OVERVIEW OF BRITISH AMERICAN TOBACCO GROUP & BAT BANGLADESH
BAT is the world’s second largest quoted tobacco group by global market share, with brands sold in more than 180 markets. With over 300 brands in the portfolio, BAT makes the cigarette chosen by one in eight of the world’s one billion adult smokers. It holds robust market positions in each of the regions they operate and have leadership in more than 50 markets. BAT has sustained a significant global presence for over 100 years. The business was founded in 1902 and by 1912 it become one of the world’s top dozen companies by market capitalization.
British American Tobacco Bangladesh Company Limited (BAT BANGLADESH) has been operating in this region since 1910 and currently stands to be the leading tobacco company in BANGLADESH. Bangladesh Tobacco Company, which was formed after independence, became British American Tobacco Bangladesh in 1998 to align our identity with other operating company in the British American Tobacco group.
British American Tobacco Bangladesh is the recognized leader in Bangladesh cigarette market, with a long established reputation for providing its consumers with consistently high quality brands. The British American Group holds 65.91% share in the company. The Government owns 26.57% through several of its agencies, while 7.52% is owned by other stakeholders.
BAT Bangladesh is a leading business organization in the industrial sector employing more than 1,300 employees directly and a further 40,000 indirectly as farmers, distributors and suppliers. BAT Bangladesh have business contracts directly with around 32,500 registered farmers who produce high quality tobacco leaf.
BAT Bangladesh is one of the largest multinational companies in Bangladesh. Consequently, they are also one of the largest private sector tax payer in the form of Supplementary Duty and Value Added Tax. With time, they have successfully established themselves as the company contributing to economic, social and human resource development. They continue to move forward to deliver higher promises by the coordination of their strong management.
BAT’s management system is very simply oriented and is not that complicated. The planning processes of BAT BD include the four major ones – strategic, tactical, operational and contingency planning.
Strategic planning involves the long-term visions of BAT which is to be and remain the market leader in this controversial industry. They want to keep the leadership of the Bangladesh tobacco industry by creating long term shareholder value. Tactical planning:
To maintain their position in market they define leadership in both a quantitative and qualitative sense. Quantitively, they seek volume leadership among our international competitors and in the longer term, value leadership. They recognize that our success will depend on adult consumers and that, therefore, they try to be consumer driven. They also take care of customers’ satisfaction through better quality. So they take feedback from customers and keep researching for ensuring better quality.
Operational planning is done by researching customers’ needs, quality of product and satisfying customers’ demands. In order to deliver their vision, BATB’s strategy for creating shareholder value has four elements around which all their efforts revolve - Growth, Productivity, Responsibility and Winning Organization. BATB seeks to increase their volume and value share of the global tobacco market through both organic growth and mergers and acquisitions. For organic growth, they are concentrating on the key strategic segments of the market that offer the best prospects for long term growth, including Premium and International Brands. BATB continues to focus on the growth of Global Drive Brands as well as being prepared to exploit opportunities for profitable volume growth in Value for Money and Low Price...
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