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 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 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, 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 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 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 (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.