Introduction

Few companies founded in 1902 are still going from strength to strength. Fewer still are leaders

in more than 60 markets. And with one billion adult smokers around the world, British American

Tobacco manufacture the cigarettes chosen by one in eight of them.

British American Tobacco (informally BAT) is a British multinational tobacco company

headquartered in London, United Kingdom. It is the world’s second-largest tobacco company by

sales.

British American Tobacco take their business and their impact very seriously. They know the

tobacco industry is a controversial one, and so it’s all the more important that they act

responsibly, from the crop right through to the consumer.

Their business operates at a local, as well as global, level. They don’t own tobacco farms, but

they provide agronomy support through their extension services to over 100,000 smallholder

farmers around the world.

They are a part of many local communities – both large and small – around the world, and in

many countries they are the top employer and the company of choice for people employed at

every stage of our supply chain.

Company Background

British American Tobacco Group is the world’s second largest quoted tobacco group by global

market share, with brands sold in more than 180 markets. The business was formed in 1902, as a

joint venture between the UK’s Imperial Tobacco Company and the American Tobacco

Company founded by James ‘Buck’ Duke. With over 300 brands in their portfolio, BAT holds

large market positions in each of their regions and has leadership in more than 50 markets. In

2013, they sold 676 billion cigarettes.

Despite its name, derived from the home bases of its two founding companies, British American

Tobacco was established to trade outside both the UK and the USA, and grew from its roots in

dozens of countries across Africa, Asia, Latin America and continental Europe. In 2007,

subsidiaries enabled governments worldwide to gather over £17 billion a year in taxes, including

excise duty on our products, more than 7 times the Group’s profit after tax. BAT has sustained a

significant global presence for over 100 years. Their business was founded in 1902 and by 1912

had become one of the world’s top dozen companies by market capitalization.

Brands

A strong heritage and ahead of the curve

In 2013 we sold 676 billion cigarettes in more than 200 markets around the

world.

Leading brands

Its four leading brands – our Global Drive Brands (GDBs) – are Dunhill, Kent, Lucky Strike and

Pall Mall.They review brands from time to time to assess performance and increase focus for

investment. As a result, from 2014 they have added Rothmans to our GDBs.

Dunhill

Dunhill’s roots date back to 1907, when Dunhill Tobacco of London Limited was established on

Gentlemen’s Row. More than a century later, Dunhill is our premium international brand.

Kent

Leading the way since 1952, Kent is a pioneering brand and stands out as the most innovative

and forward-looking brand in the industry

Lucky Strike

Based on its rich legacy dating back to 1871, Lucky Strike is the true American original, now a

popular choice throughout the world.

Pall Mall

Pall Mall is the third biggest cigarette brand in the world. For more than 110 years its core

proposition has been centred on rewarding smokers globally with real, high quality value offers.

Many other famous international and local brands, including State Express 555, Vogue, Viceroy,

Kool, Peter Stuyvesant, Craven A, Benson & Hedges and John Player Gold Leaf.

Other tobacco products

While more than 95% of the world’s smokers consume ready-made cigarettes, you can find cigar

and Fine Cut brands in its portfolio. Fine Cut tobacco, a category that includes roll-your-own and

make-your-own, saw volumes increase by 7.5% in 2013. This was driven by Pall Mall, by far the

largest brand in this category.

Cigar brands include Captain Black and the hand-made premium Dunhill Signed Range.

More than tobacco

They launched their first brand of electronic cigarette in 2013. Vype e-cigarettes are of similar

size and feel compared to conventional cigarettes. They are lightweight and offer a more realistic

experience.

Employees

BAT has over 55,000 employees all over the world. They always maintain a multi-cultural

workforce. They always try their best to make almost identical decisions for every local

stakeholder following a common framework of principles, standards, policies, strategies and

delegated authorities.

BAT is working appreciably with thousands of farmers internationally in the purpose of tobacco

growing. The company provides agronomy support to the farmers for quality crop production as

well as they maintain the whole procedure in an environmental friendly way. In 2011 BAT ran

this cultivation process in 19 countries and had a notable success. They purchased approximately

440,000 tones of leaf grown by 200,000 farmers

British American Tobacco in Bangladesh

British American Tobacco Bangladesh is one of the largest multi-national companies in

Bangladesh. They have over 1200 employees in Bangladesh. They are also employing 50,000

farmers, distributors and retailers indirectly. They have business contracts with 32,000 registered

farmers who produce quality products. British American Tobacco Bangladesh is one of the first

companies to be listed on the Dhaka and Chittagong stock exchanges. Currently it ranked

amongst the top 10 companies in terms of market capitalization. British American Tobacco

Bangladesh (BATB) is one of the oldest and largest blue chip multinational companies operating

in Bangladesh, incorporated under the Company’s Act 1913 on 2nd February 1972. Based in

Dhaka the company has one packaging factory in Dhaka and one leaf-processing factory in

Kushtia. In its effort to create an international market for Bangladeshi leaf tobacco the Company

has been exporting tobacco to markets in developed countries like UK, Germany, Poland, Russia

and New Zealand. BAT has over the decades consistently invested in Bangladesh market

through Bangladesh Tobacco Company (BTC). They always try to meet customer expectation by

maintaining a standard level of communication. “Success and responsibility go together” is the

philosophy that has driven British American Tobacco Bangladesh over the years. They are the

number one taxpayer in the tobacco industry of Bangladesh.

Brands of British American Tobacco Bangladesh

The products of British American Tobacco Bangladesh are divided into four product segments

for different types of customers. The segments are Premium, High, Medium and Low. The

brands are given below according to their product segmentation. They categorized their product

into these catigories-

Premium- Benson & Hedges

High- Gold Leaf, Pall Mall, Capstan

Medium- Star, Scissors

Low- Pilot, Bristol, Hollywood.

Customers of British American Tobacco Bangladesh

Premium Products- Mainly elite class of the society are the potential customer of this

category.

High products- Young generation are the main consumer of these brands.

Medium- These brands are targeted to the middle income people.

Low Products- Low income people like workers, drivers are the customers of these

brands.

Managerial Functions

British American Tobacco Bangladesh is a member of the British American Tobacco Group that

is based in UK and one of the leading players in the global tobacco business. With a long

established reputation for providing its consumers with consistently high quality brands, British

American Tobacco Group was formed at the turn of the 20th century with the objective of

establishing a worldwide business. British American Tobacco is World's most global tobacco

company. BAT has 85,000 employees selling more than 300 brands in more than 180 markets

worldwide. Today, the company produces some 2 billion cigarettes every day. More than a

billion people across the globe enjoy smoking tobacco. One in every eight choses British

American Tobacco Brand.

Planning:

BAT is a public limited company. Head of every department carries out their department with

plan. Different departments have different structure according to their function and

responsibility. British American tobacco follows the planning process which maintains a

consistency among its supply chain, marketing functions, finance, HR and other departments.

These functions are all interlinked. They plan it in a way so that it is effective, as all the

functions have to work in tandem. Inability to plan in such a way, might not lead them to reach

further goals and objectives.

Bat has planned to build their business three way:

Organic growth in their existing markets

Quick and effective entry into new markets and

Potentially attractive acquisition, joint ventures or other

Decision Making:

Decision making is the most instrumental managerial function. They go a long way in order to decide the fate of the organization in the long run. The Board of Directors and Executive Committee (ExCo) govern the overall activities of the company. They take all the decision about the company and employee of the company. But in some cases employees are also involved to take decisions so the employees feel that they are a part of the decision making process. A brainstorming session takes place so that the innovative ideas of the employees are taken into account and after jotting down all the ideas the best idea is chosen.

Organizing:

Its not really an easy matter to organize such a huge multinational company. Managers of British

American tobacco are highly efficient to manage it. They are given the responsibility to make

sure they maintain the proper chain of command. They organize in a way that every employee

are made clear about their specific roles. Division of labor which is also called specialization

where employees are being specialized in a specific task so they become proficient in that task

which saves time and enables them to increase productivity in the long run.

Staffing

The managers are been given the responsibility to ensure the future of the organization. Staffing

is very important in order to do so. They select right person for the right post. Recruiting

processes such as battle of mind which is an inter university on campus business presentation

competition which enables them to find the sharpest mind. They look for students who have not

only good educational qualifications but also have the cutting edge in terms of getting the work

done. Training measures such as on the job training and off the job training are being used to

make sure sure they are at their skill level best.

Motivating

British American Tobacco use some specific motivational factors

 Here are five:

Bonuses: They usually provide bonuses and other financial incentives as a way to reward

great performances.

Perks: They saw good responses to perks that weren’t simply financial, such as casual

days at the office, half days, office parties, and social activities outside of the office.

Amenities: They also use workplace amenities – like a gym, cafeteria, or daycare center –

are nice incentives for employees to come to work and to stay focused on their projects.

Education: British American Tobacco believe that people respond to educational

incentives and a number of companies offer incentives that pay for additional education.

They’re great because workforce can become more skilled and loyal.

Positive recognition: Recognizing someone in public for a job well done can make a big

difference. They think it’s important to provide positive reinforcement. According to

them Programs that recognize employees can go a long way toward motivating

someone.

Leading

British American Tobacco is one of the leading company in the tobacco industry because of

their diligent leaders. They are the perfect example of the phrase ‘leading from the front’. They

follow the visionary leadership style. They serve as role model by being the first one in and last

one out (punctual) .They adopt the management process according to the situations rather than

structural management process.

Controlling:

The managers of British American Tobacco are highly strict about

maintaining the company standard. So they compare the desired result with

the actual result and take the necessary corrective action so that , the

organization is on the right track. Results with rival brands are often

compared to set the benchmark which they are to follow in the near

future.The board of managing director and different department manager of

BAT control their whole management with time standard, cost

standard ,income standard, market share, productivity. For this reason it is

easy for a British American Tobacco to maximize their profit from the

market. Easy to reach their goal.

Communicating

They have to go through two ways of communication. External

Communication and Internal Communication. External includes governing

body and internal includes employees and stake holders. They need to

maintain a effective communication with all the parties. They are

responsible for communicating to their employees for technical knowledge,

inctruction rules and information required to get the job done. Managers of

BAT are responsive to feedback an upward communication.

Skills used while managing the people

British American Tobacco business operates at a local, as well as global, level. They don’t own

tobacco farms, but they provide agronomy support through their extension services to over

100,000 smallholder farmers around the world.

They are a part of many local communities – both large and small – around the world, and in

many countries they are the top employer and the company of choice for people employed at

every stage of our supply chain.

Globally, their business last year contributed more than £33 billion in duty, excise and taxes to

governments worldwide.

So, we can see that, British American Tobacco is a very big multinational company. To operate

their business they use almost all the managerial skills. We will describe them below.

1. Technical Expertise: Generally British American Tobacco hires people who have

outstanding educational background. So the managers are highly qualified as well as

acquired effective skills to get the job done.

2. Clarification of goals and objectives: The managers from British American Tobaccoare

not only qualified but also they are well skilled to get the job done by the people. They

know how to make people work effectively and efficiently so that they can stick with the

goal.

3. Problem Solving: In a big multinational company, many problem may arise daily. The

mangers from British American Tobaccoare well equipped to face and solve the day to

day issues.

4. Imagination and creativity: The managers have to be in a correct frame of mind to

originate ideas for the further improvement of the company.

5. Listening for insights: The managers of British American Tobacco keep a very good

working relationship with their team members. They have always provided a platform

for the team members to come up with an innovative idea of themselves.

6. Directing and coaching: Managers of British American Tobacco are not only technically

expert but also they have the capability of mentoring their entire work force.

7. Solving problems as teams: Many problems and obstacles arise in operating such a huge

company. The managers and all the team members help each other to solve as one.

8. Coordinating and cooperating: Managers need to have the willingness to coordinate

and cooperate with each other to achieve the goals.

9. Standard of performance: The management of British American Tobaccoalways

maintain the status quo to retain their position in the world market.

10. Control of details: Managers of British American Tobaccoalways oversee the employee

performance at a close level to make sure they are meeting their global standard.

11. Energy:Managers demonstrate their team and colleagues a readiness and willingness to

work.

12. Exerting pressure: Managers of British American Tobaccoknows well how to make

their team work enthusiastically rather then domination.

How managerial skills are used?

British American Tobacco take pride in the responsible way that our businesses are run. And the

recognition and awards we’ve received over the decades show it’s not just us who think we’re

doing the right thing.

They were the first tobacco company to be included in the Dow Jones Sustainability Index in

2002 – and They’ve been included every year since they know that in order to continue their

success and grow their business they need to operate sustainably. And that will depend on them

satisfying not only shareholders, but also many other stakeholders.

Technical:

Their operation teams are committed to delivering the very best for their customers and

their business. They ensure tobacco leaves are sourced based on quality and that their

factories transform them into outstanding products. They invest in the most innovative

technology that delivers on time, standards and cost. They proactively build strong

working relationships across their business to develop new products and strategies, and

manage an efficient global supply chain that delivers them quickly and effectively. Most

of all, they recruit, support and develop thousands of talented people who play a key role

in their drive for market leadership.

They set their realistic targets at the beginning of the year which could also be refer to

SMART (Specific, Measurable, Achievable, Realistic, Tangible) target.

There are structured ways that they use for problem solving. They are given below:

1. Fish-bone analysis: A fishbone diagram, also called a cause and effect diagram

or Ishikawa diagram, is a visualization tool for categorizing the potential causes

of a problem in order to identify its root causes. Like, British American

Tobaccowere facing some problems to meet their sales target. They used fish-

bone analysis to find out root cause of this effect which was their supply chain

was not up to date.

2. Pareto chart: A Pareto chart, also called a Pareto distribution diagram, is a

vertical bar graph in which values are plotted in decreasing order of relative

frequency from left to right. Pareto charts are extremely useful for analyzing what

problems need attention first because the taller bars on the chart, which represent

frequency, clearly illustrate which variables have the greatest cumulative effect on

a given system. 

They demonstrate ability to originate innovative idea while improving the process

involvement they do things differently then standardize the process.

1. Reward skims which are max and extra max targets are given to motivate

workers.

2. They attract talents from the markets which are known as battle of mind. These

are basically an on campus job offer of universities. Inter university business

competition to be held so that its easier for them to pick out the sharpest minds.

Teambuilding:

The managers of British American Tobacco has always maintained a close relationship

with their workers,which enables them to have a greater insight regarding the ideas of

their workers.Like,they usually set up a brainstorming session in which all team members

share their views regarding their thoughts about how to improve the business.Their

innovative ideas are more then welcomed by British American Tobacco and after jotting

down all of the ideas,they have a voting policy as the idea with the most majority votes

is chosen.The managers play a very important role in this session,and no biasness is

involved.

The managers of British American Tobacco are well ahead of all the other organization

when it comes to coaching and mentoring.e.g.-it is a formal process,they have a weekly

coaching and mentoring session,where the managers gives guidelines to the team

members,as to how to be more productive.Coaching involves training session for team

members which enables them to be far more skilled than other employees from rival

brands.

Drive

The managers of British American Tobacco are not only keen to keeping their standards,but

improve it on a regular basis.In this growing economy,it is very tough to be at the top of the

pile,but the managers have to be one step ahead from the rest.Like,to further improve their

organization,managers of British American Tobacco of Bangladesh chooses a benchmark of the

best Multinational Companies,such as their main rivals of British American Tobacco Korea in

the Asia Pacific Region.Then they use certain analysis such as SWOT analysis to enables them

to get closer and closer to their benchmark.

The managers of British American Tobacco has to go through an intense scheduled meeting such

as daily morning meeting,weekly performance review meeting,monthly meeting.This means not

only do they have goals to meet at the end of the year,but in order to do so they have to be

competitive in each and every working day.So,these meeting are being set to find out the overall

performances in day to day work,and the outcomes give them a fair idea as to where they are

going.The managers have to be at their level best each and every day.

The managers of British American Tobacco not only have to be best themselves,but also need to

make their workforce be the best.Employees may not be as hardworking as the managers,but the

managers need to make sure that the work is done.e.g-the managers of British American Tobacco

knows how to exert pressure,such as providing motivation factors,such as a high pay

rise,Employee of the month,etc.

Most important and widely used skills while managing the people

British American Tobacco is a very big multinational company.Even though most of the

managerial functions are needed to manage the workforce but there are skills which are most

important and widely used.

In terms of technical skills, clarification of goals is the most important skill of the lot,as the

manager needs to have the ability to organize and schedule the work of their unit when

expected,so that they are able to meet established standards.Imagination and Creativity is a very

widely used skill as the managers needs to have his own innovative ideas,which also means to

rectify and alter ways to improve the efficiency of the workforce.The manager of British

American Tobacco are always in the correct frame of mind to deal with the day to day problem

that arise.They solve the problems and take necessary actions when needed.This will help them

to oversee a brighter future.Technical expertise,however,are the least used of the lot as according

to the manager,BAT is a learning organization.They recruite people with certain

qualifications.Technical expertise is an added bonus,as if they could hire an engineer it is their

advantage,but they do not always likely to recruit highly qualified workers,so this skills are least

important in the Short run.

Teambuilding is very very important in an organization,and so it is for British American

tobacco.Listening to insights are very much a managerial process which is given massive

importance,this helps the managers keep a very strong working relationship with the

workforce.Workers are also motivated as they feel being part of the decision process.Directing

and coaching is a must needed skill in for the manager.Managers from British American tobacco

direct their workers to meet their goals,and provide coaching such as training sessions to take

their workers reach a different level,which simulataneously will help to the further productivity

of the organization.

Driving skill is very instrumental in keeping standards to the rest of the world. Standard of

performance in British American tobacco is being used against the best companies and taking

them as benchmark to compare their ones.This skill motivates them to reach their benchmark and

be called the best.Control of details such as daily morning meeting,weekly performance review

are being used to examine where the company is at the moment,and whether it is good enough to

meet its daily targets,which will lead to them meeting their overall yearly targets. Exerting

pressure is not much used,as the workforce are already responsible enough to complete their

work as per standards,so the supervisors don’t have to put much effort to make them do the

work.

Strength & Weakness

Strength: As we know, Strengths are characteristics of the business or project that give it an

advantage over others. These are internal attributes and resources that support a successful

outcome.

Weakness: Weaknesses are characteristics that place the business or project at a disadvantage

relative to others. These are internal attributes resources that work against a successful outcome.

Strengths of British American Tobacco:

They conduct a three steps recruitment process to allow only the best candidates to

start their career in the company,

BAT in Bangladesh is consists of 85000 or more employees to continue their

journey toward its goal,

They pay highest salary in Bangladesh. So the candidates try their best to join here

and the existing workforce do their best in terms of not losing own jobs,

British American tobacco follows the planning process which maintains a

consistency among its supply chain,

Their training programs are so effective that employees can learn adequate skills

which are needed to do their own tasks and cover their lacking and weakness,

As a huge MNC, British American Tobacco is not easy to handle and organize. But

the effective employees are given the responsibilities to make sure they maintain

the proper chain of command.

Every year British American tobacco organize a talent hunt program named ‘Battle

of Mind’, by which they select some best employees as well as promote their

company,

To motivate the existing workforce, they use some tools like higher salary,

incentive, bonus etc,

Employees are given the opportunity to give suggestion which would better for the

company,

Weakness of British American tobacco:

British American tobacco mainly focuses on talent, not on education. Though it is

a good thing, but it sometimes produce some inactive and unproductive workforce,

Recently, when Philip Morris entered in Bangladesh, many of BAT’s employees

turn their job to Philip Morris. To filling those position fast, they have recruited

many inadequate employees,

The culture followed by BAT within their organization is not appropriate for

Bangladesh. For that reason, even some very good talented people cannot cop up

with it,

BAT follows both centralized and decentralized decision making system in terms

of some rules and criteria. When its about the centralized decision, everyone does

not follows it. On the other hand, When its come to the question of the

effectiveness of decentralized decision, some bad decisions are produced.

Recommendation

According to the manager British American Tobacco is successfully retaining its position in the

world market. So it don’t require any major improvements in its management process. But Being

a big multinational British American Tobacco is facing some problems as stated in the

weaknesses earlier. Recently in Bangladesh they are recruiting some unproductive workforce, so

they should improve their recruitment process to solve this problem. Employee turn off is the

major problem that British American Tobacco is facing after Phillip Morris entered in

Bangladesh. The company should emphasize more on employee satisfaction and retaining skilled

employees. As they have some flaw in their decision making process they should try to improve

it further to avoid producing bad decisions. They have a huge work force which they can utilize

in a proper way.

Conclusion

British American Tobacco has a rich heritage and, they believe, a bright future. Their group of

companies has traded through the turbulence of the 20th century, including wars, revolutions and

nationalizations. But their companies and their brands still remain. Their people – both past and

present – are part of their history, part of who they are today and are an essential part of their

future.

At British American Tobacco Bangladesh, difference is our advantage and diversity is our

strength. They employ more than 1,186 people directly and about 50,000 people indirectly as

farmers, distributors and local suppliers. Moreover, around 900,000 retailers in the country sell

our brands to earn their living. We take great pride in saying that we are one of the most

preferred employers in the country. Having people from a wide variety of cultures and

backgrounds who support each other’s success makes us unique. It is our pool of talented people

who give this place the wonderful and pleasant working environment that takes us forward every

day.

British American Tobacco has a flawless managerial chain of command so that they can control

a very big international company. All of the managers efficient and skilled that they can handle

any pressure or obstacle during decision making.