Management Practice On British American Tobacco Bangladesh

Management
Practice on
British American Tobacco Bangladesh
HISTORICAL BACKGROUND OF BATB
British American Tobacco Bangladesh (BATB) Company Limited is the recognized

leader in Bangladesh cigarette market, with a long established reputation for
providing its consumers with consistently high quality brands. The journey of this
company started long back. BATB was established back in 1910 as Imperial
Tobacco Company Ltd. with head office in Calcutta. In the very beginning Imperial
Tobacco Company (ITC) launched a branch office at Moulivibazar Dhaka in 1926.
Cigarettes were made in Carreras Ltd., Calcutta. Imperial and Carreras merged
into a single company in 1943. After the partition in 1947, cigarettes were coming
freely from Calcutta, but introduction of customs barriers in 1948 between India
and Pakistan interrupted the smooth flow of cigarettes from Calcutta to East
Pakistan. In March 01, 1949 Pakistan Tobacco Company (PTC) came into existence
with head office in Karachi; with the assets and liabilities of ITC Limited held in
Pakistan. The then East Pakistan Office was situated in Alico Building, Motijheel.
In order to meet the increasing demand, the first factory in the then East Pakistan
was established in Chittagong in 1952. From this time onwards requirements for
cigarettes for East Pakistan markets were met from products manufactured in
Karachi. In 1954 PTC established its first cigarette factory although high-grade
cigarettes still came from West Pakistan. The Dhaka factory of PTC went into
production in 1965. After the War between India and Pakistan in 1965; the import
of tender leaf from India for the production of Biri was stopped. This gave a big
boost to cigarette business. It was at that time the East Pakistani entrepreneurs
set up 16 cigarette factories in this region. Later in 1966, BAT set up a new factory
in Dhaka. After the Liberation War, Bangladesh Tobacco Company, more widely
recognized as BTC, was formed on 02 February 1972 under the Companies Act
1913, with the assets and liabilities of PTC. Shareholding position for GOB and BAT
was 1:2. BTC (Pvt.) was converted into a public limited company on 03 September
1973. British American Tobacco played a pivotal role in BTC's creation in 1972 and
since then has been involved in BTC's development every step of the way. It is a
policy of BAT that when a daughter company, as BTC was, achieves a certain
standard of performance and exhibits at certain level of profitability, its
nomenclature is upgraded to represent the original company, BAT. When BTC was
successful in producing high quality cigarettes that met international standards in
mid-1998, it came to be known as British American Tobacco, Bangladesh, more
commonly called BATB. At a glance-
BRANDS IN BANGLADESH
BATB recognizes that our business starts with their consumers and their brands.
It’s not about encouraging people to start smoking or to smoke more, but about
meeting the preferences of adults who have chosen to consume tobacco, and
differentiating BATB’s brands from their competitors. British American Tobacco
Bangladesh manufactures and markets high quality and well established
international cigarette brands. Much of the growth of BATB’s leading brands is
driven by innovation – from filters to flavors and packaging to cigarette formats.
Overall BATB’s brand mix is broadly balanced between premium, mid-price and
low-price. In Bangladesh, British American Tobacco Bangladesh is the market
leader in tobacco sector. They have almost 47% market share. Current brands in
Bangladeshi market are Benson & Hedges, John Player Gold Leaf, Pall Mall,
Capstan, Scissors, Star, Pilot, Hollywood and Bristol. All these brands are
positioned in four segments in the Bangladesh cigarette market. A brief overview
of brands is given in the next page- Benson & Hedges In Bangladesh Benson and
Hedges was launched in 1997. Within a short time Benson & Hedges became a
successful brand in BATB’s portfolio and it is dominating the premium segment of
cigarettes in Bangladesh. B&H can be found in three different flavors- Regular,
Lights and recently launched 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, 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. Star and Scissors Star
and Scissors are positioned in the Medium segment. Star, launched 40 years ago, is still
a leading brand in this segment. Currently, it is the highest volume generating
brand for the company. Star occupies the leadership in the low segment outside
Dhaka, where it has tremendous popularity among smokers. Pilot, Bristol and
Hollywood Pilot was launched in 2009 in the Low segment, which is growing
rapidly in Bangladesh. Bristol was launched also in the Low segment in October
2010. Hollywood launched in year 2011 targeting the lower segments as well.
Planning:
Heads of Division/Department are required to conduct a thorough

review of the operations, structure and manpower of their
Divisions/Departments each year, and furnish recommendations of
manpower plan for the following financial year to the Human Resources
Department.
• Human Resources Department is responsible for reviewing the

recommendations and compiling a corporate manpower plan for the
financial year. The manpower plan sets out the number of posts by level
and by Division /Department.
Planning Process:
1. Human resource planning begins by developing profile of the current

status of human resources. This is an internal analysis that includes an
inventory of employees and skills already available within the
organization and a comprehensive job analysis.
2. Analyze jobs providing information about job currently being done, a
critical input for job description, job specification and job evaluation.
3. Review the organizations overall objectives and revenue projection.
4. Translate revenue projection into forecast of demand for human
resources.
5. Assess and forecast internal and external supply source.
6. Matching the forecasts of future demand and supply highlighting
shortage, and over staff position.
Conclusion :
British American Tobacco is one of the reputed multinational companies in

Bangladesh. They have continued their business with good reputation. As a leading
company in cement industry they always try to maintain the highest quality of their
products. Their human resource department is strong & treats their employees as
an asset. BAT has already earned reputation as a very potential Multinational
Company of the country. This has been possible due to skilled manpower, which
has been developed by taking proper recruitment and selection strategies and
giving sufficient training and development opportunities and also retaining their
employee through providing adequate compensation and benefit .We write in no
uncertain term that BAT is functioning very well and we hope that it will continue
its operations and will become the trendsetter of the Human Resource Management
practices of Bangladesh.

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Management

British American Tobacco Bangladesh (BATB) Company Limited is the recognized

Heads of Division/Department are required to conduct a thorough

• Human Resources Department is responsible for reviewing the

1. Human resource planning begins by developing profile of the current

British American Tobacco is one of the reputed multinational companies in

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