The Bristish American Tabacco Company

1846 Words4 Pages

In 1902 both the imperial tobacco company which was located in the United Kingdom and the American tobacco company which was located in the United States of America came together in a joint venture to become British American Tobacco. Today it still goes by the same name with its headquarters in London, United Kingdom. British American Tobacco today is second largest in terms of sales in tobacco. Even with the government’s efforts to reduce smoking the British American company still was listed as the sixth largest company on the London Stock Exchange. The British American tobacco company has done well in term of globalization and being multinational with a market lead in 50 countries and carries operations in 180 countries. British American Company has 44 factories which are located within 39 countries. It operates with a workforce of about 55,000 worldwide. So all of the information above shows how multicultural British American Company is and how diverse it is which it can utilise as a strength. Altogether last year it produced profits around £5,000 million pounds which makes it a successful organization in my opinion.
Environment
A factor in the environment which has the potential to impact on the company heavily is the weather. This is as tobacco is an organic product produced by farming, which relies on the abiotic factors for growth which the weather influences (water, soil, air, temperature and sunlight). This has the ability to contain adverse weather contains such as draughts which will either kill the crop or heavily stunt growth. On the other hand it could provide optimum growth conditions for tobacco increasing the size and therefore yield. So both factors has the ability to influence the yield and therefore the eff...

... middle of paper ...

...ctor which influenced British American Tobacco in a negative way is 17 and 18 of the world health organisation convection on tobacco control as it pushes farmers away from tobacco farming and this means less tobacco is produce so they can’t supply enough tobacco to meet the demand so miss out on potential sales therefore decreasing profitability.
Political
Due to the fact that British American Tobacco is such a global business this means it operates within different tax boundaries. So this can influence revenue and if the tax is high on the cigarettes in a certain location for example the United Kingdom, this may make potential customers less likely to buy the products compared to Gibraltar where the tax is duty free. So this may be a pull factor for some potential customers here as the cost is so low so more people may smoke therefore increasing sales and profits.

More about The Bristish American Tabacco Company

Open Document