Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 18

QUALITY MANAGEMENT STRATEGY OF BATS

Table of Contents
Introduction......................................................................................................................................3

Background of the company............................................................................................................3

Quality Management Strategy.........................................................................................................4

Evaluation........................................................................................................................................7

Strengths and Areas for improvement.............................................................................................8

Current Environmental Opportunities.............................................................................................9

Recommendation...........................................................................................................................11

Conclusion.....................................................................................................................................12

Reference List................................................................................................................................13

Appendices....................................................................................................................................15

2
Introduction

British American Tobacco (BATS) is one of the world’s leading multinational tobacco
companies, with a wide range of products sold in over 180 countries. The company has a long
history of delivering quality management and continuous improvement, with a commitment to
providing customers with products and services that meet the highest standards of quality.BAT
has developed a comprehensive strategy for quality management, which includes a strong focus
on process improvement, training and development and operational excellence. At the core of the
strategy is a commitment to meeting the needs of customers and maiantain9ing a culture of
continuous improvement. To achieve this, BATS has adopted a number of initiatives and
processes to drive quality management across its operations. The company has also developed a
process of continuous improvement. This process is supported by a comprehensive system of
quality assurance, which includes audits, product testing, and the development of processes and
procedures to ensure that products meet customer requirements.

Background of the company

BATS Tobacco Company has grown to become born of the world’s largest tobacco companies,
with over 50,000 employees and more than $6 billion revenue. The brand sold in more than 200
markets. It is on of the world’s most international businesses, has been in operations since 1902.
This companies market capitalization of around $85 billion and in more than 200 countries. It is
the United Kingdom and the American tobacco company of the UK joined forces to create a
giant conglomerate. The company’s portfolio includes brands such as Lucky strike, Pall Mall, as
well as more recent products such as type and glowing in addition to cigarettes, BATS, also
produces vaping products, smokeless tobacco and heated tobacco products. The company has a
long history of innovation, including being the first to introduce a cigarette filter in 1954. BATS
is committed to sustainability and is working on reducing its environment impact and improving
public health.

3
Figure 1: Progression of British American Tobacco Company
(Source;https://www.batmalaysia.com/group/sites/BAT_AP6D2L.nsf/vwPagesWebLive/
DOAP6DEW)

Quality Management Strategy

A comprehensive quality management strategy that focuses on ensuring all products meet the
highest standards of quality, safety and sustainability. The company’s strategy is based on the
following key components.
Regulations
BATS strives to continually improve its products and processes, with a focus innovation and
customer satisfaction. By developing a comprehensive quality management sy7stem that covers
goal aspects of their operations (Valdois et al.2020). This system includes the use of detailed
documentation, quality audits, and continual monitoring and review expectations by continually
monitoring customer feedback and by adapting their processes to address customer needs.
Improvement continuously
To improve its products and processes, with a focus on innovation and customer satisfaction.
With the help of number of tools and techniques to identify and addresses areas of improvement
in their products and services.

4
Figure 2: Quality Management Strategy

(Source: Self-Created in MS-Word)

Training and Approach


A risk based approach to, which includes risk assessment, control and monitoring. Proving a
regular training and education to its employee regarding quality assurance and quality
management processes (Legg et al.2022 ). This ensures that all staff member’s underst5and the
importance of quality control and are able to effectively address any issues that arise by
implementing these.
Quality as a competitive advantage
Recognizes that quality is a competitive advantage and strives to ensure that all of its products
are the highest quality. A quality management system that covers all aspects of their operations.
Their includes the assurance systems through their company’s operations (Sheikh et al.2023).
These systems include the use of detailed quality control plans, regular product testing, and
effective problem-solving techniques.
Continuous Communication

5
Maintains a culture of open communication between all stakeholders, including customers and
suppliers. Strives to meet and exceed consumer expectations by continuously monitoring
customer feedback and by adapting their process to addresses buyer’s needs.

Figure 3: Customer Communications Management


(Source: https://www.revechat.com/blog/effective-customer-service-communication/)
Supplier partnerships
Works with suppliers that raw materials and components meet the highest standards of quality.
Lean Manufacturing to reduce waste and increase efficiency. Employee Engagement, engages its
employees in quality management by providing training and feedback. British American
Tobacco is committed to producing high-quality products that meet the highest possible
standards. This commitment starts with the selection of suitable raw materials and extends
through to the finished product (Lamolinara et al.2022). BATS has established a comprehensive
quality management system to ensure that all of its products meet th required standards. The
Quality management system is designed to ensure that all products are produced in compliance
with the applicable regulatory requirements and customer specifications.
The system is structured around a set of core processes and reviewed to ensure that are up-to-
date and effective BATS also has a number of initiatives designed to ensure that their products
are of the highest quality that can the consumers have (Nery et al.2019). These include quality
assurance measures for raw materials, manufacturing process, and end products. They has a
number of initiatives to ensure that customer requirements are met. These includes customer
surveys, customer feedback, and complaints handling process of buyers. By focusing on quality,
this brand is able to ensure that its products are of the highest standard and meet the needs of its
consumers. This helps to ensure that this company remains a leading player in the tobacco
industry. [Refer to Appendices 4]

6
Figure 4: A portfolio driving the growth of BATS Company
(Source: https://smoke-free.ca/bat-reboots-and-rebrands-for-a-better-tomorrow/)

Evaluation

BATS is dedicated to providing our customers with high quality products and services. The
brand has implemented a comprehensive quality management strategy involving the entire
organization from senior managing to the shop floor, to ensure (Tan and Chua 2023). This plan
has been effective in exceeding client expectations and resulting in higher-quality goods and
services. BATS has obtained ISO 9001 accretion, w3hich is a widely accepted standard. The
business has also adopted a disciplined methods to managing its supply chain that monitoring,
evaluating, and suppliers. Costs have been brought down, and productively has increased thanks
to the plan. They also learn and adopted a lean methodology processes waste and boost effective
ness. BATS is destined by civil conventions in addition to the regulations and legislation of the
nations where it is present. This presents a number of advantages, such as growing sectors and
resources at its disposal, as well as threats, such as the likelihood of policy shifts which might
unfavorably affect it. This strategy includes the following elements,
Manufacturing quality specifications

7
To guarantee a uniform level of product quality, creature must have established and is
implementing quality control standards. These benchmarks are frequently reviewed and revised
not reflect the actual patterns and client perceptions.
Quality management devices
BATS has developed a series of quality control mechanisms to supervise and measure the
performance of our products.The above systems encompass routine testing, measuring or
analyzation of with us goods and methods.
Improvement
BATS is committed to continuously working to improve their goods and procedures. So that
their products and processes are as efficient as possible. A variety of tools and techniques to
identify areas for improvement and develop solutions. [Refer to Appendices 1]
Coaching
Receive regular training in quality assurance and management. This ensures a certain workers, is
known for its solid approach hot quality planning that is firmly rooted in its company principals
of ethics and respect for people. Quality management system is founded on the ISO 9001
international standard and is designed to grantee that its goods adhere to the highest standards of
safety, quality hand consumer satisfaction (Kim et al.2019).The above system is evaluated on an
annual basis in order to guarantee that is in line with the most recent industry best practices and
standards.
The company’s dedication to excellence begins with the selection and appraisal of its vendors,
who are anticipated to comply with BATS stringent standards. The quest for perfection kicks off
with the choice and review of continents (Wright et al.2020). All suppliers must be certified in
accordance with the brand’s good manufacturing practices (GMP) guidelines, which include
strict requirements for ensuring product safety and quality.

Strengths and Areas for improvement

A Critique of this strategy, make identifying any strengths and areas for possible improvement of
British American Tobacco Company.
Strengths
A strong presence of BATS in the international market, which gives them a competitive
advantages over other tobacco companies. Strong financial position and has demonstrated

8
resilience during the pandemic. It has a strong portfolio of brands and products, which gives it a
competitive advantage in the market. A well established distribution network and a global
presence that offers it access to new markets (Zhang and Srinivasan 2020). The company has
implemented a number of strategies to drive innovation and improve efficiency, which has
helped it to remain ahead of the competition. It has a good reputation for corporate social
responsibility, and has been recognized for its efforts in this area. [Refer to Appendices 3]
The company has implemented a comprehensive strategy to reduce the health risks associated
with smoking, which has earned them praise from public health groups. This company has
diversified its portfolio to brands to appeal to different consumer segments, ensuring that it can
remain competitive in changing market. The organization has invested heavily in research and
development to develop innovative products that meet buyer’s needs.

Figure 5: The impact of business activity poetizing business activities and their effects on
society and the environment Areas for Improvement
(Source: https://www.bat.com/materiality)
The company’s marketing strategy should be more focused on promoting healthier alternatives to
cigarettes, such a s nicotine replacement therapies. BATS should continue to invest in research
and development to ensure that its products are always up-to-date and technologically advanced
(Kauczor et al.2021). They should engage more with stakeholders, and governmental agencies,
to that its products are compliant with regulatory standards. To continue to dsiver4sity its
portfolio of brands, as this will help it better compete in the increasingly competitive tobacco

9
industry. It should also focus on strengthening its sustainability initiatives and improving its
environmental Footprint. The company should increase its focus on developing new products
and technologies to meet changing consumer needs.

Current Environmental Opportunities

A dynamic and highly competitive environment for BATS, the industry is characteristered by
high levels of regulation, rapid technological change and increased consumer awareness of
health and safety issues. In addition, the industry faces significant challenges from the growing
popularity of cigarettes and other vaping products opportunities. British American Tobacco
(BATS) is successfully implementing in a sophisticated and an ever climate. The Meta in which
it operates is divided into so many components: political, economic, social, technical, legal, and
environmental (Hossain et al.2021). All of these factors tries to present neither possibilities nor
dangers to the industry's operations and success.
Ideological
BATS is destined by civil conventions in addition to the regulations and legislation of the nations
where it is present. This presents a number of advantages, such as growing sectors and resources
at its disposal, as well as threats, such as the likelihood of policy shifts which might unfavorably
affect it. [Refer to Appendices 2]
Structural unemployment
This same country's economic environment provides both possibilities and dangers to BATS.
With the development of new products and services, company can diversify its products portfolio
and expand into new markets.
Mergers and Acquisitions
The current trend of consolidation in the tobacco industry, can gain access to technologies
through strategic acquisitions. Threats, increased regulation in industry markets is subject to
increasing levels of regulation, which can make it more difficult gore to grow (Guenon et al.
2019). The industry is increasingly focusing on key emerging markets such as china, India and
Africa, which offer sigficantly potential for growth. The e-cigarette market has been expanding
rapidly in recent years, offering BATS an opportunity to tap into a new segment of the market.

10
Figure 6: Environmental Opportunities
(Source: Self-Created in MS-Word)

Recommendation

To guarantee that set up a quality control mechanism all procedures and outputs adhere to high
standards, a quality management system should be established. This system should have
processes spend money on quality assurance methods in place for managing client comments and
complaints as well as for monitoring, measuring, and improving quality. Quality control
measures, such as routine product testing and auditing, will help to guarantee that the company's
goods are secure and satisfy client requirements (Maul et al.2021). It's crucial for maintaining
quality to collect customer feedback and react to it quickly to keep a record a client comments on
e-websites.
The business should establish a method for tracking customer feedback and promptly resolving
any issues.
Training materials quality-related training materials for vendors and staff. A compliant with
relevant industry standards and regulations. This should include establishing and documenting
processes for identifying consumer requirements, product design, production, and continual
improvement (Adesanya et al.2020). This includes testing of products for safety and
performance as well as undertaking constitution control implement procedures. That the
production of consistency high standard products, periodical inspection and testing of products

11
they meet consumers requirements. Establish and uphold enhancement methods that determine
and secure the achievement of consumer demands.
Implement a program rewards professionals for discovering and addressing opportunities for
improvement. This should involve chances for people to receive education and training in order
to gain the skills required for quality control (Ahuja Sánchez et al.2020).To keep satisfied
clients, this should include continual assessment and enhancement of processes, goods, and
services. Frequently audit the performance management procedure to find flaws and places for
development. To make sure they adhere to industry norms, regular reviews of procedures, goods,
and services should be part of this. Performance should include a formalized method to
determine the company's quality goals and objectives, the establishment of product guidelines
and standards, and a system for tracking and assessing performance.

Conclusion

The company is committed to quality management, and has been successfully implement a
comprehensive and effective quality management system. The brand has established quality and
assurance processes to ensure that its products meet the highest standards, and has implemented
a range of initiatives to improve the quality of its products and services. Organization is also
committed to continuous improvement and invest in the development of its management
processes. By doing so, it is able to ensure that its products arte of the highest quality and that
consumers can have the best experience possible.
The business has put ISO 9000 quality standards into practice and created creative systems to
track and enhance product types. To guarantee that their products are produced in accordance
with the highest standards of quality, the company has also made technological investments. The
business has also created a global quality management system that enables them to asses and
keep track of the product quality in various places. Generally, British American Tobacco’s
high quality management plan is effective and has allowed the corporation to uphold it is
excellent first rate dependent.

12
Reference List

Journals
Adesanya, A., Yang, B., Bin Iqdara, F.W. and Yang, Y., 2020. Improving sustainability
performance through supplier relationship management in the tobacco industry. Supply Chain
Management: An International Journal, 25(4), pp.413-426.
Ahuja Sánchez, L., Yépez Ríos, N.B. and Pedroza Zapata, Á.R., 2020. Relationship between
total quality management (TQM) and technology R&D management (TM/R&D) in
manufacturing companies in Mexico. Contaduría y administración, 65(1).
Amul, G.G.H., Tan, G.P.P. and Van Der Eijk, Y., 2021. A systematic review of tobacco industry
tactics in Southeast Asia: lessons for other low-and MiddleIncome regions. International
Journal of Health Policy and Management, 10(6), p.324.
Guindon, G.E., Paraje, G.R. and Chaloupka, F.J., 2019. Association of tobacco control policies
with youth smoking onset in Chile. JAMA pediatrics, 173(8), pp.754-762.
Hossain, M.S., 2021. Merger & Acquisitions (M&As) as an important strategic vehicle in
business: Thematic areas, research avenues & possible suggestions. Journal of Economics and
Business, 116, p.106004.
Kauczor, H.U., Baird, A.M., Blum, T.G., Bonomo, L., Bostantzoglou, C., Burghuber, O.,
Čepická, B., Comanescu, A., Couraud, S., Devaraj, A. and Jespersen, V., 2020. ESR/ERS
statement paper on lung cancer screening. European Radiology, 30, pp.3277-3294.
Kim, H. and Xu, H., 2019. Exploring the effects of social media features on the publics’
responses to decreased usage CSR messages. Corporate Communications: An International
Journal.
Lamolinara, B., Pérez-Martínez, A., Guardado-Yordi, E., Fiallos, C.G., Diéguez-Santana, K. and
Ruiz-Mercado, G.J., 2022. Anaerobic digestate management, environmental impacts, and
techno-economic challenges. Waste Management, 140, pp.14-30.
Legg, T., Hatchard, J. and Gilmore, A.B., 2021. The science for profit model—how and why
corporations influence science and the use of science in policy and practice. PLoS One, 16(6),
p.e0253272.

13
Neri, S., Pinnington, A.H., Lahrech, A. and Al‐Malkawi, H.A.N., 2019. Top executives'
perceptions of the inclusion of corporate social responsibility in quality management. Business
Ethics: A European Review, 28(4), pp.441-458.
Sheikh, Z.D., Branston, J.R. and Gilmore, A.B., 2023. Tobacco industry pricing strategies in
response to excise tax policies: a systematic review. Tobacco Control, 32(2), pp.239-250.
Valdois, J.B., Van Walbeek, C., Ross, H., Soondram, H., Jugurnath, B., Sun, M.C. and Mohee,
D., 2020. Tobacco industry tactics in response to cigarette excise tax increases in
Mauritius. Tobacco Control, 29(e1), pp.e115-e118.
van der Eijk, Y., Teo, K.W., Tan, G.P.P. and Chua, W.M., 2023. Tobacco industry strategies for
flavour capsule cigarettes: analysis of patents and internal industry documents. Tobacco
Control, 32(e1), pp.e53-e61.
Wright, G., 2020. Slavery and Anglo‐American capitalism revisited.  The Economic History
Review, 73(2), pp.353-383.
Zhang, H. and Srinivasan, R., 2020. A systematic review of air quality sensors, guidelines, and
measurement studies for indoor air quality management. Sustainability, 12(21), p.9045.

14
Appendices

Appendices 1: British American Tobacco Company’s Growth

(Source: https://seekingalpha.com/article/4504411-is-british-american-tobaccos-6-5-dividend-
yield-sustainable-long-term)

15
Appendices 2: Ideological Company’s performance

(Source: https://www.mdpi.com/2071-1050/13/12/6525)

16
Appendices 3: High levels business actions on nature

(Source: https://www.businessfornature.org/high-level-business-actions-on-nature)

17
Appendices 4: Herbal Cigarettes

(Source: https://pubs.acs.org/doi/10.1021/acsomega.2c04708)

18

You might also like