Executive Summary:

The report is focused on the in-depth management process of a selected organization that should

be a corporation. Our chosen organization is British American Tobacco Bangladesh (BATB).

Throughout the report a detailed analysis of all fields related to the managerial sector will be

broadly looked into and analyzed.

British American Tobacco Bangladesh is a member of British American Tobacco plc that is

based in UK and one of the leading players in the global tobacco business. British American

Tobacco plc is a market leader in more than 50 countries with 85,000 employees selling more

than 300 brands in more than 180 markets worldwide. British American Tobacco Bangladesh, a

market leader in the country, is a subsidiary of British American Tobacco plc and is one of the

66 countries in which British American Tobacco plc has manufacturing plants. (Wikipedia. (Modified

2014) [Online] Available from http://en.wikipedia.org/wiki/British_American_Tobacco [Accessed 11th January 2014])

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Company Information:

British American Tobacco is the world’s second largest quoted tobacco group by global market share,

with brands sold in almost 180 countries. With more than 300 brands in their portfolio, they make the

cigarette chosen by one in seven of the world’s one billion adult smokers. They hold robust market

position in each of their regions and have leadership producing some 678 billion cigarettes,

(including make-your own cigarette ‘ stix’) and 7 factories in 6 countries manufacturing cigars,

roll –your-own and pipe tobacco. The Group’s associate companies have 14 cigarette factories in

7 countries producing some 232 billion cigarettes. Our companies, including associates, directly

employ almost 97000 people worldwide.. our business enable government worldwide to gather

over $ 15 billion a year in taxes, including excise duty on their products, over 8 times the entire

Group’s profit after tax. (British American Tobacco Bangladesh. (2013) [Online] Available from: http://www.batbangladesh.com/

[Accessed 9th January 2013] )

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How was BATB formed?

British American Tobacco Bangladesh, a market leader in the country, is a subsidiary of British

American Tobacco plc and is one of the 66 countries in which British American Tobacco plc has

manufacturing plants.

The Company has operated in Bangladesh since per-independence and has its headquarters in

Dhaka with a tobacco leaf processing operation in Kushtia. It is one of the oldest, largest and

most respected multinational companies operating in Bangladesh. The company started its

journey as Imperial Tobacco Company Limited in 1910 in the then undivided India. After the

partition of India, Pakistan Tobacco Company (PTC) was established in 1949 to reflect the new

country in Bangladesh (then East Pakistan) was set up in 1965 in Dhaka. After the independence

of the country, Bangladesh Tobacco Company Limited (BTC) was incorporated on 2 February

1972 as a private limited company. Since then it has been the market leader in the country. In

1990 the Chittagong Factory was closed and in 1995 a Green Leaf Threshing Plant (GLTP) was

set up in Kushtia. 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

situation in Kushtia. (British American Tobacco Bangladesh. (2013) [Online] Available from: http://www.batbangladesh.com/

[Accessed 9th January 2013] )

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Structure of BATB

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. It can be said that BATB is a process-based organization, instead of having

isolated departments the company has some support functions and some core functions.

Typically the structure of the organization can be explained through the supply chain. In BATB

it is called seed to smoke as the supply chain process.

BATB’s Contributions

British American Tobacco Bangladesh is one of the largest multinational companies in

Bangladesh. Consequently, They are also the largest private sector tax payer in Bangladesh. In

2010, we contributed Tk. 46.27 billion in the form of Supplementary Duty, Value Added Tax

(VAT) and other taxes to the national exchequer. Over time, we have successfully established

ourselves as the company contributing to economic, social and human resource development.

They continue to move forward to deliver higher promises. (British American Tobacco Bangladesh. (2013)

[Online] Available from: http://www.batbangladesh.com/ [Accessed 9th January 2013] )

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BATB – A Public Limited Company (PLC) and its Share holders

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

has an authorized capital of Tk. 400,000,000 of ordinary shares of Tk. 10 each. British American

Tobacco Bangladesh, which encompasses 65.91% of the shares of the British American

Tobacco, London. The Government held the rest of its shares. Subsequently the government has

gradually sold its holdings to different organizations.

BATB’s Employees

At British American Tobacco Bangladesh, difference is their advantage and diversity is their

strength. They have employed more than 1,186 people directly and about 50,000 people

indirectly as farmers, distributors and local suppliers. Moreover, around 900,000 retailers in the

country sell BATB’s brands to earn their living. BATB takes great pride in saying that they are

one of the most preferred employers in the country. Having people from a wide variety of

cultures and backgrounds who support each other’s success makes them unique. It is their pool

of talented people who give this place the wonderful and pleasant working environment that take

them forward every day. (British American Tobacco Bangladesh. (2013) [Online] Available from: http://www.batbangladesh.com/

[Accessed 9th January 2013] )

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Organization Chart

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ChairmanMr. Golam Mainuddin

Mr. Kamrul Hasan Mr. K.H.Masud Siddiqui Mr. Syed Monjurul Islam Mr. Md. Fayekuzzaman

Non-Executive Director Non-Executive Independent Director Non-Executive Director Non-executive Director

Mr. Shehza Munim Mr. Anthony Yong Mr. Zakir Ibne Hai

Non-Executive Director Finance Director Corporate & Regulatory Affairs Director

Managing DirectorMr. Arun Kaul

Mr. Md Azizur RahmanCompany Secretary

Mr. Raihan RahmanHead of Marketing

Mr. Zafar Aslam KhanHead of Supply Chain

Mr. Aynul KabirHead of Legal Affairs

Ms. Rumana RahmanHead of Human Resources

Industry Analysis

Major Competitors:

Akij Group:

Dhaka Tobacco Industries came to the fold of Akij Group in late seventies when the Government

decided to disinvest and hand over the Factory to private sector from the nationalized sector. The

Factory is located at Morkun near Tongi and the beneficial investment on labor and machineries

has turned the Factory into a modern cigarette producing unit. It employs nearly 1,200 people

who work in a congenial atmosphere to deliver right quality to satisfy the million of smokers’

taste and needs. They are trying its best to deliver “Zero Defects” product.

Dhaka Tobacco Industries has been contributing considerable amount of revenue to the

government and also providing employment since its inception. In the financial year 2005-2006,

the Company contributed Tk. 1002.58 crore to the government exchequer as duty and VAT.

During the current financial year (2006-2007) Dhaka Tobacco Industries’ contribution to the

government exchequer will be to the tune of Tk. 1050.00 crore.

Products of Dhaka Tobacco Industries:

1. High Segment:

Castle Full Flavor

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Castle LightsPresently DTI enjoys more than 10% market share in this segment.

2. Medium Segment:

Navy

Presently DTI are contributing 48% market share in this

segment.

3. Lower Medium Segment:

Sheikh

Real

Presently DTI are enjoying more than 80% market share in this segment.

4. Low Segment:

Five Star

K-2 c) Surma

Read & White DTI’s market share in this segment is about 50%.

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China National Tobacco Corp:

China National Tobacco Corporation was founded in 1982 and falls under the jurisdiction of the

State Tobacco Monopoly Administration or STMA. This organization is responsible for

enforcing the tobacco monopoly in China. While the STMA manages the monopoly, China

National Tobacco caters to its customer base of 350 million smokers, who consume 1.7 trillion

cigarettes every year. A major objective of China National and the STMA has been

modernization. As recently as the 1980s, China's independent tobacco factories used outdated

equipment to the extent that some processes were even carried out by hand. To accomplish their

goal of modernization, the STMA allowed a small number of foreign companies into the country,

in exchange for modern equipment. The acceptance of foreign competition sparked a massive

demand for tobacco production equipment in the 1990s, which has since slowed. Products

offered by China National Tobacco Corp

Marboro

Camel

Lucky Strike

Philip Morris:

Altria Group, conglomerate company previously known as Philip Morris

Companies Inc., named after the 19th century tobacconist .Philip Morris USA, Tobacco

Company wholly owned by Altria Group .Philip Morris USA is the United States tobacco

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division of Altria Group, Inc. Philip Morris USA brands include Marlboro, Virginia Slims,

Benson Hedges. Philip Morris Companies Inc. changed its name to Altria Group, Inc. Even

under this new name, Altria continues to own 100% of Philip Morris USA. In 1938, the company

offered preferred stock to ordinary buyers. In 1954, Philip Morris began advertising Marlboros

specifically to men. The Company divides its markets into four geographic segments:

TheEuropean Union (EU) Region , The Eastern Europe, Middle East & Africa (EEMA) Region ,

The Asia Region and The Latin America & Canada Region. (Report Linker. (2012) [Online] Available from

http://www.reportlinker.com/ci02053/Tobacco.html/coverage/Asia:Bangladesh [Accessed 21st December 2013] )

Product offering:

The success of British American Tobacco Bangladesh comes from satisfying smokers. They

manufacture and market high quality and well established international cigarette brands. The

brand portfolio of BATB currently consists of Benson & Hedges, John Player, Gold Leaf, Pall

Mall, Captain, Star, Scissors, Pilot and Bristol. Product details are discussed below.

Benson & Hedges:

It is the most popular and traditional brand across the globe and even in Bangladesh. The Benson

& Hedges Lights is a new member of B&H family. It was first introduced in 1998 in Dhaka and

Chittagong. The objective was to give the smokers more options within the same brand and to

keep pace with the modern trend of smoking light cigarettes throughout the world. National sales

showed that the position of B&H indicates medium growth & medium share of business and

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products. Even though B&H is recognized as a prestigious brand of BATB, it is losing its

number of consumers due to high price. As a result, its sales volume is very low compare to

other brands and it also registers low growth rate in sales in Bangladesh. Currently its price is

BDT 9.

John Player Gold Leaf, Pall Mall and Capstan:

John Player Gold Leaf, Pall Mall and Capstan are positioned in the High segment. Launched in

1980, John Player Gold Leaf is one of the highest selling brands of our company, enjoying large

market share in the High segment. Pall Mall was the Group’s first Global Drive Brand to be

launched in Bangladesh in 2006.

SE 555:

SE 555 is the international brand of Bangladesh symbolizing internationalism and smoothness.

But it can be seen from the trend above that though it had done fairly well during 1997-98 but

then again had a downward turn.SE 555 is the largest and fastest growing brand of BATB; its

position is not up to the mark in Bangladesh. National sales show that the position of SE555 lies

in the Dogs cell which indicates low growth and low share. The price of SE 555 is also very high

(Tk. 3 per stick) compare to other local brands and Bat’s own brands. Its sales volume is very

low and having a very low growth rate. It is very much hardly found in the market now.

Gold Leaf:  

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Gold Leaf JPGL is the number one brand of BATB and is the leader in the cigarette industry of

the whole country in terms of market share and total turnover. It draws about 50% of the total

revenue of BATB. Bangladesh is the largest of the 33 JPGL selling countries. Due to reasonable

price (Tk. 4 per stick) people of medium and low medium income group can easily afford it. It

was launched in 1980 for the first time in Bangladesh. After reviewing national sales it can be

inferred that from the commencement period of the brand, it realizes the highest share and

highest growth. But at present the brand growth is not increasing as the previous trend due to

mild competitive pressure. The above attributes of Gold Leaf are conversant with the Cash Cow,

which means low growth and high share of Business. The Company launched the brand in 1998,

with the unique product feature of ‘white tipping paper’. It is also in the cash cow cell.

Scissors:

Scissors is the second leading brand of BATB as well as of Bangladesh. Its price is

comparatively lower than the price of BAT’s other brands. Its sales volume is high and it has

achieved a high share in business. National sales indicate that growth of the brand is decreasing

compare to the previous years but there is nothing to worry about. The above noted

characteristics of the Scissors place it in the Cash Cow cell. The company is making huge profit

from this brand. Star BATB uses completely local materials in producing Star brand. This brand

gained popularity for its low price (Tk.1 per stick).

Stars:

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Stars has many different variations under its name. The different brands of Star are discussed

below:

Star Classic: Introduced into the market in February 2001, this brand targets the medium

segment customers. Up until now, the brand has got moderate responses from smokers.

However, it is very early to comment on the future of this brand. There are three filtered Star

brands in the low segment. These brands

Star Filter Kings (KSF 20HL)

Star Filter Kings (KSF 20HC)

The sales Trend of Star Filter Kings (KSF 20SC)Star Plain Star Plain has been losing its market

very fast and in 2010 the total sales stood at only 55 million sticks! BATB needs to rethink its

strategy to increase the sales of this brand.

Capstan:

At present Capstan is enjoying an increasing trend. But its market share is very low. The price is

comparatively very low in comparison to BATB’s other brands except Star and Scissors.

National sales indicate the present position of the brand lies in the Question Mark cell. BATB

needs to formulate an appropriate strategy for expanding the market share of this brand. (BAT

Bangladesh Year Book 2010-2011)

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How are the 8 managerial functions carried out while managing the employees of BATB?

Managers create and uphold an internal environment, commonly called the organization, so that others

can work efficiently. In any organization, a manager's job consists of planning, organizing, staffing,

motivating, leading and controlling the resources of the organization. These functions also include

counseling and coordinating with subordinates and peers. These resources include people, jobs or

positions, technology, facilities and equipment, materials and supplies, information, and money .

Managers work in an energetic environment and must foresee and adapt to challenges."

There are eight functions which are usually carried out in today’s organization so as BATB.

They are :

Planning :

Planning is the primary function of management. It involves determination of a course of action

to achieve desired results/objectives. Planning is the starting point of management process and

all other functions of management are related to and dependent on planning function. Planning is

the key to success, stability and prosperity in business. It acts as a tool for solving the problems

of a business unit. Planning plays a pivotal role in business management It helps to visualize the

future problems and keeps management ready with possible solutions.

In BATB it has been widely used and the benefits and/or features they had :

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Long term orientation

Many people involved in preparing and making decisions

Decisions making takes long time but its implantation is very fast and

effective.

Employees share power and responsibility.

Organizing :

Organizing is next to planning. It means to bring the resources (men, materials, machines, etc.)

together and use them properly for achieving the objectives. Organization is a process as well as

it is a structure. Organizing means arranging ways and means for the execution of a business

plan. It provides suitable administrative structure and facilitates execution of proposed plan.

Organizing involves different aspects such as depart mentation, span of control delegation of

authority, establishment of superior-subordinate relationship and provision of mechanism for co-

ordination of various business activities.

In BATB it has been widely used too and the benefits and/or features they had :

Common Organizational culture

Organizing changes by changing goals.

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Staffing:

Staffing refers to manpower required for the execution of a business plan. Staffing, as managerial

function, involves recruitment, selection, appraisal, remuneration and development of managerial

personnel. The need of staffing arises in the initial period and also from time to time for

replacement and also along with the expansion and diversification of business activities. Every

business unit needs efficient, stable and cooperative staff for the management of business

activities. Manpower is the most important asset of a business unit. In many organizations,

manpower planning and development activities are entrusted to personnel manager or HRD

manager. 'Right man for the right job' is the basic principle in staffing

The benefits and/or features that BATB has of staffing are:

Rapid advancement highly desired and demanded

Rewardsfor individuals achievements

Training and development undertaken

Leading:

Directing as a managerial function, deals with guiding and instructing people to do the work in

the right manner. Directing/leading is the responsibility of managers at all levels. They have to

work as leaders of their subordinates. Clear plans and sound organization set the stage but it

requires a manager to direct and lead his men for achieving the objectives. Directing function is

quite comprehensive. It involves Directing as well as raising the morale of subordinates. It also

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involves communicating, leading and motivating. Leadership is essential on the part of managers

for achieving organizational objectives.

The benefits and/or features that BATB has of staffing are:

Directive style, strong , firm and determined

Leaders are decision maker is heading the group

Controlling:

Controlling is an important function of management. It is necessary in the case of individuals and

departments so as to avoid wrong actions and activities. Controlling involves three broad aspects:

(a) establishing standards of performance, (b) measuring work in progress and interpreting

results achieved, and (c) taking corrective actions, if required. Business plans do not give

positive results automatically. Managers have to exercise effective control in order to bring

success to a business plan. Control is closely linked with other managerial functions. It is rightly

treated as the soul of management process. It is true that without planning there will be nothing

to control It is equally true that without control planning will be only an academic exercise

Controlling is a continuous activity of a supervisory nature

The benefits and/or features that BATB has of controlling are:

Control by supervisor

Control focuses on individual performance

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Coordinating:

Effective coordination and also integration of activities of different departments are essential for

orderly working of an Organization. This suggests the importance of coordinating as

management function. A manager must coordinate the work for which he is accountable. Co-

ordination is rightly treated as the essence of management. It may be treated as an independent

function or as a part of organisms function. Coordination is essential at all levels of management.

It gives one clear-cut direction to the activities of individuals and departments. It also avoids

misdirection and wastages and brings unity of action in the Organization. Co-ordination will not

come automatically or on its own Special efforts are necessary on the part of managers for

achieving such coordination.

Motivating:

Motivating is one managerial function in which a manager motivates his men to give their best to

the Organization. It means to encourage people to take more interest and initiative in the work

assigned. Organizations prosper when the employees are motivated through special efforts

including provision of facilities and incentives. Motivation is actually inspiring and encouraging

people to work more and contribute more to achieve organizational objectives. It is a

psychological process of great significance.

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Communicating:

Communication (written or oral) is necessary for the exchange of facts, opinions, ideas and

information between individual’s and departments. In an organization, communication is useful

for giving information, guidance and instructions. Managers should be good communicators.

They have to use major portion of their time on communication in order to direct, motivate and

co-ordinate activities of their subordinates. People think and act collectively through

communication. According to Louis Allen, "Communication involves a systematic and

continuing process of telling, listening and understanding. (Cassidy, CM & Kreitner, R. (2011) Principles Of

Management.12th Edition Ed South Western. Cengage Learning).

Which of the 12 managerial skills according to Wilson are used while

managing the people? Which ones are not used?

According to Wilson, there are twelve managerial skills. But these twelve skills are categorized

to three skill category. The skills are:

i. Technical :

1. Technical Expertise :

Technical expertise are the ideas that relate a manager's knowledge to effectively implementing

it. The knowledge may include his/her education ideas, training skills, previous work experience

etc.

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2. Clarification of goals and objectives :

This term states that what is the organization's main target and how do the employees should

carry out the manager's orders to fulfil the targeted objectives.

3. Problem Solving :

In an organization, the employees had to suffer through lots of difficulties while facing the

challenge of achieving organization goals. It is then the role of the manger to give solutions to

those problems and help the employees to proceed further.

4.Imagination and Creativity :

Imagination and creativity is mainly associated to technological industries where there is regular

change in demand and people are interested to get advanced to latest technological products.

ii. Teambuilding :

5.Listening to Insights :

An important part of becoming an efficient manager is teambuilding; and in order the managers

must always pay attention of what the team mates are suggesting. This not only provides the

managers with multiple options, some of which might be better than the managers own thoughts;

it also allows the team-mates feel like they are an important part of the organisation and are

motivated to work hard.

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6. Directing and Coaching :

It is very essential for a manager to lead a team properly as it is his/her main task to guide the

employees under him. If the direction is given accurately, then only the organizational objectives

get fulfilled.

7. Solving problems as team :

The power of unity is very strong and it is the strongest when the power of unity is utilized

properly. If a problem arises in an organization, then if the whole team work together to solve the

problem, it gets very easy no matter how the problem is.

8. Coordinating and Cooperating :

The skill of a manager to be capable of making the entire team coordinate and cooperate with

each other is absolutely essential. Most tasks are performed better with team work and if the

employees are coordinating with each other the work can be performed more easily, efficiently

and tasks are generally performed faster when all team mates cooperate. This entire structure

creates a good work environment so employees are motivated and therefore the organizations

perform more efficiently.

iii. Drive :

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9. Standards of Performance :

The manager’s ability to keep the workers motivated and striving for is absolutely essential while

managing an organization. This is where standards of performance kicks in, it gives the

employees a yard stick to accomplish and this in turn motivates the employee to perform more

efficiently.

10. Control of Details :

It is key for a manager to make sure that workers are performing at peak efficiency, as a small

lag may give rise to lower quality of work and lower reputation of the business in the long run.

11. Energy :

The managers must be able to motivate employees and keep their morale high. If the employees

are happy they will work more efficiently and this would lead to higher productivity. So keeping

the employees invigorated is very essential for an efficient business organization.

12. Exerting Pressure :

Often only motivators are not enough for efficient performance in an organization, the

employees need to fear the consequences if set tasks are not performed or performed improperly.

The fear of employees losing jobs also works as a tool for employees to be always efficient so

they give their level best at all times and this allows the business as a whole stand out.

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In a company like British American Tobacco(BAT), there is no scope of using the above

mentioned managerial skills at a time. Some of the skills play a very vital role during the

operation of the tobacco industry while some play very small role or infact no role at all.

The skills that are important and used in BATB are :

• Clarification of goals and objectives - If the goals and objectives are clarified, then the

efficiency of the subordinates increases as they know what is their main target and they need

to reach it no matter what happens. In BATB, the goals are clearly stated at the beginning of

the accounting year and the subordinates work accordingly.

• Problem Solving - When the subordinates faces problems, the manager step forward to help

them and this is a very familiar scenario in BATB as the managers are very much friendly

and always try to clear the barriers for the employees.

• Listening to Insights - The manager always try to take the advice of the employees as this

plays a vital role in an organization like BATB.

• Directing and Coaching – In BATB, the managers are efficient onough to lead the team

which includes the subordinates and this is why they are successful in their operation and a

leader in that tobacco industry.

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• Solving problems as a team - If a subordinate faces problem, the instruction is given in such

a ways that many try to solve the problem as a team. And in BATB, this the problems

relatively smaller.

• Coordinating and Cooperating - If there is coordination and cooperation in a team, then the

working environment gets very friendly and this a very motivational strength for the

subordinates and by this, the organizational politics can also be avoided. And it BATB, the

working conditions are so much friendly that they see it as one of their best strengths.

• Standards of Performance - The standards of performance needs to ne be maintained by the

managers because it is the role of the managers to take care of this and in BATB it is

maintained properly and so it is a company of very efficient and effective managers and

employees.

• Control of Details - The details of work needs to be controlled properly because only then

the subordinates feels like there is no scope of doing less job than the required one.

• Energy - If the managers motivate the employees, and behave in a friendly manner with

them and if they arrange recreational activities, then the employees will not feel bored and

they will be energetic to do their respective work.

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The skills that are not important and not used in BATB are :

• Technical Expertise - The managers are not directly involved in technical expertise in

BATB because there are other managers who are involved in this job.

• Imagination and Creativity – In BATB, there is no room for the managers to implement

imagination and creativity because in tobacco industry, imagination and creativity are not

involved in the main product.

• Exerting Pressure – In BATB, the managers believe in independent working condition and

so the they do not exert too much pressure to their subordinates and that is why the

employees also does not feel that they are continuously under pressure and can work freely

but responsibly. (Cassidy, CM & Kreitner, R. (2011) Principles Of Management.12th Edition Ed South Western. Cengage

Learning),

How are these managerial skills used in BATB while managing the

employees? Write in details and give examples.

Technical expertise:

As a manager it is essential to have ample knowledge about the product of the business and also

the organizational structure. The manager must know how the product is being is manufactured

hoe the product is distributed, how it is marketed and how it reaches the final consumers. For

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example this skill is the more commonly used when taking decisions in a business; the manager

is able to judge from his experience and knowledge of alternate courses of actions. This

experience cannot be taught and is therefore a valuable skill that the manager possesses.

Clarification of goals and objectives:

Managers need to have a clear vision of the goals and objective of the business, as in where the

company should be standing in the future. This is very important as this will test how much of a

visionary a manager is. For example, a manager willing to expand productions from 10 million

units in this year to 20 million next year will work and plan differently if the manager is willing

to expand production to 15 million.

Problem Solving:

It is required by the organization in order to succeed to make sure there are no to minimal

conflicts in the work place and even if the conflicts do arise to make sure to resolve these

problems as quickly and as efficiently as possible. For example, if there is a conflict between two

employees the manager must immediately address to this problem and fix the problem or find a

solution to make the employees both happy. This leads to a more friendly work environment and

ergo a more productive place for work.

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Imagination and creativity:

The manager is also responsible for the creation of innovation and finding out new ideas to

improve the organization. The manager must come up with new ideas to help develop and grow

the business to attain more success and to make sure their business is ahead of the curve. For

example the manager could arrange team meetings once every week to brainstorm and

interchange ideas for the expansion of the business.

Listening to insights:

A very important part of a manager’s work is based on team building. The manager must always

be aware of the state at which the employees under his guidance are at. There must be a good

deal of interaction between the employees and the manager. This is because employee

performance is directly linked to the level of morale the employees are in. A happy employee is

willing to work harder than an employee with low self-esteem. For the aforementioned points

communication between managers and employees are very important. In order to communicate

better with the employees, the managers must listen to insights. The manager may arrange

meetings for specific teams and ask the employees for their inputs on a given decision and they

could even address the development of the product on service that the organization is giving.

Discussion on the work affairs is a great way of innovation. Managers might also arrange for

different workshops for the employees to attend. These workshops help the employees get

motivated and the overall performance of the business increases. For example when we were

interviewing the manager of BATB she lets us know that when groups are formed in BATB in

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different projects then the managers are advised from the top level to take opinion from all the

group members.

Directing and coaching:

Directing and coaching is a part of a manager that allows the employees to reach their potential.

The manager must guide and lead the team members so that they perform better and therefore

allow the organization to reach its maximum position. For example the manager can assign

targets for the employees and he might assist the employees to reach those targets this keeps the

employees on the right track and the chances of making a mistake is also reduced.

Solving problems as a team :

Managers also play a role in helping the team to improve their performance. For example

managers must sit the team together and try to figure out a problem this creates a better team

effort and the team-mates gain experience and are able to grow and learn from the team building

activity.

Coordinating and control:

Cooperation between teams are of great importance when managing teams. When jobs are

performed in an organization they are often interrelated and for that reason coordination between

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employees is of key importance. The manager must motivate the employees and make them

willing to work with one another. Also the entire team must be able and willing to work together.

If one portion of the group is dysfunctional the overall progress might be disrupted, so it is

essential for managers to make sure there is a good coordination between team mates and also

they are controlled properly. The manager might give the team small team assignments so that

the group interacts with each other and the coordination might be judged. For example, In BATB

the managers try their level best to coordinate their employees so that as a team they can be

complimented to reach the organizational goal.

Standard of performance:

The ability to keep the managers and employees willing to work is another very important

portion of the skill set that the efficient manager displays. In order for an organization should

move to reach its full potential. In order to do so the managers should hand out small tasks and

give targets ; and the employees must fulfil these for added rewards, monetary or non-monetary.

Managers may plan out the organization’s budget forecast and give smaller weekly targets to

check whether the employees are able to maintain the plan that the manager intends to forecast.

For example, The managers always want to reach the benchmark while it comes about the

performance standards. In BATB the recruitment process is very strict. They have always

maintained a certain level of performance, which have been the key to their success.

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Control of details:

Any manager is expected to oversee the performance at a close level so that the product or

service matches with the standards. There are a lot of ways in which the manager could have a

good control on the details. For example, Managers could take samples from the production line

and check it for faults and this would find the frequencies of fault which the manager could then

use to find out way of improving the process if necessary.

Energy:

It is the manager’s responsibility to keep himself and everyone around him well energized. The

performance of an employee is directly linked to the employee’s morale. So managers must

maintain a level of energy and generate a willingness to work within the employees. They create

a drive within the employees to perform better and ultimately leads to the welfare of the

company.

Exerting pressure:

Managers often need to exert pressure in order to motivate the employees. When monetary

benefits are not enough sometimes a sense of a consequence may increase the employee

performance. The employees need to fear the consequences if set tasks are not performed or

performed improperly. The fear of employees losing jobs also works as a tool for employees to

be always efficient so they give their level best at all times and this allows the business as a

whole stand out. For example, The manager can put mental pressure to get the work done.

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According to the manager of BATB which are the most important and widely

used skills while managing the people?

Clarification of goals and objectives

A manager needs to determine how the goals and objectives for the department are set.  These

goals might be established through the boss, upper management, or might even be

determined .  In any case, the goals are most likely based on industry standards, or using the

competition as a benchmark.  No matter how the goals are set; you need to fully understand their

meaning.  You also have to be able to clearly communicate these goals with your staff.

 

The manager believes that, the employees need to firmly know what is expected of them.  They

should be able to quote these goals when asked, and have the meaning of these goals engrained

into their memory.  This way they will always have a unified focus on where they are now, and

where they need to be headed.  Goal setting encourages employees to put in substantial effort;

because they know exactly what is expected of them.  There is little room left for a lack of effort

going unnoticed.  Goal setting also provides direction and a sense of purpose.  Goals are the

motivating force to work harder.  To make the goals worthwhile, there needs to be a reward of

some sort, once the goal is achieved.  

The manager gave a list of some typical goals and objectives that are common within their

company that might have to face as a manager:

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Improve customer satisfaction

Prepare for a new product launch

Improve project management

Reduce attrition rate (employees leaving the company)

Reduce product defects

Reduce service outages

Reduce hold times

Reduce costs, and increase profits

Coordinate efforts on acquiring another company

Outsource specific projects

Expand operations

Improve product delivery time

Listening to Insights

The manager leads a network of Managers, dedicated to Media Insights and its evolution within

the business. The manager says, that he believe that the ability to motivate and lead teams is

critical to their success, as they come to better answers in teams than as individuals. It will

motivate and lead the Media network. The leadership challenge is to provide functional

leadership without having direct line management responsibility for network members.

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It will be driven by an innate passion for the consumer and an inherent curiosity as to why things

are as they are. This passion will need to be complimented by an equally strong ability to

evangelize this across your teams and to your business partners.

KEY RESPONSIBILITIES

Set the vision and strategy

Lead the global Media insight network. Provide functional leadership and coaching for key

network members.

Lead the business partnership with key stakeholders

Create and implement best practice Media insight methods and applications across the

organization.

Identify Media opportunities to grow the global business.

Lead key global Media insight projects

Set guidelines for Media insight budgets for regions.

Be the Media insights expert in order to consult on key strategic priorities and business issues.

Support regions in developing and delivering their Media insight plans.

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REQUIRED LEADERSHIP BEHAVIOURS

Accountability & Responsibility

Growth Mindset

Consumer and Customer Focus

Bias for Action

Building Talent & Teams

Standards of Performance

While performance elements tell employees what they have to do, the standards tell them how

well they have to do it. It tells about the series defined and reviewed the characteristics of

critical, non-critical, and additional performance elements. It also reviews the principles of

writing good standards that can be used effectively to appraise employee performance of those

elements.

The manager of BATB believes that, performance standards should be objective, measurable,

realistic, and stated clearly in writing (or otherwise recorded). The standards should be written in

terms of specific measures that will be used to appraise performance. In order to develop specific

measurers, you first must determine the general measures that are important for each element.

The managers told some general measurers used to measure employee performance include the

following:

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Qualities address how well the work is performed and/or how accurate or how effective

the final product is. Quality refers to accuracy, appearance, usefulness, or effectiveness.

Quantity addresses how much work is produced. A quantity measure can be expressed as

an error rate, such as number ore percentage of errors allowable per unit of work, or as a

general result to be achieved. When a quality or quantity standard is set, the Fully

Successful standard should be high enough to be challenging but not so high that it is not

really achievable.

Timeliness addresses how quickly, when or by what date the work is produced. The most

common error made in setting timeliness standards is to allow no margin for error. As

with other standards, timeliness standards should be set realistically in view of other

performance requirements and needs of the organization.

Cost-Effectiveness addresses money savings to the Government or working within a

budget. Standards that address cost-effectiveness should be based on specific resource

levels (money, personnel, or time) that generally can be documented and measured in

agencies' annual fiscal year budgets. Cost-effectiveness standards may include such

aspects of performance as maintaining or reducing unit costs, reducing the time it takes to

produce a product or service, or reducing waste.

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Energy

Energy management includes planning and operation of energy-related production and

consumption units. Objectives are resource conservation, climate protection and cost savings,

while the users have permanent access to the energy they need. It is connected closely

to environmental management, production management, logistics and other established business

functions. “Energy management is the proactive, organized and systematic coordination of

procurement, conversion, distribution and use of energy to meet the requirements, taking into

account environmental and economic objectives”.

Objectives

To raise the professional standards of those engaged in energy management

To improve the practice of energy management by encouraging energy managers in a

continuing program of professional development

To identify persons with acceptable knowledge of the principles and practices of energy

management related disciplines and laws governing and affecting energy managers

through completing an examination and fulfilling prescribed standards of performance

and conduct

To award special recognition to those energy managers who have demonstrated a high

level of competence and ethical fitness for energy management.

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What are the strengths and weakness of the management process followed in

BATB?

Strengths

1. Wide recognition

BATB is widely recognized as good corporate company for its corporate value and ethics.

The effective management of BATB has always been able to keep their target indifferent to

reach their goals by good deeds, which has let them have a wide recognition The good

deeds are in terms of highest tax payment, community services, afforestation programs and

helping some social organizations like shandahni.

2. International brand Image

BATB’s manufactured premium and medium segment brands Benson & Hedges, State

Express 555 and John Player Gold Leaf are internationally recognized & valued by its

loyal customers. This is because these brands are manufactured in different BAT

operating companies and dominating in the world market. Quality of these brands is

legendary and consistent, when it is compared. In order to ensure the quality product

BATB use global sourcing of all the raw material, this is common for all the operating

companies in BAT.

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3. Strong brand portfolio:

BATB offers product in all price segments in the market. All their products are the

market leaders, having the majority of market share in term of value and volume. The

qualified managers of BATB used their knack to have a very strong and productive

portfolio.

4. Talented workforce

People are BATB’s fundamental advantage-the sources of all their strength. This include

management, workforces and all other business partners, who are directly involved in the

value chain process. People are highly trained and motivated, productive and team-

oriented. The management system of HR must be highly credited to attract the best

employees of the job market, because of BATB’s brand image.

5. Better product quality relative to the rivals

As mentioned earlier BAT maintains its consistent quality with good blend of tobacco

through superior technology, thus BATB is always in an advantages position compare to

its competitors. The productions department plays a vital role here. BAT grows tobacco

for their own consumption in Bangladesh and they have completely separate function

responsible for tobacco growing and processing, which their competitors do not have.

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5. High financial strength:

BATB has a huge financial back up. The company can devote a large fund to R&D,

advertisements, quality control, and training and also in other areas, which its competitor

can’t match. The finance department gives their maximum attention while planning their

long term financial strategies.

6. Absorbing economies of scale in producing BAT products:

BAT product has a higher demand in Bangladesh. As the company produces in a large

scale, it possesses economies of scale and hence per unit of cost is comparatively lower in

Bangladesh. On the other hand production sources – land, labor and raw materials are

also low in this country.

Weakness

1. Strong Trade Union:

Trade union is one of the weaknesses for BATB. They are resistant to any changes. It

takes lot of management effort and time to make the union leaders to motivate for any

minor changes in the entire process. Management in BATB is working hard to change the

culture and practice through different projects and program.

2. Missing a large number of consumers due to high price:

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BATB is losing a large number of consumers in Bangladesh due to high price of its

products. It does not have a product for very low income consumers and Biri consumers.

Evidence shows that 74.5% of the total volume of market share of smokers (Cigarette and

Biri combined) belongs to local company where BATB has no access. Hence we may

suggest that BATB may capture a large portion of the local smokers market, if it

produces a low priced product for the low income consumers.

3. Wholesalers and retailers are not getting enough attention:

Distributors of BATB do not provide adequate attention to wholesalers and retailers.

Enough merchandizing materials are also not provided to them. On the basis of the above

in depth external analysis the following opportunities and threats have been identified for

BATB that need to be considered with due care.

4. Barrier in advertising:

As a tobacco company BATB is not allowed for any advertisement. As a result they can

neither inform nor persuade their customers to consume their products. However, they are

allowed to go for indirect advertisement like music competition’s sponsorship, arranging

business competition etc. The manager whom we interviewed she mentioned that their

revenue could have been double or even more than that if they were allowed to go for

direct advertisement on TV, Radio, and other Medias.

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5. Lack of space for Tobacco plantation:

The government has permitted BATB to use land for tobacco plantation but the land is

very limited. They can not use more than that, because of government prohibition. Even

they have greater demand of producing more tobacco but because of lack of permitted

land they can not plant anymore tobacco. (Dhaka Tribune. (2013) [Online] Available from:

http://www.dhakatribune.com/wellness/2013/may/21/tobacco-consumption-bangladesh-sees-record-rise [Accessed 19th December

2013] )

How can the management process of BATB be Improved?

1. More efficient marketing management

BATB can not use direct advertisement so they have to rely on indirect advertisement.

Unlike Mallboro does they do not do very efficient indirect advertisement. So the

management must take measures so that they can focus on indirect advertisement.

2. Getting Prepared for the competition

Bangladesh is a land of investment opportunities but now BATB does not have to face

much competition from their competitors compare to other industries of Bangladesh.

Some of the international tobacco companies might step into Bangladesh for investment

as it is very profitable market. However, the management of BATB is still not prepared

for that upcoming competition. So the management must be aware of that and train their

employees from very now to face any challenges thrown at them.

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3. Negotiate with government about the lease of the land

From the earlier section we know that BATB can not lease any land because of

government prohibition. The management must be qualify enough to negotiate with the

government to lease or use more land to plant tobacco. They can negotiate with the

government by focusing on the bright sides, like BATB is one of the highest payers. They

have contributed heavily on the national economy.

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Conclusion:

In this report we have focused on the management process of British American Tobacco Bangladesh. We

started with the history of its, then its products, Employees and Customers. We have also focused on how

they utilize the 8 managerial functions. Then we have tried to find out how do they use the 12 managerial

skills according to Wilson. We have also focused on the magnitude. BATB management is a very

successful and reach management. All we have seen are their strengths on their management. However,

we found that they have some weaknesses too, which they can improve in the future. While talking to the

Human Resources executive of BATB Mrs. Shamima Ahsan, We got to know the full story of BATB

management and using that we have prepared the project. At the end we would like to thank our

Instructor Tasnim Rezoana Tanim, as she allowed us to work with such a productive and efficient

management of British American Tobacco Bangladesh.

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Reference:

A. BAT Bangladesh Year Book 2010-2011

B. British American Tobacco Bangladesh. (2013) [Online] Available from:

http://www.batbangladesh.com/ [Accessed 9th January 2013]

C. Cassidy, CM & Kreitner, R. (2011) Principles Of Management.12th Edition Ed South Western.

Cengage Learning.

D. Dhaka Tribune. (2013) [Online] Available from:

http://www.dhakatribune.com/wellness/2013/may/21/tobacco-consumption-bangladesh-sees-

record-rise [Accessed 19th December 2013]

E. Report Linker. (2012) [Online] Available from

http://www.reportlinker.com/ci02053/Tobacco.html/coverage/Asia:Bangladesh [Accessed 21st

December 2013]

F. Wikipedia. (Modified 2014) [Online] Available from

http://en.wikipedia.org/wiki/British_American_Tobacco [Accessed 11th January 2014]

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Recommendation:

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