British American Tobacco (Malaysia) Sdn Bhd - Strategies Planning & Management

Topics: Tobacco, Strategic management, Cigarette Pages: 22 (6387 words) Published: November 19, 2012
Content Pages 1. Executive Summary2

2. Introduction 3-4
3.1 Company Background3
3.2 Organisation Structure3
3.3 Cultural of Company3
3.4 Leadership Style4

3. Analysis 5-10
4.5 External Environment
4.6.1 General Environment – PESTEL Analysis5
4.6.2 Industry Environment – Porter’s 5 Forces Analysis6 4.6 Internal Environment
4.7.3 Vision/ Mission7
4.7.4 Long Term Objectives/ Grand Strategies 7-8 4.7.5 Business Objectives/ Strategies – Value Chain Analysis9 4.7.6 Financial Analysis10

4. Discussion 11-22
5.7 Key Issues
5.8.7 Cigarette smuggling and illegal trading 11-12 5.8.8 Government regulatory12
5.8.9 Protecting Ecosystem13
5.8.10 External Environment13
5.8 SWOT Analysis
5.9.11 Strength 14-15
5.9.12 Weaknesses16
5.9.13 Opportunities17
5.9.14 Threats18
5.9 Balance Score Card
5.10.15 Financial 19-21
5.10.16 Internal Business Process21
5.10.17 Customers22
5.10.18 Learning and Growth22

5. Recommendations23
6. References 24-25
7. Appendixes 26-27

1. Executive Summary
During past 100 years, British American Tobacco (Malaysia) (BAT (M)) has sustained and slowly become the market leader in Malaysia since established in 1912. Core competence of BAT (M) is the strong financial support from the mother company and it ranked among 25 top companies on Bursa Malaysia in terms of capital. Besides that, it owned 61% of market shares in the tobacco industry of Malaysia (British American Tobacco Malaysia, 10th April 2012). By carry out the internal and external analysis can help to determine how BAT (M) manages their internal resources to reduce the burden of external forces’ impact. External factors are unpredictable, thus BAT (M) has to set up risk management and strategic planning to overcome or reduce the impact from the forces. However, analysis the value chain of BAT (M) can determine how the support and primary activities add value to the products and services in order to generate more profits and differentiate itself among its competitors. Key issues that brings a major impact to British American Tobacco is cigarettes smuggling across the country. It causes the loss of tax revenues for the government and to the company which will also affect the economy of the country. Under the government regulatory, it stated that smoking is risky for health problems. While BAT introduces harm reduction products, some governments agencies refuse to accept the product that passes laboratory test in successfully reduce content of tobacco in a piece of cigarette. Participating in biodiversity project to protect the ecosystem after tobacco planting had incurred more operation cost to the company. Another major key issues to BAT is cause external environment which is natural disaster. BAT can prepare to face the disaster but cannot prevent it from happening. In conclusion, there are several strategies which are suitable and specifically recommended to the company in order to perform better. These strategies include purple ocean strategy, blue ocean strategy and horizontal integration. The purple ocean strategy is a strategy that poises the company’s position before it could proceed to the blue ocean. A blue ocean refers to an unknown market space that is untainted by any competition (Business Dictionary, 2012). Both oceans strategy assist in helping the company to establish the new market and search for fresh customers. While the...
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