Functions of management of

BATB

(British American Tobacco Bangladesh)

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 20 th

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 chooses a British American Tobacco brand.

Currently, British American Tobacco Bangladesh has two factories in Bangladesh. The

Cigarette Manufacturing Factory (Dhaka Factory) is located on the same premises as the

Head Office in Mohakhali, Dhaka. The Green Leaf Threshing Plant (GLTP) is situated in

Kushtia.

In line with the global identity change of British American Tobacco PLC, BTC was

renamed as British American Tobacco Bangladesh Company Limited (BATB) in 1998.

The Company is listed on both the Dhaka and Chittagong stock exchanges in the country.

Planning:-

BATB is a public limited company. Management Director is the operational head and

appointed by the British American Tobacco. Head of every department carries out their

functions with the help of line managers. Different departments have different structure

according to their function and responsibility.

STRATEGIC PLANNING

The Board of Directors and Executive Committee (ExCo) govern the overall activities of

the company. The Board of Directors is composed of 10 members who are called

Directors. The Chairman heads the Board of Directors. 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 chairperson of the

Executive Committee. This committee includes the head of all the functional

departments.

BATB’s all long term planning are taken by the Head of the different departments.

BATB has been operating its business under the following major functional areas:

Production

Leaf

Finance

Human Resource

Marketing

Information Technology

Corporate and Regulatory Affairs

Business Development

The Board of Directors set the mission statement for the whole company. Then the

Head of the departments try to fulfill this mission. For example, Head of Marketing

plans about the all-marketing strategies to fulfill their mission. He thinks about the

process for increasing the demand of their product among the public. He also thinks

about how to defeat their competitors.

TACTICAL PLANNING

The Regional Manager, Area Manager and The territory officers try to execute these

plans. They divide the responsibilities among their distributors and supervisors. They

do the field research & survey. They know the demand of their region. So they focus

on that product.

OPERATIONAL PLANNING

The distributors & the supervisors talk with the shopkeepers & deal with them. They

try to know what they want to keep their products in their shops. Sometimes they also

negotiate them to replace their competitor’s product.

Sometimes BATB use different kind of flavors & colors. They produce that kind of

product for a very short time. Few days ago they were selling PALLMALL (One of

their brand) in four colors.

In this way all the departments fulfill their target. It is a very well organized

company. Everybody knows their responsibilities in a very perfect manner.

PROCESS OF PLANNING

The Vision and Mission of BATB

The vision of the organization is:

To Extend Our Leadership through World-Class Performance

There are certain missions the organization is heading to accomplish. They are:

Double the net revenue by 2010

Growing our share of the total tobacco market

Dominating key identified segments

BATB’s Corporate Slogan:

“Success and Responsibility Go Together”.

SWOT Analysis of BATB

Like other organizations BATB has some strengths, weakness, opportunities and threats

which describe bellow in details:

Strengths:

1) Latest technology

BATB is using latest machine in their manufacturing process. They are using world class

high speed machines for their production.

2) High loyalty with BAT

BATB is supplying some products solely for example; JPGL, and single supplier of other

materials say, London, SE 555, B&H, HLB and outer. And for all of the business

activities BATB has strong and faithful business relationship with BAT.

3) JIT, TQM

For keeping step with race with BAT, BATB follows; Just In Time delivery &Total

Quality Management. BATB is capable to supply the materials according to BAT’s

specification.

Weakness:

1) Lack of competent technician

BATB has new technology machine which have been running for the last few years.

Currently there is no experienced technician available in this country for dealing with this

machine. For solving this problem BATB has hired the outsider technicians, which is

costly for the organization.

Opportunity:

Following opportunities are visible for BATB

If BAT’s requirement will increase, then BATB will be capable to fulfill their

requirement by supplying through JIT.

. MAST has capacity to do business with other company

Threats:

1) Consumption

Increasing competition is another threat for BATB.

Organizing:-

Every department has a target. The Production department daily produces 70 million

cigarettes. This is their routine work. The marketing department tries to sell 80 million

everyday. But sometimes because of the demand they produce more than 70 million if

any region wants to sell more. This is their non-routine work to have more profit.

Some decisions of BATB are centralized & some are decentralized. The managers set the

main goal for employers. After that the employees take the decision how to surpass that

goal. They work very hard for their company.

Sometimes they also change their planning for their company’s sake.

BATB has 8 major departments. Different departments have different missions. The

Head of the Department sets these missions. BATB totally follows departmentalization.

BATB has many products. They are Benson & Hedges (B & H), Star, Viceroy, Cabstone,

and Goldleaf & Pallmall. B&H has two kinds: Light & Normal. Gold leaf has also two

kinds: Smooth & Normal.

Directing:-

Actually BATB follows Open Door Management. It means every team also includes

subordinates. It is like Democratic Leadership. They have a group of leaders. Every

department has many teams. These teams include Managers, Officers & workers.

Everybody give his or her opinion to the manager. Then the manager decides what they

will do.

Controlling:-

BATB has four segments depending on their products price. These segments are:-

Premium segment: - B&H (82 taka)

Mid Segment: - Goldleaf, Cabstone, Pallmall (56 taka)

Low segment:-Star (26 taka)

Very low segment:-Viceroy (15 taka)

It means all classes of people can smoke their products. Moreover BATB produces best

quality of cigarettes for each segment of customers at a fair price than its competitors.

So customers usually tends to buy BATB brand cigarettes as they are more than

satisfied with the quality of cigarettes, its prices and have strong faith in the brand.