Top-Rated Free Essay
Preview

British American Tobacco Malaysia

Powerful Essays
1196 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
British American Tobacco Malaysia
Executive Summary

British American Tobacco Malaysia is a largest tobacco company in Malaysia. This company is under a large tobacco group which is British American Tobacco Group. It is the second largest tobacco group in the world. Back to Malaysia, it owns 60% of market share in Malaysia.

BATMalaysia producing and distributing risky product which is cigarette, it is restricted by many laws and regulation which set by the Malaysian Governments. One of the acts is Tobacco Products Control Act, 1993. Furthermore, BATMalaysia promoting a campaign which is youth prevention programs, it is to prevent youngster to have a contact with cigarette. BATMalaysia is playing an important role in Malaysian economy. It’s distributing around 3% of tax revenue for Malaysian Government which is count in billions. In social factors, cigarettes are always only allowed to sell to adults but nowadays many underage kids start smoking which is uncontrollable. BATMalaysia is not just selling cigarette, it is also telling everyone that the harmful of smoking too, but it is not effective which number of people smoking is just increasing yearly. There is a research and development on cigarette department in BATMalaysia, their job is to minimize the harmful of cigarette. The most important resources BATMalaysia depend on are tobaccos plantation, the plantation of tobacco is not harmful to the soil. On the other hand, the company is committing a high standard of environment protection like save energy.

1.0 INTRODUCTION

British American Tobacco Malaysia (BATMalaysia) is a combination of two large tobacco companies which is Rothmans of Pall Mall Berhad and Malaysian Tobacco Company Berhad which makes it become the largest tobacco company in the country. The merging was on 3rd November 1999 and it is very successful. Today, BATMalaysia owns 60% market share and ranks amongst the top 25 companies on Bursa Malaysia Securities Berhad in terms of market capitalization. This company owns quite a lot of brand of cigarettes and the famous brands are Dunhill, Kent, and Pal Mall. BATMalaysia is a company who produces, manufactures and distributes cigarette. This company is under a group which is British American Tobacco Group, the world second largest tobacco group. This group has 45 cigarette factories in 39countries, and more than 60,000 employees worldwide.

For such a large company, there must have a macro environmental forces which impact the company in terms of political, economical, social, technological, and natural factors.

2.0 POLITICAL ENVIRONMENT

British American Tobacco Malaysia is clearly producing risky product which is cigarettes and tobacco products. So there is a tobacco control legislation set by the Malaysian Government which is Tobacco Products Control Act, 1993. This act is to restrict smoking in public places, advertisement of tobacco products is prohibited, youth should not smoke, sales to age under 18s is not allowed, and every pack of cigarette needs to show a picture of harmful of cigarette. BATMalaysia using youth prevention programs to counteract the Malaysian government’s tobacco control legislation. This youth prevention program is to both promote tobacco and discourage smoking to the younger generation at the same time. The tobacco industry needs the young market, BATMalaysia used marketing strategies to target the youngsters which going deep into sports, entertainment, packaging and affordability. BATMalaysia sponsored sports event with Dunhill brand like football cup and snooker which is popular in Malaysia. In entertainment, BATMalaysia used music to promote Benson and Hedges brand.

3.0 ECONOMICAL ENVIRONMENT

A Malaysian tobacco industry is a wide ranging industry because it is included producing, manufacturing and distributing. Tobacco industry contributed 3% of GDP in Malaysia and it is represent 8% of the Malaysian Government’s total indirect tax revenue, which is about 3% of the government’s tax revenue. Tobacco is the most cultivated non-food crop in Malaysia. A lot of Malaysian farmers decided to grow it because the price of tobacco is very stable. The major tobacco plantation areas in Malaysia are Terengganu, Sabah and Kelantan.

A pack of cigarette is affordable to any level of salary which is just RM10 per pack in Malaysia, anyone is afforded to buy.

4.0 SOCIAL ENVIRONMENT

In terms of age, BATMalaysia believes that tobacco product should only sell to adult smokers which anyone under 18 is not allowed to purchase and use, but the numbers of underage smoking is increasing every year and there’s no way to stop it. Furthermore, customers who chose to smoke should be also receiving the information about what they purchased and BATMalaysia is able to provide that information with them about the brands. In Malaysia, there is more than 50% of male smoking and numbers of female smoking is increasing every year.

5.0 TECHNOLOGICAL ENVIRONMENT

BATMalaysia has their own research and development on their product which is cigarette. The R&D activities are focused on better understanding on the harmful of tobacco and developing less harmful products to address this issue. This business is not persuading people to smoke, but to offering quality brands to people who decided to smoke. Everyone knows that smoking is bad for health, so BATMalaysia is trying to cut down the risk of smoking their brands by improving the cigarette filter which currently reducing 7times more of nicotine compares to others. But the best way to keep healthy is to quit smoking.

6.0 NATURAL ENVIRONMENT

The business of BATMalaysia is depended on natural resources which is plantation. Tobacco plants are the same plant as tomatoes and potatoes. There are 3 types of tobacco plant which are Virginia, Burley, and Oriental. All these tobacco plants are harmless to the soil and it can earn a good income with small part of a land. On the other hand, BATMalaysia are committing high standard of environmental protection like saving energy by installing automatic doors at pedestrian entrances and installing energy saving system for lightning in factory.

7.0 CONCLUSION

British American Tobacco Malaysia is a tobacco company who produces, manufactures and distributes their product themselves. It is a very independent company which can operates itself without any other assists of external parties. Although it is selling product which is harmful to human bodies, which there is a huge demand in the market. So to reduce the harm of cigarette, BATMalaysia never stop doing research on developing less harmful product to overcome this issue.

. 801words excluded executive summary

References

British American Tobacco Malaysia,2011. Who we are, and The British American Tobacco Group. [online] British American Tobacco Malaysia. Available at:

British American Tobacco Malaysia,2011. Tobacco’s Economic contribution. [online] British American Tobacco Malaysia. Available at:

British American Tobacco Malaysia,2011. Marketing. [online] British American Tobacco Malaysia. Available at:

British American Tobacco Malaysia,2011. Youth Smoking Prevention. [online] British American Tobacco Malaysia. Available at:

British American Tobacco Malaysia,2011. Our views on smoking. [online] British American Tobacco Malaysia. Available at:

British American Tobacco Malaysia,2011. Environmental Management. [online] British American Tobacco Malaysia. Available at:

Research and Development at British American Tobacco,2011. About R&D. [online] British American Tobacco Malaysia. Available at:

Borio, G., 1997. The rise of the cigarette, [online] Available at

Assunta, M., 2004. Industry sponsored youth smoking prevention programme in Malaysia: a case stud in duplicity [online] tobacco control. Available at

References: British American Tobacco Malaysia,2011. Who we are, and The British American Tobacco Group. [online] British American Tobacco Malaysia. Available at: British American Tobacco Malaysia,2011. Tobacco’s Economic contribution. [online] British American Tobacco Malaysia. Available at: British American Tobacco Malaysia,2011. Marketing. [online] British American Tobacco Malaysia. Available at: British American Tobacco Malaysia,2011. Youth Smoking Prevention. [online] British American Tobacco Malaysia. Available at: British American Tobacco Malaysia,2011. Our views on smoking. [online] British American Tobacco Malaysia. Available at: British American Tobacco Malaysia,2011. Environmental Management. [online] British American Tobacco Malaysia. Available at: Research and Development at British American Tobacco,2011. About R&D. [online] British American Tobacco Malaysia. Available at:  Borio, G., 1997. The rise of the cigarette, [online] Available at Assunta, M., 2004. Industry sponsored youth smoking prevention programme in Malaysia: a case stud in duplicity [online] tobacco control. Available at

You May Also Find These Documents Helpful

  • Good Essays

    Richard Joshua Reynolds at the age of twenty-five years old started a chewing-tobacco manufacture operation in Winston, North Carolina in 1875. It was called the R.J Reynolds Tobacco Company. Like every business, he had some competition, there was a larger Tobacco Manufacture; they were known as the Brown Brothers and it was the largest tobacco company in North Carolina. That is major competition. George and Rufus Brown (brothers and sons of a tobacco merchant) are the ones who operate and run the company. R.J. Reynolds was very successful though with R.J. Reynolds being the second largest tobacco company in the United States. His brands include these tobacco products. Winston, Salem, Camel, Pall Mall, Doral, and Kool tobacco products. They pride themselves in their quality of tobacco products and the fact they follow the rules while being an innovation leader in the industry. In 2004, R.J. Reynolds and Brown and Williamson merged their companies to form Reynolds American Tobacco Company which was a great business move.…

    • 567 Words
    • 2 Pages
    Good Essays
  • Better Essays

    Australian Government Department of Health and Ageing . 2004. Tobacco. [ONLINE] Available at: http://www.health.gov.au/internet/main/publishing.nsf/content/phd-pub-tobacco-tobccstrat2-cnt.htm. [Accessed 25 August 13].…

    • 2472 Words
    • 10 Pages
    Better Essays
  • Best Essays

    Hassard, K, ed. 1999. "National Tobacco Campaign evaluation report". Department of Health and Aged Care. Canberra.…

    • 2388 Words
    • 10 Pages
    Best Essays
  • Satisfactory Essays

    Self Reflection

    • 620 Words
    • 3 Pages

    Although I don’t smoke or chew tobacco, I chose to complete the course SLP’s on Reynolds America Inc. I had no idea about the amount of marketing that goes into selling and promoting tobacco products to a nation where more people die from the effects of smoking than anything else. I was also surprised to read about the efforts they are making to the awareness and teaching of the dangers of smoking and about them promoting nicotine replacement therapy products. Since their company is so large, I was able to research all of the marketing aspects from pricing, brand marketing,…

    • 620 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    British American Tobacco Bangladesh is a member of the British American Tobacco Group that is based in UK and one of the leading players in the global tobacco business. With a long established reputation for providing its consumers with consistently high quality brands, British American Tobacco Group was formed at the turn of the 20th century with the objective of establishing a worldwide business. British American Tobacco is World's most global tobacco company. BAT has 85,000 employees selling more than 300 brands in more than 180 markets worldwide. Today, the company produces some 2 billion cigarettes every day. More than a billion people across the globe enjoy smoking tobacco. One in every eight chooses a British American Tobacco brand.…

    • 1159 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Code of Ethics

    • 555 Words
    • 3 Pages

    As a regular feature more focused scientific research are required to be conducted and the development team should devise meaningful ways to reduce harmful effects of the tobacco and the additives in the cigarette. It shall be implemented by the production department and the product head will be responsible for timely review.…

    • 555 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    British American Tobacco Bangladesh Company Limited is a subsidiary of the British American Tobacco Group Plc. The group is the second largest tobacco company in the world with its Head Quarters in Globe House London. British American Tobacco Group has its business spread over 180 countries with over 250 brands.…

    • 3956 Words
    • 15 Pages
    Powerful Essays
  • Powerful Essays

    The British American Tobacco Group is one of the world’s leading international manufacturers of cigarettes, marketing its products in…

    • 31100 Words
    • 125 Pages
    Powerful Essays
  • Powerful Essays

    Brithish American Tobacoo

    • 3593 Words
    • 15 Pages

    British American Tobacco P.L.C. is the world’s most international tobacco group. Based in London, UK it is a market leader in more than 50 countries selling over 300 brands in some 180 markets world-wide with the strength of almost 90,000 employees.…

    • 3593 Words
    • 15 Pages
    Powerful Essays
  • Good Essays

    International tobacco

    • 747 Words
    • 3 Pages

    Can you recommend alternative strategies or solutions to the dilemmas confronting the tobacco companies? To governments? What is the price of ethical behaviors?…

    • 747 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Through more than 100 years of operations, British American Tobacco have built a strong international reputation for high quality tobacco brands to meet consumers’ diverse preferences.…

    • 1228 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    British American Tobacco

    • 9283 Words
    • 38 Pages

    Objectives: To analyse the strategy used by British American Tobacco (BAT) to re-enter the Chinese market…

    • 9283 Words
    • 38 Pages
    Powerful Essays
  • Better Essays

    As humans, we have the freedom to make our own choices, but tobacco products have taken…

    • 3773 Words
    • 3 Pages
    Better Essays
  • Good Essays

    Cigarette Price Increase

    • 1212 Words
    • 5 Pages

    The article is about the minimum price of cigarettes of RM7 for a pack of 20 cigarettes is not a new measure and has been in place since January 2010. More than half of the minors (53%) said they buy their own cigarettes, while 30% got them from friends in Malaysia, 55% of the adolescent smokers smoke less than 10 sticks per day in Kelantan, 95% of shops sold cigarettes to minors without verifying their age. There are over 80,000 retail outlets selling cigarettes throughout the country and are located near schools. About 31% of teenage boys and 5.3% of girls are smokers. Australia and Singapore have high tobacco tax and successfully reduced smoking among adolescents as a pack of cigarettes costs A$15 (RM38) and S$12 (RM29.80) respectively.…

    • 1212 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Thirdly, they will investigate the demand of the adult tobacco consumer in order to create more satisfying products. PMI make some deeply researches to the adult tobacco consumers so that to realize the needs of the products and create some new substitutes to attract more and more consumers and they will focus on the harm reduction of its tobacco;…

    • 1165 Words
    • 5 Pages
    Good Essays

Related Topics