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Business overview of British North american Tobacco

British American Tobacco (BAT) is the world's second major cigarette group by global market share. BAT produces smoking demanded by one-eighth of the world's one billion adult smokers and this particular company is having sturdy market position in each of these regions. Besides that, BAT has command in more than 50 market segments. Based on last year's shows (2009), BAT's subsidiaries allowed the worldwide authorities to gather more than Ј26 billion annually in taxes, including excise obligation on their products which add up to almost nine times the Group's revenue after taxes.

BAT, that was founded in 1902, has existed as a significant global occurrence for over 100 years. By 1912, the company possessed become one of the world's top dozen companies by market capitalization. The corporation works with thousands of tobacco farmers worldwide, producing some 724 billion smoking cigarettes through 50 cigarette factories over 41 countries. The business employs more than 600, 000 people worldwide. BAT's labor force is of multi-cultural and they have devolved composition, with each local company having extensive flexibility of action and responsibility for his or her own operations. In just a framework of guidelines, standards, procedures, strategies and delegated regulators, decisions are created as close as possible to the neighborhood stakeholders of each business.

BAT operates regarding to responsibility since their products create dangers to health. The business stresses on managed responsibility as it is important with their strategy and through dialogue using their stakeholders, they are working towards commercial aims in ways regular with changing anticipations of today's tobacco business.

This international cigarette group is the one group with a significant interest in cigarette leaf growing. Their companies run leaf programs providing direct agronomy support to farmers, covering all aspects of crop creation and environmental best practice. In 2009 2009, the group purchased about 400, 000 tonnes of cigarette leaves, grown up by more than 250, 000 farmers.

BAT ensures the employees' welfare. The business has specially completed a global employee opinion survey also called "Your Words" to provide them a secure and confidential way to words their thoughts and opinions about working at British American Cigarette.

BAT's business begins with their consumers and brands. The business centers more on meeting preferences of people who've chosen to consume cigarette and differentiating their brands from their competitors alternatively than encouraging people to start out smoking or to smoking more. The business' stock portfolio greater than 250 brands is based on different 'must-win' consumer segments which are: international, top quality, lights and mature smokers aged below 30. 'Dunhill', 'Kent', 'Blessed Reach' and 'Pall Shopping mall' will be the four Global Drive Brands which cover the superior and value for money price sections. They grew by 4 % in 2009 2009 (8 billion more smoking cigarettes). The business enterprise is also increasing the account of Vogue in the excellent premium section and Viceroy, a respected good deal international brand besides expanding their Global Drive Brands. The growth of their brands is influenced by innovation ranging from filter systems to flavours and packaging to cigarette platforms. The business comes with a mixture of brand balanced between superior, mid-price and low-price.

Besides that, the business enterprise can be applied the four managerial functions in its company management; planning, organizing, leading and handling. We've also interviewed a manager of British American Tobacco Singapore for further understanding.

2. 1 Planning

In the field of management, planning can be an action to attain a specific goal. Planning can be divided to long run, immediate or brief run period according to the types of the business enterprise. Planning is the main element for a company's development, so it is vital to maintain a firm strategy. A corporation which has established a plan will not ensure that it'll do well, but without planning, the company will promise to are unsuccessful. Planning has to consist of budget, products, management, and the main things are competition and marketplaces.

Planning is also a mission, goal, objective of the company. Mission 's the reason for the living of the organization. Goal is a desired future that the organization tries to realize. Goal is a focus on or proposes that someone or a team must put their effort to accomplish. However, a plan is a blueprint of the resource allocations, schedules, and other activities essential for attaining goals (Mr. Richard Daft, 2009).

Planning is a mental predisposition to do things in an orderly manner, to believe before acting also to action in the light of facts alternatively than guesses (Urwick, 1998-2009). Planning is the simplest way for the staff to carry out their work proficiently as by this way, the company's goal can be achieve easily with small difficulties.

In my estimation, planning is a work that we done it for our future. All the skills we need for planning are examining, forecasting and predicting for the future. This means that planning is completely depending on prediction. Furthermore, planning gets the mixture of "foretelling". Planning allows us to have some mental prep for the items will happen in the future. Besides that, the revenue and trustworthiness of a company are always affected by the look of supervisor.

A plan should be considered a realistic expectation. Planning always influences the management of the business. Managers should establish goals for the organization to achieve. Besides that, proper planning also helps the business to accomplish their goals by making use of all available resources and time effectively and proficiently. Planning firstly decides a certain vacation spot, and then assesses the all possibility of the road and lastly chooses the specific procedure of the program. Therefore, through planning, the organization will plainly know where they go. Moreover, planning includes allocating limited resources. Therefore, a administrator should always be careful to plan in this section to be able to ensure that the business isn't making any damage.

Furthermore, both important main things in planning is choosing alternatives and making a decision. Basically, planning includes making alternatives between all the available choices. So, we do not need to do any planning if the problem only occurs with only 1 possible choice since there is no other choice. Accordingly, making decision is one step ahead of planning. For example, a supervisor would usually be bounded by several choice. So he needs to choose the best choice with respect to the requirements and recourses of his company. A part of this, the government always influences the look of manager. In any businesses today, guidelines and regulation affects organizations big and small. It can either derail programs or even worse, stop programs.

How can a plan be set? There are many ways for us to set an idea. Firstly, the supervisor has to identify the mark of organization clearly. Next, the mark of the supervisor which includes been establish must be specific and realistic; therefore, the organization can easily understand what they must do in order to achieve success. Besides that, the plan of the manager which includes been set isn't just for the business to comprehend, but also to allow public clearly understand what the company will be like in the foreseeable future. Finally, while a director is planning, he must make reference to previous circumstance, and study from it. Then only the guy can decide the business's budget. Finally, the director must audit at every certain period.

Another way to create a plan is, whenever a manager planning, she or he must measure the instant situation of the business. After that, the manager must decide where they would like to go they ought to know how to look.

As we realize, planning brings a great deal of benefits to us to be able to prevent spending our time in unnecessary cases. Planning is the main thing when establishing a business since it will reduce the resources used and save time for the business. Without planning, the employees of the company will aimlessly work and nothing will be done by the end of the day.

When planning, the manager will know where in fact the corporation is progressing whether on the goals and how far they are using their company goals they have achieved. If the organizations do accordingly to the plan effectively, they can reduce the unnecessary effort and time to achieve the goals.

Other than that, planning helps the management to focus on research and clarify their development. Planning also helps the management to avoid from any not necessary mistake and discover invisible opportunities.

Through the interview we had with a director of United kingdom American Tobacco (BAT) Singapore, we know that their goals and purpose are like most organization: maximizing profits and sales amount. Yet, in order to achieve that, they must have strategic strategies in spot to ensure sustainability often it'll be running like hen without brain. In his control their company has achieved their goals and goals clearly. When he is planning for his company, he has satisfied many problems. There are many different issues and peculiarities to arranging objectives. Sometime, he will feel just a little difficulty, because there are way too many ranges he has to consider when planning. But, he will try his better to solve the entire problem as this is his responsibility.

A plan of any company always affects the income and trustworthiness of the company. The supervisor of BAT which we've interviewed says that both income and reputation is important to the business and goals place are reliant on the experience itself. For instance, "When revenue is the agenda, then we formulate programs for higher sales with minimal costs engaged. However, if reputation is at stake, then we need to weigh the professionals and downsides before we embark on any jobs. Relevant stakeholders need to understand and consent before we attempt any jobs, " says the director. Planning includes allocating limited resources. How can he plan in this sector to be able to ensure that the business isn't making any reduction? Limited resources could still generate profits but the goal will be smaller. So careful planning is very important to ensure every step of the program is well protected and carried out. Monitoring progress must be in destination to gauge success so that any deviation from plan is found early or strategies revised when there are hiccups.

In addition, the government also plays an important role, when the director is placing his plan. The guidelines and regulations have an effect on organizations directly. To be able to have control, he says that he must at least look back to past historical data and incidents, and look for similarities through the years to assess recurrences for his strategies. This will give him a little more grasp and expectation. Within their business, fees will impacts they most so the most crucial timing in a year is normally through the budget conversation by their Funding Minister. In addition, the sales are an integral part of important of the business. The manager of BAT informed us that it is difficult to prevent sales from falling after any price boosts. What's important is how they plan to continue reselling before price raises any further. For example, they will sell to customers more securities either several weeks before price is increased. This is to pillow off loss of sales after price increase. Once price is increased, price offers or "old price" offers is given to both customers and consumer to try maintain their commitment.

Based on the interview, we can plainly see that manager arrange for their company is obviously according to the theory of planning because the program of any company is often influencing the revenue and trustworthiness of a company. In a nutshell, both profit and reputation is very important to the business of Uk America Tobacco when setting a plan. The idea of planning has talked about the significance of limited learning resource. The director of English America Cigarette says that careful planning is very important, as this limited learning resource could still bring in profits but concentrate on will be smaller. Besides, the federal government is also influencing their company immediately. What will have an effect on the the majority are the fees of government. Overall, we should know the idea of planning in order to plan a good arrange for the company.

2. 2 Organizing

Organizing is the managerial function which can be defined as making sure there are available resources to carry out a plan. It is an function of rearranging elements pursuing a number of rules which involves the task of duties, grouping of process into departments, and the allocation of sources of firm. Besides that, arranging can also be referred to as assembling required resources to attain organizational aims.

Organizing is the management function which usually practices after planning. Organizing can be divided into organization composition, line relationship, personnel relationship, course control, and centralization and decentralization. The organization structure is the platform where the organization defines how jobs are divided, resources are deployed, and departments are coordinated. The lines relationship is the power which flows vertically down through the composition of the chain demand for example, from the managing director to director, to supervisors, and to other staffs. There is a direct marriage between superior and subordinate, with each subordinate dependable to only 1 person.

The staff marriage arises from the session of personal assistants to older member personnel. Person in an employee position normally have little if any direct authority in their own right but take action, as an expansion of the superior and exercise only 'representative' authoritative. Course control is the number of individuals who are directly in charge to a specific manager.

The last an example may be centralization and decentralization. Centralization is an activity where the attentiveness of decision making is a few hands (top management). All the important decision and actions at the low level, all things and actions at the low level are subject to the approval of top management. The implication of centralization can be considered a booking of decision making power at top level, a reservation of operating power with the center level managers in addition to a reservation of procedure at lower level at the directions of the very best level. Decentralization is a systematic delegation of expert at all levels of management and in every of the business. Authority in retained by the top management for taking major decisions and framing policies concerning the entire concern. The implication of decentralization is the subordinates get a chance to decide and action independently which produces skills and capabilities. This way, the organization can process reserve of skills in it, diversification and horizontal can be easily implanted, and also concern diversification of activities can place effectively since you can find more range for creating new departments

Organizing is important in factors influencing the organization. There is no standard formula for the best way to organize an organization. Among the most important of these factors are strategy, size, environmental conditions, and technology. In strategy, professionals organize to be able to achieve the targets of the venture for which they work. The strategy of the enterprise affects organizing decisions. Changes in strategy frequently necessitate changes in the manner the venture is organized. In size, small enterprises tend to exhibit less formalization, centralization, and difficulty in their organizational composition. Enterprises of the same size may be planned quite in a different way because of differences in strategy, environmental conditions, and technology. In environmental conditions, the main element element in the exterior environment that is relevant to arranging is uncertainty. Some corporations face competitive conditions that change quickly and are very complex, while some face relatively stable conditions. Generally, turbulent environment demands managing decisions that lead to less formalization and centralization in the organizational composition. The very last one, in technology, the techniques where an enterprise transforms inputs into outputs may also affect arranging decisions. Some research suggests that organizing decisions that lead to high degrees of formalization, centralization, and work expertise are more appropriate for routine technology and that the converse holds true for non-routine technology.

Organizing has a central role in the management process. Once programs are manufactured, the manager's process is to see that they are completed, given a specific mission, core beliefs, aims, and strategy. The role of organizing is to commence the procedure of implementation by clarifying careers and working marriage. The organizing process can best be illustrated in the diagram below:


The first procedure for organizing includes identification and division of work which shall be done relative to the ideas that are established previously


Once the task of determining and dividing the task has been done those are similar to be grouped


When the procedure of departmentalization was completed, linking of departments has to be done so that those departments operate in a coordinated manner gives a form to overall firm structure


Each employee should also know from which has to take order and also to whom he's accountable/responsible


On completion of departmentalization process assigning duties

Through the interview with the BAT manager of Singapore, we discovered that he's a very sorted out manager. Prior to making any sales, he ensures that there will do ready stock to enter the market by allocating sufficient amount of resources. He also divides the work among all his subordinates equally and according with their job description to ensure a simple marketing process. Based on the manager which we've interviewed, he says organizing his group is very important because without organizing first, sales quantity cannot be maximized. The director also organizes the sales course for his subordinates to be able to ensure that they are supplying the company's products to the right vendors with sufficient amount of product supplies.

Without a doubt, if we are to compare the real life incidence of the supervisor of BAT Singapore with the managing ideas of managerial function, there are numerous similarities such as allocating resources and staff relationships. The true life organizing in a business by a administrator, like the manager of BAT Singapore, will typically practice about the same theories as mentioned above. Therefore, all in all, every company's supervisor will apply the arranging function in his company although just how they set up their company may vary slightly in one another.

2. 3 Leading

A head is a person who guides and inspires others in doing and doing tasks. An organization desires its employees to contribute in attaining the organization's goals. Leading from the management means that the leader is somebody who influences others to achieve the goals and objectives. Quite simply, this also means they are folks who are able to impact without forcing. An improved leader is usually to be needed to achieve the unattainable goals. This is because the organization needs the people to help in achieving the company goals. (Thomas S. Bateman Scott A. Snell)

Organizations need the people by any means levels to do the things that their people want and also help create and develop the business's vision and future. A innovator must evidently understand the company's mission and perspective. Thus, a leader needs to generate a vision and encourage others to achieve the company's objective. An organization needs the right visitors to do the right thing in a right way and at the right time.

Transformational control is identified in terms of the way the leader impacts his enthusiasts, who are intended to trust, admire and respect the transformational leader. Bass has identified three ways that happen to be increasing their knowing of process importance and value, getting them to give attention to team or organizational goals, alternatively than their own interest and activating their higher order needs in which leaders transform enthusiasts. Besides that, transformational control theory creates a positive change in the enthusiasts when they take care of each other's passions and take action in the passions of the group all together. In this management style, the leader enhances the motivation, moral and performance of his follower group. So matching to MacGregor, transformational management is all about values and interpretation, and a purpose that transcends short-term goals and focuses on higher order needs.

Transformational management theory can be split into four components: charisma or idealized influence, inspirational impact, intellectual stimulation and personal and individual attention. Charisma impact is the degree to which head behave in excellent ways to cause the fans to identify with the first choice has an obvious set of values and works as a job model for the followers. Inspirational drive is the degree to that your head how to encourage and inspire the supporters with the sensible goals and will be offering meaning for their current duties and responsibilities. Intellectual stimulation is the degree to that your leader challenges assumptions and encourages imagination to the followers. These can be done with the employees artistically to solve the condition and achieve the business mission and goals. Personal and individual attention is the degree to which the head attends to every individual follower's needs and works as a coach or coach. The first choice will also appreciates and admires the individual's contribution to the team. This can inspire the enthusiasts to further achievements and progress. (Bass' Transformational Authority Theory)

Actually, effective managers are not actually true leaders. It is because many supervisors, administrations and top professionals execute their tasks efficiently without great market leaders. But these positions afford the chance for leadership. An organization's success or failures are credited to the way the manager leads the business. A manager has the rights to effect the people to do what you want these to do. As the manager, we should also continually be asked to try out the assignments of both innovator and follower as though the people are accountable to you, and you simply report to your boss.

Motivation identifies forces that energize and sustain a person's work. All important work behaviours are encouraged. Professionals need to encourage people to join the organization and remain in the business. Besides that, professionals must also encourage people to triumph over obstructions and also move the business towards a better future always. On the other hand, managers must understand the real human nature. It is because a business always wants the employees to have the ability to work hard to obtain a higher productivity. (Thomas S. Bateman Scott A. Snell)

Through an interview with the administrator of BAT Singapore, we can obviously know about the company's goals or eyesight must be aligned with the company's objective. "An excellent eyesight also helps us to strategize our activities or strategies to move the business forward, " says the manager. Besides that, the administrator develops management through the training which helps him in his basic requirements. On the other hand, the other method is through training. Instruction others or being truly a coached because of your own self. We should most probably to personal development to succeed. A director, who plays a role as a head in the company, must also allow the criticism and reviews though it may well not be pleasant to hear.

The director also thinks that most managers can be transformational market leaders. It is because in the current global business environment, change is the sole constant. Being a leader, if without a vision, you will see a standstill in the manner we conduct business. So, it is vital that a leader be the catalyst of change. The normal issues that always arise in leading especially in a new environment and the most difficult issue is to get the buy-in from your peers and subordinates and the most frequent is the misunderstood. As being a manager we need to overcome these issues is to handle specific team leads and align our goals and strategies. If we're able to accomplish that, half the battle is acquired. If there indications of being misunderstood, revisit the issue and explain again.

The supervisor leads and manages all the employees' performance through a set of written objectives from the start of the years and also conducting well-timed review to measure level of performance. In a very formal entry, at least twice per year is recommended. Alternatively, in the casual approach, as so when necessary when deem appropriate. This allows both employer and employee to realign the goals and address gaps in performance. It really is wrong to leave it to last minute only to discover that the objectives aren't achieved and blame it on the employees.

From the interview, we can obviously recognize that the manager assess an employee's job performance depending on the job scope. Among some way of measuring in the sales department, sales volume, syndication, market returns. These are operational aims. Leadership performance is just as important as it explains to us potentials of individuals to move up the ladder. Through this as well, we are able to encourage and develop the worker to advance further or further. In the last, we can know the director inspire the employees. For the reason that motivation comes in several varieties with cash incentive being the most common. Non-monetary rewards are just as important, for example, a pat on the back for job well done, advice for performance award. Another form of determination is loaning your ear canal to those people who have complains and grouses.

Through the interview, we can obviously determine that the supervisor of BAT Singapore will apply the leading management function in his daily work. In leading, he agrees that most professionals are transformational leaders. We also discovered that the manager motivates his subordinates after evaluating them based on the employees' performance regarding to their job scope.

2. 4 Controlling


Controlling is one of the management functions. It is an important function since it helps to check the problems and to take the corrective action so that deviation from requirements are reduced and explained goals of the organization are achieved in desired manner. According to modern concepts, handling is a foreseeing action whereas early on concepts of controlling were used only once errors were found. Controlling in general management can be explained as setting standards, calculating actual shows and taking into corrective activities in an organization. No matter how difficult, requirements should be founded for each and every important task. However the temptation may be great, minimizing standards to what has been achieved is not really a method for performance problems. On the other hand, a manager needs to lower criteria when they are found to be unattainable due to resource limits and factors external to the business. Corrective actions are necessary when performance is below criteria. If performance is expected to be below specifications, precautionary action must be studied to ensure that the situation will not recur. If performance is greater than or equal to standards, it pays to to bolster behaviours that led to the satisfactory performance.

What is managing? Controlling is a formal, target-setting, monitoring, evaluation and reviews systems to provide professionals with information to determine strategy and composition are working effectively and proficiently. A good controlling system should be versatile so that the manager can react as needed provide accurate information about the organization and information in a timely manner.

Controlling offers a method for making certain the organisation is moving into the accomplishment of its goals. Steps must be taken to set work standards and also to communicate those to the staff. Controlling is also a system of options must be devised to evaluate staff performance relating to these work criteria. Managers must screen the performance of the organisation as well as their improvement in implementing proper and operational strategies. Where there's a variance between actual performance and the suitable work standards, the cause must be in identified and corrective action taken. Controlling includes building and understanding what's required to achieve goals, calculating what actually happen or has been done, identifying deviations between prepared and genuine results, and taking corrective action if there is a deviation.

Controlling includes period of control that can be divided to wide course of control and slim period of control. Span of control is the number of subordinates who record directly to a given supervisor. The management is definitely concerned about the correct span because it influences coordination of the organization. Broad course of control have even organization framework, have fewer hierarchical levels and also results in quick marketing communications but can lead to overworked professionals. A supervisor with a wide course of control may be overextending himself and face difficulties in coordinating their activities. Slim course of control have high organization framework and many hierarchical levels. As levels in the hierarchy increase, communication gets difficult and also the extra levels bring about additional time being taken up to apply decisions. A administrator with a small course of control can give his subordinates deeper supervision but he might be under-utilized.

The factors influencing the span of management are competence of supervisor and subordinates, dispersion of subordinates, level of non-supervisory work, examples of required supervision, magnitude of standard techniques, similarity of responsibilities, regularity of new problems and choices of supervision. You will find 3 types of managing in management. First is steering control buttons and second is screening controls as the previous is post-mortem adjustments. Steering handles is discover deviation from requirements and also to allow corrections to be made before a particular sequence of occasions can be completed and is also also only valid if the director has relevant and timely information. A couple of 3 tools which are participating by using this control: budgets, stock ratios and network evaluation. Screening controls identifies specific areas of a procedure that must be approved or specific conditions that must be attained before work can continue. There are only 2 tools needed in this control: percentage evaluation and queuing theory. The past controlling type is post-mortem control is discussing examination of the causes of deviations from criteria after the activity has been completed. The studies are put on similar activities in the future. Only one tool is needed in this adjustments that is break-even research.

Controlling process establishes specifications, goals, or focuses on against which performance should be evaluated. The expectations must be regular with the strategy. Managers at each level need to create their own standards by measuring actual performances. Managers can evaluate outputs resulting from worker behaviour or they can gauge the behaviour themselves. The greater unorganized the task, the harder it is to gauge the behavior of employees.

Besides that, handling must be related to significant goals and requirements set must be high but achievable.

From the interview with the administrator of BAT Singapore, he applies controlling by ensuring his subordinate prepares a written report by the end of each month to be able to keep an eye on all the employees' sales shows. By doing so, the manager is able to control all the salesmen's and other employees. According to the manager, his course of control is wide. This allows him to communicate easily along with his subordinates at the low level, like the salesmen, to get a better and more precise report about the sales size. However the workload may be more for him, this method is definitely simpler to hasten sales and control everyone so that the guy can maximise his company's profit. Besides that, the "flattened" hierarchy of the company allows the manager's immediate subordinates, which are of the same level and ranking, to have the ability to discuss and come up with more suggestions to improve the company's sales performance.

All in all, we can conclude that the supervisor of BAT Singapore also applies a part of the handling managerial function. However, the manager chooses to gain a broad span of control in his role in BAT. The true life case and theory of controlling are alternatively similar to each other; however, it is not necessary that each company procedures the same controlling method. Therefore, controlling method may vary from one company to some other.

3. 0 Conclusion

In conclusion, a company which does not use the four managerial functions; planning, managing, leading and controlling, into its business will definitely be unable to maximize earnings and sales quantity. The function of an manager, certainly is certainly very important in making sure that a corporation or group is operating smoothly and going in the right direction, which is towards the company's objective and goals.

A director who practices planning in his firm can ensure that the sources of the business as well as time for you to be kept and used proficiently to energize maximum profit era. Besides that, if a administrator also implements organizing while handling his organization, it can be figured all operations will run effortlessly with no problems. On the other hand, a manager who benefits the leading managerial function may also greatly increase sales shows of the business. If leading is performed the right way, a manager can motivate his staff and subordinates to perform better in the company, and thus raise the company's performances. Last but not least, if a supervisor can integrate the handling function while operating his organization, the company is most likely to run all operations effortlessly. Sales can be manipulated easily and company performances can be at the maximum point.

The case study of this task on a supervisor of British American Tobacco Singapore evidently shows the distinctions and similarities of the managerial functions being applied in the real business world.

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