Maryland and Kentucky, in Central America, Malawi, Ubatllla and Indonesia. After
being air-cured, it turns brown with virtually no sugar, it an almost cigar-like taste.
Along with Virginia and Oriental tobacco, it makes Lip all American Blend for
cigarettes, as used iii brands like Lucky Strike or Pall Mall. Typically, air-cured
tobacco is treated with sugars such as molasses or liquorices, and the blend may
also contain added flavors.
Oriental is the smallest and hardiest of all tobacco types, grown in the hot
summer of the Balkans, Turkey and the Middle East. These conditions and a high
plat} ting density create an aromatic flavors, chanced 1)y sun-curing, as in a
traditional Turkish cigarette. An Oriental blend can contain up to 100% sun cured
tobaccos.
Several factors can influence the smoking characteristics, including the variety of
plant, how it is harvested and influences such as soil, climate and weather. All these
can affect the tobaccos taste and aroma.
2.10 Ownership Status of the Company:
BATB is a public limited company listed in the Dhaka Stock Exchange with an
authorized share capital of 1k 600,000,000 comprised of 60,000,000 ordinary
shares of Tk 10 each. British American Tobacco, London has 66% of the shares. The
government initially held 32% of its shares but it gradually sold most of the
holdings to different organizations of the country. The companion of shareholders
(as of 2004 end) is as follows:
Holders Shares (%)
Raleigh Investment Company Ltd., UK 65.91
Investment Corporation of Bangladesh 23.6
Shadharan Bima Corporation 2.86
Bangladesh Shilpo Reen Shangstha 1.06
Govt. of Bangladesh 0.64
Shena Kalyan Shanstha 0.52
Others 3.39
Total 100
2.11 Structure of the organization:
The structure is much decentralized with the parent company retaining aLlth0l-ity
for overall strategic direction of the Firm and financial control. BATB operates in the
operates in the following functional areas:
Overall activities of tile company arc governed by the Board of Directors and
Executive. The Board of Directors is composed of 10 members headed by a
chairman. Chief Executive of British American Tobacco Bangladesh is called the
Managing Director who is normally appointed by BAT Holdings. Managing
Director of the company is the chairman of the executive Committee. This
committee includes the head of all the functional departments.
3
The decision making, infrastructure is participatory to a very high extent. All the
plans and decisions that are made are communicated from the top level of the
organization and the decisions are made after discussing the issue with the related
authority and the grass root level. Every possible input from every relevant level of
workforce is taken before getting into any decision.
Way of life. The initiatives taken under this project are: Education Assistance,
Primary Health Care Support, Malarial Prevention, Sanitation Support, Commercial
Afforestation, Compost Pits, Green Manuring, Neem Decoction, and Vegetables
Growing.
.
Biodiversity:
British American Tobacco Bangladesh Is one of the first t companies in the country
to embrace biodiversity in its way of work. The objective is t0 raise awareness
among companys internal and external stakeholders promote biodiversity and
sustainable use principles in the operations of British American Tobacco Bangladesh,
showcase best practice examples and influence others to participate in
biodiversity conservation.
2.14 About Corporate and Regulatory Affairs (CORA):
Our Strategy for building sustainable shareholder value is based on growth,
productivity, responsibility and being a winning organization. CORAs particular
focus is on responsibility.
Michael Prideaux, Director, Corporate and Regulatory Affairs
British American Tobacco is .1 responsible companies in a controversial industry. A
major part of helping it to be seen that way is the responsibility of Corporate and
Regulatory Affairs (CORA). Our job is to reassure those stakeholders who directly or
indirectly influence our business that British AmCr1Ca11 Tobacco is achieving its
commercial objectives in a manner consistent with reasonable social expectations
of a responsible tobacco company in the 21st century.
As societys expectations of corporate responsibility change, they are changing
some of the ways to address stakeholder concerns. They are engaging in
constructive dialogue with a wide ran-c of stakeholders including governments and
their agencies, the media, business partners, employees, investors, nongovernmental organizations (NGOs) and local communities about all aspects of our
product. Our social reporting process lends transparency and accountability to this
process.
CORA Strategy:
CORA wants to achieve
To drive recognition as a responsible tobacco company, thus improving long term
business suitability.
This can be achieved by developing constructive engagement With those
stakeholders who directly or indirectly influence the license to operate to reassure
them that the company is meeting the commercial objectives ill a transparent
Business performance
Corporate Events
Strategic Initiatives
Projects
Other success stories
The objective of BATB News is to align the employees to company vision and
direction. This is done through.
Tracking monthly company performance against target and highlight activities on
ten strategic directions of the company and the four guiding principles month by
month.
Bringing strategic direction to life by using creative, visual format, featuring
interviews with individuals and team on their activities and achievements and
offering a glimpse of operations.
Highlighting examples of behavior aligned with guiding principles and
achievement of tangible results.
Communication process
The news is communicated through a fifteen to twenty minute video production.
BATB News is produced only in Bengali and is made for all the employees
(expatriates get an English transcript).
This video newsletter is shown to the employees via several mediao From video archives on an Intrusive
detailed news such as Sales, Brands, Market Share, production, Wastage levels,
Quality (RQI) and important corporate news such as Annual General Meeting,
Corporate social Responsibility activities etc. The need for this tool arose as
exposure to other tools is limited at the factory floor.
Communication process
Alaap sessions take place on the factory floor where the line manager makes a
power point presentation to the factory workers for duration of 45 minutes. Alaap is
carried out every month and each session has. The audience consists of 25 to 30
employees who report to that manager. Alaap sessions are highly interactive and
generate a lot of feedback. The content has two parts- Corporate part that contains
companywide information and Team part that contains performance feedback of
that particular team (e.g. Cell or shift or warehouse).
At the end of each session the line manager fills out a feedback form which is
emailed to Manufacturing HR and Internal Communications. This form indicates the
turnout in each session and the important queries that where left unanswered.
Queries, obtains answers from the right source and emails the answers back to the
line managers. These questions are then addressed in the immediate next Alaap
meeting.
Production process
Internal Communications collects relevant information from across the company,
edits the material and prepares PowerPoint slides which are emailed via Lotus Notes
to line managers, at the factory, who conduct the session.
3.1.8 Baithak (Internet site):
All the workstations of BAT across the globe are connected to networks based on
the internet but accessible to only members of BAT. This internet is referred to as he
Interact site and is used by all BAT companies. In addition to Interact, BAT
Bangladesh has its own Local intranet accessible only by manager in Bangladesh.
This has been given the brand name Baithak and has the same architecture as the
Global Interact page.
Baithak provides users with the following features.
News from the Global Interact page- news and feature items on the Global page
are linked to Baithak.
Local news-Every week one news item is published on Baithak by internal
Communications. This news remains in the archives for three month before it
Is Deleted. This tool also provides Internal Communications a platform to make
communication s a platform to make communications to managers on an ad hoc
basis.
Bangladesh Bulletin Board- This feature can be used by all managers who have
access to Baithak. The bulletin board is like an electronic notice board. Three type of
notice are uploading- company, personal, Leisure. Internal Communications uses
this tool to upload relevant information and also edits/ deletes notices uploaded by
others according to need.
A Media Desk system which provides an archive of newspapers are scanned and
uploaded in this section. This responsibility of maintaining this archive is
outsourced.
Room Reservation facilities- This is tool that can be used to reserve rooms for
meetings.
Chat room-this facility allows employees to share views across the company.
Functional pages There are three functional pages IT, CORA and Marketing these
pages provide information relevant to the departments.
In addition to all these features, the page has a search option facilitating managers
to find information they need in an easy and quick manner. Thus, Baithak
compliments the existing set of branded IC tools developed to provide a consistent
platform for effective, regular, relevant and 2 way communication.
Communication process
Baithak provides a simple solution to company wide information on demand. It
provides common access and a single entry point to various business critical tools
and information. The tool is targeted towards the managers of the company. The
limitation of this tool is that it is available only to the managers based in the Dhaka
Head office and the Green Leaf Trashing (GLT) plant in kushtia. Managers in remote
locations do not have connectivity and hence they cannot be using Baithak.
Production process
The content on Baithak is managed by the Internal Communications manager.
Free flowing discussion and give them opportunity to voice their ideas, grievances
etc.
Internal Communications prepares meeting minutes which are then shared with
managers via electronic bulletin board.
3.1.9 Email or Lotus Notes:
Lotus Notes is an email tool which is used to communicate with managers (from one
to-one personalized to mass level communication). This tool is used on an ad hoc
basis,
3.1.10 Notice board:
Notices that placed on the electronic bulletin board are communicated to the non
management employees in Dhaka through a print version of the notice place on a
notice board at the Dhaka Factory premises,
3.1.11 Short message service (SMS) called Inasta News:
The SMS tool is used for crisis communication. Internal Communication maintains a
database of mobile number of all managers. Messages are sent out x to multiple
people to make a communication on an emergency basis.
3.1.12 Open Forum:
This tool has been introduced recently this tools is supposed to be more informal
and give the employees, both management and non management, a better
opportunity to place their demands and give suggestions or talk about problems.
Employees will feel more comfortable in sharing their problems with this tool as this
would maintain confidentiality better as in this process they communicate with the
Managing Director on a one-to-one basis.
So, the tools for management & non-management are like the following:
4.0 Survey Findings And Analysis
4.1 Performance of the tools:
4.1.1 Focus:
Every year, 4 issues of the magazine are published; that means the magazine is
published once in every 3 months until the time of conducing this project, the total
number of issues published was 3. From the survey, it came out that people are
satisfied with the current frequency, 38% of the management employees think once
in every 3 month is the right frequently as almost 50% of them wanted it to be
published in every two months and 42% of them seemed satisfied with the current
frequency.
The most preferred section in the magazine is personal experience followed by
project update. People are very much satisfied with the availability & appearance of
the magazine and it is apparent from the survey. (For availability the mean was 4,
which was the highest) So, overall, people are happy with the magazine and a few
suggestions accumulated from the survey are like the following:
Use a professional agency
Should include more items from outside Dhaka
Before publishing, consult the relevant person or department
The excel files are shown in the appendix section, the main and analyzed part is
presented below:
Frequency:
Managers Employees
Frequency No of people % No of
People %
1/yr 0 0% 0 0%
Non-management:
Features of Skip Level Meeting:
Content Style Length
Mgt 4.1 4 3.4
Non Mgt 4.2 3.4 2.5
All 4.15 3.7 2.95
4.1.4 Baithak:
It is a tool for the management employees and almost 39% of them visit the site
regularly that is everyday. . Among all the sections, bulletin board, which notifies
the employees about the day to day activities in BAT, is the most popular section.
People think that the site is easily accessible and user friendly but the information
should be update on a more regular basis.
look towards their monthly Alaap to receive feedback on performance and business
updates. Attendance has been very high and almost 31% of the people have at
least attended 9 Alaap sessions this year.
No of Session No pf people %
0 0 0%
1 0 0%
2 0 0%
3 0 0%
4 2 0%
5 1 6%
6 1 3%
7 4 3%
8 5 13%
9 10 31%
10 9 28%
11 0 0%
12 0 0%
Cant recall 0 0%
Total; 32 1
Feature of Alaap:
Aspects Non Mgt
Content 4.3
Duration 4.1
Ease 3.5
Response 2.7
Ease of feedback 2.8
4.1.7 Open forum:
Open Forum has been introduced recently and it is held every month. 84% of the
people have heard about it 70% never attended any session. Of the people who
know about it, 94% liked the concept. 91% think it is a very effective tool. 47% think
it should be held once in every 2 months.
Participation:
Participated in OF Number %
Yes 11 30%
No 26 70%
Total 37 1
Popularity:
According to majority, the BATB news should be once in every 3 months with
more content. (Management 44% Non management-56%).
BATB News should be more projects, initiative based.
In BATB news participation of employees should be encouraged.
They could use a newsreader at BATB news.
At the Baithak, the information should be update on a more regular basis.
Bangla interface can be used at Baithak.
Speed should be faster for Baithak.
Road show should be more action oriented.
Q & A session should be stronger in road show.
To make the open forum more successful it should be held once in every 2
months.
The open forum concept should be communicated to every employee so that
they can participate effectively in this session.
They should take initiative to make popular the skip level meeting.
6.0 Conclusion:
British American Tobacco Bangladesh is a subsidiary of British American Tobacco p
l.c world second largest tobacco group. They are a public limited company with an
authorized capital of Tk. 60 corer listed on both Dhaka and Chittagong stock
exchange. The UK based British American Tobacco group holds 65.91% share in the
company. Government of Bangladesh agencies own 28.70% share, while 5.39%
share is owned by other shareholder.
They are leading the cigarette industry in Bangladesh with a market share of more
than 50%, employing more than 1,300 people directly. They provide indirect
employment to more than 30,000 people as farmers, distributors and local
suppliers.
They grow tobacco in four regions of the country, Kushtia, Chittagong, Manikganj
and Rangpur. Currently, our only cigarette manufacturing factory alone with the
head office premises is situated in Mohakali, Dhaka. We run a Green Leaf Threshing
Plant (GLTP) in Kustia and a redrying plant Manikgang.
British American Tobacco Bangladesh is a company with world class people,
products, systems and processes and tools. They are the first company in
Bangladesh to be awarded Class A status as part of the international and prestigious
total business excellence programmed, MRPII, audited by internationally renowned
consultants Oliver Wight. We have a total company commitment to excellence and
drive for continuous improvement.
Our world class people work as a team to meet challenges in an ever-changing
business environment. We have an open and transparent culture with customer
service that exceeds expectations. We continuously seek to improve our
manufacturing efficiency without compromising on quality. As a result our company
is recognized as benchmark for quality in the region when we were the first
company to be given the license to manufacture Benson & Hedges in-house, within
this region of BAT Group which stretches from Pakistan to Australia. Our utilization
of information technology is at the core of our business strategy and is a benchmark
among other fast moving consumer goods companies in the country.
For a company like BATB, operating in a highly controversial and sensitive industry
and working with more than 1300 employees, internal communication is very
important to facilitate decision making and making them able to face the
stakeholders. Thought challenging, BATB is doing a successful job in devising a
successful portfolio of tools for internal communication and the process of
continuous improvement keeps their model functional.
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