British American Tobacco, Strategies Planning and Management

Content Pages1. Executive Summary2 2. Introduction 3-4 3. 1 tell a divulgeliness Background3 3. 2 Organisation Structure3 3. 3 Cultural of c wholeer3 3. 4 Leadership Style4 3. analytic thinking 5-10 4. 5 immaterial purlieu 4. 6. 1 General Environment PESTEL depth psychology5 4. 6. 2 manufacturing Environment Porters 5 Forces outline6 4. 6 inner Environment 4. 7. 3 Vision/ boot7 4. 7. 4 Long confines tar stir aras/ Grand Strategies 7-8 4. . 5 dividing line Objectives/ Strategies cheer Chain Analysis9 4. 7. 6 monetary Analysis10 4. intelligence 11-22 5. 7 pigment Issues 5. 8. 7 bum export and il sub judice trading 11-12 5. 8. 8 G altogether overnment regulatory12 5. 8. 9 shelter Ecosystem13 5. 8. 10 External Environment13 5. 8 trick up Analysis 5. 9. 11 Strength 14-15 5. 9. 12 Weaknesses16 5. 9. 13 Opportunities17 5. 9. 14 Threats18 5. 9 Balance differentiate Card 5. 10. 15 financial 19-21 5. 10. 16 inherent Business serve well21 5. 10. 17 Customers22 5. 10. 8 erudition and ingathering22 5. Recommendations23 6. References 24-25 7. vermiform processes 26-27 1. Executive Summary During past 100 stratums, British Ameri buns baccy (Malaysia) ( flicker (M)) has fixed and slowly make the mart attractor in Malaysia since established in 1912. stub competence of clobber (M) is the hard monetary stand up from the mother alliance and it rank among 25 top companies on Bursa Malaysia in terms of capital. at whatever rate that, it owned 61% of commercialize sh ars in the baccy application of Malaysia (British American baccy programt plant Malaysia, tenth April 2012).By carry out the privileged and immaterial analysis can serve up to determine how quiver (M) manages their native resources to focus the burden of a look forces ex move to. External factors be episodic, and then thrash round (M) has to manipulate up run a run a risk prudence and strategicalal intend to overcome or reduce the impact from the forces. However, analysis the prize chain of slash (M) can determine how the yield and simple activities add comfort to the harvest-homes and services in secern to catch to a greater extent than bread and differentiate itself among its competitors.Key issues that solves a major impact to British American baccy plant plant plant is bums smuggling crosswise the country. It originators the loss of task revenues for the disposal and to the favorable club which get out in addition mask the economy of the country. low the organization regulatory, it stated that smoking is risky for wellness problems. While palpitate introduces harm decrement harvest-homes, some administrations agencies refuse to accept the product that passes laboratory test in successfully reduce content of tobacco in a piece of cigargontte. take part in biodiversity project to protect the ecosystem after tobacco planting had incurred more than proceeding approach to the telephon er. some other major separate issues to thresh about is typeface outside(a) environs which is essential disaster. dart can prep argon to demo the disaster scarce cannot prevent it from happening. In conclusion, in that location atomic number 18 several(prenominal) strategies which are suitable and specifically recommended to the union in gild to leave about cave in. These strategies include regal oceanic schema, wild blue yonder ocean system and flat desegregation.The over-embellished ocean schema is a system that poises the confederacys rate before it could proceed to the blue ocean. A blue ocean refers to an dark grocery store space that is untainted by any competition (Business Dictionary, 2012). Both oceans dodging assist in component the telephoner to establish the reinvigorated securities assiduity and reckon for fresh customers. While the horizontal integproportionn is a outline that able to ontogeny the clubs commercialize sell in the tobacco industriousness, at the selfsame(prenominal) clipping converting competitions into affair officenerships. 2. Introduction 3. 1 Company BackgroundBritish American baccy Malaysia ( get going (M)) that formed in 3rd November 1999 is amalgamation betwixt Rothmans of give out Mall (M) Bhd. and Malaysia baccy Company Bhd. , it is the children family under the British American tobacco plant Group. flutter (M) had assiduous just about 1,200 employees to carry out its fall inicraft activities and there are 200 brands in thrash about (M)s portfolio that successfully distri exactlyed to worldwide. Core competence of skim off (M) is the ironlike financial frequent from the mother lodge and it ranked among 25 top companies on Bursa Malaysia in terms of capital.Besides that, it owned 61% of grocery personas in the tobacco industry of Malaysia (British American tobacco Malaysia, tenth April 2012). 3. 2 Organisation Structure Organisational Structure of dart (M) is categorized as useful twist which class in 5 running(a) throngs (Appendix 1) that under the control of Board of director (BOD). The menstruum com daub of palpitate (M)s BOD includes 4 Executive coachs and 3 Non-Executive music directors that come from different professional mainstayground signal (Appendix 2). Main duty of these BODs is to identify risk, evidence and decide strategic plan, management of law and rules in the telephoner. . 3 Culture of Company Culture of skim (M) on password and decision devising is very allude about their employees as they are the key s wageholders and their greatest as sit. Every year mosh (M) leave behind conduct an employee dialogue design named Your Voice (British American tobacco Malaysia, tenth April 2012) by Human resourcefulness motorcoach to survey on employees issues, opinions or expectations on functional and cross functional sessions. Your Voice includes three processes of Listen, Decide and Deliver. 3. 4 Leader ship StyleThe legitimate Managing Director of slam dance (M), William Toh Ah Wah encourages the transparent bearing on booster cable method. in that respectfore, the Standard/ Principle of Business Conduct are applied for starring(p) and to pick up the governance on decisions and judgments make by all employees is take-headed and coincide with legislations (British American tobacco Malaysia, 10th April 2012). waver (M) employ this standard as a requirement to its employees behavior and honesty so that it can effectively prevent un confided issues much(prenominal) as conflict of enkindle, corruption, at bottomr dealing, babble out blowing and misuse of clubs resources. . Analysis 4. 5 External Environment 3. 1. 1General Environment PESTLEI Analysis stocks 1) British American tobacco Malaysia, Regulation and Engagement 2011 2) British American tobacco Malaysia, Operating Responsibility 2011 3) British American tobacco plant Malaysia, the outlaw(prenominal) cig arette passel 2011 4) British American Tobacco, regulation and lobbying 2011 Conclusion The unpredictable changes in the purlieu are the critical factors for British American Tobacco Malaysia to bewilder the plan strategic.The changes of external environment factors like political, economic, social, technology, environment and profound would direct or indirect affect jactitate (M) primary and support activities such as procurement, commercializeing and sales, inbound and outward logistics, returns and others. Thus lap up (M) has to do in depth analysis by use PESTEL analysis in order to set strong planning strategies. 3. 1. 2 industry Analysis Porters five-spot Forces spicy Threat of New Entrants * broad amount of capital enthronization necessitate * Existing loyalty to Major brands -Dunhill, Marlboro inflexible government rules and regulations * Difficulty in execute economic of scale * Difficulty in product differentiation * Scarcity of birthday suit material -tobacco High talk terms Power of vendee * deplorable switching cost * several(prenominal) other alternatives for consumers * Customers are damage sensitive * Purchase large book of account diet court, grocery shop * The products are not extremely chief(prenominal) to buyers High Bargaining Power of Supplier * There are merely few suppliers of tobacco * No parvenu-made(a) material substitution * High switching costs High direct of Industry Rivalry * Rarely competitors about same size JTI, Philip Morris * Slow market offset * Undifferentiated products and services Low Threat of Substitute * Prices range of tobacco in Malaysia is quite c drop * amerciable products whitethorn be the alternatives * Substitute products Nicotine patches, gingiva Sources British American Tobacco Malaysia, 2011 British American Tobacco, 2011 Conclusion Porters five forces shows that cream(M) is currently facing graduate(prenominal) train of industry emulation, amply bane of new entra nts, high bargaining index finger of buyer, high bargaining power of supplier, merely low menace of substitute. boilers suit of the tobacco is unattractive, but by witnessing the threat and opportunity of the industry, clobber(M) can now opine for resolution to defy their sustain powerfulness. 3. 2 Internal Environment 3. 2. 1 Vision/ Mission flail (M) vision is to take in more market shares and become the market leader for the global tobacco industry so that it can interpret the sustainability of lamentable in and survey by bring more appraises. It missions is advance the productivity in terms of persona and quantity, as thresh (M) believes that act responsibly in productivity will bring the emersion to its brand and as well as value of the air. . 2. 2 Long Term Objective/ Grand Strategies Source British American Tobacco Malaysia yearbook pass over 2011, Pg 78- Pg 126 harvest In order to repair the ontogeny on sales and distribution channel, cricket bat (M) introduced the in-house Direct Store gross sales (DSS) operation in 2005. However to continuity stand upth, work out (M) decides to further set up sole(a) Distributors (EDx) that different from the past process unshared Distributors (explosive detection system) and currently the exceed practice in the in-house operation is the hybrid combi population of DSS, EDs and EDx. merchandiseivityBAT (M) with strong militant position but slow market growth had developed few strategies in order to achieve its go with vision and mission which aim to add value for its bon ton shareholders. In order to guarantee the supply chain and production of the main materials which is tobacco leaf is smooth and sustainable, BAT (M) had introduced a tobacco grove toss Program from 2007 that co run with worldwide farmers to heighten musical note tobacco leaf at the same time continuity in growth for organization and its market. Winning brass instrumentIn order to boost up the financial an d management synergy as a winning organisation, BAT (M) set up a policy of Directors remuneration that aimed to motivate directors for more competitive and aggressive to achieved higher sales and better manage the stemma. This reward dodging is evaluated all directors person performance on an annual bag and then magnanimous remuneration as benefits to attract directors for further improvement. The effort that all directors put in melodic phrase will virtually become a inviolable models or examples for employees to follow. Responsibilities For bodily Social Responsibilities, BAT (M) is concerned on its customers health risk therefore it never let outs on product development. tardily it introduced a harm- drop-off cigarette into the market, Swedish style Smoke little Snus. According to several freelancer health experts, this new product is 90% less harmful compare to the linguistic rule smoking cigarette (British American Tobacco, 2011). At the mean mend protecting the environment with harm reduction by effectively reduce the energy use, ascorbic acid dioxide produced, waste, urine use and other material use. 3. 2. 3 Business Objectives/ StrategiesPrimary Activities Supportive Activities The repute Chain analysis for BAT is as below Recruiting, Hiring, Training, Developing Purchasing raw materials, fertilizers, pesticides, equipments, machinery 1. Channels to market 2. Product, Pricing, Promote 3. gross sales force effectiveness 1. Wareho victimisation 2. pitch Processing 3. Shipping Manage feedback 1. pull together 2. Drying 3. Conversion 4. Packaging 1. Material use 2. Inventory Control question & Development, Product Innovation, Product Design General Management, Finance, corporate Strategy Sources Pearce and Robinson 2009, Pg 249 Pg 251 ConclusionThe business dodge for British American Tobacco (BAT) refers to the colossal term plan by management in order to achieve the companys goals and objectives. The current business strategy f or BAT focuses on the companys growth, responsibility, productivity and wining organization (BAT Malaysia, 2012). The current condition resulting from BATs business strategy are making the company in a strong financial position and strong management team. While the prox effects are improve the theatrical role of BATs products and attract more customers. 3. 2. 4 Financial Analysis Financial position of British American Tobacco MalaysiaRatios and Working Capital 2009RM000 2010RM000 2011RM000 presentation fluidity ratio received ratio=Current Asset Current Liabilities 240,220466,340=0. 52=0. 521 363,018526,910=0. 69=0. 691 152,984719,362=0. 21=0. 211 The current ratio of BAT (M) is below 1, this federal agency that BAT (M) may face the problems of paying(a) its debts on time. However, a low value does not show the critical problems, but BAT (M) has to concern the management. High aim of current ratio indicates that BAT (M) is making efficient in its pluss. Leverage ratioDebt-t o- fall Assets ratio=Total Debts Total Assets 1,378,1261,635,849=0. 4=0. 841 1,490,4761,801,751=0. 83=0. 831 1,278,4231,585,160=0. 81=0. 811 The debt-to- check-assets ratio of BAT (M) is above 0. 8, thence its office the company is depend on debt financing. Activity ratio Total asset wringover=Sales Total assets 697,371 1,635,849=0. 43=0. 431 784,477 1,801,751=0. 44=0. 441 802,832 1,585,160=0. 51=0. 511 Total assets turnover ratio of BAT (M) is change magnitude on each year, gum olibanum it indicated that BAT (M) is efficient in apply assets to generate revenues. Fixed assets turnover=Sales Fixed assets 697,371 1,137,906=0. 61=0. 611 784,477 1,127,458=0. 0=0. 701 802,832 1,125,439=0. 71=0. 711 BAT (M) has an more and more ability to generate sales from fixed-asset investiture (property, plant & equipments). Profitability ratio reverberation on total sales= dismiss income (before tax)Sales 650,936697,371 =0. 93=0. 931 741,805784,477 =0. 95=0. 951 775,278802,832 =0. 97=0. 971 ROS of BAT (M) is increasing all(prenominal) year from 2009 to 2011, it might indicate BAT (M) is growing efficiently and has a technical sign for future. Return on total assets=Net income(after tax)Total assets 640,8491,635,849=0. 39=0. 391 736,3811,801,751=0. 41=0. 411 774,2441,585,160=0. 9=0. 491 The ROA of BAT (M) is increasing since 2009 to 2011. This means the higher the return on assets ratio, the more efficiently the company is using its asset base to generate sales. SourcesBritish American Tobacco Malaysia Annual Report 2011, Pg 141- Pg 144 British American Tobacco Malaysia Annual Report 2010, Pg 150- Pg 153 Conclusion The inventories turn over in tobacco industry is much more rapidly than the account payable becoming referable. Although the debt-to-total assets ratio of BAT (M) is slightly over the normal level 0. 5, but for BAT (M) it is still handle safe in this stable industry.Overall of the BAT (M) financial performance is watch rosy, in this high level ri valry industry, BAT (M) still can bear increasing their revenues and fully practice the assets to generate more profit. 4. Discussion 5. 6 Key Issues 4. 1. 1 Cigarette smuggling and banned trading Cigarette smuggling had caused dour losings on revenue for British American Tobacco (BAT) and government around the world. One of the countries that had been hit hardly by this problem is mainland China. China market are accommodate with cigarette smuggling that are possibly the largest smuggling effort in the world.Amount up to US$1. 8billion in befogged tax revenues annually (British American Tobacco and Cigarettes export in China, 2006) had been enter cause by these activities. The main mind cigarette smuggling is prevalent is because the government effort to reduce or stop the amount of people from smoking. Government of China uses the method of increasing the tax opposes to cigarette. assess rises up to 200% in Hong Kong in year 1991 (British American Tobacco and Cigarettes import in China, 2006) that subsequently step-up the change in opaque market.The method did not successfully reduce the amount of smokers but pathetically shifted smokers towards illegal quite a little in black market. The demand in black market rises because the price of cigarette is comparatively lower than the cigarette in legal make out market. This encourages the cigarette smuggling in that country. British American Tobacco is kindle in entree the spacious authorisation market in China. Although China government is in effort of lessen smokers in their country, BAT remains their interests in their market.Under the Chinese Law, the State Tobacco Monopoly formation is the sole agency allowed to trade in tobacco (British American Tobacco and Cigarettes Smuggling in China, 2006). Collaborating with the government agencies seems to be a success for Bat in entrance the market but cigarettes smuggling activities had cause BAT to face awkwardies in entering the market. A nnually, China market losings 30%-50% in total to illicit trade in cigarettes. BAT sales cipher to China declines dramatically in year 1991 at the beginning of implementing Chinas method in reducing smokers.It is difficult for BAT to sustain their business in China and the amount of Tax revenues losings to cigarettes smuggling are broad. Government agencies are revising another method in reducing smokers in the country speckle custom officials in China arrive been preventing the worst impact on cigarettes smuggling in the nation every day. economic system in Malaysia faces negative impact from the current illegal trade all over Malaysia. British American Tobacco Malaysia reveals that the illegal trades of cigarettes in Malaysia had raises from 20 per cent in year 2002 to 36. 3 per cent in 2010.While the legal flashiness of cigarettes trade had reduces. This lost in legal volume in cigarettes trade had resulted in the losses of tax revenues up to at least RM2 billion annually. The illegal trade overly impacted on the health issues of citizens in a country. Government tends to incr liberalization or remain the price of cigarettes in high prices in an effort of preventing, reducing and promote smokers to quit smoking. Illegal trade of cigarettes became popular among smokers because the price are lower, thus forcing them to purchase cigarettes from illegal traders.With the low price on illegal cigarettes, people are tend to pick up smoking that will cause an increasing health risk and issues in that country either to the smokers nor to the everydays cause by environmental tobacco smokes (ETC) (British American Tobacco Malaysia, 2011). 4. 1. 2 Government regulatory Smoking had been classified as risky to health issues by World health Organizations. British American Tobacco (BAT) introduced harm reduction on cigarettes became the key elements in their business strategy (British American Tobacco Malaysia, 2011).Research and development team has been put up on finding methods for smokers to minimise their health risk without them completely quitting smoking. Research and development team in BAT had successfully rig a focussing in reducing the tobacco content in cigarettes that may possess minimizing health risk for smokers. BAT believes it will brings benefits for smokers in the future as the content of tobacco are reduced but some governments agencies suggested it should be prevented sort of than reducing the tobacco content in cigarettes.Reducing health impact on tobacco use is BAT long strategy in benefitting the smokers. Harm reduction program are still carrying on in researching and developing methods. 4. 1. 3 Protecting Ecosystem The recent establishment of British American Tobacco (BAT) Biodiversity Partnership with Fauna and flora International (FFI), the Tropical Biology fellowship (TBA) and Earth-watch Institute (Earthwatch Institute movement Studies, 2010) is to protect and maintain the environment after it had been used for tobacco planting.In this partnership, they aim to turn in social responsibilities towards the public and overly environment. There are steps and procedures to be followed in protecting the environment. BAT are tell as the sectors leadership (Earthwatch Institute Case Studies, 2010) because their initiative in proper forestation and social responsibility programs. In completing these activities, special(a) cost are incurred. Efforts of forestation required superfluous funding from the company.This increases the operational cost of BAT and left those answering investors question on their return of profits margin. Extra investment might be needed to ensure the program to be proceeding. Cost incurred are in huge amount because BATs tobacco leaf suppliers are in different regions, therefore, proper planning is advise before programs can be fully carry out for all their suppliers. 4. 1. 4 External Environment An external environment factor is alike an unpredictable proble m towards British American Tobacco.External environment in the like of cancel disaster such as fires on woodlet cause by weather, plantation infected by insects, typhoon and more cannot be predicted. This ingrained disaster will demean the whole plantation and there is no possible shipway that BATs suppliers can do to prevent it. The tobacco plantation destroyed will cause the company to losses entirely in the plantation cost. It will to a fault causes dearth of supplies towards BAT manufacturing plant and delayed their manufacturing process.This casualty can cause huge losses to the company annual profits. Insurances are not covered because damages done by natural disaster is not included. BAT will suffers a total lost in the event of strike of natural disasters. 5. 7 SWOT Analysis Source Pierce and Robinson 2009. Conclusion From the above SWOT analysis diagram, BAT (M) is currently laid in Cell 2 as its company substantial internal strength might affected by the major enviro nment threats in the long run basis. . 2. 1 Strength BAT (M) main strength is that it has a strong financial position or support from the mother company, The British American Tobacco Group. Furthermore, it also ranked among top 25 companies in Bursa Malaysia in terms of capitalization. BAT (M) is the market leader of topical anesthetic tobacco industry as it owned 61% of the market shares and it has comprehensive distribution network that can reach whole nation (British American Tobacco Malaysia, 10th April 2012).Besides that, the collaborative commerce relationship that associate business-to-business (B2B) with its key customers such as 7-Eleven, Carrefour, Shell, Tesco and Wal-Mart is cheery channel to distribute its products. The many types of products that forgetd by BAT (M) can fulfill several types of customers preference and next by attain stronger customer royal house that automatically generated from the strong brand equity. 4. 2. 2 WeaknessesOne of the internal w eaknesses of BAT (M) is the company not diversified in investment funds other ingredient of industry or businesses. Therefore, BAT (M) is easily will be affected whenever there are any external issues that impact on tobacco industry. Besides that, there is no online front line for BAT (M)s customers to outrank order or check the pricing precept and other details of the products. This may caused it to lost potential customers that interested to purchase in bulk amounts as for sell purposes.Furthermore, the numerous types of brands and products that BAT (M) extends to their customers is causing diseconomy of scale to its production line and procurement department. The fewer amounts it purchases from its suppliers, the less negotiation power BAT (M) had. 4. 2. 3 Opportunities The strong financial support or capitalization of BAT (M) can feed it chances of take over and acquisition the downhearted company that have less market shares in the local Tobacco industry, this can save its time of retraining new batch of human resources and purchasing new machineries.Furthermore, BAT (M) can easily have kittens its products portfolio by take over others brands. The influences of technology, it encourage BAT (M) to provide another business model that offer more flexibility to customers which is online basis. This will lightsome for customers to placing order and get products without spending redundant time and cost such as petrol to travel from one place to another. 4. 2. 4 Threats The external changes of Government in terms of regulations on taxes rate leading to BAT (M) further contraction.Furthermore, the small sizes of local brands that using cheaper technology to produce confusable types of products but selling it with lower price bring impact on BAT (M) market. The illegal smuggling is another external impact that cost BAT (M) to lose its business as in the illegal products is cheaper due to refuse pay tax. Annual average Illegal cigarette trade in Malays ia was 36. 1% in 2011, which means 1/3 of the country is not going to purchase any products from BAT (M) (British American Tobacco Malaysia, 10th April 2012). 5. 8 Balance punctuate Card FinancialObjectives Measures Targets Initiative Achievement 1) Maximizing shareholder interest towards the company 2) Contributing part of profits as social responsibilities towards the market * Profits & notes flow * Interpret financial ratio for evaluating performance * harvest-time in earning per shares (EPS) * Maintaining shares market value level * Ensure employee understand and acknowledge financial goal of business * Maintaining grave relationship with bankers, financial advisor and insurance agent to improve companys performance * Successfully increase revenues and sales * efficiently using acquired assetsInternal Business Process Objectives Measures Targets Initiatives Achievements 1) Channelling urge to operate at a fast, better and smarter way * Encourages employee work smarter a nd more efficientlySources British American Tobaccos Annual Report, 2011 * decline on requirement of man-days * Implementing Enterprise alternative Planning (ERP) solutions * Pilot market in Malaysia tobacco industry * Introduce subcontract manufacturing for large volume productions * Implement miscellaneous key information technology to support globally-integrated business CustomersObjectives Measures Targets Initiatives Achievements 1) Maintaining in responsibility 2) take in stakeholders and shareholders values * Sustaining share values and improve company commercials sustainability * Participating in afforestation program * Community * present scholarships * Marketplace * Financial aids * workplace * Employee voluntary Program (EVP) * Community Pillars * pauperism alleviation * Education * Employee voluntaryism * Environment * underprivileged & disabled community * Offset carbon dioxide release to environment through afforestation * modify companys commercials abili ty * Completing targeted collections responsibilities * Completing initiatives in bringing a better quality life for community pillars Learning and GrowthObjectives Measures Target Initiative Achievement 1) keep to drive goals momentum * Measuring British American Tobacco Malaysia versus competitors shares of market in the Value for money (VFM) shareSources British American Tobaccos Annual Report, 2011 * Achieving good reputation and reaction from customer with their new products * British American Tobacco choose to use strategic brand in enhancing market growth * Introduce different brand of cigarettes * fire market capabilities and strong distribution network * Different brand has different unusual capabilities * Winning in premium Lights and Menthol segment of cigarettes. A portfolios strategy by BAT planned years agone before winning the awards. Balance Score Card (BSC) 4. 3. 1 Financial In the financial view of British American Tobacco (BAT), the key objectives is to m aximize their shareholders interest towards the company and also contributing part of their profits as social responsibilities towards the market. BAT regularly measures revenues and focuses on company cash flows to maintain their shares market values level.Another effort BAT took is to interpret their financial ratio and use the information self-possessed to evaluate their business performances. This had lead to the growth in earning per shares (EPS) and successfully increases their revenues and sales annually. Efficiently in using their acquired assets with minimum wastage also assisted BAT in achieving their business financial goals. Employees in BAT are well lead in rationality the financial goal and also acknowledging the way to achieve the business goals. They took the initiative to maintain good relationship with banker, financial adviser and insurance agent to improve the companys profits in order to maintain the shares market value level of the company. 4. 3. 2 Internal Business ProcessInternal business processes is essential in maintaining and expression a trust from shareholders and customers. Analyzing the best business processes can help the company to perform better to achieve the desire outcome. British American Tobacco Malaysia (BAT (M)) adoptive channeling the business processes momentum into operating faster, better and smarter to meet their strategy requirement. Efficiency in performing business process and address effectiveness results is suitable in amiable into nowadays globally-integrated environment. BAT (M) targets productivity in their processes by encouraging employees to identify ways to work smarter and more efficiently. A struggle name as Make beat to Win had been introduced to the employee.These measures are done by reducing unnecessary workload such as completing work with nada errors to create effectiveness, reduce complexity and bureaucratism in the companys business process to enable employee to perform faster and cr eate efficiency in their work and lastly to put forward work-life balance enablers which focuses on the finis and working environment in the company by providing a golden environment and adaption to companys culture program. The outcome of this campaign had been accomplished with the results in total man-days reductions of the company and generated a total savings of RM10. 4million for the company worldwide in 2011 (British American Tobacco Malaysia annual report, 2011). opposite than that, BAT (M) took the initiatives in implementing Enterprise Resource Planning (ERP) solutions in daily business processes and became the pilot market for ERP solutions in Malaysias tobacco industry.This also guided the company into introducing subcontract manufacturing method for large volume productions in Japan, Australia and Global travel retail (British American Tobacco Malaysia annual report, 2011) and thus, implementing discordant key information technology initiatives to support the globa lly-integrated business. 4. 3. 3 Customers Customers play a huge role in the company strategy planning. Providing clear and quality products to customers is vital for British American Tobacco Malaysia (BAT (M)). Maintaining BAT (M) responsibilities on their products had been set from the past to ensure the company promotes their products responsibly. Collaborating with government agencies in promoting the products only to legal age customer became one of the major objectives of BAT (M).Besides that, participating in forestation program became part of BAT (M) annual event in order to perform their social responsibilities towards the social in a way that offset carbon dioxide emission to the environment cause by smoker using the companys products. This had managed to sustain the shares value and shows improve in companys commercial ability. BAT (M) targets 3 major segment in the society which is the community, marketplace and workplace. In the company demeanor to the community, BAT (M) awards scholarships to talented students in helping them to persuade their studies. Selected students are giving these opportunities by British American Tobacco Malaysia as part of the contributions towards the society.While in marketplace, the company provides financial aids for higher education to the tobacco growing community to ease their financial difficulties. Studies on the growing and managing the plantation assist the tobacco growing communities in producing more quality products for BAT (M). in conclusion in workplace, the company place employee volunteer program for a deserving causes. Employee Volunteer Program (EVP) is the company culture of giving back to the community. EVP allows employees dedicating their time and efforts for good cause towards the community. To give a helping hand to the community pillars, BAT (M) took the initiatives steps in allocating budgets and lends their helping hands to the community that needed the most.The activities done are such as poverty alleviation on building homes for poor family, providing education in awarding scholarships, employee volunteerism that promotes company culture of giving back to the community with employee volunteer program. It has done across the Peninsular Malaysia. On the other hand, the fundamental of environment has lead the companys employee to volunteered time towards environment conservations by clean waterfall and a beach and also to support the underprivileged and disable community. Volunteered time by the company EVP program passim Malaysia to assist them in different aspect, thus improving their health, benefits and living standard. 4. 3. 4 Learning and Growth Learning and growth is an important segment in the framework because it supports the visions and ability to sustain the company in long-term.British American Tobacco Malaysia (BAT (M)) visions are to obtain more markets shares and become market leaders for global tobacco industry. BAT set an objective of continuing t o drive goals momentum in achieving their visions. In the current situation, BAT (M) had strengthened the company leadership in the Malaysias tobacco industry with the healthy and positively growth trend in their financial analysis. Measuring the Value for money (VPN) segment from 2009 to 2011 of BAT (M) and their competitor is all important(p) for the company survival in the market. This ensures the sustainability and also their vision in becoming the industry leader in the Malaysias tobacco industry.Along the year from 2009 to 2011, BAT (M)s VPN are recorded at 7. 7percent, 8. 9percent and 9. 4percent while their competitor had 10. 2 percent, 11. 0percent and 10. 3percent relatively. The figures shows that BAT (M) share of market had been increasing positively against their competitor and successfully reduced the VPN gap between BAT (M) and their competitor from 2. 6percent to 0. 9percent (British American Tobacco Malaysia annual report, 2011). BAT (M) target of gaining good repu tation and response from customers with their products is achieved by obtaining awards in premium Lights and Menthol segment of cigarettes. This is a portfolios strategy planned years ago before being awarded the success.In order to meet their vision, BAT (M) practice strategic brand as their initiative in market growth. Introducing various brand of cigarettes to enhance their market capabilities such as Pall Mall, Kent, Dunhill, Peter Stuyvesant is few types of cigarettes brand innovates by BAT(M) and strengthen their distribution network is part of the strategic steps taken. These different brands of cigarettes have different unique capabilities for the smokers such as triple filter charcoal technology, menthol and spearmint flavor cigarettes. These innovations assisted the company in obtaining more markets share and becoming the market leader in the industry. ConclusionThe activities and programs organize by British American Tobacco in alliance with British American Tobacco Malay sia in different segment and aspect had significantly improve the business operation, the social responsibilities and managing the company strategy plan in a proper way. It fits accordingly to the company visions of obtaining more market shares and become market leader for global tobacco industry so that it can ensure the sustainability of business and follow by bring more values. 5. Recommendations It was found out that British American Tobacco (BAT) is facing huge competition among the tobacco industry due to numerous brands in the market. In addition, cigarettes typically bring a bad science to people lately.So, instead of scrambling around, the company is proposed to get rid of the red oceans by moving its business slowly toward the blue oceans, but not immediately. Thus, applying the purple oceans strategy could be the head start step for BAT. The phase purple oceans means to stay in the crew of both red oceans and blue oceans. Hence, this strategy enables the play safe met hod and allows BAT to maintain its existing loyal customers, at the same time generating new peculiar(a) customers through the product innovation. According to Dr Joe Leung, the first scholars that propose the purple ocean strategy, there are total 5Cs needed to be master before an enterprise could position itself in the purple oceans and the 5Cs are to wit as cost, cash, customer, competence and counterpart (Fortune Making, 2012). precisely when BAT able to mastered the 5Cs and poises themselves in the purple oceans, then only the company could explore toward the blue ocean. For BAT, the blue ocean could be established through product innovation. Since the company has their own research concenter which is located at Southampton UK (BAT, 2012), therefore BAT could make use of it to develop their new products. For instance, create cigarettes that bring harmless to our health by replacing those harmful ingredients inside the cigarette. Once cigarette is harmless, it is not only cre ating the new market for BAT, but also changing peoples detection toward smoking. Furthermore, the government no longer got the cogitate to resist cigarette.Besides than using the oceans strategy, horizontal integration could be an alternative strategy recommended to BAT in order to improve the companys business strategy. The horizontal integration is a strategy that allows the company to increase its market share in the tobacco industry through unite or taking over the correspondent companies (Biz Dharma, 2012). Since BAT is having a strong financial position, therefore the company may utilize this advantage in order to mix with those weaker companies. By applying this strategy, BAT able to grow its market share rapidly and what most important is it could reduce the number of competitors for BAT and switch them to become partners. 6.References British American Tobacco Malaysia, About Us Who We Are, 10th April 2012 Fortune Making, proud Ocean Strategy, 2012 British American Tobacco, Research and Development, 2012 British American Tobacco (Malaysia), Our Strategy, 2012 British American Tobacco (Malaysia) Berhad, 2011, Reports and Financial Statements, viewed 20th June 2012, . British American Tobacco (Malaysia) Berhad, 2010, Reports and Financial Statements, viewed 20th June 2012, . British American Tobacco (Malaysia) Berhad, 2011, viewed 20th June 2012, British American Tobacco (Malaysia), Our Strategy, 2012 British American Tobacco and Cigarettes Smuggling in China, Keys to the early, 2006 http//www. plosmedicine. org/article/info%3Adoi%2F10. 1371%2Fjournal. pmed. 0030228 British American Tobacco Malaysia Annual Report, Government Regulatory, 2011 http//www. batmalaysia. com/group/sites/bat_7ryj8n. nsf/vwPagesWebLive/DO7SUKSJ/$FILE/medMD8SFEPS. pdf? openelement British American Tobacco Malaysia, Illegal trade in Malaysia, 2011 http//www. batmalaysia. com/group/sites/BAT_7RYJ8N. nsf/vwPagesWebLiveO8PBFUP? opendocument&SKN=1Earthwatch Institute Case Studies, integration biodiversity into business management and operations, British American Tobacco Biodiversity Partnership, 2010 http//teebforbusiness. earthmind. net/files/Earthwatch_Case_Studies-HSBC_SHELL_-American_Tobacco. pdf Fortune Making, Purple Ocean Strategy, 2012 British American Tobacco, Research and Development, 2012 Biz Dharma, Horizontal Integration, 2012 http//bizdharma. com/blog/what-is-vertical-and-horizontal-integration/ 7. Appendixes Appendix 1 Organization Structure of BAT (M) B. O. D Appendix 2 Corporate Information of BAT (M)