British American Tobacco

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Information System Of British American Tobacco Bangladesh

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Transcript of British American Tobacco

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Information SystemOf

British American TobaccoBangladesh

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Executive Summary

British American Tobacco Bangladesh (BATBC) is one of the oldest and largest multinational companies operating in Bangladesh. The UK-based British American Tobacco Group holds 65.91% share in the company. The Government of Bangladesh owns 28.7% through several of its agencies, while 5.39% is owned by other shareholders. British American Tobacco Bangladesh uses high technological information system. In every department of BATBC is consists of new software that provides good technological support for them and maintaining their data about customer, market and overall organization in a very decent way.

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Chapter 1

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Introduction

British American Tobacco Bangladesh is one of the oldest and largest multinational companies operating in Bangladesh. The UK-based British American Tobacco Group holds 65.91% share in the company. The Government of Bangladesh owns 28.7% through several of its agencies, while 5.39% is owned by other shareholders.

They are the leading business organization in the industrial sector employing more than 1,300 people directly and a further 40,000 indirectly as farmers, distributors and suppliers. They have business contracts directly with around 21,000 registered farmers who produce high quality tobacco leaf.

British American Tobacco Bangladesh began its operations in the sub-continent in the year 1910 as Imperial Tobacco Company Ltd. Post 1947, Pakistan Tobacco Company (PTC) came into existence with its head office in Karachi. During that time, PTC's East Pakistan office was in Armanitola which was ultimately moved to Motijheel.

After independence, in 1972, Bangladesh Tobacco Company (BTC) was formed with British American Tobacco holding majority of the shares. In March 1998, Bangladesh Tobacco Company changed its corporate name into British American Tobacco

Bangladesh proclaiming its common identity with other operating companies in the British American Tobacco Group.

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The History of the Company

British American Tobacco is the world's second largest quoted tobacco group by global market share, with brands sold in 180 markets. With more than 300 brands in our portfolio, they make the cigarette chosen by one in seven of the world's one billion adult smokers. They hold robust market positions in each of their regions and have leadership in more than 50 markets.

The Group's subsidiary companies have 64 cigarette factories in 54 countries producing some 678 billion cigarettes (including the 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 97,000 people worldwide.

Our business enables governments worldwide to gather over £15 billion a year in taxes, including excise duty on our products, over 8 times the entire Group's profit after tax.

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Chapter 2

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The Information system in terms of Functional Perspective:

British American Tobacco Bangladesh (BATBC) has comprehensive operations in Bangladesh. It often terms this as 'seed to smoke' which means it have operations that start from growing tobacco to distribution of cigarettes. Its different functions work in an integrated approach with shared goal of achieving the company's vision and objectives.

Sales and Marketing Systems :

At British American Tobacco Bangladesh, informed adult consumers are at the centre of our interest. Marketing in the tobacco industry requires more focus, more acumen and most importantly a clearer sense of responsibility than in any other industry. It expect their marketing team to have the ability to differentiate their marketing initiatives, to manage productive and profitable relationships with its key accounts, to integrate strategies above and below-the-line and to be innovative - while always behaving responsibly, which is a fundamental philosophy in its marketing challenge.Marketing operations at British American Tobacco Bangladesh include a range of activities like Brand management, Trade marketing and distribution, Market research and consume dialogue, and specialized channel management etc.

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Some highlights follow:

Building Brand:

It is the effective management of all elements of the Marketing Mix (with the exception of above-the-line and other marketing activities that are restricted by law as well as by their voluntarily adopted internal marketing standards) and is extremely critical to their business success.

Trade Marketing & Distribution:

It is all about developing and implementing distribution plans · implementing merchandising and point of sale practices; monitoring and managing out of stocks and building an effective relationship with customers.

Consumer Insights dealing:

Consumer insights deals with understanding of consumer needs, preferences and purchasing behavior.

Managing specialized channel:

It is about effective management of business channels with key accounts in Hotels, Restaurants and Cafes (HORECA), Grocery and Convenience channels.

The Information System Used in Marketing and Sales :

The British American Tobacco use DSS application in Sales and Marketing. Model driven DSS support decision about product pricing, sales forecasting and advertising and promotional campaigns. The company also uses DSS for customer relationship management (CRM) to analyze customer purchasing patterns, detect customer retention problems, identify profitable customers and develop targeted marketing campaigns.

BATBC implement order processing system in its operational level to enter, process and track orders. It implement pricing analyzing system in its management level for determing prices for products and services. It also implements sales and forecasting system in its strategic level for preparing sales forecast.

Operations System:

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Operations function is at the heart of their business, so we invest substantially in people and technology to ensure that their processes are state-of-the-art, highly flexible and responsive to the needs of our customers and consumers alike.

Working in operations means constantly having to balance the demands of availability, quality and cost. Our people operate in a high speed environment and under tremendous pressure, so they need the strength of mind to make quick decisions, often basing them on limited information. They also need to be open to innovative solutions that can improve our processes. The three major components of our Operations department are:

Green Leaf Threshing Plant (GLTP): The company's GLTP, set up in 1994, is in Kushtia. It prepares the green tobacco leaf procured by our Leaf team for further processing and manufacturing.

Primary Manufacturing Department (PMD): It is responsible for further conditioning of the tobacco to make it ready for production.

Secondary Manufacturing Department (SMD) : It uses the tobacco, which is blended and conditioned by PMD, along with wrapping materials, to manufacture cigarettes.

The Information System Used in Operations:Apart from producing a wide range of brands and SKUs, the department also takes care of security, procurement, logistics, technical maintenance, process and quality control, employee relations, and other aspects of the business. One significant aspect of our operations is the effort to ensure a working environment which complies with world-class Environment, Health and Safety (EHS) standards. A number of Zero Accident Awards from the BAT group head quarters stand testimony to the success in this regard.

BATBC control the action of machines and equipment in its operational level through machine control system. In management, level it decides when and how many products should be produce through the production planning system. BATBC implement facilities location system for deciding where locates new production facilities in its strategic level.

Finance and accounting System:

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In a competitive business environment, a commercially astute finance function is critical for making good business decisions - for example - about which brands or countries to invest in, in evaluating and improving returns and of course, in managing the delivery of consistent profit growth to the shareholder.

Finance managers within BATB are part of the decision-making team, a business partner who is consulted and involved day to day, not merely reporting results and setting budgets. Having moved beyond the 'comfort zone' of purely technical accountants, into added value decision support, they require people who are commercially astute, intellectually curious and passionate about business life, not just figures.

Whether we are working in tax or treasury, or in the business partnership roles supporting marketing, operations and the other functions, we will find the need of excellent communication and influencing skills to represent finance in the commercial arena

Finance & Accounting department's activities within (BAT BC) include:

• Setting and delivering against financial objectives• Planning and budgeting for optimal use of resources to grow the   business and to satisfy shareholder expectations • Management reporting to the Board on business performance,   current and future• Statutory reporting and support of investor relations• Audit and business risk management• Acting as a value adding business partner to all functions

The Information System Used in Finance and Accounting System: The British American Tobacco Bangladesh (BATBC) use Electronic Data Systems (EDS) dashboard application version. It use for automatic graphics on a four quadrant chart to represent the data flowing in from an automated sales force program that tracks where revenues comes from.

BATBC tracks its money owned the firm by following Accounts receivable system in it’s operational level. It’s management level prepare short term budget through budgeting system and it’s strategic level plans its long term profits through profit planning system.

For implementing Accounts receivable system, Budgeting system and profit planning system they use proper information system.

Human Resources System:

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The Human Resources department bears primary responsibility for creating and sustaining a winning workforce for BAT Bangladesh. What this means is providing opportunities for talented employees to feel the satisfaction and fulfillment gained through being members of a responsible, winning organization; where they are respected, rewarded and recognized; where their efforts are encouraged; where their careers are developed; where they understand the vision and strategy of the company. and they know where they fit into the bigger picture.

The HR function within BAT Bangladesh takes care of three broad areas:

• Organizational development• Reward• Talent resource • Employee relations.

The Information System Used in Human Resources:

British American Company’s Human Resources function uses model based decision support system for analysis of labor contract costs or alternative compensation plans for nonunion employees. Executive information systems are used for human resources planning to project the firms’ long term labor force recruitments.

BATBC’s operational level tracks employee training skills and performance appraisals through the training and development system. Management level of BATBC monitors the range and distribution of employee wages, salaries and benefits through compensation analysis. By implementing the human resources planning system in the strategic level this company plans its long-term labor force needs of the organization.

So for implementing Training and Development system, Compensation system, and Human resources planning system BATBC established and maintain quality full and proper Information system in it.

The Advantages of Information System used in the company:

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It helps to keep the record properly.

It provides current data to the management.

It provides up to date information to the functional level manager.

It keeps record properly.

It gives more accurate data in a very short time.

The two new Information Systems that can be implemented in a company:

1. British American Tobacco can use a high speed internet connection that is tagged with every employee. This helps the organization to collect the information or any kind of help in a difficult situation when the employee is not physically present.

2. It can also use some auto upgraded software that upgrade the data without any kind of human touch and provide information to the need people in time.

The barriers to implement the system:

1. The money needed for this kind of information system is not match up with the structure.

2. Yet Bangladesh is not backed by high speed internet service everywhere in the country.

My willing:

By kept in mind all this things I like to work with British American Tobacco because this provides a lot of facilities in terms of information system.

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